The tourism satellite account 2013 provides an overview of the role tourism has in New Zealand. Information is provided on changing impact and levels of tourism activity. Information is also presented on tourism’s contribution to the economy of New Zealand with regards to employment and expenditure (Weaver, 2006). The purpose of this report is as a part of tourism data that furnishes base information so as to understand and monitor the changing impact and levels of tourism activity in New Zealand.
Explain the Meaning and Importance of ‘value-added’.
Value added refers to the value firms add to the services and goods they purchase or intermediate inputs and utilize in the process of churning their own outputs as pointed out in the Statistics New Zealand website (Page, 2003). The calculation of direct value added of the tourism sector to GDP or tourism’s direct contribution to GDP enables consistent comparison between the contribution to GDP from the tourism industry with more traditional industries like construction and agriculture.
Outline the Summary Results, Identifying any Significant Events
As per the tourism satellite account 2013 report, tourism plays a really important role in the economy of New Zealand with regards to churning out services and goods and generating employment opportunities. Tourism expenditure consists of all travellers spending irrespective of whether they are resident householders or government and business travellers or international travellers. The expenditure under the head international tourism includes foreign students spending who study in New Zealand lesser than a year.
The total tourism expenditure in New Zealand was $23.9 billion for the year 2013, which was a growth of 2.3 percent from 2012. The international tourism expenditure was $9.8 billion registering an increase of 2.2% or $213 million contributing 16.1% to total goods and services exports of New Zealand. The domestic tourism expenditure was $14.2 billion showing an increase of 2.4% or $328 million. Tourism made a direct contribution to New Zealand’s GDP that stood at $7.3 billion equal to 3.7% of GDP. The industries supporting tourism created an extra $9.8 billion towards tourism equivalent to 5% of GDP. 110,800 full time personnel were directly employed by the tourism industry equivalent to 5.7% of the total employment which was a growth of 1.8% from 2012 (Page, 2003).