ANNUAL REPORT 2016taanz.org.nz/wp-content/uploads/2016/02/TAANZ-Annual... · 2016. 9. 5. · The value proposition that surrounds the TAANZ member has also been refreshed focussing

ANNUAL REPORT2016

If You Don’t See The TAANZ Sign, You’re Not Covered

TAANZ ANNUAL REPORT 2016 02

CONTENTS

03

05

07

10

1 1

THE TAANZ BOARD

CHAIRMAN'S REPORT

CHIEF EXECUTIVE'S REPORT

KEY STATISTICS

FINANCIAL STATEMENTS FOR TAANZ



PRESIDENT:Mr Peter Barlow, MNZITT Director BCD Travel NZ Level 1, 10 Cambridge Tce PO Box 3193, Wellington 6140 Tel: (04) 891 1005 Email: [email protected]

DIRECTOR:Mr Mark Abbot, MNZITT Chairman of Finance Representing House of Travel Holdings C/- MDS Law - Barristers & Solicitors 334 Lincoln Road, Addington PO Box 185, Christchurch 8140 DX WP20524 Christchurch Tel: (03) 371 0482 Email: [email protected]

DIRECTOR: Mr John Willson, MNZITT General Manager Retail First Travel Group Level 4, 187 Broadway Newmarket, Auckland 1023 DX: CX10156 Auckland Tel: (09) 524 1610 Mob: 021 821 944 Email: [email protected]

VICE PRESIDENT:Mr Andrew Bowman, MNZITT Managing Director First Travel Group Level 4, 187 Broadway, Newmarket, Auckland DX CX10156 Auckland Tel: (09) 377 1578 Email: [email protected]

DIRECTOR: Brent Thomas Commercial Director House of Travel Holdings 5th floor, GE Building, 8 Tangihua Street, PO Box 2837, Auckland DDI: (09) 358 7826 Mob: +64 274 519 007 Email: [email protected]

DIRECTOR: Mr Neil Gestro Independent Email: [email protected] Mob: 021 723 499

DIRECTOR: Simon McKearney Executive General Manager Helloworld Ltd Level 5, Chorus House 66 Wyndham Street PO Box 505, Auckland 1140 Tel: (09) 3071851 Email: [email protected]

THE TAANZ

BOARD

TAANZ BOARD


ADMINISTRATION ASSISTANT:Mary Hall

SOLICITOR:Mr AR (Andy) Marshall, LLB (HONS)

Gault Mitchell and Co

Level 4, Natural Gas Corp. House

22 The Terrace, PO Box 645

Wellington

Tel: (04) 472-5074

Fax: (04) 471-0835

Email: [email protected]

AUDITOR:Grant Thornton

Chartered Accountant

Leve 13, AXA Centre

80 The Terrace

PO Box 10712, Wellington

Tel: (04) 474-8500

Fax: (04) 474-8509

BANKERS:ANZ

SECRETARIATLevel 3, Tourism & Travel House

79 Boulcott Street

PO Box 1888, DX SX10033, Wellington 6140

Tel: (04) 496-4884

Fax: (04) 499-0786


Website: www.taanz.org.nz

CHIEF EXECUTIVE:Mr Andrew Olsen. Post Grad. Dip.MNZITT


FINANCE MANAGER:Ms Shelley Lancaster


BONDING AUTHORITY:Mr Thomas Leckie, ACA

Level 3, Tourism & Travel House

79 Boulcott Street

PO Box 3251, Wellington 6140

Tel: (04) 473 4330


LIFE MEMBERS:Mr Andrew Bagnall, Auckland

Mrs Anne Bouterey, MNZITT, Christchurch

Mr Bob Christey, MNZITT, Hamilton

Mr Peter Cox, OBE, FNZITT, Napier

Mr Duncan Hamilton, OBE, ACA, FNZITT, Auckland

Mr James Langton, MNZITT, Auckland

Mr John Morrison, MNZITT, AFNZIM, Wellington

Mr Charles Spain, FNZITT, Auckland

Mr Tim Tapper, FNZITT, Auckland

Mr Peter Lowry MBE, LNZITT, Wellington

Mr Murray Tanner, Auckland

TAANZ BOARD


It is with some nostalgia that I write this for the TAANZ Annual Report 2016.

