Hospitality the winner on the day
The Lions’ rugby tour helped Kiwi businesses earn a quality ’’draw’’ at the tills in June.
The hospitality industry got a big boost from visiting fans, but ASB Bank said it was disappointed visiting rugby fans didn’t otherwise splash out.
Statistics NZ said seasonally adjusted retail spending with banks cards in June was flat, when compared with May.
Higher spending in hotels, motels, bars, and restaurants helped to offset a drop in fuel prices.
‘‘The increased spending on hospitality could be largely a result of the influx of British and Irish Lions fans,’’ Statistics NZ business manager Sue Chapman said.
The Lions tour kicked off on June 3 and ended on Saturday. Spending in the hospitality industry rose $23 million, or 2.4 per cent, while spending on fuel dropped $19m, or 3.2 per cent, thanks to lower oil prices and a rise in the New Zealand dollar.
Because fuel is imported, the change in the mix in spending during the month is a positive one for Kiwi businesses, even if overall spending was flat. ‘‘Core’’ retail spending (excluding vehiclerelated industries) rose 0.8 per cent in June, after a 0.3 per cent fall in May. When compared with June last year, total spending using electronic cards was up 4.5 per cent at $4.9 billion.
ASB Bank said the overall figures were weaker than expected and Lions tour-related spending had failed to reach expected highs.
It had expected spending to rise 0.8 per cent, rather than remain flat on May.
The tour only boosted only hospitality spending, while other categories underwhelmed, it said.
‘‘In particular, apparel spending fell 0.9 per cent for the month, whereas in the previous Lions tour this category saw strong growth. Also, growth in the consumables category was weaker than expected.
‘‘This may indicate that Lions fans’ budgets were tight, perhaps due to the weak pound and/or inflated hotel prices. As a result, they may have prioritised accommodation, eating out, and beer, over other purchases,’’ ASB said. More than 20,000 fans are believed to have travelled to New Zealand.
Economic Development Minister Jonathan Coleman said more detailed information about the economic benefits of the series would be available later this year.