International Visa card spend in New Zealand rises by 48%

news release

International Visa card spend in New Zealand rises by 48 percent in September

Auckland, 21 October 2011 – The latest figures from Visa New Zealand show overseas visitors have been using their Visa cards to enjoy Kiwi hospitality, spending NZ$168 million in the month of September, a 48 percent increase compared to the previous year[1].

The countries making the largest contribution to that increase include Australia ($58.2m),
United Kingdom ($28.4m), United States of America ($14.0m), France ($12.6m), Canada ($5.3m), Japan ($4.8m), South Africa ($4.2m), Germany ($4.0m) and the Republic of Ireland ($3.6m).

Sean Preston, Country Manager at Visa New Zealand says a rise in international spending is to be expected with any global event, but what is most interesting is the breakdown between countries.

“Countries like Australia, that already contribute significantly to our international card spend, have not seen as much of an increase (29 percent) compared with countries such as Ireland (525 percent), France (230 percent) and South Africa (126 percent). The dramatic increase in spending from visitors from these countries is likely due to the volume of travellers who have visited New Zealand in the last month. We know that Australians often cross the ditch but the Irish, French and South Africans visit New Zealand less often.”

Spend on Canadian issued Visa credit cards increased by 90 percent and the United Kingdom by 80 percent. The increase in international spend from some markets, such as the United States of America (28 percent) and Japan (29 percent), was less dramatic, but still significant.

“Again this can be attributed to the volume of travellers coming into the country, which in turn correlates to the popularity of rugby in these countries and the passion of the fans,” says Preston.

Visitors are choosing to spend their money on entertainment, hospitality, auto rental and fuel; these merchants have seen a significant increase in international spend when compared with September 2010.

“Auto rental and oil spend has increased by more than 70 percent when compared with last year. This directly relates to the number of long term visitors who have chosen to travel around the country in cars and campervans making the most of their time in New Zealand,” says Preston.

“It is also interesting to note that although hospitality spend has increased significantly
(52 percent), supermarket spend has also increased by 34 percent, indicating that visitors are also choosing to self-cater – either in rented homes or campervans.”

Total Spend on Internationally Issued Visa Cards

* All figures in NZ$. Converted at 1 USD = 1.26180 NZD.

ENDS

About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com

________________________________________
[1] Visa Vue Travel data - September 2011 and September 2010 data

© Scoop Media