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19 November 2018

New Zealand Wants More Foreign Investment in its Tourism Sector—This is Why

A recent housing ban caught the attention of the international press, now Prime Minister Jacinda Ardern wants to clear things up.

Since the 1970s, New Zealand has been a point of attraction for many visitors from all over the world, due to its majestic landscapes, diverse weather conditions and language. Now that the Kiwi dollar is weaker against other widely used currencies like the Euro, US dollar or the British pound, more and more tourists (notably from China) not only want to enjoy a vacation in this Oceanic paradise, but also they are coming with the intention to invest in real estate.

According to New Zealand Prime Minister Jacinda Ardern, the average home price in Auckland is above NZ$1 million, that means $680,000 US dollars. Fact that classifies the housing market as a “sensitive issue” within government legislation, resulting in a ban directed to foreign investors who want to buy residential property in the country, lawmakers see this measure as an effort “to stop speculation”.

On the other hand, Ardern argues that the public office is openly working with different proposals that want to persuade international capitalists to invest in the tourism and transportation sector, areas that are a main priority.

“We absolutely need quality foreign direct investment in New Zealand and we are open for business.” Said Ardern to a TV reporter just recently.

The New Zealand premier feels completely sure that foreign capital would derive greater benefits by investing in such productive economy, than just in real estate. The data seems to back up her claims.

Fast Facts About the Tourism Sector in New Zealand

  • Tourist spending increased 7 percent from the previous year.
  • The average visitor spends $3300 a 4 percent increase.
  • Visitors from China brought $1.63 billion to the country in 2017.
  • European visitors brought $572 million in 2017.

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Foreign investment, New Zealand