New Zealand’s stunning landscapes, unique wildlife, and vibrant cultural experiences have long made it a top global destination for travelers. However, the COVID-19 pandemic brought the country’s tourism industry to a standstill. Closed borders, travel restrictions, and lockdowns not only decimated international arrivals but also had a profound impact on the local economy, given tourism’s substantial contribution to national GDP.
As the world gradually emerges from the pandemic, New Zealand is taking strategic steps to revive its tourism sector. The recovery is not only about returning to pre-pandemic levels but also about building a more resilient, sustainable, and diverse tourism model that can withstand future shocks. This article explores how the tourism industry in New Zealand is recovering and adapting to a post-COVID world, while discussing the opportunities and challenges ahead.
Interestingly, various travel deals and incentives, such as discounts of as low as 10 dollars, are now being offered to encourage both domestic and international travelers to rediscover New Zealand’s wonders, helping to stimulate the sector’s recovery.
The Impact of COVID-19 on New Zealand’s Tourism Sector
Before the pandemic, tourism was a cornerstone of New Zealand’s economy. In 2019, international tourists brought in over NZD $17 billion, representing nearly 20% of the country’s export earnings and employing one in ten New Zealanders. Popular destinations such as Queenstown, Rotorua, and Milford Sound thrived, with millions of visitors each year coming to experience New Zealand’s diverse attractions, from adventure tourism to luxury travel. There were many local and foreign investors who opened companies in this field in order to benefit from the local opportunities.
However, when COVID-19 struck, borders were closed to non-citizens and non-residents in March 2020, effectively halting international tourism overnight. Domestic tourism became the only lifeline, but nationwide lockdowns meant that even this was restricted. Businesses in tourism hotspots faced immediate challenges, with some operators forced to shut down, while others pivoted to cater to the domestic market or relied on government support to stay afloat.
The sudden decline in visitor numbers had a ripple effect on the wider economy, especially in regions heavily dependent on tourism. Hotels, tour operators, transport services, and hospitality businesses suffered significant revenue losses. The psychological impact on communities that rely on tourism was also significant, as uncertainty about the future of the industry loomed large.
Government Support and Response
Recognizing the vital role of tourism in the economy, the New Zealand government introduced several support measures to help the industry weather the storm. These included wage subsidies, grants, and loans to assist struggling businesses in staying afloat. Additionally, the government invested in domestic tourism campaigns to encourage New Zealanders to explore their own backyard.
The Tourism Recovery Package, announced in May 2020, allocated NZD $400 million to support the industry’s recovery. This included funding for tourism operators to innovate and transform their business models, as well as to maintain critical tourism infrastructure. The package also aimed to protect key regions most reliant on tourism, such as Fiordland and the West Coast.
One of the most impactful initiatives was the “Do Something New, New Zealand” campaign, which successfully encouraged domestic travel during periods of eased restrictions. Kiwis responded enthusiastically, exploring lesser-known destinations and participating in activities traditionally favored by international visitors, such as bungee jumping, hiking, and cultural experiences.
The Slow Reopening of Borders
New Zealand’s cautious approach to reopening its borders has been both praised and criticized. On the one hand, it helped the country effectively manage the virus and protect public health. On the other hand, the prolonged border closures delayed the return of international tourism, which remained largely absent until 2022.
The first major step toward recovery came with the creation of the Trans-Tasman Travel Bubble in April 2021, allowing quarantine-free travel between New Zealand and Australia. While this was a promising start, the bubble was short-lived due to new outbreaks of COVID-19. However, it provided a glimpse of how the industry could rebound once borders reopened more fully.
By mid-2022, as global vaccination rates increased and New Zealand’s own COVID-19 response shifted from an elimination strategy to managing the virus, borders began to open gradually to international tourists. Fully vaccinated travelers were allowed to enter the country without quarantine, bringing a much-needed influx of visitors from key markets such as Australia, the UK, the US, and Europe.
Adapting to a Post-COVID Tourism Landscape
As New Zealand’s tourism industry recovers, there is a growing recognition that returning to the old way of doing things may not be enough. The pandemic has prompted a rethinking of how tourism can be more sustainable, diversified, and resilient in the face of future global crises.
1. Focus on Sustainable Tourism
Sustainability has become a key focus for the tourism sector in New Zealand. The pause in mass tourism during the pandemic highlighted the environmental impact of the industry, especially on fragile ecosystems such as the Great Walks and national parks. Moving forward, there is a concerted effort to promote low-impact, eco-friendly tourism that protects New Zealand’s natural beauty for future generations.
Many operators are now offering sustainable experiences, such as wildlife conservation tours, eco-lodges, and carbon-neutral travel options. The Tiaki Promise, a visitor care code that encourages travelers to respect and protect New Zealand’s environment, has gained traction as more tourists seek meaningful, responsible travel experiences.
2. Diversification of Offerings
The tourism industry is also diversifying its offerings to appeal to a wider range of travelers. While adventure tourism remains a major draw, there is increasing interest in wellness tourism, cultural experiences, and luxury travel. New Zealand’s rich Māori culture is being integrated into more tourism experiences, offering visitors a chance to engage with indigenous traditions, arts, and history.
In addition, there has been growth in domestic tourism as Kiwis continue to explore their own country. Businesses have adapted by creating unique experiences that cater to local tastes, such as boutique stays, food and wine tours, and family-friendly activities.
3. Embracing Digital Innovation
Technology has played a vital role in reshaping the tourism industry post-pandemic. From contactless check-ins to virtual tours, businesses are using digital tools to enhance the visitor experience and increase safety. Virtual reality (VR) and augmented reality (AR) experiences are being developed to allow people to explore New Zealand’s landscapes and attractions remotely, potentially converting virtual tourists into future visitors.
In addition, many tourism operators have improved their online presence, offering more streamlined booking processes, flexible cancellation policies, and personalized digital interactions. These innovations have become essential in attracting and retaining customers in a competitive market.
The Road Ahead: Challenges and Opportunities
While the tourism industry in New Zealand is steadily recovering, there are still challenges ahead. The rising cost of travel due to inflation and fuel prices, coupled with global economic uncertainty, may slow the return of international tourists. Additionally, the workforce shortage, particularly in hospitality and service roles, poses an ongoing challenge as the industry scales back up.
However, opportunities for growth remain strong. New Zealand’s reputation as a safe and beautiful destination is intact, and the demand for authentic, nature-based experiences is likely to drive future tourism. The country’s focus on sustainability, innovation, and diversification will also make it more resilient to future shocks.
Conclusion
New Zealand’s tourism industry, once severely impacted by COVID-19, is showing promising signs of recovery. Through government support, creative business adaptations, and a renewed focus on sustainable practices, the sector is slowly bouncing back. The reopening of borders and the return of international tourists, combined with continued domestic exploration, signal a bright future for tourism in New Zealand.
As the industry rebuilds, it’s clear that the lessons learned during the pandemic—about resilience, sustainability, and adaptability—will shape the way New Zealand welcomes visitors in the years to come.