After 14 years on the Board, 10 as Chairman, I will be standing down.

I feel very honoured that I have had this opportunity to serve the wider Travel Industry as a

member of your board and satisfied that I leave the association in a better place than I arrived.

Much has happened over this time. The association has had a re-birth as a stand-alone entity,

solely focussed on the members and outbound tourism. We have a small group of diligent, caring

brand representatives on the board ensuring that we are at the top table on all matters that effect

our industry. Our relationship with IATA has never been stronger and the dialogue we have with

them at the APJC, in conjunction with our airline partners, has enabled us to agree a new 3 year

TAANZ/IATA agreement.

The appointment of Andrew Olsen to the role of CEO separated us from ITOC and initiated our

desire to be more connected to our members, and more relevant. In my view, under Andrew’s

guidance, with the support of the various board members over the years, we have achieved this.

Of importance is the promotion of a TAANZ Travel Agent to the New Zealand public. The recent

launch of the new TAANZ website underpins this with the value proposition of value, choice and

customer security. We must never lose sight of our value to the consumer and that when booking

with a travel agent, their money is safe and they enjoy the service of professionals.

The board’s commitment to elevating the standards of professionalism has seen a massive

surge in industry wide minimum accreditation standards and a continued focus on training and

development. This bodes well for the future of the industry and as a pathway for young people

choosing travel as a career.

I am pleased that as our industry, and the marketplace, evolves, so do our rules. We have listened

to the members and simplified and modernised the rules accordingly. Of note are the rule changes

concerning brokers. Their needs are specific and we acknowledge this growing segment of our

industry.

In commercial terms, we have continued to ride the waves of change that impact the industry.

Pleasingly, we seem to be enjoying a strong economy at the moment which reflects a positive

trading environment and an optimistic outlook. Long may that continue?! TAANZ has also

TAANZ CHAIR-MAN'S

REPORT SEPTEMBER 2016

CHAIRMAN'S REPORT


delivered another financial surplus for the year to May 2016 and, with a strong balance sheet,

TAANZ members are backed by a strong, financially stable association.

I am very proud of our industry, it has been kind to me. In particular, I have had the good fortune

to work with many dynamic people over the last 40 years and to enjoy the changing landscape

that is the travel industry. As a founding member of the WTAAA and as Chairman from 2010–

2012, I had the great pleasure to represent New Zealand and contribute to the industry on a

global level.

In departing TAANZ, I leave with many fond memories and good times with all those involved.

Wishing you much continued success and good fortune.

Kind Wishes

Peter Barlow

TAANZ Chairman

CHAIRMAN'S REPORT

- Pete


THE YEAR IN REVIEW

Travel and Tourism is now the number one GDP contributor to the New Zealand economy and

by all accounts members have enjoyed a busy year. Ticket numbers have increased along with

overall departure numbers over the last 12 months translating to better agency business. It’s

also been one of the most hectic and dynamic years in memory for brands with the arrival of new

organisations, new management teams and significant consumer advertising campaigns. The

general consensus is that all this activity has been good for the industry and for the customer,

raising the profile of the travel agent and its value.

One of TAANZ primary objectives is to promote the use of a TAANZ Travel Agent to New Zealand

travellers and public at large. In this last year emphasis has been placed on redesigning this

message through the newly launched TAANZ website. In this format, TAANZ members have

been and continue to be encouraged to share their customer stories. The value proposition that

surrounds the TAANZ member has also been refreshed focussing on value, choice, safe travel

and customer assurance. TAANZ has also actively encouraged the new TAANZ brand and value

proposition to be used by members in their marketing and promotional activities and in particular

through social media. Through co-branding and use of the TAANZ proposition, customers and the

public will become increasingly aware of diverse brands and businesses that are TAANZ members

and who buy into unique consumer guarantees, financial standards and elevated standards of

professionalism. In this last year TAANZ has also shifted its tag line focus to “If you don’t see the

TAANZ sign, you’re not covered”. We encourage all members to proudly and publicly display their

TAANZ membership and the value this represents.

