Tourism earnings drop $2m

The Central Bank of Samoa (C.B.S.) reports visitor spending decreased by $2.2 million tala last November due to “large drop” in earnings from genuine holidaymakers.

According to its Visitor Earnings and Remittances Report for the month, the total number of visitor arrivals decreased by 10.5 per cent to 8,937 and was 5.5 per cent lower than at the same time the year before.

This led to a decline in total visitor earnings, with a comparative analysis showing the bulk of visitor earnings coming from those visiting friends and relatives. “Underpinning this month’s lower arrivals by market were reduced number of travellers from New Zealand, Europe and ‘other countries’,” the report reads. “While all other source countries trended upwards.

“For arrivals by purpose, the decline stemmed from reductions in those here on ‘holiday’, ‘business and conference’ and ‘other’ purposes.

“Furthermore, total visitor revenue in November 2013 decreased 8.8 per cent, $2.2 million, to $23.2 million, despite a 1.9 per cent hike in average spending per visitor. “However, when compared to November 2012, total visitor earnings were 6.0 per cent, $1.5 million, lower.” The Bank reports that in November 2013 arrivals from New Zealand declined by 27 per cent. “Contributing to the drop in total visitor earnings in November 2013 was a $2.9 million decrease in proceeds from the New Zealand market to $10.1 million,” the C.B.S says. “This was a result of a 27.0 per cent drop in arrivals despite its average spending increasing by 6.6 per cent.

“Moreover, revenue from American Samoa visitors decreased by $1.1 million to $2.1 million due to a 39.0 per cent reduction in average expenditure and a 6.6 per cent decline in total arrivals. “Earnings from ‘other countries’, such as China, Japan, other Asian countries and other Pacific islands, fell by $0.4 million to $1.6 million as a result of a 13.6 per cent decline in average spending coupled with a 7.6 per cent drop in arrivals.” The Bank also reports visitor earnings from Australia grew by $1.8 million to $6.8 million due to a 7.1 per cent increase in total arrivals and a 28.1 per cent boost in its average expenditure.

“Proceeds from the USA rose to $1.8 million in November 2013 due to a 15.7 per cent increase in total arrivals while average expenditure fell by 5.7 per cent. “Lastly, revenue from the European market remained at $0.8 million with an 11.7 per cent boost in average spending partially offsetting a 7.0 per cent decline in visitor arrivals.”

The Bank says that on a proportional scale, the New Zealand market remained as the main source of visitors with a share of 43.6 per cent, which was down slightly from 49.9 per cent in November 2012. “Further behind at second place was Australia with a share of 29.3 per cent, up from 19.5 per cent in October 2013 and 24.9 per cent in November 2012.

“The share for American Samoa slipped to 9.0 per cent from 12.7 per cent in the previous month but up from 8.4 per cent in November last year. “In addition, the USA accounted for 7.7 per cent of total earnings, up from 5.7 per cent in October 2013 and 6.3 per cent in November 2012.

“Further behind, the share for ‘other countries’, such as Fiji, other Pacific Islands, other Asian countries, China and Japan, was marginally lower at 7.1 per cent, from 8.1 per cent in the previous month and 7.2 per cent a year ago. “The remaining 3.3 per cent of visitor revenues belonged to Europe, which was above its shares of 2.9 per cent in October 2013 and 3.2 per cent in November 2012.

The Bank says the decrease in total visitor proceeds was driven mostly by a large drop in earnings from genuine ‘holiday makers’, which fell by $1.3 million to $8.6 million this was at the back of an 18.1 per cent rise in average spending despite a 26.1 per cent decline in arrivals.

“Visitor proceeds from ‘visiting friends and relatives’ decreased by 9.2 per cent to $10.4 million due to a 12.9 per cent decline in average expenditure despite a 3.4 per cent improvement in arrivals,” the report reads. “Likewise, visitor proceeds for ‘other’ purpose of travel edged down by $0.3 million to $1.1 million due to a 20.1 per cent decrease in average spending coupled with a 3.0 per cent drop in arrivals. “A $0.3 million increase in revenue was recorded for those who arrived for ‘business and conference’ at $2.7 million, reflecting lower arrivals despite a rise in average spending for the month under review.

“Lastly, earnings from ‘sports’ visitors rose to $0.4 million as a result of a 36.6 per cent slump in average expenditure, which was largely offset by a sharp rise in its arrival numbers.”

A comparative analysis on earnings by purpose of travel showed that the bulk of total visitor earnings were sourced from those ‘visiting friends and relatives’ at 44.8 per cent, down from 45.3 per cent in October 2013 but higher than 39.7 per cent in November 2012, the Bank reports. “The second highest share belonged to ‘genuine holiday makers’ at 37.1 per cent, down from 38.8 per cent in October 2013 and 42.8 per cent in November 2012.

“At a distant third was those for ‘business and conferences’, whose market share rose to 11.8 per cent in November 2013 from 9.7 per cent and 13.0 per cent in the previous month and same time a year ago. “Visitor earnings from ‘other’ travellers accounted for 4.6 per cent of total earnings, down from 5.5 per cent in the previous month but higher than 1.5 per cent in November 2012.

“The remaining 1.7 per cent of total proceeds was sourced from ‘Sports’ visitors, up from 0.6 per cent in the previous month but down from 2.9 per cent in November last year respectively.”

According to the Bank the overall Tourism Price Index decreased by 0.5 per cent from the previous month. It reports the ‘other transportation’ along with ‘meals and drinks’ sub-groups both decreased by 2.0 per cent and 1.2 per cent in that order from the previous month.

“Both ‘family obligations’ and ‘miscellaneous’ subindices both decreased by 0.6 per cent each while ‘accommodation’1 &‘car rentals’ subgroups remained unchanged for November 2013,” the Bank’s report reads.