The Australian market has been performing really well, with
excellent growth in holiday arrivals and forward bookings continue
to look extremely positive.
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
Special Interest is a big focus and a lot more activity is
happening in the Business Events, Luxury, Youth and Cruise
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
responded by increasing its level of investment in
Tourism New Zealand's Australia activity 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 days.
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 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. 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.
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.
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
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 = NZD1.0662 (March 2014)
|Expected GDP Growth
|| +2.5% for 2014
+2.5% for 2015
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. 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