Latest Market Update

Published: 5 February 2010

With visitor arrivals figures improving in December and signs of economic recovery in New Zealand's key visitor markets, there is a general feeling of optimism among the New Zealand tourism industry.

Although some operators say they have had a slow start to summer, there is agreement that visitor numbers so far have been an improvement on admittedly low expectations.

Tourism New Zealand Chief Executive Kevin Bowler says that many operators are now looking to match - if not beat - last year's season.

"The main comment from industry is that bookings for the first quarter of 2010 are looking better than last year and are certainly better than expected; there seems to be a slow recovery pattern showing through," says Kevin Bowler.

Latest visitor arrivals figures support industry sentiment, with international arrivals up almost 6 per cent in December compared with the same month last year.

Australia

The strong Australian dollar and low international airfares have seen Australians travelling more than ever, with a record six million Australians taking holidays overseas in 2009.

And with more than one million of them choosing New Zealand as their preferred destination in 2009, the Australian market continues to improve - arrivals for December 2009 were up more than 10 per cent on the same month in 2008.

Tourism New Zealand Regional Manager Australia Barry Eddington says forward bookings for Australia are already looking strong for the next three months.

"One pattern is clear - airlines and the Australian travel trade are reporting strong forward bookings. If we factor in the new marketing activity over the next six months being undertaken by the Regional Tourism Organisations, there is a very positive outlook for the coming months," says Barry Eddington.

UK and Europe

December arrivals figures (up 1 per cent on 2008) showed the first glimmers of recovery for the UK, however economic conditions are still impacting outbound travel to New Zealand.

Tourism New Zealand remains focused on stimulating travel from sectors of the market that are showing resilience: the youth and backpacker market and the older (50+) sectors. Many traditional New Zealand travel sellers have returned to  advertising New Zealand trips, although competition remains fierce with discounted deals available to many destinations.

Regional Manager for UK/Europe Gregg Anderson says that other parts of Europe, like Germany, France and Switzerland, are showing continued stability.

"Most markets in Continental Europe have continued to show growth throughout the year, particularly in the last quarter."

France, with December 2009 arrivals figures up more than 25 per cent on the same month in 2008, has been a particular success.

Tourism New Zealand's 'Go All The Way' campaign is aimed at the youth and backpacker market. A second burst of advertising began in mid-January and further activity is planned for April and May. 100% Pure New Zealand brand advertising and partnered activity is running in all major European markets in January and February.

US

Summer travel from the US has begun with very strong growth of 11.7 per cent in December, compared with 2008.

This heralds the start of what will be a big year for New Zealand in the US, with joint Tourism New Zealand and Air New Zealand activity about to get underway.

Funded as part of the government's extra NZD20 million investment in tourism, the joint project will include cooperative marketing and public relations initiatives to raise awareness of New Zealand as a destination and to increase visitor arrivals.

Tourism New Zealand Regional Manager for North America Annie Dundas says the economy is still the main topic of conversation in the US.

"Although unemployment is still high, economic data over the holiday period was not as bad as first forecast and US outbound travel is beginning to stabilise after a long period of decline" says Annie Dundas.

Airlines are positive about bookings for the coming months but, while there are some low airfares for the shoulder season starting in May, fares for the peak season are starting to rise again.

Increased capacity on the US to Australia routes is providing New Zealand with an opportunity to capitalise on dual-destination visitors, though it is a concern that Australia may pick up the majority of visitor nights and spend from this market.

China

Airline restrictions on group seating allocations have slowed group travel but independent travel bookings continue to show strength, especially as airlines concentrate on promotional fares for free and independent travellers (FIT).

Tourism New Zealand Regional Manager for North Asia Mark Frood says Tourism New Zealand is also focusing more on the FIT and semi FIT market.

"More than 80 Chinese and Hong Kong based travel agents attended semi FIT training in November, and we've also hosted a number of trade partners on Semi FIT product famils. This highlights that there is plenty of demand for products aimed at this segment," says Mark Frood.

Travel agents and airlines seem optimistic about the coming months as the Chinese economy continues to improve and restrictions on outbound travel decrease.

"Chinese New Year is in February this year and this will impact on January arrival figures, but over all we're estimating at least a 5 per cent increase on 2009 arrivals from China for the next three months," says Mark Frood.

Read our December International Visitor Arrivals media release