The Australian market has been performing really well over the
last six months, with excellent growth in holiday arrivals, and
forward bookings looking extremely positive. A strong New Zealand
ski season compared with a patchy season in Australia saw holiday
arrivals from Australia to New Zealand increase by 16.6% in June,
4.3% in July and 9.2% in August 2013 (compared to same months in
Western Australia has been a stand-out performer and all
indicators are that this market will continue to grow considerably,
helped by Qantas' Perth-Auckland and Air New Zealand's
Perth-Christchurch routes being launched in October and December
Special Interest is a big focus, with the promotion of the
new cycleways across New Zealand, the second Hobbit release, and a
lot more activity is happening in the Business Events, Luxury,
Youth and Cruise markets over the next 12 months as well.
Presentation about Australia and Indonesia by TNZ's Tim Burgess, General Manager Australia
Official New Zealand Government forecasts are for Australian
visitor arrivals to reach 1.64 million in 2018 (source: NZIER
Tourism forecasts 2012-18). One of the quoted drivers from NZIER is
the opportunity to leverage growing middle class incomes in
There has been a significant shift in where Australian holiday
arrivals are entering New Zealand. Christchurch Airport's Australia
holiday arrivals have almost been halved by growth in Queenstown
and Auckland arrivals in the past four years.
Summer has the highest peak for Australian holiday visitors, but
marketing by Tourism New Zealand and other industry players has
helped make New Zealand a popular year-round destination. Winter
has seen sustained growth in the popularity and accessibility of
ski tourism for Australian visitors, so much so that ski months
almost provide the same level of visitation as summer months.
New Zealand competes closely with the United States of America and
Indonesia in the Australian market, as well as with domestic
Australian destinations such as Queensland and Western Australia.
The increase in competition for Australia travellers continues to
intensify with the Australian outbound market growing at an average
5% p.a. New Zealand remains the number one outbound destination for
Australians, but is being challenged to hold its market share in
line with the outbound growth.
Tourism New Zealand runs a range of campaign activities in
Australia year round, including television advertising, online
marketing, and public relations. It also works closely with
regional tourism organisations, airlines, operators, and travel
sellers to promote New Zealand and develop the market.
Australians are confident researching and booking New Zealand
holidays online (see our distribution channel
research) and Tourism New Zealand campaign activity in this
market makes the most of digital media channels.
New Zealand has the highest consideration and preference as a
holiday destination in Australia. It is perceived to be a
destination where you can explore and discover unique places and
experiences. Combined with competitive trans-Tasman airfares and a
favourable exchange rate, New Zealand is in a good position to
maintain visitor numbers.
With Australia continuing to be New Zealand's most important
market in terms of visitor numbers, Tourism New Zealand has
increased its level of investment in Australia in 2013/14.
Tourism New Zealand's Australia activity in 2013/14 has a
primary objective of growing value through a focus on high value
visitors. The aim is to drive more first time holiday visitors,
improve seasonal arrivals and ultimately grow total holiday stay
Tourism New Zealand has refined its Active Considerer target
market in Australia to focus on three segments and tactical work
across campaign, trade and PR has been weighted against each
segment. Tourism New Zealand's communications strategy will
be delivered in three main 'waves' of activity across the year
under the headlines of Touring, Special Interest and Winter Action
(ski). All communications will be structured to deliver relevant
segment, season and special interest messaging.
The first 'wave' of activity will be broadly themed 'Touring New
Zealand' which will include campaigns in partnership with New
Zealand's Regional Tourism Organisations (RTOs) to highlight the
diversity of landscape and gems to be discovered on a touring
holiday in New Zealand. At present Australian holiday tourists
visit four regions on average in New Zealand, and the aim is to
increase this by extending the average length of stay. Partnerships
with RTOs are critically important to extend the reach of Tourism
New Zealand's activity and provide a platform for conversion
elements. This 'Touring New Zealand' wave of activity is
scheduled to run from August to December 2013 to drive bookings for
the peak summer season and
New South Wales, Queensland and Victoria generate the largest
numbers of New Zealand holiday arrivals, but Tourism New Zealand
has placed extra resources to drive further growth in high value
visitor arrivals from Western Australia. Over the last five years
growth from Western Australian holiday arrivals has averaged 5 per
cent and these tourists stay an average of 14 days in New Zealand.
Extra airline capacity forecast for Perth to New Zealand in the
year ahead will see Tourism New Zealand continue to increase its
activity and investment in Western Australia across all three
'waves' of activity in 2013/14.
