First week of traffic light system sees surge in hospitality spending in Auckland and Northland, drop for rest of New Zealand

New freedoms saw $66.9 million spent across Auckland and Northland hospitality spots in the first week of the COVID-19 traffic light system.
New freedoms saw $66.9 million spent across Auckland and Northland hospitality spots in the first week of the COVID-19 traffic light system. Photo credit: Getty Images.

The first week of the traffic light system saw a surge in spending at Auckland and Northland hospitality venues, a spending report shows.

But hospitality spending throughout the rest of New Zealand dropped over the same period.  Overall, hospitality spending was still below levels of the last two years (2019 and 2020).

The COVID-19 traffic light system, which started at 11.59pm on December 2, has brought increased freedoms for many Kiwis.  In Auckland and Northland, hospitality venues, public facilities, gyms and close contact businesses reopened to My Vaccine Pass users, in the 'red' setting.  

A report released by Worldline NZ (formerly Paymark) on Monday afternoon, shows in the first seven days of the traffic light system, (December 3 to December 9), Kiwis in Auckland and Northland spent $66.9 million at cafes, bars, pubs and restaurants, a jump of 41 percent.

But across the rest of New Zealand, including the South Island, which entered the traffic light system in 'orange', spending dropped by 6 percent, to $105.8 million.

Hospitality spending data over the seven days to Sunday, December 12, shows total spending across Auckland and Northland was $71.4 million.  This was above lockdown levels, but 18 percent below the same time last year.

Across the rest of the country, hospitality spending was $110 million - less than before the traffic light system and down 9 percent year-on-year.

Spending across core outlets up year-on-year across New Zealand

Excluding hospitality, spending across core outlets in Auckland and Northland over the seven days to December 12, reached $312.3 million.

Compared to the same time in 2020 and 2019, spending was up 6 percent and 9 percent respectively.  Across the rest of New Zealand, spending reached $500.2 million, up 4 percent and 8 percent.

Over the year, Kiwis spent $144 million at outlets selling home-related goods (e.g. hardware, furniture, appliances and garden supplies). Annual spending growth was highest across these outlets, up 11 percent compared to 2020.

Across all core-retail outlets, over the week to Sunday, December 12, Kiwis spent a daily average of $116 million, slightly below the average during Black Friday sales.

Worldline head of data, George Putnam, said data shows Kiwi shoppers had adjusted quickly to the 'new normal' of the COVID-19 traffic light system.  The country is on track for the usual pre-Christmas spending rush.

"It has been typical in recent years for spending to steady a little after the Black Friday sales - not surprisingly - and then ramp up again from around Thursday this week, which continues towards a peak on either the Thursday or Friday before Christmas Day," Putnam said.

Worldline spending data over the 28 days from November 15, shows the fastest annual spending growth was in Wanganui, Taranaki, Palmerston North and Waikato, where spending was up between 10 and 12 percent (up 9 percent in Auckland/Northland and Wairarapa).

The lowest annual spending growth was in Wellington, Otago, Marlborough and Nelson, where spending was up between 2 and 3 percent.

Once domestic travel restrictions ease from December 15, the regional spread of spending is expected to evolve.

A previous Worldline report released on December 7, showed over the first three days of the traffic light system (Friday to Sunday), Kiwis spent $7.2 million at hair and beauty outlets.

Spending at these outlets was up 44 percent compared to the same three days of the previous week, and up 34 percent on the same time last year.