International travel by New Zealanders

IBISWorld expects international travel by New Zealanders to climb by 5.0% in 2024-25 to 3.16 million departures. This increase occurs on account of a strong desire from New Zealanders to desire unique experiences, particularly involving hiking and nature. According to Google Consumer Insights, many travellers are seeking what's known as affordable luxury, whereby people want high-end experiences without breaking the bank, typically upgrading transportation, accommodation or attending unique events. Particularly driving travel, not just from New Zealand but globally, is the European Football Championship 2024 in Germany and the Paris Olympic games in France.

The COVID-19 pandemic had a drastic impact on international travel by New Zealanders. To mitigate the spread of the virus in the country, the New Zealand government implemented strict border restrictions on international travel in March 2020. This substantially drove down international travel by New Zealanders in 2020-21 by 97.1%, resulting in the largest single-year decrease on record. Nevertheless, the rollout of the COVID-19 vaccine and the reopening of borders from countries have encouraged international travel by New Zealanders since then. International departures returned to near pre-pandemic level in 2023-24.

Outside of the COVID-19 pandemic, international travel by New Zealanders has increased. Although it has been tenuous in the past few years, strong overall growth in discretionary incomes over the past six years has allowed more New Zealanders to take overseas holidays. International holidays are generally more expensive than domestic travel alternatives. As a result, discretionary income is a primary determinant of outbound international travel volumes. Delayed holidays following the pandemic have also encouraged heightened levels of travel. In addition, international airfares were constrained by competition in the airline industry, further lifting demand. However, outbound travel was constrained by a weakening in the value of the New Zealand dollar over the period, as it made international trips relatively more expensive. Australia represents the largest outbound market for New Zealand travellers. Overall, IBISWorld forecasts international travel by New Zealanders to climb at a compound annualised rate of 0.4% over the five years through 2024-25.