Effect of air services availability on international visitors to New Zealand

We examine the effects of discrete changes in the availability of direct air services on the number of international visitor arrivals to New Zealand. We consider five different countries of origin and control for GDP and exchange rates. The results are mixed, suggesting that regional hubs and robust third-country carriers provide sufficient airlift for many visitors from countries without direct air services to New Zealand. We outline the resulting implications for international air services policy.

Research highlights
► We test changes in air services on visitor arrivals to New Zealand from five origins.
► Availability of direct services does not significantly affect most of these arrivals.
► Third-country carriers and hubs seem to provide sufficient airlift in most cases.
► Some exceptions are business travel and routes where indirect travel is inconvenient.
► In air service negotiations, reciprocity and effects on home carriers are important.