Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
BMI View: The outlook for New Zealand's tourism industry is broadly positive. The country offers a wide
range of attractions, including summer and winter holiday destinations, which helps to negate the seasonal
travel slump. Transport connections are well developed, though as a far-flung holiday destination New
Zealand is heavily reliant upon air travel for international arrivals. Hotel infrastructure would benefit from
further investment; as visitor numbers increase we are gradually seeing an uptick in investor interest,
particularly in the high-end sector. The tourism industry will also benefit from ongoing government support
via extensive and effective global marketing campaigns.
Key Updates And Forecasts
? New Zealand's hotel sector is attracting more investment. Wyndham is developing a new hotel in
Auckland: the NZD50mn property is due to open in early 2018. There is also reportedly a high level of
investor interest in the Ambassador Hotel in Hamilton, which has been put up for sale. The 67-room hotel
is currently part of the Choice chain.
? Improving accessibility is key to diversifying New Zealand's inbound source market. US-based carrier
United Airlines launched a direct flight between San Francisco and Auckland in July 2016, part of a joint
venture with Air New Zealand. US carrier American Airlines has launched a flight between Auckland
and Los Angeles.
? The improvement of transport connections along with effective tourism marketing campaigns is expected
to yield tangible results in the sector, and we are forecasting steady growth in inbound tourism of over
4.5% annually over the course of the forecast period, leading to total arrivals of 3.9mn in 2020, up from
3.3mn in 2016.