Market Overview
South Korea is New Zealand's seventh largest market in terms of
visitor numbers and our seventh largest source of expenditure.
South Korean visitor arrivals have been continuously improving
since December 2009 however the earthquakes in Christchurch and
Japan in 2011 have seen arrivals slump in recent months. Ash cloud
disruption from Chile's volcanic eruption in 2011 has also led
some Koreans to either delay their travel or shift their
destination altogether.
As a result, arrivals from Korea were significantly down in
2011 with holiday and VFR segments the largest drop-offs
throughout the year. Slowed demands since the Christchurch
earthquakes and aviation capacity have remained major issues
in the market. New Zealand as a destination is
also facing competition from the United States which has grown
in popularity with favorable exchange rates, low airfares and
strong publicity of the visa waiver programme.
The Korea market is however improving with arrivals up 2.7
per cent in December 2011 and holiday arrivals up 11.8
percent after very weak year since following the Christchurch
earthquakes.
The average expenditure of South Korean visitors has decreased by
9 per cent to NZD 119 million, YE December 2011.
Tourism New Zealand is looking to take advantage of opportunities
in South Korea as it continues to grow. Our current focus is
working with the South Korean travel trade to develop high end
luxury and free independent travel. These sectors match well with
what New Zealand can offer South Korean holidaymakers and will help
build profitability from this market.
Fifty-one per cent of South Korean visitors combine a trip to
New Zealand with another destination and when in New Zealand, more
than a quarter visit a region outside the main centres. The
majority (more than 70 per cent) travel to New Zealand on
pre-arranged group or semi-structured tour package organised by
tour companies based in South Korea.
The economy's return to stability has helped drive a continued
recovery in outbound travel and New Zealand is seeing the benefits
of this, with year-on-year growth in arrivals throughout the year
2010.
The Korean economy appears on track for steady growth, but risks
are likely to increase due mainly to the slowing recovery in the
United States and other major economies, and signs of regional
fallout from Europe's debt crisis. South Korea's key stock index
has slid more than 16 per cent since early August due to worries
about the United States economy, its credit rating and
the eurozone's debt fears.