Tourism Growth Signs in Southland and Fiordland: A Recovery Fueled by International Visitors and Increased Spending – Travel And Tour World

After fighting through a difficult post-pandemic period, tourism in Southland and specifically the area of Fiordland has now exhibited outstanding recovery. The tourism recovery, as reported in Great South’s Tourism Quarterly Report 2024, indicates a turning point after struggling years in the past. It wasn’t only that the area cited greater numbers in international arrivals, but tourists staying in larger numbers and larger amounts in the previous year as well, particularly in the area of Fiordland. This boost indicates a consistent and gradual recovery as a result of growing visitation as well as greater numbers in the number of overseas tourists in this region, particularly in Milford Sound, which accounts for one of the most iconic and spectacular attractions in this region.

Recovery and Growth Post-Pandemic

The phrase “Survive to 2025” has often been used in the tourism industry to describe the long and tough recovery process following the COVID-19 pandemic. As Southland enters the second half of 2025, the tourism numbers reveal a much more optimistic outlook for the region. According to the latest report from Great South, the first half of the summer season in 2024 showed significant growth in both visitor numbers and economic impact. The region’s tourism industry, particularly in Fiordland, is showing clear signs of growth after struggling through several years of uncertainty and low visitation.

The latest figures, which show a 19.9% increase in the number of people cruising Milford Sound in 2024, are a clear indication that the region’s tourism industry is recovering. Milford Sound is one of New Zealand’s most famous tourist attractions, drawing travelers from all over the world. The jump in visitation is a positive sign for the entire region, as it reflects increased confidence among international tourists looking to explore the stunning beauty of the South Island.

Surge in International Tourism

One of the most striking statistics from the latest report is the increase in international visitors. Queenstown Airport, a major entry point for tourists heading into the Southland region, welcomed 662,868 international tourists between October 1 and December 31, 2024. This marked an astounding 104.4% increase compared to the same period in 2023. The boost in international arrivals is a direct reflection of the recovery of global travel, with Southland emerging as a top destination for travelers looking to explore New Zealand’s natural beauty.

While international tourists are returning in droves, there is also an increase in visitor spending, further underscoring the recovery’s momentum. The report indicates a 1.1% rise in overall visitor spending in Southland during the quarter, amounting to $99.3 million. More importantly, international visitor spending surged by 9%, a sign that the tourists returning to the region are spending more on experiences and services, thereby benefiting local businesses and tourism infrastructure.

Milford Sound: A Tourism Powerhouse

Milford Sound, often described as the “eighth wonder of the world,” continues to be the focal point of tourism in Fiordland. The number of passengers cruising Milford Sound saw a notable increase in 2024, with 757,373 people making the journey throughout the year—a 19.9% rise compared to 631,833 in 2023. The popularity of Milford Sound cruises has a direct and positive impact on Southland’s tourism economy, as they bring a steady stream of visitors to the region, encouraging further spending on tours, accommodation, food, and other tourism-related services.

Despite the influx of visitors, data on accommodation suggests that while tourists are flocking to Fiordland, they are staying for shorter periods. While overall occupancy rates for commercial accommodation in Southland were slightly down by 1.6%, Fiordland saw a 2.8% increase in occupancy for the quarter. This increase indicates that, despite some challenges in longer stays, the tourism market remains robust and is steadily recovering in key areas such as Fiordland.

Challenges with Accommodation and Guest Nights

While the tourism numbers indicate positive growth, the accommodation sector is experiencing some challenges. Although the number of international tourists has risen significantly, the average length of stay in the region has decreased. Guest nights across Southland were down 2.2% for the quarter, and while Fiordland saw a rise in occupancy rates, guest nights still dropped slightly by 0.7%. This trend could reflect several factors, including the higher cost of accommodations, competition from other regions, or changes in traveler preferences for shorter stays or alternative accommodations.

However, despite these challenges, tourism operators in Fiordland remain optimistic about the long-term recovery of the sector. As demand increases and tourism infrastructure improves, it is likely that the number of guest nights will also rise in future quarters, especially with continued investment in accommodation and tourism services.

Looking Ahead: Investment and Development Opportunities

Looking to the future, Great South will use these insights from the report to drive further tourism growth in the region. Tourism development strategies will focus on marketing the region’s unique natural attractions while encouraging longer stays and deeper engagement with the area. Regional marketing efforts will highlight Fiordland’s unique offerings, such as eco-tourism experiences, nature walks, and cultural tours, aimed at enticing tourists to stay longer and experience more of the region’s diverse offerings.

The Great South report also notes that the region is looking to leverage its increased international exposure to attract new investments and tourism opportunities. The growing number of visitors, particularly from international markets, provides a solid foundation for enhancing tourism infrastructure, promoting new attractions, and fostering collaborations with travel operators and international tourism investors.

Conclusion: A Promising Future for Southland and Fiordland Tourism

Regional tourism indicators in Southland and Fiordland are auspicious and encouraging. International visitor recovery has been tremendous, spend has risen, and Milford Sound cruise passenger numbers were improving all bode very well for the region recovering very positively from pandemic effects. There are some areas, though, which are still troublesome, namely at accommodation and length of stay which must be addressed by intensified tourism development and investment in destination infrastructure.
Over the coming several months, the tourism industry in Southland will continue enjoying its natural features, growing market for eco-tourism, and cultural diversity. As foreign tourists return into New Zealand and encounter its stunning landscape in Fiordland, it will again register rising visitor numbers, spending, and investment opportunities.

In the long term, Southland and Fiordland’s tourism success will be dependent upon sustained collaboration between government agencies, tourism industry, and host communities. Centered on sustainable development, the region will become one of the finest destinations for environmentally concerned tourists seeking to indulge in New Zealand’s unparalleled natural beauty.

References:

Great South, Southland District Council, New Zealand Tourism Ministry, Queenstown Airport, New Zealand Ministry of Business, Innovation & Employment

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