We’ve also had a busy year drawing the government’s attention to the fact that the travellers

should not be a collection vehicle for fees and levies. TAANZ and other aligned bodies strongly

opposed the Border Clearance Levy and won a moral victory in this matter; the fees collected

cannot be taken into the general treasury funds but must be applied solely to border clearance

needs and the level of the fee has thus far at least not appeared to be an impediment to travel. We

fully expect travellers will continue to be targeted as an income stream and TAANZ will continue

to oppose fees imposed on travellers into and out of New Zealand.

CONSUMER MESSAGING

ADVOCACY MATTERS

CEO'S REPORT

CEO'S REPORT


TAANZ advocacy extends to preserve and improve the conditions under which our members

work. In January 2016, we commenced a new three year term of the TAANZ IATA agreement. The

agreement continues to recognise the existing and fair local financial criteria conditions. Through

the arrangements we have with IATA, and through the collective work of the New Zealand APJC

chaired by Mr Andrew Bowman we have also realised a significant improvement in the timing

of refunds and work is underway to assess the impacts of airline disrupt and rescheduling upon

agents. It is a testimony to the collegiate nature of the New Zealand industry that airlines and

agents that we can work side by side to reach agreement on often complex matters.

Globally, the World Travel Agents Associations Alliance continues to monitor important issues

like Distribution Standards and the IATA Passenger Sales Agency Agreement. Recently the

WTAAA has turned its attention to payment mechanisms, in particular IATA’s proposed New Gen

ISS. The WTAAA is focussed on ensuring that any new payment mechanisms that may be adopted

do not impede travel agency sale of airline products.

The Board has supported a steady and realistic elevation of professional standards for TAANZ

members and at the AGM of 2015 the membership voted to continue the focus on standards.

TAANZ is acutely aware that training and development of personnel is a significant undertaking

for members whether they are a large organisation or a very small one. There is however no doubt

that this investment in people yields positive and long term rewards; staff turnover typically slows

as employees engage with employers, direct and indirect cost of error reduces, and customer

satisfaction increases. We are very pleased to report that the vast majority of TAANZ members

meet or are in the process of meeting the qualification accreditation and as an industry you should

be very proud of this achievement.

The TAANZ Board supports appropriate changes to TAANZ rules and criteria and no better is

this represented than the support for a modernisation and simplification of Rule 12. The rule,

which outlines how members must ensure brokers represent and conduct themselves, has been

reviewed through the broker working group and the Board in turn fully supports amendments

STANDARDS AND TAANZ

ACCREDITATION PROGRAMME

RULES

" Ticket numbers have increased along with

overall departure numbers over the last 12 months translating

to better agency business."

CEO'S REPORT


which will remove advertising restrictions for brokers. The rule change proposal will be tabled

as a notice of motion for members at the September AGM. We acknowledge the support of the

brands and broker businesses in this matter which will enable TAANZ members, through their

broker network, to appropriately extend their customer reach ultimately improving the overall

market share of travel agent customers.

Now in its third full year, we are delighted the industry has embraced the awards as the event for

all of industry. The success of the awards relies on the generous and continued contributions of

our sponsors and hosts and we are truly appreciative of the support. Whilst the judging of these

awards is left to the judging panel, it is a pleasure to personally meet and greet the finalists; brand

leaders, corporate and retail leaders, rookies and suppliers who all have a success story to tell.

The details are different but what resonates from each is a passion and energy for the roles they

fulfil in this tremendous industry of ours. The industry is in safe hands.

Mr Tom Leckie, as the new Administrator of the TAANZ Bonding Authority, has made significant

progress in his first year. Tom has made great headway engaging members in one on one

discussions about their businesses and the trade. The consolidation with TAANZ at the Boulcott

St offices in Wellington has also helped Tom assess areas of improvement to make it easier for

members to do business. In this last year the requirement for annual accounts to be witnessed

by a justice of the peace has been removed, the bonding return has been vastly simplified and

is available for members to complete online. As we run in a new administration we also make

mention of the long service provided by Mr Dan Williams and thank him for his attendance to

TAANZ matters over a decade.

