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March 25, 2026
#economy: Tourism Sector Faces Mounting Pressure as Global Conflict and Fuel Costs Bite
Dale Husband
Posted On March 25, 2026
Download AudioAotearoa’s tourism sector is navigating a period of growing uncertainty, with Māori tourism operators among those feeling the impact of global instability, rising fuel prices, and shifting visitor behaviour.
Dale Stephens, Chair of Māori Tourism, says the convergence of international conflict, disrupted travel patterns, and escalating costs has created a challenging environment for the industry – one that is being felt from major centres through to regional and iwi-led tourism ventures.
One of the most immediate impacts has been cancellations from key markets such as the United Kingdom and Europe, where flight disruptions and uncertainty linked to the Middle East conflict are affecting travel decisions. For operators in Aotearoa, this has translated into lost bookings, reduced forward visibility, and increased caution across the sector.
For Māori tourism businesses, many of which are regionally based and rely on international visitors seeking cultural experiences, the effects are particularly pronounced. Reports from operators indicate a softening in forward bookings from long-haul markets, alongside a more volatile booking pattern where travellers are making decisions later and with less certainty.
Domestically, the picture is equally complex. While local tourism has provided a buffer in recent years, rising fuel costs and broader cost-of-living pressures are now impacting the ability of whānau to travel. Higher petrol prices are reducing discretionary spending, meaning fewer overnight trips and shorter stays – trends that directly affect regional operators and hospitality providers.
The sharp increase in jet fuel costs is compounding these challenges. With aviation costs rising, there is pressure on airlines to adjust routes, frequencies, and pricing. This has implications for connectivity into and around Aotearoa, particularly for regional destinations that depend on consistent and affordable air links. For the hospitality sector, already grappling with increased wages and supply costs, the added pressure is significant.
Despite these headwinds, there are emerging opportunities. Aotearoa is increasingly being viewed by some international travellers as a stable and safe destination amid global uncertainty. Stephens notes a rise in interest and arrivals from alternative markets, creating a chance for the sector to diversify its visitor base.
The challenge now is how to convert that interest into sustained growth while managing rising operational costs. For Māori tourism operators, this includes balancing cultural authenticity with commercial viability, ensuring experiences remain accessible while maintaining the integrity of kaupapa Māori.
A further shift is underway in how travellers plan and engage with destinations. Digital platforms and algorithms are playing an increasingly influential role in shaping travel decisions — from discovery through to booking and review. Stephens highlights the need for Aotearoa to strengthen its tourism data infrastructure so operators, particularly smaller Māori businesses, can better understand and respond to these trends.
Without that capability, there is a risk that Māori tourism operators could be left behind in an increasingly data-driven market. Investment in digital tools, insights, and training is seen as essential to ensure the sector remains competitive and visible on the global stage.
As the tourism industry adapts to a rapidly changing environment, the focus is shifting towards resilience and diversification. For Māori tourism, which has grown significantly in recent years, the task ahead is to navigate short-term disruption while continuing to build a sustainable, culturally grounded future.
With global conditions unlikely to stabilise in the near term, the sector is preparing for continued volatility – balancing risk with opportunity as it works to maintain momentum in one of Aotearoa’s most important industries.
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