Both the New Zealand and Australian governments have this week revealed audacious plans to subsidise flight costs of international tourists to combat the economic down turn.  In Australia in particular visitor numbers have plummeted where the number of international visitors dropped 30,000 to 5.1 million in 2008. Visitors specifically “on holiday” accounted for 2.04 million of the total – down by 141,000 on the previous year.

Despite recording record visitor arrivals in December New Zealand was 3.7% down for the whole year to the end of January 2009 compared with the same period last year.  The redeeming market for New Zealand being the strong number of Australian visitors who are attracted by the skiing in the winter, and increasing numbers during summer holidays.  It is often quoted that it is cheaper for Australians to travel to New Zealand than it is in their own country.

With both countries experiencing significantly weaker currencies against their international trading partners it is hoped that by making airfares cheaper international travellers will be attracted to the suffering economies spending more freely in shops, hotels, activities and restaurants.

Obviously it remains to be see how such a system would work and whether the budget (backpacker, student, end of the market) will be able to enjoy these cheaper airfares.  Backpackers make up a significant number of travellers in these two countries and given the length of their stay as they crawl the country spend far more directly into the local economy.  For Australian and New Zealand tourism government sponsored airfares certainly seems to warrant consideration, though for us eternal travellers it seems like just another reason to avoid the doom and gloom, throw on our backpack - and head off.