Demand for luxury accommodation rose 11% in 2025.
New Zealand is carving out a position as a premium global tourism destination, as international travel trends shift towards higher-value experiences.
Grand View Research data estimates our luxury travel market generated more than $8 billion in revenue last year, and this could more than double to about $18 billion by 2033.
At the same time, hotel industry figures suggest high-end tourism is outperforming the rest of the accommodation market.
Data from international hospitality consulting firm Horwath HTL shows the number of five-star rooms available in New Zealand grew by 17.6% last year, while demand for luxury accommodation rose 11%.
Lower hotel categories experienced declines in demand over the same period.
In Auckland, five-star and luxury hotels recorded a 3% increase in revenue per available room in the year to June 2025, while lower hotel categories experienced average declines of more than 10%.
Queenstown remained the country’s standout premium market over the peak summer season, with hotels recording revenue per available room of about $370 a night across December and January.
On New Year’s Eve, occupancy hit 91%, with average daily room rates up 24% on the year before – reaching $733.
Tourism New Zealand chief executive Rene de Monchy said New Zealand accounted for only 0.3% of global travel volume, but about 0.8% of global travel spending.
“That tells us we definitely are a more premium destination,” De Monchy said.
“We have amazing accommodation offerings around the country, which keep getting better, and there’s huge growth potential there.”
Luxury travel and hospitality researcher Anita Manfreda said New Zealand was following a broader global shift toward experience-led luxury travel.
“Luxury travellers tend to stay longer, and contribute beyond simple travel and accommodation – into experiences,” she said.
Manfreda said travellers were increasingly prioritising wellness and personalised experiences, over more traditional forms of luxury tourism.
“We’re now also seeing a huge increase in interest in food and wine – so the market’s now a bit of a combination of all of these.”
She said New Zealand’s luxury offering differed from destinations such as Europe and Australia because it was centred around smaller-scale experiences, including boutique lodges and nature-based tourism.
“We can bring a unique sense of exclusivity for travellers because of where we’re placed in the world.”
Tourism operators say affluent international travellers are continuing to spend heavily despite wider geopolitical and economic uncertainty.
Travel agency Luxury Escapes’ chief executive Adam Schwab said bookings to New Zealand were up nearly 40% year-on-year, driven largely by Australian travellers.
The company had also recorded around a 20% increase in bookings for experiences, particularly winery tours and spa experiences.
“There is absolutely a shift towards luxury experiences,” Schwab said.
He said instability in parts of the world had pushed some travellers toward destinations viewed as safer and offering stronger value.
“Even high-end luxury travellers want to make sure their dollar goes further,” he said.
“New Zealand’s luxury accommodation ticks every box when it comes to bang for buck.”
He said Queenstown remained especially strong.
“Any supply we can get sells straight away.”
Tourism New Zealand data also suggests international visitors are increasingly spending on premium experiences once they arrive.
Ministry of Business, Innovation and Employment visitor survey data for the year to December 2025 showed 12% of holiday visitors stayed in luxury accommodation, 27% visited high-end restaurants and 5% used helicopters as transport during their trips.
Tourism New Zealand also tracks “high spend” travellers through its “Active Considerer” research programme, which measures intended visitor behaviour in key overseas markets.
In the United States – one of New Zealand’s fastest–growing tourism markets – about 30% of potential travellers surveyed in 2025 intended to spend at least US$4800 ($8100) per person during their visit.
De Monchy said the growth reflected a wider post-pandemic shift in consumer behaviour.
“A lot of people are valuing experiences over things,” he said.
“A luxury traveller may stay in a luxury lodge, but they may also go bungy jumping or jet boating.”
Luxury travel specialist Southern Crossings is also seeing strong demand from high-end travellers.
Director Sarah Farag said the company had traditionally worked to a “honeymoon-plus” price point, but has started to move away from that description.
She said honeymooning couples were consistently spending the equivalent of a central Auckland house deposit on New Zealand holidays.
While the country’s luxury accommodation offering had expanded significantly, Farag said experiences remained the key drawcard.
“Clients can be extreme with their activities – like ice caving on glaciers – or sometimes they’re simply happy with nice photo opportunities,” she said.
Operators say demand is also shifting toward more personalised and lower-density tourism experiences.
Premium wine tourism destination Gibbston Valley, in Central Otago, says it’s focused on shaping the luxury visitor experience.
Head of hospitality Aisling Swirtz said luxury travellers were increasingly seeking “authentic, local experiences” focused on nature, wellness and exclusivity.
“They want to feel, not just see,” Swirtz said.
She said many travellers were seeking private or behind-the-scenes experiences and were gravitating toward smaller, less crowded excursions.
“The US market has seen strong growth year-on-year, with visitors willing to spend heavily on premium experiences.
“US travellers spend the most per day, and are willing to pay for exclusive experiences, with no price resistance,” she said.
The strength of the luxury sector comes as our wider tourism industry continues to recover following the pandemic – still at around 92% of pre-Covid levels.
Kate Rickard is an Auckland-based Newstalk ZB multimedia journalist covering tourism, immigration, and general news. She studied journalism at AUT before joining ZB in April 2025.