The Times Australia
Business and Money
The Times Real Estate

.

The sun is setting on unsustainable long-haul, short-stay tourism — regional travel bubbles are the future

  • Written by James Higham, Professor of Tourism, University of Otago
The sun is setting on unsustainable long-haul, short-stay tourism — regional travel bubbles are the future

Unprecedented border closures and the domestic lockdown have paralysed New Zealand’s $40.9 billion a year[1] tourism industry. In the process, the vulnerability of the sector to external shocks and the tenuous nature of tourism employment have been exposed.

While New Zealand’s handling of the pandemic has been hailed as a global masterclass, and the prospect of travel bubbles promoted[2] as a way to restart the tourism economy and save jobs, it is clear there is no quick fix.

The inherent dangers of reinfection from travel to and from countries with uncontrolled community transition, and the challenge[3] of protecting New Zealand’s borders, mean international tourism is grounded for the time being.

Nevertheless, planning for recovery is underway. The United Nations World Tourism Organisation (UNWTO) wants to restore confidence[4] and restart tourism without delay. The European Union recently opened its borders[5] to travellers from certain countries, including New Zealand.

But the proposed trans-Tasman and Pacific bubbles will likely be among the first safe international travel zones in the world.

A Tasman-Pacific bubble is good for the planet

The economic benefits are obvious. A recent study using UNWTO data[6] identified Australian tourists, who spend on average $7,490 on holidays, as the top spending tourists in the world. Of the 3.8 million international tourists who visited New Zealand in 2018, nearly 40% were from Australia.

By the end of 2019, Australian tourists had spent $NZ 2.5 billion in the New Zealand economy. Of course, that figure is offset by the $NZ 1.6 billion spent by Kiwis visiting Australia in 2019.

Read more: Sun, sand and uncertainty: the promise and peril of a Pacific tourism bubble[7]

Simply wishing for a return to normal, however, is not enough. The tourism rebuild must negotiate a delicate balance between immediate recovery and long term sustainability. A new steady-state equilibrium that generates employment and income while driving down tourism carbon emissions is required.

Prior to the COVID-19 pandemic it was widely recognised that the global tourism system is economically and environmentally flawed. Our research has highlighted three main structural failures:

  1. low value (caused by growth in arrivals combined with declining spending)

  2. economic “leakage” (due to outbound tourism and the concentration of profit flowing to a few global players)

  3. high carbon emissions (from high-carbon transport dependence, increasing distance of travel and falling average length of stay).

Reducing travel distances is key

In the case of a geographically distant destination like New Zealand, there is no ignoring the last of those problems, as a report[8] by the New Zealand Parliamentary Commissioner for the Environment highlighted in late 2019.

The fact is, high carbon emissions are embedded in New Zealand’s tourism GDP. In the rebuild we must commit to measuring the carbon footprint of tourism, and actively manage forms of tourism that come with a disproportionately high carbon cost.

Read more: Sun, sand and uncertainty: the promise and peril of a Pacific tourism bubble[9]

In practice, this will mean more tourism from the regional medium-haul markets that fall within the proposed Australia-New Zealand-Pacific travel bubble. Increasing reliance on Australian states rather than long-haul markets will result in a dramatic reduction in carbon emissions per dollar of tourism GDP.

Research[10] published in 2010 showed that while Australian tourists made up 37% of international visitors to New Zealand they were responsible for 13% of air travel emissions. By contrast, visitors from Europe made up 18% of total visitors but 43% of emissions.

Fewer long haul arrivals, more Australian tourists, more domestic tourism and less outbound travel will dramatically reduce tourism carbon emissions.

COVID-19 has already kickstarted the domestic part of this equation. New Zealand hasn’t targeted local tourists since 1984’s iconic “Don’t leave town till you’ve seen the country[11]” campaign. But the regions are now competing for the roughly 60% of all tourist dollars[12] that New Zealanders spend in their own country each year.

The closure of international borders has also, for now, stopped the significant economic drain caused by outbound travel. In 2019 Kiwis spent nearly $5 billion travelling overseas.

Time to stop marketing long-haul tourism

Most trade (including tourism exports) comes from markets closest to us. It is much cheaper[13] to trade with neighbours, and it is far more sustainable to have tourists arrive from closer rather than distant countries.

Read more: The coronavirus survival challenge for NZ tourism: affordability and sustainability[14]

New tourism models have to be found that can reduce the sector’s emissions while maintaining as much as possible its income and employment benefits.

Tourism carbon analysis is likely to point towards the growing importance of long-stay visitors, such as international students, who already provide 23% of total international tourist spending in New Zealand.

