Market Insights

The USA's slower than expected economic recovery has contributed to a drop in US visitor arrivals to New Zealand over the past 12 months. The situation improved in late 2011 with growth of 2 per cent in December and a decline of only 1 per cent over the last quarter of 2011.  Forecasts are cautiously optimistic for the first quarter of 2012.

The USA's slower than expected economic recovery has contributed to a drop in US visitor arrivals to New Zealand over the past 12 months. The situation improved in late 2011 with growth of 2 per cent in December and a decline of only 1 per cent over the last quarter of 2011.

Forecasts are cautiously optimistic for the first quarter of 2012. The greatest period of decline in 2011 fell across the New Zealand winter with visitors down over 10 per cent month on month between May and August.  This was due to a combination of high airfares and the attraction of Europe and domestic alternatives.

Challenges for 2012 will include Presidential Elections in November which may delay travel decisions and the attraction of Europe - in particular the Queen's Jubilee celebrations and London Olympics.  The high New Zealand/Australian dollars also make European holidays attractive relative to the South Pacific.

Major opportunities for New Zealand in 2012 will centre around promotion of The Hobbit movies, ongoing coverage from the 2011 visit of the American Society of Travel Writers and the pending but as yet unconfirmed arrival of United Airlines late in 2012 (see below).

Economy

Key Indicators

Sources:
www.economist.com (GDP Growth)
www.xe.com (Exchange rates)

For more detailed information on the US economy, visit www.economist.com or read the economic analysis in New Zealand Trade and Enterprise's US country brief.

Outbound Travel

US outbound air travel increased by 3 per cent between January and November 2011. According to figures released by the US Office of Travel & Tourism Industries, 24,747,800 people travelled long-haul from the US during this period.

Approximately half of all US visitors to New Zealand are fully independent travellers who plan and organise their own accommodation, transport and itinerary. In the year to December 2010, 39 per cent of US visitors to New Zealand were semi independent travellers, 7 per cent were package travellers and 4 per cent visited as part of a tour group.

For more information about travel style, and definitions for each group, visit the Tourism Strategy Group's website.

According to Tourism New Zealand research, our target market in the US is looking for a holiday destination where they can have fun, enjoy themselves, feel happy and relax.

Older travellers in our target market have a greater desire for fun, learning and exploring, feeling safe and welcome, and broadening their minds. By comparison, younger travellers have a stronger desire to feel good about themselves, feel excited, engage in personal challenges and get an adrenaline rush.

Airline Update

With around 26 direct (varies by summer/winter schedule) flights a week, the US has more direct air links with New Zealand than any other long-haul market. This will change from May when Qantas will discontinue their existing daily Los Angeles - Auckland service, leaving Air New Zealand (with services from LA, San Francisco and Honolulu) as the only direct carrier on the route.

This is expected to change again late in 2012, when it is anticipated that United Airlines will launch non-stop flights between Houston and Auckland.

One stop services are available to New Zealand via the Pacific Islands (Air Pacific, Air Tahiti Nui) or Australia (Virgin, Delta, Qantas, United and Hawaiian).

Return airfares from the US to New Zealand start at around the US$1000 mark for shoulder season or special fares.  Due to strong northbound traffic and directional issues fare levels fluctuate frequently.

Cruise Update

The US cruise market to New Zealand consolidated during the 2010/2011 season with over 23,000 US cruise passengers arriving in New Zealand during the season. This was down slightly on the previous season, with a similar number expected across the 2011/12 season. Major US cruise lines that stop in New Zealand include Royal Caribbean, Holland America Line, Princess Cruises and Celebrity Cruises.