Germany has been success story of Europe over the past few
years. Numbers have been steady throughout the period since
the global financial crisis and during the first six months of this
year we've seen growth month on month, particularly in the Youth
sector, as an increasing number of young Germans have chosen to
travel since the school leaving age was reduced. We are also seeing
growth in the 30-40 year old segment, which has always been very
strong in areas such as campervans and long-stay business. Overall
things are in good shape and we expect to see continuing growth
over the next 18 months.
Growth has continued from the German market across the winter
months. While numbers are small for this traditional
summer-focussed market they reflect the efforts that have gone into
the trade beginning to treat New Zealand as a year-round
This year we are taking a pan-European approach to two big
sectors: Youth and Premium. We are looking at the Youth
opportunity not only from the UK and Germany, where we have
historically been strong, but also more broadly across France,
Scandinavia and other parts of Europe. This will also involve
working strongly in Australia, because a number of youth travellers
go to Australia to work before considering a trip across the
Tasman. Social media marketing is particularly important
In the Premium sector we have appointed Sam Russel to have
responsibility for the US, UK and Germanic Europe, as well as
Russia and the Middle East, where we believe there is a sizeable
pool of Premium travellers. We will also be branching into areas
such as the Monaco Boat Show where we can target super yacht
Presentation by TNZ's Gregg Anderson, General Manager Western Markets
The European Crisis is a major factor continuing to affect
travel and reinforcing consumers search for the best value. Strong
exchange rates and a weak Euro are continuing to have an impact.
There have been strong airline initiatives in response.
In 2012, the overall German economy remained steady, increasing
by 0.7 per cent, thanks to the continued robustness of
the domestic economy. A period of marked economic weakness is,
at present, unlikely. In fact, development of the real economy in
Germany is remarkably resilient.
Industry is benefiting from renewed investment activity, which
is expected to continue thanks to strong domestic and foreign
demand for German products.
The economic recovery is also having an increasingly positive
impact on the labour market. Unemployment is continuing its
downward trend and a more buoyant job market will help to
ensure that consumer spending also grows over the year.
The future course of the European crisis of confidence and of
sovereign debt remains of crucial importance for economic
(Source: Federal Ministry of Economics and
www.economist.com (GDP Growth)
www.xe.com (Exchange rates)
|Exchange Rate vs NZD
||EUR1 = NZD1.63622 (8 Oct 2013)
|Expected GDP Growth
||+0.7% (2012 est.)
Visitor arrivals from Germany for the year ending August 2013
were up 5.1 per cent.
Airlines and operators continue to report strong interest and
enquiries for travel to New Zealand, though the exchange rate is
negatively impacting on this.
The continuing decline of the Euro is becoming a real issue for
pricing for the coming season. Some German operators have had to
raise their prices by as much as 25 per cent. If the Euro continues
to decline against the New Zealand dollar it will make New Zealand
relatively more expensive than other long-haul destinations. The
same situation equally applies to Australia.