By Paloma Migone of NZPA

Wellington, Oct 28 NZPA - New Zealanders holidaying at home compensated for a drop in spending by international visitors when the global economy turned down, according to Statistics New Zealand (SNZ).

Domestic tourists spent $12.4 billion in the year ended March 2009, an increase of 2.6 percent from the previous year. While international tourist expenditure declined by 0.9 percent -- the first fall since figures were first collected in 1999.

Ministry of Tourism research manager Bruce Bassett said the first half of 2009 was the most challenging period for international tourism globally.

"And to actually come through that with a pretty modest decline, I think is a pretty good result."

Tourism Industry Association chief executive Tim Cossar said the impact of the global recession was softened by the large numbers of Australian visitors, New Zealand's largest international visitor market.

Despite the slight decline in international tourism, it contributed $9.3b (16.4 percent) to New Zealand's total exports of goods and services, second to dairy products at $10b (17.6 percent).

Overall, the tourism industry proved its resilience as total tourism expenditures rose by 1.1 percent ($226 million) to $21.7b.

"From our perspective we were pleased that the domestic activity stayed in the positive territory and compensated for the decline in the international expenditure," said Mr Bassett.

"The tourism system is quite a dynamic industry . With a decline in international visitors and New Zealand outbound travel also declining because of the economic downturn, it has been expected that New Zealanders would travel more internally."

Mr Bassett said tourism was an important part of the economy, even in challenging economic times, as it directly and indirectly contributed 9.1 percent of the GDP and 9.6 percent of employment .

Direct tourism value added was $6.4b, 3.8 percent of GDP. Indirect value added contributed another $8.7b.

The industry directly employs 94,600 full-timers, equivalent to 4.9 percent of total New Zealand employment.

The number of guest nights spent in short-term commercial accommodation in the year ended March 2009 also decreased by 3.8 percent compared to 32.1m the previous year, said SNZ.

In the year ending March 2008, accommodation rose 3.5 percent and 3.1 percent in 2007.