TNZ Strategic Update – TRENZ mediaHelping grow the New Zealand economy through international visitors

May 2012

Agenda

• Importance of international visitors

• Current performance

• FY13 Business Plan

• Global focus

• Marketing approach

• Partnerships – trade, aviation, RTOs, operators

• Events

• Quality

• Conclusion - opportunities

International Tourism is a key Export Earner for New Zealand

International tourism expenditure

$9.7BFull-time jobs

179,800GST earnings

$1.71BContribution to GDP

8.6%

Overall international visitor arrivals rising

Top ten markets 

Visitor numbers

Total (000s)

Trend (YOY)

Australia 1,168 +5.1%

UK 222 +1.0%

USA 184 -3.1%

China 160 +23.7%

Japan 65 -23.8%

Germany 63 -1.3%

Korea 53 -19.2%

Canada 49 0.0%Singapor

e 39 +28.8%

Malaysia 38 +72.9%

Total 2,618 +4.4Source: International Visitor Arrivals YE Mar 2012

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

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2010

2011

2012

Arr

ival

s

Arrivals - All Markets

But, total stay days have been flat since 2008

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

YE Mar 00

YE Mar 01

YE Mar 02

YE Mar 03

YE Mar 04

YE Mar 05

YE Mar 06

YE Mar 07

YE Mar 08

YE Mar 09

YE Mar 10

YE Mar 11

YE Mar 12

Tota

l Sta

y D

ays

Total Stay Days - All MarketsBy Purpose of Visit

Total

Holiday

VFR

Other

By country, its a much more interesting picture Top5: Au, UK, Ger, US, Fr

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

YE Mar 00

YE Mar 01

YE Mar 02

YE Mar 03

YE Mar 04

YE Mar 05

YE Mar 06

YE Mar 07

YE Mar 08

YE Mar 09

YE Mar 10

YE Mar 11

YE Mar 12

Tota

l Sta

y Da

ys

Total Stay Days - HolidayTop 10 Markets

Australia

UK

Germany

US

France

Canada

China

Netherlands

Japan

Korea

Three Year Strategy – FY13 focus

1. Prioritise markets and sectors for growth

2. Focus marketing on preference and conversion

3. Work with partners to

• Strengthen and grow travel trade sellers

• Expand inbound air capacity

• Increase marketing reach & effectiveness

4. Leverage events

Prioritise Markets and SectorsA tight focus is vital

A Portfolio Approach to Market Prioritisation

Australia ChinaUSA

UK Germany

JapanSEACanadaFrance

ScandinaviaIndiaHong KongTaiwanKorea

Eastern EuropeSouth AmericaRemainder of Western Europe

Prioritising Sectors that Span Geographies

• Specialist segments:

• Youth travel (pan Europe, plus US, Au)

• Cruise (USA, Au)

• Business Events (Asia, USA)

• Top interest areas:

• Travel styles: premium, honeymoon

• Sectors: guided hiking, skiing, cycling

FY13 Marketing ApproachHighly targeted, integrated, and more inspiration

• Segment and target active considerers with both inspirational creative and a call to action.

• Keep the ‘100% Pure You’ strategy, but drop ‘you’ from the end-line.

• Use highly targeted digital media for most paid media investments.

• Grow social media scale and engagement.

• Use PR to broaden channels – and deliver credible on-brand messaging.

• Leverage major events in marcomms and PR streams.

• Use newzealand.com to inspire, inform, and aid conversion.

• Drive traffic to third party sites to accelerate conversion.

Improving conversion on newzealand.com

Netreferrals

18% up

Activities &

Tours 29% up

Partnerships

Partnerships with overseas travel trade, airlines, NZ operators & RTOs expected to exceed $25M in additional funding FY12.

Partnerships are becoming more important

• Why so important?

• Partnerships are bringing $25M extra power to TNZ’s marketing in FY12.

• They improve advertising performance.

• They provide improved optics on campaign ROIs.

• And they provide access to marketing assets (e.g. high value customer databases).

• Aviation

• To protect, as well as grow, long haul connections to New Zealand.

• Travel Trade

• To strengthen and grow the capability to sell destination New Zealand.

Committed to an 18 month rolling events calendar sample of the shows/events

• MATTA

• ILTM

• NATAS

• CIBTM (Business)

• JATA

• SATTE

• TTAF

• Luxperience

• ILTM

• Vankantierberurs

• ITB

• IMEX Frankfurt/Vegas (Business)

• ITE (Business)

• Virtuoso

• WYSTC

• Top Resa

• PURE Life

• WTM

Leverage Events

The Hobbit films represent a massive opportunity to elevate promotion of New Zealand

‘100% Pure’ meets ‘the Hobbit’

• Creative territory: New Zealand – where fantasy is reality – 100% Pure.

• Blends Hobbit themes with the visitor experience.

• New creative platform expected Q1 FY13

QualityQuality remains the key to growing passionate advocates

TNZ has an important role in quality

• i-SITEs

• A revitalised board, more aligned to i-SITE owners, developing a new strategy.

• Qualmark

• A new team working more closely than ever on providing a quality framework for the industry, with each sector.

• China ADS Programme

• Focus on fair treatment of Chinese group visitors tightening up control of service delivery.

• Market intelligence and feedback

• Improved market information – particularly from newer markets.

Conclusion – new opportunities

• Asia - in particular China - is a fast emerging opportunity.

• The Hobbit will help us elevate New Zealand’s message.

• Increased attention to yield across the board – particularly in business, special interest areas, and China – will help protect value.

• New and reinvigorated partnerships will drive more promotion of New Zealand and sustain air supply routes.

• Closer collaboration with Education NZ, Immigration NZ and other NZ Inc will ensure a stronger overall New Zealand message off-shore.