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Strategic priority three: Focus marketing activity on clearly defined high value

visitors

Tourism New Zealand’s mandate is to increase value from international visitors for the economic benefit of New Zealand.

It achieves this through strategies to specifically target high value visitors, and by ensuring campaign messages match

the needs of the segments and sectors targeted by encouraging them to stay longer and do more while in New Zealand.

Visitor value can take several forms. For example, staying in New Zealand for a long time, travelling widely through New

Zealand dispersing the economic benefit, spending strongly on a per night or per trip basis, travelling to New Zealand in

low seasons, or if they are likely to return to New Zealand in subsequent trips.

Research carried out by Tourism New Zealand has identified high value segments within New Zealand’s prioritised

markets and these segments are the basis of Tourism New Zealand’s targeted strategies.

As well as focusing on valuable segments within key markets, higher value visitors are also targeted through the business

events sector. Increasing market development, partnership and campaign activity has accelerated outcomes within this

sector. The importance of this sector will continue to increase as New Zealand’s convention infrastructure improves with

the confirmed New Zealand International Convention Centre in Auckland, and the facilities proposed for Christchurch and

Queenstown.

There has been a focus on targeting premium visitors as high value visitor spend injects significant revenue into the

economy. Through dedicated resources and focus, high net worth individuals have been targeted in North America,

Europe/UK, and Asia leveraging New Zealand’s best accommodation and attractions that appeal to this small but very

valuable segment of the market. Data from 31 Luxury Lodges of New Zealand member properties shows that in the

2014/15 season $50 million was spent by overseas visitors in luxury accommodation in these member properties. This

figure shows an increase in luxury lodges revenue of 19.7% from the 2013/14 season

3

. Total high value visitor spend in the

broader economy from those travellers staying in luxury lodges in the 2014/15 season is estimated to be $100 million.

Research has also shown that promoting special interest travel can attract visitors who spend more and stay longer

on average. Tourism New Zealand has identified special interests that present opportunities in key markets. Prioritised

special interests include ski/snow, golf, hiking/walking and cycling.

The Chinese market is important in regards to value, and it has delivered exceptional arrivals growth to become New

Zealand’s second most important market in terms of visitors and visitor expenditure. A key driver has been longer

lengths of stay, in particular more Chinese tourists visiting New Zealand on exclusive rather than dual New Zealand and

Australian itineraries.

Strong growth in international visitor spend and average spend per arrival

Total international visitor expenditure for the year end June 2015 was $8.7 billion, an increase of 28 per cent compared

to the previous year

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. Holiday expenditure was $5.3 billion, an increase of 28 per cent on the previous year. Total median

spend per international visitor increased by 15 per cent and by 15 per cent for holiday international visitors, reflecting

both a volume and value improvement across the sector. Two of Tourism New Zealand’s top three priority markets,

Australia and China, contributed well over one billion dollars annual spend and the UK and USA also contributed nearly

one billion dollars annual spend, all growing very strongly.

3

Aggregated LLNZ revenue data, provided to Tourism New Zealand and LLNZ members.

4

International Visitor Survey results April – June 2015, Ministry of Business Innovation and Employment.

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