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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 returning 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 New Zealand International Convention Centre in Auckland due to be completed in 2019, as well as additional facilities

confirmed for Christchurch and Wellington, and proposed for 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 29 Luxury Lodges of New Zealand member properties shows that in the

2015/16 season $62 million was spent by overseas visitors in luxury accommodation. This figure shows an increase in

luxury lodges revenue of 20.8% from the 2014/15 season

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.

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

Tourism New Zealand has identified special interests that present opportunities in priority markets including 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 (mono) rather than

dual New Zealand and Australian itineraries.

Strong growth in international visitor spend and average spend per arrival

Our number one priority is to increase the value of international holiday visitors to New Zealand and these latest figures

show we are making great progress. Total international visitor expenditure for the year ending June 2016 was $10.3

billion, an increase of 18% compared to the previous year

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. Holiday expenditure was $6.3 billion, also an increase of 18%

on the previous year. Total median spend per international visitor increased by 9% and by 4% for holiday international

visitors, reflecting both a growth in volume and value improvement across the sector.

The figures released by the Ministry of Business, Innovation and Economic Development’s (MBIE) International Visitor

Survey show the strongest growth in expenditure was driven from Asia, with China (up 33%), Japan (up 57%) and Korea

(up 92%) reflecting strong expenditure growth from these markets throughout the year. Tourism New

Zealand’s top three

priority markets being Australia, USA and China, contributed over $5 billion in the total annual spend.

Total international visitor expenditure by market

Market

YE June 2016 ($m)

YE June 2015 ($m)

YE June 2014 ($m)

Change 2015/2016 (%)

Australia

2,486

2,295

2,096

8%

China

1,791

1,344

834

33%

UK

998

989

678

1%

USA

1,080

967

698

12%

Germany

565

482

364

17%

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

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

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