Quakes will affect tourism sector warns Goldman Sachs

31 March 2011 - Which Way To Pay

Quakes will affect tourism sector warns Goldman Sachs

Goldman Sachs & Partners New Zealand have undertaken new research which confirms that the recent quakes will have a short but significant effect on New Zealand’s economy. In particular they have found that the tourism sector will be most affected by the impact of earthquakes.

The research concluded that any tapering off of tourism should tail off towards the mid-year period, as travellers lose sight of the earthquakes and gain confidence to travel to New Zealand again.

Economist Philip Borkin forecasted a 10 per cent drop in international arrivals throughout the second quarter of 2011. However, basing New Zealand’s recovery on the economic pattern of other countries who have faced a similar crisis, Borkin thinks the likelihood is of a short, sharp  drop followed by a return to normal tourism levels.