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A tourism satellite account (TSA) is used to measure the economic contribution of tourism to gross domestic product (GDP) and to provide analysis of the New Zealand tourism industry. The emphasis in a TSA is on the measurement of expenditure in New Zealand by resident and non-resident tourists, and on the size of the tourism industry, including its contribution to GDP and employment.
The TSA programme is funded by the Ministry of Tourism, with the endorsement of Tourism Research Council New Zealand (TRCNZ). The satellite account is one component of a ‘core set’ of tourism data designed to provide base information for understanding and monitoring the changing level and impact of tourism activity in New Zealand. Other elements of the core dataset include surveys of spending by international and domestic visitors, visitor arrival and accommodation statistics, and forecasts of tourist numbers and expenditure.
Statistics New Zealand has published official TSAs for the years 1997 to 2002. The existing TSA methodology excludes the expenditure of all international students studying in New Zealand. This treatment was based on SNZ's interpretation of the international standard at that time.
In recent years, the number of international students studying in New Zealand has increased rapidly. Table 1 shows the total number of international students coming to study in New Zealand for the years 1999 to 2003.
In 2003, the number of students coming to study in New Zealand increased 36.7 percent. The major contributor to the increase was students enrolled at private English Language Providers.
The Ministry of Tourism expressed concern that the exclusion of international students makes the TSA inconsistent with other elements of the core tourism dataset. Consequently, Statistics New Zealand has reviewed the existing treatment and considers that a change in methodology is warranted. This paper outlines the results of the investigation and details the changes in TSA methodology to include the expenditure of overseas students studying in New Zealand for less than 12 months.
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