This year TAANZ has returned a surplus result ahead of budget. This result was largely due to

lower than budget expenses and a restatement of TAANZ investments which added to overall

income. Looking ahead to next year, there is uncertainty around interest rates fluctuations and

the Directors are considering TAANZ income strategies to ensure TAANZ viability. We also advise

that TAANZ funds were not exposed in this financial year.

Please refer to P. 11 for the audited consolidated financial results.

As an Incorporated Society, TAANZ is required to comply with a new statement of performance

and financial reporting standard. The new format provides much more granular detail and year

on year outputs of the Association and indicates that our results are closely aligned to our key

objectives. This format will form the basis of continued reporting in the future and evolve to

include other key measurable outputs in coming years. We are pleased with the advice and

direction provided by our auditors, Grant Thornton.

This annual report provides a comprehensive assessment of all of TAANZ activities and business

outputs. On Behalf of the Board I am very pleased to report on the performance, relevance and

value of TAANZ by way of this report.

Andrew Olsen,

TAANZ Chief Executive

NATIONAL TRAVEL

INDUSTRY AWARDS

BONDING AUTHORITY

CONSOLIDATION WITH TAANZ

FINANCIAL RESULTS AND YEAR AHEAD

NEW AUDIT STANDARDS

CEO'S REPORT

0

200,000

1,000,000

1,800,000

400,000

1, 200,000

2,000,000

600,000

1,400,000

2,200,000

800,000

1,600,000

2,400,000

2,600,000

TOTAL NZ RESIDENT DEPARTURES BY CALENDAR YEAR

25 YEARS OF GROWTHTotal New Zealand Residents Departing (Short Term)

As at May

MAY 2006

MAY 2007

MAY 2008

MAY 2009

MAY 2010

MAY 2011

MAY 2012

MAY 2013

MAY 2014

MAY 2015

MAY 2016

FULL MEMBER HEAD OFFICES 400 396 380 364 342 331 317 314 304 303 294

FULL MEMBER BRANCH LOCATIONS 84 80 73 66 70 67 89 92 81 80 72

TOTALS 484 476 453 430 412 398 406 406 385 383 366

APPROVED TRAVEL BROKERS 309 314 324 315 401 431 476 522 533 564 402

ALLIED SUPPLIER MEMBERS 96 92 83 79 77 73 59 69 68 72 71

10 YEAR MEMBERSHIP REVIEW

1991 778,956

1992 750,895

1993 799,659

1994 823,834

1995 920,107

1996 1,092,879

1997 1,131,682

1998 1,166,418

1999 1,184,510

2000 1,282,791

2001 1,286,593

2002 1,292,979

2003 1,373,632

2004 1,432,541

2005 1,777,939

2006 1,876,838

2007 1,996,314

2008 1,967,100

2009 1,918,300

2010 1,943,330

2011 2,037,091

2012 2,124,936

2013 2,162,918

2014 2,213,059

2015 2,321,054

2016 2,445,423

1991

1992

199319941995

199619971998

19992000

2001

200220032004

2005

20062007

2008

2009

2010

2011201220132014

2015

2016


KEY STATISTICS


Non-Financial Information: Page

Independent Auditor's Report 12

Entity Information 15

Statement of Service Performance 16

Financial Information:

Statement of Financial Performance 18

Statement of Financial Position 19

Statement of Cash Flows 20

Statement of Accounting Policies 21

Notes to the Performance Report 23

PERFORMANCE REPORTFOR THE YEAR ENDED

31 MAY 2016




















LEVEL 3, TOURISM AND TRAVEL HOUSE 79 BOULCOTT STREET

PO BOX 1888, DX SX 10033 WELLINGTON 6140

PHONE: (04) 496 4884 | FAX: (04) 499 0786 EMAIL: [email protected]

WWW.TAANZ.ORG.NZ

Documents

ANNUAL REPORT 2016taanz.org.nz/wp-content/uploads/2016/02/TAANZ-Annual... · 2016. 9. 5. · The value proposition that surrounds the TAANZ member has also been refreshed focussing