Market Insights

Last Updated on: 10 May 2012

The optimistic outlook for continued growth has been confirmed with the increase of airline services and capacity over the summer high season. Direct services from China to New Zealand have increased to 13 per week. Christmas and New Year saw significant activity being undertaken in market, including the launch of the daily service from China Southern in November 2011.


Economy

Although China's GDP growth is expected to slow to a 13-year low of 8.2 per cent in 2012, its economic performance continues to outstrip most countries. However the World Bank has raised its forecast for 2013 to 8.6 per cent on the back of an expected mild recovery in external demand next year (World Bank April 2012 quarterly update).

Key Indicators

Sources:
www.xe.com (Exchange rates)

Exchange Rate vs NZD NZD1 = 4.947CNY ( 10 May 2011)
Expected GDP Growth +8.2% for 2012

For more detailed information on the Chinese economy read the economic analysis in New Zealand Trade and Enterprise's China country brief or the Report on the 12th Five Year Plan.

Outbound Travel

While most holiday visitors from China travel to New Zealand with organised group tours (67 per cent), there is increasing interest from families and small groups in self-drive and campervan itineraries. These self-drive tourists are most likely to visit Auckland (97 per cent), Rotorua (34 per cent), Canterbury (28 per cent) and Taupo (24 per cent), and are most interested in shopping (88 per cent), and scenic natural attractions type activities such as walking and trekking (82 per cent).

The Chinese market continues to be predominantly dual-destination. More than 70 per cent of Chinese holiday visitors to New Zealand visit another country as part of the same trip.

Awareness of destination New Zealand is growing in China through targeted campaign, public relations, and marketing activities undertaken by Tourism New Zealand alongside airlines and travel trade organisations.

Tourism New Zealand's tailored familiarisation programmes are taking effect, with growing knowledge of the uniqueness of New Zealand tourism options. Establishing a greater understanding of what it is about New Zealand that appeals to travellers from China has helped shaped these programmes to ensure their success.

Travel agencies, especially from southern China, are very positive about promoting New Zealand products, with some agencies reporting they sold 20 per cent more trips for the 2011/12 summer season compared to 2010.

Booking tickets online is also becoming more popular in China. Korean Airlines report that online direct bookings to New Zealand from China have increased 500 per cent compared to 2010. Air New Zealand launched their online booking channel in October 2011.

Airline Update

New air routes and growing airline capacity, with direct services increasing from five in March 2011 to 13 in December 2011, continue to provide improved access into New Zealand.

Air New Zealand currently flies twice a week from Beijing and four times per week from Shanghai. It will stop flying from Beijing by the end of June, and will add one more weekly flight to Shanghai, and aims to be running a daily service from there by year's end. China Southern Airlines increased its direct route from Guangzhou to Auckland to a daily service in 1 November, after only opening the route in April.

New Zealand is also well served by indirect services with Singapore Airlines, Cathay Pacific and Korean Air. The introduction of Jetstar services from South East Asia has also helped increase Chinese visitor numbers by providing low-fare options. Jetstar links into major cities in China, allowing travellers to connect to the airline's South East Asian hub in Singapore and travel onwards to New Zealand.

Competitor activity

The UK is not setting a ceiling on the number of Chinese visas it will issue this year because of the Olympic Games.

Canada has launched its annual promotional campaign on 24 April to select image ambassadors nationwide in China. The five winning contestants get to star in a travel television show that follows their visit to Canada. Canada has also simplified its visa process in China, and is targeting a five-day turn-around for priority travel agencies.

Australian Tourism used Taiwanese celebrities Show Lo and Rainie Yang to launch its first micro-movie in China and Hong Kong. The movie aims to woo more tourists by presenting Australian cultures and scenery in an aesthetic light.