Chris RobertsTourism Industry Association New Zealand

7 months in... How are we doing?

Tourism 2025 in Action - Insight

Tourism 2025 in Action - Connectivity

Tourism 2025 in Action - Value

Tourism 2025 in Action – Visitor Experience

Tourism 2025 in Action – Productivity

Good progress

Insight: China Toolkit, Regional Indicators

Visitor Experience: CWC2015 Single Visa, Safer Journeys

Productivity: Chinese market transformation, Service IQ engagement

Target for Value: Well. Convention Centre, emerging markets, special interests

Connectivity: Air NZ/Singapore, new services, ASA liberalisation

Work in progress

Insight: Cruise data, IVS, NZ Tourism Inc. approach

Visitor Experience: DOC/operators relationship

Productivity: TGP applications, business capability, TLA support

Target for Value: VFR of International students, Halal tourism

Connectivity: India ASA, China ASA

Tourism 2025 Scorecard

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Short term overseas visitor arrivals(Year end September)

Acut

al co

unts

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0

10.0

20.0

30.0

International visitor length of stay(Year end September)

Average stay days Median stay days

Day

s

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 28,000,000

29,000,000

30,000,000

31,000,000

32,000,000

33,000,000

34,000,000

Accommodation total guest nights(Year ended August)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0

10.0

20.0

30.0

International and domestic expenditure(Year ended March)

International Domestic

$ (b

illi

on

)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0

5.0

10.0

Contribution to GDP(Year ended March)

Indirect tourism value added Direct tourism value added

Per

cen

t

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

100,000

200,000

Tourism employment(Year ended March)

Indirect Direct

Nu

mb

er o

f F

TE

s

2012 2013 2014270

280

290

300

310

320

330

Total net cruise expenditure(Year end August)

$(million)

2012 2013 20140

50,000

100,000

150,000

200,000

250,000

Cruise passengers (excl crew)(Year ended August)

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.0

0.5

1.0

1.5

2.0

2.5

40,000

44,000

48,000

52,000

56,000

International student expenditure and international student arrivals < 12 months

(Year ended March)International student expenditure International arrivals for education < 12 months

$ (b

illi

on

)

Arr

ival

s

New Zealand vs the World...

USA Canada Australia New Zealand0

5

10

15

20

25

30

Annual change in Chinese and total international visitor arrivals;New Zealand compared to key competitors

(Year ended July 2014)

Short term Chinese arrivals Total short term visitor arrivals

Destination Country

Per

cen

t

State of the Industry - Australia

• Spend growth since 2009: 3.6% pa• 2020 Tourism Plan stretch goal now requires

9.9% pa• Better news on supply side

– air services– employment– accommodation

Trans-Tasman comparison

Australia New Zealand

Direct GDP contribution 2.8% 4.0%

Direct employment 4.7% 4.7%

Total visitor spend +4% +5%

Domestic visitor spend +5%, +1% +3.2%

International visitor spend +7.4% +7.4%

Australia/NZ China USA UK Germany Japan

+3%+16%+7%+13%+11%-7%

-4%+26%+53%+12%+63%-7%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 202512.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

21.0

12.813.0

13.4

13.9

14.5

15.1

15.7

16.3

17.0

17.6

18.3

19.1

19.8

20.6

Tourism 2025 Domestic aspirational spend

4% CAGR

3.2%

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20258.0

9.0

10.0

11.0

12.0

13.0

14.0

15.0

16.0

17.0

18.0

19.0

20.0

9.8 9.6

10.3

10.9

11.6

12.3

13.0

13.8

14.6

15.5

16.4

17.4

18.4

19.6

Tourism 2025 International aspirational spend

Year

$ billion

7.4%

6% CAGR

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 202521.0

23.0

25.0

27.0

29.0

31.0

33.0

35.0

37.0

39.0

41.0

22.6 22.6

23.7

24.9

26.1

27.3

28.7

30.1

31.6

33.1

34.8

36.5

38.3

40.2

Tourism 2025 - Total aspirational spend

Year

$ billion

5.0%

Staying the course

What do tourism operators need? • Timely, relevant and accessible information • A culture change - use insight for business decision-making

How to achieve it?• Team approach – public and private sector - to insight creation

and use

IATA 20 year passenger forecast:

3.3b flyers in 2014… …7.3b in 2034

Five fastest-growing markets: China, US, India, Indonesia, Brazil

Asia-Pacific fastest growing region:

1.1b flyers in 2014… …2.9b in 2034

• Infrastructure– Accommodation catch-up– Convention Centres– Cruise opportunity – Attracting investment

“The world is awash with cash… bring me your projects, I need projects to take people’s breath away” Andrew Robb, Australia Trade Minister

• China and emerging market evolution• Leveraging international students and their families and

friends • Tourism’s contribution to Christchurch economic recovery

Getting the Workforce Right:• People & Skills strategy• Working visa reform

“Working holiday visas are a stunning success”Scott Morrison, Australia Immigration Minister

• Regional and seasonal dispersal– Conferences, events, emerging markets, special interest– Domestic growth – Cruise– Manage pinch-points, spread the benefits

• Technology investment• Product development

• Border reform and visa facilitation

“The only barrier to a common NZ-Australian border is the sharing of intelligence and criminal record data”Michael Pezzullo, Secretary of Immigration and Border Protection

• Adventure safety• Infusing Māori culture• Multi-language provision• Wi-Fi• Measure dissatisfaction• Celebrate success

Chris RobertsTourism Industry Association New Zealand