The UK was slower than all other major economies to emerge from
recession and, while there are signs of improvement, recovery is
expected to be slow, with experts predicting that it will be 2015-
2016 before a household at the midpoint of UK income distribution
returns to the living standards of 2002-2003. Government austerity
measures are set to continue until 2017.Tourism New Zealand is
continuing to target those who are most likely to come to New
Zealand, including younger travellers and the traditionally strong
50-plus traveller market.
These sectors will remain the focus for New Zealand as other
travellers look at destinations closer to home in 2012.
www.imf.org (GDP Growth)
|Exchange Rate vs NZD
||GBP1 = NZD1.93 (16 Jan 12)
|Expected GDP Growth
||+1.14% for 2011
+1.58% for 2012
(September 2011 est.)
For more detailed information on the UK economy, visit www.economist.com or read the economic analysis
in New Zealand Trade and Enterprise's UK country guide.
The number of British people travelling abroad in the year to
October 2011 dropped by 3 per cent, according to the Office for
National Statistics (source: www.ipkinternational.com).
The two major factors continuing to impact outbound travel from
the UK are the slower-than-expected economic recovery and the weak
British Pound. Together these factors have contributed to a decline
in the number of British travellers arriving in New Zealand into
the first months of 2011, on the back of decreasing arrivals
throughout 2009 and 2010.
Feedback from UK travel sellers suggests British consumers who
are travelling are opting for holidays to warmer, closer and
cheaper destinations within the Eurozone. In addition, 2012
offers a wealth of events to entice the British traveler to stay in
the UK, such as the London Olympics, Queen's Jubilee and Euro 2012
According to Tourism New Zealand research, members of our
target market in the UK are looking for a holiday destination where
they can have fun, learn, relax and explore new things.
Younger travellers from our target market in the UK are more
likely to value reducing stress, escaping everyday life, and having
excitement and adventure.
New Zealand is well serviced with air capacity from the United
Air New Zealand provide services via both Hong Kong and Los
Angeles daily, while a number of carriers offer one/two stop
services via Asia (Singapore, Hong Kong, Korea, Malaysia,
Thailand). A number of Middle Eastern Carriers also offer options
via UAE and Australia.
Multi stop and code-share options are also popular particularly
amongst youth travellers on round the world fares or taking a gap
Fare levels fluctuate across the year depending on season and
demand. The strong northbound traffic, fare increases, increases in
taxation (APD) and in 2011 the return of fuel surcharges have seen
fares return to pre recession levels (GBP 1000+) over much of the
year. UK travellers have been conditioned to seeking deals and
frequent fare initiatives are continually launched leading to an
ever shorter booking window (often six to eight weeks).
The UK cruise market is on the upturn. Cruise numbers grew
during the 2010/2011 cruise season, and the expectation is for
growth again in 2011/2012, with new capacity being added worldwide.
An estimated 15,000 British travellers took cruise holidays around
New Zealand or are part of a longer itinerary (round the world) in
the 2010/2011 cruise season.
Closer, warmer, cheaper destinations appear to be of greatest
appeal to British travellers at present. The strengthening of the
British Pound is seeing travel to Europe again affordable and
popular. Deals and all inclusive holidays (cruise included) are
popular forms. Turkey and other sun destinations on the edge of the
Eurozone have experienced strong growth.
Amongst competitive destinations for the period
January/September 2011 YTD results are as follows (New Zealand -
3 per cent):
• Australia - 4 per cent
Africa - 9 per cent
• Canada - 5 per cent
+ 1 per cent
• Thailand + 7 per cent