Presentation slides - Tourism Industry Association New Zealand

Chris Roberts Tourism 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

Short term overseas visitor arrivals (Year end September) 3,000,000

2,500,000

Acutal counts

2,000,000

1,500,000

1,000,000

500,000

0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

International visitor length of stay (Year end September)

30.0 Average stay days

Median stay days

Days

20.0

10.0

0.0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Accommodation total guest nights (Year ended August) 34,000,000

33,000,000

32,000,000

31,000,000

30,000,000

29,000,000

28,000,000 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

International and domestic expenditure (Year ended March) 30.0 International

Domestic

$ (billion)

20.0

10.0

0.0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Contribution to GDP (Year ended March) 10.0

Percent

Indirect tourism value added

Direct tourism value added

5.0

0.0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Tourism employment (Year ended March)

200,000

Number of FTEs

Indirect

Direct

100,000

0 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Total net cruise expenditure

Cruise passengers (excl crew)

(Year end August)

(Year ended August)

330

250,000

320 200,000 310

$(million)

150,000 300 100,000 290 50,000

280

270

0 2012

2013

2014

2012

2013

2014

International student expenditure and international student arrivals < 12 months (Year ended March)

2.5

56,000 International student expenditure

International arrivals for education < 12 months

2.0 52,000

48,000 1.0

44,000 0.5

0.0

40,000 2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

Arrivals

$ (billion)

1.5

New Zealand vs the World...

Annual change in Chinese and total international visitor arrivals; New Zealand compared to key competitors (Year ended July 2014)

30 Short term Chinese arrivals

Total short term visitor arrivals

25

Percent

20

15

10

5

0 USA

Canada

Australia Destination Country

New Zealand

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%

Tourism 2025 Domestic aspirational spend 21.0 20.6 20.0 19.8 19.0

19.1 18.3

18.0 17.6 17.0 17.0 16.0

16.3 15.7

15.0

15.1 14.5

14.0 13.9

13.4

13.0 12.8

13.0

12.0

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Tourism 2025 International aspirational spend 20.0 19.6

19.0 18.4

18.0 17.0

17.4

16.0

16.4 15.5

15.0 14.6

$ billion 14.0 13.8

13.0 13.0 12.0

12.3 11.6

11.0 10.9 10.0

10.3

9.8 9.0

9.6

8.0 2012

2013

2014

2015

2016

2017

2018

Year

2019

2020

2021

2022

2023

2024

2025

Tourism 2025 - Total aspirational spend 41.0 40.2

39.0 38.3

37.0 36.5 35.0 34.8 33.0

$ billion

33.1

31.0

31.6 30.1

29.0 28.7 27.0

27.3 26.1

25.0 24.9 23.0

23.7 22.6

22.6

2012

2013

21.0 2014

2015

2016

2017

2018

Year

2019

2020

2021

2022

2023

2024

2025

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 Roberts Tourism Industry Association New Zealand