Wellington, Sept 16 NZPA - Sentiment in the tourism industry is improving, raising hopes the worst of the recession may be behind it.

According to the latest Tourism Industry Monitor, published today, 44 percent of those surveyed believe demand for tourism products will increase in the next three months, compared to the same period last year.

With 41 percent believing demand will fall, it is the first time optimists have outweighed pessimists since the monitor began in March this year.

"We're cautiously saying, the worst may be over for tourism and things are slowly on the improve," Ministry of Tourism research manager Bruce Bassett said.

Tourism Industry Association chief executive Tim Cossar has been holding meetings with hundreds of operators around the country.

Operators were saying that in the short term, hopes were being placed on the Australian market, but they had less certainty around long haul markets.

The monitor said the rise in optimism for the next three months was being driven by such factors as a long and strong ski season, and a natural drop off in international visitor arrivals during the period which allowed growth in the domestic and Australian markets to dominate.

Also, expected changes were coming off a low base as tourism activity started to decline towards the end of 2008.

Between June and August industry demand fell a seasonally adjusted 1.4 percent, and profitability fell 2.4 percent. That was an improvement compared to the May to July period.

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