Tourism business confidence drops from RWC high
Tourism businesses have lost the confidence they had during the Rugby World Cup, and are not as optimistic about the next three months as they were in the last two quarters.
According to a tourism industry monitor, business confidence dropped to 60 in the March 2012 quarter, down from a record high of 144 in the September 2011 quarter, and 107 in the December 2011 quarter.
Index values lower than 100 indicate more pessimists than optimists.
“Tourism businesses reported a record high in confidence in the September 2011 quarter because of the Rugby World Cup. Now that it’s over, we are seeing a decline in confidence as well as other factors, such as expected demand and profitability,” tourism research and evaluation manager at the economic development ministry, Peter Ellis, says.
“The tourism industry monitor for this quarter shows the tourism industry expects demand to fall 3.6 percent and profitability to drop by 3.3 percent over the next three months.”
Mr Ellis says Global economic conditions, the international visitor market, and the exchange rate are the main concerns of tourism businesses.