With an average daily spend much greater than that of the average visitor's total spend these high value visitors have the potential to provide an economic benefit beyond that gained from just tourism.
Through in-depth research, and a high level of engagement with the industry's premium stakeholders, Tourism New Zealand has established a thorough understanding of this niche sector.
Premium sector strategy
Since receiving additional funding to specifically develop the high-value sector in 2013, Tourism New Zealand has built its sector expertise and established strong industry partnerships.
Using these learnings it has re-focused its strategic approach for FY2016-2017 – with the ultimate goal of increasing the number of high value visitors to New Zealand.
Tourism New Zealand's premium sector strategy will continue to work to improve the awareness of New Zealand as a luxury destination amongst high net-worth individuals (HNWI) and their trusted advisors.
This means strengthening New Zealand’s luxury destination image and developing and leveraging strong partnerships with in-market luxury travel sellers as they significantly influence the high net-worth individuals in their destination decision making process.
Launched in July 2016, Tourism New Zealand’s ‘Perfection from every perspective’ campaign shows the fresh take on luxury that New Zealand offers, with an amazing contrast of places and experiences all within close reach so visitors can discover more.
Who are we targeting and where?
There are more than 15 million high net-worth individuals worldwide, with global wealth projected to surpass US$100 trillion by 2025. (*source: 2016 World Wealth Report)
Tourism New Zealand considers that the biggest growth opportunities exist with the top 10 per cent of the world's wealthy - the Very and Ultra High Net-Worth Individuals (VHNWI and UHNWI) with liquid assets of US$30m plus. Travellers in this segment can spend $50k per visit, with some capable of spending $100k or more. (*source: 2013 World Wealth Report)
HNWI are a difficult group to profile, but when travelling they share some common profiles and behaviours:
- They are global citizens who live and work throughout the world
- Their life is one of almost permanent travel, driven by a desire for unique destinations and authentic experiences for both work and pleasure
- Although the age profile is broadening the 40-60yr age group dominates
- They take 4 to 6 trips annually, 50 per cent of them long haul, 50 per cent domestic
- 75 per cent fly first or business class, with UHNW often travelling privately
- Typical holiday spend: HNWI $20-50K, VHNWI $50-100K, UHNWI $100K+
- Their time is a precious commodity and they demand value in exchange
- They are thirsty for knowledge and seek unique interactions with talented and cultured people
However, our target audience is not necessarily these individuals themselves but rather the trusted advisors they rely on to recommend and organise their travel. Therefore activity is focused on both the consumer and the influencer.
Although global citizens, HNWI are highly concentrated in key cities. To ensure we are working where we have the greatest opportunity to engage with our target audience and convert them into visitors to New Zealand, our priority target markets are:
- North America: New York City, Los Angeles
- Europe: London, Paris, Munich
- Asia Pacific: Sydney, Melbourne, Singapore, Hong Kong
How we are targeting the Premium sector?
The strategy is delivered through trade marketing, media and PR and consumer marketing in target markets. Trade marketing activity is comprised of luxury travel trade shows, joint ventures, strategic trade partnerships, training and famil programmes and development of effective sales tools. Media and PR is comprised of the International Media Programme (IMP). Consumer marketing is delivered through major digital marketing campaigns and partnered campaign work.
To engage with both our target audience and their trusted advisors, activity through niche marketing channels is focussed on telling our story of New Zealand as a premium destination, with targeted engagement with key media outlets, trade and industry partners.
Tourism New Zealand is committed to working closely with the industry's premium operators to ensure this niche is developed to its full potential, and works alongside a number of industry partners including Luxury Lodges of New Zealand.
To find the contact details for the team based in New Zealand and our offshore offices visit the Contact Us section and search under the Trade, PR and Major Business unit.