Is over-tourism hurting New Zealand's brand image?

The issue of over-tourism is a challenge facing many places around the world with rising mobility and tourist flows. Globally, international tourist arrivals grew by 7% in 2017, amounting to 1,326 million tourists visiting destinations around the world. This growth was higher than the annual rise of 3.8% forecasted by the United Nation’s World Tourism Organization for the decade 2010-2020. Rising numbers of international tourists are a noticeable trend in countries such as Italy, Spain, Croatia and the Netherlands. New Zealand also recorded an increase in international tourist arrivals in 2018, up from 3.5% the previous year to reach 3.8 million. Similar to many tourist hot spots around the world, popular destinations in New Zealand are not immune from potential over-tourism, with many destinations struggling to cope with large numbers of tourists.

Overall, tourism is New Zealand’s leading export earner, with international tourism contributing $14.5 billion to the country's economy each year and collectively as an industry employing about 188 thousand people (for 2017). Between 2008 and 2018 international tourist arrivals grew by 57%. By 2024, the number of international visitor arrivals is forecast to reach 5.1 million, growing by 4.6% each year. Some of the country’s existing infrastructure is struggling to cope with such rapid growth. Long-awaited investment is being made, such as the upgrading of Auckland Airport, the country’s main gateway for international tourists, but more is needed particularly for facilities in regional and rural destinations. A report produced by McKinsey & Company in 2016 on behalf of key players in New Zealand’s tourism industry identified that investment of between $100 and $150 million in tourism infrastructure was needed per year over a decade to ensure that local infrastructure was in place to ensure destinations could serve residents and increasing numbers of tourists.

At an aggregate level, the benefits of tourism to the national economy are clear, particularly in terms of income derived from tourists’ spending and sustaining local business activity. Whereas the negative effects of rapid growth of tourist numbers, particularly when visitor arrivals are seasonal, are often overlooked. Adverse impacts of unsustainable numbers of tourists such as congestion and pollution, privatisation of public spaces, destruction of historical sites and the natural environment are being felt in places around New Zealand such as Queenstown, Akaroa and Tarras. Indeed, the marketing of New Zealand over the past two decades as an attractive place to visit has been extremely effective. The launch of highly successful ‘100% Pure’ New Zealand marketing campaign, followed by the global attention gained through the Lord of the Rings movie trilogy seemed to magnetise New Zealand as a destination promising visitors a tranquil, naturally beautiful tourist experience. With rising numbers of tourists, some places are becoming overcrowded and are struggling to deliver such an experience to tourists. Local residents are stressed, losing their sense of belonging and overall, some might feel that their quality of life is less satisfying. Feelings of dissatisfaction might even lead locals to voice their resentment of tourists and protest in resistance. Such negative sentiments and actions could potentially harm the industry at both a local and national level.

Many of New Zealand’s rivers and farmlands are showing the signs of the impact of years of intensive farming practices. Could over-tourism be further weakening the country’s natural resources? Well-managed tourism can aid in preserving local cultures and in conservation efforts. However, with the rapid rise in international tourist arrivals, many destinations do not appear to be coping with continued growth. This raises the question of whether current policies and practices adequately deliver sustainable outcomes for tourism destinations throughout New Zealand.

With the aim of understanding how to manage destinations and ensure their sustainability, the sustainability of tourism and tourist activities at both the national and local levels requires the input and engagement of key stakeholders. A research agenda that puts sustainability at the heart of places is needed to address some of the critical questions: how do we activate positive participation by residents in the management of destinations; how do we responsibly govern destinations and what are the best investments in infrastructure to future-proof destinations and their local communities?

This thought piece was based on a Keynote presentation by Associate Professor Andrea Insch delivered at the 3rd Annual Conference of the International Place Branding Association (IPBA), Macau, SAR, China, 5-7 December 2018.