Equally it will be necessary to “de-market” and reduce long-haul, high-carbon, short-duration, and low economic yield tourist arrivals. Passengers who arrive on enormous carbon intensive cruise ships – 9% of visitors but only 3% of tourism earnings[15] – fall firmly into the least desirable category.

An Australia-New Zealand-Pacific travel bubble clearly fits the new model. The tourism rebuild must involve all measures being taken to create a high-value, low-leakage and low-emissions tourism future.

References

  1. ^ $40.9 billion a year (www.stats.govt.nz)
  2. ^ promoted (www.stuff.co.nz)
  3. ^ challenge (www.theguardian.com)
  4. ^ restore confidence (www.unwto.org)
  5. ^ opened its borders (www.euronews.com)
  6. ^ UNWTO data (globehunters.ca)
  7. ^ Sun, sand and uncertainty: the promise and peril of a Pacific tourism bubble (theconversation.com)
  8. ^ report (www.pce.parliament.nz)
  9. ^ Sun, sand and uncertainty: the promise and peril of a Pacific tourism bubble (theconversation.com)
  10. ^ Research (www.sciencedirect.com)
  11. ^ Don’t leave town till you’ve seen the country (www.ngataonga.org.nz)
  12. ^ roughly 60% of all tourist dollars (www.stats.govt.nz)
  13. ^ much cheaper (blogs.lse.ac.uk)
  14. ^ The coronavirus survival challenge for NZ tourism: affordability and sustainability (theconversation.com)
  15. ^ 9% of visitors but only 3% of tourism earnings (nzier.org.nz)

Authors: James Higham, Professor of Tourism, University of Otago

Read more https://theconversation.com/the-sun-is-setting-on-unsustainable-long-haul-short-stay-tourism-regional-travel-bubbles-are-the-future-140926

SME Business News

Brand Storytelling: How Video Marketing Can Enhance Your Brand Identity

In the competitive landscape of 2025, building a strong and recognisable brand identity is crucial for standing out in the marketplace. One of the most effective ways to shape and communicate y...

Future-Proofing Your Business with Strategic Defence Insight

In an era marked by rapid technological change, global uncertainty, and evolving security risks, the need for long-term resilience in business has never been greater. Organisations across indu...

Maximise Your Amazon Profits with These 5 Simple Seller Strategies

Selling on Amazon offers countless opportunities for individuals and businesses to grow their income. But with so many sellers joining the platform every day, it’s not enough to just list your ...

Why Professional Mining Electricians Are Critical for Mine Safety and Operations

The mining industry, with its complex and hazardous environments, demands high standards of safety and efficiency. One pivotal role in ensuring these standards is that of professional mining el...

The Times Features

Why Regional Small Businesses in Bendigo Deserve Better Access to Finance in 2025

In the heart of regional Victoria, Bendigo has long stood as a beacon of innovation, resilience and community spirit. As we step further into 2025, the importance of nurturing sm...

Is It Time for a Deep Cleaning? Signs You Shouldn’t Ignore

Most people know they should visit the dentist for a regular check-up and cleaning every six months. But sometimes, a standard cleaning isn’t enough. When plaque and tartar build...

The Hidden Meaning Behind Popular Engagement Ring Cuts

When it comes to engagement rings, the cut of the diamond is not just about aesthetics. Each shape carries its own symbolism and significance, making it an important decision for...

Annual Health Exams in the Office: How They Can Reduce Sick Days and Healthcare Costs

Regular health check-ups, especially annual health exams in the office, can significantly impact the overall well-being of your workforce. A proactive approach to employee health...

Best Deals on Home Furniture Online

Key Highlights Discover the best deals on high-quality outdoor furniture online. Transform your outdoor space into a stylish and comfortable oasis. Explore a wide range of d...

Discover the Best Women's Jumpers for Every Season

Key Highlights Explore lightweight jumpers for spring and summer, ensuring breathability and ease. Wrap up warm with cozy wool jumpers for the chilly autumn and winter season...

Business Times

Brand Storytelling: How Video Marketing Can Enhance Your Brand Id…

In the competitive landscape of 2025, building a strong and recognisable brand identity is crucial for standing out in the ...

Future-Proofing Your Business with Strategic Defence Insight

In an era marked by rapid technological change, global uncertainty, and evolving security risks, the need for long-term res...

Maximise Your Amazon Profits with These 5 Simple Seller Strategie…

Selling on Amazon offers countless opportunities for individuals and businesses to grow their income. But with so many sell...

LayBy Shopping