On behalf of the Board and Leadership team, we are
delighted to present Tourism New Zealand’s Annual
Report for the past financial year ending 30 June 2017.
A dramatic year of change
The past year has been one of the most dramatic for
tourism in New Zealand, with record arrivals, further
growth in holiday spend and solid performance by
Tourism New Zealand. It has also seen the industry and
government engage in meaningful discussions about
the necessary infrastructure for the future.
We ended the financial year with total arrivals growing
10% to 3.6 million and holiday arrivals at 1.9 million
(up 12%). This puts us ahead of global tourism trends,
which show international visitor arrivals grew by 3.9%
for the 2016 calendar year, and 6% in January-June
2017 (Source: UNWTO World Tourism Barometer).
While total arrivals were up, total international visitor
spend was $10.25 billion, flat against the FY16 result.
Total holiday spend increased a pleasing 4% to $6.55
While the peaking of expenditure was disappointing
it was not unexpected given the significant growth in
spend seen over recent years. A contributing factor
here has been the strength of the New Zealand dollar
against a number of major currencies. Medium and
long-term forecasts for tourism spend remain positive
with growth expected from the Asian markets as well
and the US and UK. International visitor spending is
forecast to exceed $15 billion a year by 2023, up 52%
from the $10 billion recorded in FY17.
Against these top-line results, it was a year of change
for Tourism New Zealand. We expanded our presence
into Argentina and began our first full year of trade
activity in the Philippines, while also making the
difficult decision to close our Thailand office and
focus our efforts on the rest of South East Asia. We
farewelled outgoing chief executive Kevin Bowler
in October and soon after saw a change in tourism
ministers. Then in April we welcomed Stephen
England-Hall as new chief executive.
Given FY17 was the final year in Tourism New Zealand’s
four-year strategy, we began a significant programme
of consultation to develop a new strategy, completing
this process in December 2016. The strategy takes
our successes of the past and the challenges we face
together and outlines three key priorities for Tourism
New Zealand: to widen our measure and targeting of
value; to manage our markets as a strategic investor
would and to work more closely with others to build
knowledge and expertise.
We began this work through a significant partnership
with New Zealand’s largest tourism operator, the
Department of Conservation (DOC). Under the
partnership DOC will use our consumer research and
international visitor data to develop new products
and enhance the visitor experience on the DOC estate.
Research completed with 6000 New Zealanders and
active considerers from Australia, China, the US and
Germany is now being used to determine which tracks
will be promoted in a full campaign later this year.
One of our key objectives for FY17 was to continue
our work in shifting the seasonal profile of arrivals by
investing all marketing funds into promoting
Chair and Chief Executive Report
Tourism New Zealand Chair
Tourism New Zealand Chief Executive