New Zealand's tourism industry is setting its sights on India as it seeks to boost visitor numbers.
Tourism New Zealand, the agency responsible for promoting the country as a travel destination, unveiled a winter marketing campaign targeting Indian visitors at an event in Mumbai on Wednesday.
India is one of the largest outbound tourism markets in the world.
Tourism New Zealand signed joint venture agreements with nine Indian travel partners at the campaign launch, including EaseMyTrip, Flamingo Transworld, Kesari Tours, Kulin Kumar Holidays, MakeMyTrip, Pickyourtrail, SOTC Travel, Thomas Cook India and Veena World.
Prime Minister Christopher Luxon's delegation to India included Tourism Minister Louise Upston as well as domestic industry leaders, who have all expressed a desire to strengthen ties and address potential barriers for Indian visitors.
"Prime Minister Modi and I have talked in the last few days about wanting to deepen and broaden the special relationship between India and New Zealand," Luxon told attendees at the campaign launch on Wednesday.
"These are two countries that should be doing much more together, that should be much closer, and we have every reason to work incredibly hard to make sure that that is the case."
Prime Minister Christopher Luxon visits Swaminarayan Akshardham temple in New Delhi, India. Luxon is leading a large delegation to India on a four-day visit to bolster political, business and cultural ties. Photo: RNZ / Marika Khabazi
The prime minister highlighted a need to improve connectivity between the two countries to facilitate increasing tourist numbers.
However, a direct flight between the two countries appeared to be at least three years away, according to a memorandum of understanding signed by outgoing Air NZ chief executive Greg Foran and Air India's Campbell Wilson on Wednesday.
The agreement included the establishment of a new code-sharing partnership on 16 routes between India, Singapore, Australia and New Zealand.
Under the agreement, travellers would be able to fly from New Delhi, Mumbai, Bengaluru and Chennai on Air India, and connect at Sydney, Melbourne or Singapore onto Air New Zealand-operated flights to Auckland, Christchurch, Wellington and Queenstown.
On the prospect of any long-awaited direct route, the agreement said the airlines would "explore" the possibility "by the end of 2028".
The commitment was subject to new aircraft deliveries and regulatory approvals.
Ranjna Patel, a member of the community delegation, said many Kiwi Indians would be disappointed by the lack of detail and the long lead time.
"We see that the deal is done, and we want it yesterday," she said.
Bharat Chawla, chair of the India NZ Business Council, said a direct flight was "top of the agenda" for the community.
He accepted the protracted timeline, given the shortage of long-haul planes.
"We've waited 10 years," he said. "At least we have hope now."
Foran also told reporters the delay was due to a shortage of suitable aircraft worldwide.
Air India also announced a code-sharing partnership with Virgin Australia.
"This enhances the opportunities that Air India customers have when travelling from New Delhi to Melbourne or Sydney and take seamless onward connections on Virgin Australia flights to 16 destinations in Australia and New Zealand," the airlines said in a statement.
On Tuesday, Auckland Airport signed a memorandum of understanding with Delhi Indira Gandhi International Airport.
Auckland Airport chief executive Carrie Hurihanganui, who is part of the business delegation in India, said there were tremendous opportunities for New Zealand and India to increase connectivity, tourism and freight movement between the two countries.
She said Auckland Airport and Delhi Airport would work together to advance these goals, in particular supporting the aspiration of non-stop flights operating between New Delhi and Auckland.
Demand for travel between India and New Zealand has grown by 78 percent since 2015, with 351,000 people travelling between India and New Zealand in 2024.
A third of those trips included travel between New Delhi and Auckland alone, with around 110,000 people travelling between the two cities in 2024.
Last month, the government unveiled a $3 million fund to attract more tourists to regional areas during autumn and winter.
The initiative was part of its wider tourism pivot, which included the "Everyone Must Go" campaign targeting Australian visitors and a $30 million investment in tourism infrastructure and conservation projects.
Growing interest from India
More than 80,000 international visitors to New Zealand arrived from India last year, 23 percent more than in 2019.
Tourism New Zealand's research found 18.3 million potential travellers across Mumbai, New Delhi and Bengaluru were actively considering a visit to New Zealand, with 43 percent ranking New Zealand as their top destination choice.
Angela Blair, general manager (international) of Tourism New Zealand, highlighted India's significance to the domestic industry.
