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The Ministry of Tourism's International Visitor Survey shows international visitor spend increased by almost five percent in the year to June 2008, up to $6.2 billion.

Mr O'Connor said this was excellent news not only for the tourism sector but for the New Zealand economy in general.

"We may be a long haul destination, but our successful, world famous 100% Pure New Zealand brand continues to draw more international visitors across the world to experience what we have to offer, and it's great to hear they are spending more.

"There are a number of challenges for the industry at present with rising fuel prices and a fluctuating exchange rate. This new data proves New Zealand continues to be attractive to international visitors and that the industry continues to earn real wealth for our economy," said Mr O'Connor.

Key markets where spending increased include: Australia - up 16.5 percent to $1.7 billion, the United Kingdom - up 13.7 percent to $1 billion, Japan - up 10.6 percent to $426 million, Korea - up 6.5 percent to $256 million and Singapore - up 6.4 percent to $62 million.

Decreases in spend were recorded in the US, Chinese, Taiwanese, German and Canadian markets.

Mr O'Connor said the ability to compete with other markets will depend on delivering a better product than our competitors, ensuring we are environmentally, economically, socially and culturally sustainable.

"The New Zealand Tourism Strategy 2015 highlights the need to deliver a world class visitor experience and ensure prosperity by attracting ongoing investment. We certainly have the means to compete with other shorter haul destinations and we need to build on our strengths, ensuring we are seen as a desirable, high quality destination and that we meet the expectations of each and every visitor who comes here.

"Thousands of companies and individuals provide a vast range of products and experiences to our visitors on a daily basis and it's the work that is done on the ground, face to face with visitors that provides us with our excellent reputation worldwide. I congratulate the tourism industry on its huge efforts," said Mr O'Connor.

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