Campervan rentals are driving Tourism Holdings’ growth.
Photo: photo by Miles Holden
The outlook for the campervan tourism sector continues to improve with New Zealand set for further growth.
“The tourism sector here in New Zealand is in a really positive place. We’ve got some good actions that have been undertaken by the government over the last sort of 14 odd months,” Tourism Holdings (thl) chief executive Grant Webster said, following the release of a strong first half result.
Thl’s campervan rental business helped drive up its first net profit by 17 percent with revenue growth of 4 percent.
New vehicles add to costs
However, the costs associated with the recent expansion of thl’s new RV fleet was seen as a drag on underlying profits.
Forsyth Barr head of research Andy Bowley said thl saw a 46 percent drop in the first half gross profits of new RV sales, with gross margins down 6.5 percent and volumes down 13 percent.
He said the value of New Zealand’s rental growth had declined when currency exchange rates were taken into account, given the expansion of thl’s New Zealand fleet ahead of the peak season, as well as the higher costs of ownerhsip.
“Tourism Holdings reported a 1H26 result ahead of our expectations but with full year guidance that is unlikely to materially change current market expectations,” he said.
Vehicle sales lag behind rental growth
Webster says new vehicle sales had been difficult over the past couple of years.
Photo: Linkedin
“(It) has been our Achilles heel … and the growth in rentals hasn’t been able to outstrip that decline,” he said.
“What we are seeing is people are looking more at the used product. They’re trading down.
“We’re still looking for some recovery in that over the next sort of 12 to 18 months.
“But yes, the majority of our growth is definitely in the rentals business.”
Rental growth
Webster said demand for rental vehicles suited growth in a style of travel, seen around the world.
“People are looking more at what their discretionary spend can buy them,” he said.
“And that’s definitely a theme for further recovery, just stabilisation and consumer confidence, GDP, growth, getting through, you know, just like we’re feeling in New Zealand at the moment, we’re getting through that tough time.”
Global tourism demand
“We’re a country that people want to come and visit,” Webster said.
“So is Australia, and indeed, so is Canada. The USA, in terms of our markets, is the one that’s of concern, but we’ll put that to one side.”
Overseas visitor arrivals in New Zealand were 3.51 million in the year ended December 2025, which was an increase of 196,000 from the year earlier.
The biggest changes were in arrivals from:
- Australia (up 137,000 to 1.52 million)
- United States (up 15,000 to 385,000)
- China (up 13,000 to 262,000)
- United Kingdom (up 12,000 to 192,000).
“Without a doubt, tourism is still in a really good growth phase, and we’re benefiting from that,” he said.
Regional tourism
Webster said visitors were travelling into regional New Zealand.
“We’re not getting any of the sort of congestion issues that we’ve thought about in the past, and might be a little bit out of Queenstown, but put that to one side so people are enjoying what’s going on.
“There’s been a few weather blips and ferry blips and different things, but no, we’re getting a really positive response from our customers, the international visitors, love New Zealand, and it’s been a good time to travel.”
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