"India is an incredibly important source market for New Zealand tourism and represents a significant opportunity for future international arrivals growth, particularly in the off-peak season," Blair said.
The agency said 75 percent of Indian visitors considering New Zealand preferred to travel between March and November.
This aligned with India's summer holiday season, which runs from March to June and coincides with New Zealand's cooler seasons.
To capitalize on this interest, Tourism New Zealand planned to send a delegation to India in July, hosting a Kiwi Link India event in Goa and New Delhi.
"To support our year-round and off-peak strategy, we aim to grow arrivals from India with a focus on festive and holiday breaks, including Diwali in October and November, and the Indian summer break between April and June," Blair said.
Upston underscored the importance of India as an emerging tourism market, projected to become the world's fifth-largest outbound tourism source by 2027.
"The relationship between New Zealand and India is a really important one, not just in terms of business and economics, but also in the close ties between our people," Upston said.
She said many Indian visitors came to see friends and family who have settled in New Zealand, making it a prime opportunity to increase holiday tourism numbers.
"We also know Indian visitors prefer to travel in the off-peak months of March to November, aligning with their key holiday periods," she said. "We will be encouraging them to spend these holidays with loved ones in New Zealand."
Tourism Minister Louise Upston Photo: RNZ / Samuel Rillstone
Visa challenges for Indian visitors
Despite the growing interest in visiting New Zealand, visa rejections remained a significant hurdle for Indian travellers.
"One of the major hurdles for Indian visitors to New Zealand is the rate of visa rejections," said Pradeep Kumar Medasani, managing director of Eco Travels.
In 2023, Immigration New Zealand approved 111,252 visitor visa applications while rejecting 45,482 - a rejection rate of about 41 percent.
The rejection rate has since improved, dropping to 26 percent in 2024 and 22 percent in the first two months of 2025.
The rising interest in overseas travel among India's expanding middle class, coupled with relaxed visa rules in many countries, has contributed to increased demand.
According to a 2024 report by online Indian travel company MakeMyTrip, the number of Indian residents taking two or more international trips annually increased by 32 percent between June 2023 and May 2024.
Medasani was optimistic it would eventually be easier to travel between the two countries.
"There has been a significant rise in interest from India about New Zealand, especially post-Covid-19," he said.
Pradeep Kumar Medasani is managing director of Eco Travels. Photo: Supplied
He said while many Indians had once been familiar with New Zealand through cricket, the country's pandemic response and safety measures also enhanced its reputation as a travel destination.
"Indians traditionally travelled to Southeast Asia, the Middle East and Europe, but now they are expanding to destinations like Australia and New Zealand," he said.
Eco Travels, which operates 13 branches in New Zealand and four offices in India, had seen a surge in inquiries.
"Before, we would receive five or six inquiries from India daily, but post-Covid, we now receive about 25 inquiries per day, which is pretty amazing," Medasani said.
Medasani also noted the challenges posed by airline connectivity and ticket prices.
"There is a lack of competition among airlines flying to New Zealand from India, which affects pricing and accessibility," he said.
Since the pandemic, many airlines had ceased operations on this route, driving up ticket prices.
"That's not ideal," he said. "Indians are price-conscious travellers, and we need to address this if we want more tourists here."
A direct flight could be beneficial, not just for tourists but also for New Zealand's sizable Indian diaspora, Medasani said.
Air New Zealand and Air India have signed a memorandum of understanding to boost air connectivity between India and New Zealand. Photo: Air India
Despite the challenges, Indian visitor numbers were on the rise.
In November 2024, arrivals from India were at 129 percent of pre-Covid levels, with holiday arrivals fully recovering to 109 percent.
"Many Indian holiday visitors book through travel agents, so it's crucial for us to engage with the travel trade sector in India to strengthen relationships and ultimately drive more bookings to New Zealand," Blair said.
Indian holiday visitors also contributed significantly to New Zealand's economy, spending an average of $5927 per trip - higher than the average $5171 spent by all holiday visitors.
According to Tourism New Zealand, Indian travelers were particularly drawn to the country's breathtaking landscapes, adventure activities, unique cultural experiences and warm hospitality.
To further boost arrivals, Blair said Tourism New Zealand would roll out more initiatives throughout the year to attract Indian tourists and sustain the upward trend.
"We will also be launching more activity throughout the year to help potential Indian visitors fall in love with New Zealand's landscapes and people," she said.