Tourism New Zealand is actively targeting higher value visitors
through its focus on special interest areas such as hiking, golf
and fishing with a specific focus on cycling and the New Zealand
Cycle Trails. This second 'wave' of special interest activity is
scheduled to run from November 2013 through to March 2014. The
special interest work in Australia will see a fully integrated
programme, including strong partnership elements that run through
campaign, trade, PR and social media placements.
Tourism New Zealand will also aim to increase value from the
rapidly growing cruise sector out of Australia by supporting
initiatives that grow cruise/coach and cruise/self-drive
The third wave of activity from April to June 2014 will continue
to evolve the 'more magic in every day' ski proposition used for
the 2013 season. This work will be an extension of its success
partnership promotions with the Ski Marketing Network (TMN), and
airlines and travel sellers in Australia. The ski TMN is a
collective of commercial ski areas, RTOs and airports in New
Tourism New Zealand will improve its online training of
frontline travel trade and its personal training of wholesale and
reservation trade partners in line with all three main 'waves' of
activity. There will be a continued focus on leveraging off the
Hobbit movies to create heightened interest for New Zealand and
provide a platform for tactical campaign activity around the second
Hobbit movie launch in late 2013.
Against a challenging global backdrop, the fundamentals of the
Australian economy remain strong and the outlook remains positive.
Economic activity is expected to grow at around three per cent over
the next two years, consumer confidence is positive, the
unemployment rate is forecast to remain low and inflation is
expected to be well contained.
Australia's economic growth prospects are favourable, with real
GDP forecast to grow three per cent in both 2013 and 2014,
underpinned by growth in new business investment, non-rural
commodity exports and household consumption.
www.budget.gov.au (GDP Growth)
www.xe.com (Exchange rates)
|Exchange Rate vs NZD
||AUD1 = NZD1.135 (October 2013)
|Expected GDP Growth
||+3.0% for 2013
+3.2% for 2014
For more detailed information on the Australian economy
read the economic analysis in New Zealand Trade and Enterprise's Australia country brief.
Total outbound departures are forecast to continue to record
solid growth in future years. While the forecast growth rate of
outbound departures has been revised up to 6.9 per cent and 5.1 per
cent for 2012/13 and 2013/14 respectively - from the previously
forecast 6.6 per cent and 4.9 per cent in each year - it does
represent a slowing in growth.
Driving the forecasts are the assumed solid consumer economy,
sustained high value of the Australian dollar and continued
expansion in aviation capacity to many key leisure outbound
markets. In the longer term, the annual average growth for outbound
resident departures is now expected to be 3.7 per cent with
departures reaching 11.6 million by 2021/22 (source: Australia
Tourism Forecasting Committee, TRA 2012 Issue 2).
According to Tourism New Zealand research, its target
market in Australia is looking for a holiday destination where they
can have fun, learn and experience new things, and feel relaxed,
welcome, safe and comfortable.
Those aged over 40 are more likely to value feeling safe and
welcome, and less likely to prioritise reducing stress and escaping
everyday life; those under 40 are more likely to value personal
challenge and getting an adrenalin rush.
An alliance between Qantas and Emirates was approved by the
New Zealand Government in May 2013. As a result there are two
alliances that supply almost all trans-Tasman travel.
Qantas (QF), Emirates (EK) and Jetstar (JQ) make up around 37
per cent of the market and Air NZ/Virgin Australia represent around
60 per cent.
The cruise industry is resilient and Australia's outbound travel
on cruise ships continues to grow. Mass market cruise is growing
faster than other travel sectors, and according to market reports
there is no foreseeable limit to industry growth. Australia has
surpassed North America as the main source of cruise passengers to
New Zealand in recent years, with Australian bookings for the
2013/14 season forecast at 106,000 passengers.
Almost 90 per cent of all Australia cruise passengers to New
Zealand are not recorded as official International Visitor Arrivals
(IVA). Cruise itineraries are primarily sold as sailing from
Australia and returning to Australia. As passengers embark and
disembark in Australia, they are seen as transit passengers in New
Zealand. While passengers actually visit up to eight ports as the
ships circumnavigate New Zealand, their visit is not counted as a
holiday arrival unless they fly into, or out of, New Zealand.
The potential of the Australian outbound cruise market for the New
Zealand tourism industry is significant, even though New Zealand at
present only captures 13 per cent of Australia's cruise market. If
Australia meets its target of 1 million outbound passengers per
year by 2020, New Zealand's current market share would equate to