The recent sharp decline in the New Zealand dollar traditionally would normally spell a sharp increase in inbound travellers.
The Kiwi as the New Zealand dollar is known internationally is a currencies that reacts strongly to falls in international commodity prices. With the world heading unto recession, commodity prices have fallen sharply, carry trade NZ dollar speculators have repatriated their exposure to pay margin calls on falling equity markets and the NZ Reserve bank is rapidly dropping interest rates in a late bid to soften a local recession.
NZ lower dollar lower cross rate will however this time not be a boon for local tourist providers. Statistic New Zealand latest figures show a drop in visitor arrivals and domestic belt tightening has meant that less New Zealanders are travelling internally.
On the brighter side of this doom and gloom is the opportunity for inbound travellers to pick up more competitive rates on accommodation, and car hire as competition heats up among providers. Stand by rates and last minute accommodation rates will be more accessible than ever during the upcoming summer holiday times.
Typically January to March are the busiest times to visit NZ and require pre-booking of accommodation etc, however in the present economic climate it would be possible and prudent to leave the booking to the last minute and save some Kiwi pesos in the process.