Trade effects on tourism: Some empirical evidence from New Zealand

Abstract

This research investigates the effect of trade on international visitor arrivals into New Zealand. The analysis is based on a consumer choice model that uses time-series data for the period of 2004 to 2013 from New Zealand's main visitor origin countries. The results provide strong evidence that New Zealand's trade is statistically significantly correlated with international visitor arrivals. We conclude that the government ought to consider improved trading environments of its partner countries in order to evaluate their own and their trading partner's trade policies and the impacts they may have on the domestic tourism industry.