22 Sep 2011

Tourism picked to struggle next year despite RWC boost

1:50 pm on 22 September 2011

The influx of people into New Zealand for the Rugby World Cup is expected to boost the services sector.

The number of short-term visitors rose by nearly 5% in August compared with the same period a year ago.

Deutsche Bank chief economist Darren Gibbs says the tournament will inject much-needed spending into the economy during September and October.

He warns, however, that the combination of weak economies in the key markets of Europe and the United States, and a high New Zealand dollar, "could make for a very difficult tourist business in 2012".