Business

Quake effects on tourism may not be bad as feared

07:03 am on 23 May 2011

An economist says the effects of the Canterbury earthquake on the tourism sector may not be as bad as first thought - although travellers may be steering clear of the South Island.

Visitor numbers fell 12% between January and March, largely as a result of February's earthquake, but the decline may have been short-lived.

Statistics New Zealand figures show visitor arrivals jumped a seasonally-adjusted 8% between March and April, with more people visiting from Australia, the United States and the United Kingdom.

ASB economist Jane Turner says the timing of Easter and Australian school holidays may have affected the results, but a positive trend could be emerging.

She says it is possible that the drop in tourism arrivals experienced after February's quake may not be as bad as initially feared.

However Ms Turner says she's been hearing anecdotally that South Island tourism operators are continuing to struggle.

She says the high New Zealand dollar is also becoming a challenge.

Japan's earthquake still appears to be denting visitor numbers, with arrivals from Japan and Korea less than half of what they were in April last year.