Tourism funding flows and impacts – final report

Purpose of the report
To analyse tourism funding flows across stakeholders, assess the economic impacts of tourism, and provide a high-level indication of infrastructure pressures associated with the government’s Tourism Growth Roadmap.

Key findings

• Approximately $40 billion in tourism spending generates a multiplier effect of 1.7–1.9, with $2.2–$3.5 billion in potential infrastructure investment required.
• Tourism contributed $38.8 billion in expenditure, $24.9 billion in value added, and over 182,700 jobs in 2023.
• Tourism is nationally significant, multi-industry, regionally distributed, and labour intensive.
• Estimated funding flows include $10.5 billion in central government revenue and $1.4 billion in government tourism-related expenditure.
• Local government tourism funding is difficult to quantify, with many indirect flows.
• Industry receives at least $31.1 billion in tourism income against $27.7 billion in attributed expenditure; international visitor charges range from ~$50 to $500.
• Infrastructure responsibilities and funding vary across 21 mixed-use categories, with existing pressures in high-visitor areas.
• Growth under the Roadmap could increase infrastructure investment needs in the order of up to $2.2–$3.5 billion by 2034.

Sapere staff involved: Angus White, Rohan Trill, Dr Jamie O’Hare, Michael Young and Preston Davies.

Client
Ministry of Business, Innovation and Employment (MBIE)