The early Easter break and volcanic ash cloud over Europe
resulted in a dip in international visitor arrivals in April, with
total arrivals down 4.0 per cent compared with April 2009.
Although much of this decrease can be attributed to the earlier
Easter break and Australian school holidays, which saw larger
number of visitors arrive in New Zealand in the last
few days of March, last year's economic downturn is still
impacting travel from long-haul markets.
Tourism New Zealand Chief Executive Kevin Bowler says reversing
the downward trend in key long-haul markets including the US and
China will be a priority this year.
Australia also remains a focus for Tourism New Zealand. Although
visitor arrivals were up only 0.4 per cent in April, arrivals from
our biggest market were up 10 per cent for the months of March and
April combined compared with 2009.
Total visitor arrivals were up 2 per cent in March and April
combined, compared with the same months last year.
Australia continues to perform strongly, with holiday arrivals
up 22 per cent in the year ending April 2010.
Consumer confidence took a hit in May, falling back 7 per cent
following interest rate rises by Australia's central bank and
uncertainty in global financial markets. However, growth in demand
for Australia's natural resources is fuelling the economy's
strength and, despite the recent fall, confidence remains high.
This economic strength is driving continued growth in outbound
travel.
Joint venture activity with Regional Tourism Organisations will
continue through until the end of June, showcasing the diversity of
New Zealand's regions and what they have to offer in the winter
season. Funding has been confirmed to continue this joint venture
activity in 2010/11, and planning is underway to have regional
campaigns in market again from July 2010.
Tourism New Zealand is running television advertising targeting
winter holiday-makers for two weeks from 23 May, following on from
earlier advertising bursts run in conjunction with the New Zealand
Ski Marketing Network.
Kevin Bowler says feedback from the industry suggests we can
expect another bumper ski season out of Australia, with bookings
tracking above 2009 levels.
Continuing economic uncertainty in the United Kingdom,
disruptions caused by the volcanic ash cloud and the General
Election in May all impacted travel from the UK in April, with the
early Easter break further dragging down arrivals.
Arrivals from Germany also suffered as a result of Easter dates
and flight disruptions, but the outlook for travel from this market
remains more positive. Tourism New Zealand sees Germany - and its
German speaking neighbours Switzerland and Austria - as offering
opportunities for growth.
Combined visitor arrivals from Germany, Switzerland and Austria
were up 4.7 per cent to 87,500 arrivals in the year ending April
2010. Tourism New Zealand will be channelling part of its NZD30
million Government funding boost into these markets in 2010/11.
Targeting the Youth Market
Kevin Bowler says Tourism New Zealand's current focus in the UK and
Europe is on driving interest and bookings from backpackers as the
end of the school and university year wraps up.
"May and June are key booking and travelling months for young
travellers in the northern hemisphere. Tourism New Zealand will be
running advertising online throughout June, targeting the UK,
Germany and Netherlands," he says.
Current activity is building on the 'Go All the
Way' backpacker campaign launched by Tourism New Zealand last
September. The campaign website - www.goalltheway.to - has just been refreshed,
showcasing 29 videos of backpackers' experiences in New Zealand and
highlighting information specific to this sector.
The campaign website has had over 100,000 visits since it went
live in January, mostly from the UK, Germany, Netherlands and the
US. 'Go All the Way' videos have been viewed over 28,000 times on
Tourism New Zealand's YouTube channel.
"Our next focus will be on building the 'Go All the Way' Facebook page into a community
hub for backpackers thinking about a New Zealand holiday," says
Kevin Bowler.
The US is taking time to rebound from last years' economic
downturn and that recovery is now coming under threat from the
growing financial crisis in Europe.
While consumer confidence rose in May for the third consecutive
month, commentators warn growth remains sluggish and unemployment
is still high (9.9 per cent in April). There are fears that a debt
crisis in Europe could reverse the growth trend.
However, Kevin Bowler says the US remains a key focus for
Tourism New Zealand. An additional NZD15 million each is being
channelled into the market by Tourism New Zealand and Air New
Zealand this year, as part of a long-term marketing
partnership between the two organisations.
New Zealand's appearance on hit reality TV show America's
Next Top Model in April/May was one of the first major
results from the partnership. More than 10 million viewers tuned in
over three nights as New Zealand starred in the final three
episodes of the show's latest series.
The market will get a further boost when Continental
Airlines commences its new direct service between Houston and
Auckland in November 2011.
The Chinese economy has returned to full strength after last
year's dip and Chinese consumer confidence is expected to continue
to grow in the coming year, which should boost travel to long-haul
markets.
However, travel to New Zealand is yet to return to growth and it
is difficult to predict the impact the Shanghai Expo will have on
travel decisions in the short term.
Tourism New Zealand's newly launched 'Experience New
Zealand Right Now' campaign in China is helping drive interest
in New Zealand through a number of online channels.
'Experience New Zealand Right Now' advertising and video content
has already featured on interactive television, office building
screens and touch screens in taxis in Shanghai and Beijing, as well
as on a number of websites.
All advertising and media placements are directing consumers
through to www.newzealand.com/travel/china where they can
download featured itineraries and link through to travel seller
partners to purchase travel.
For the past two months Japanese arrivals have been in positive
territory with January arrivals up 15.5 per cent on the same month
last year and February up 0.9 per cent. This was the first time in
many years we have seen successive months of growth.
Kevin Bowler says though March was looking good, the outlook for
April and May could see flat to slight negative growth.
He added that the mood among agents at Kiwilink Japan in March
was positive and optimistic and that had been reflected in recent
arrival and booking patterns.
"Bookings are coming in later than normal, but tactical
promotional activity done in February to promote autumn is
definitely impacting on bookings in April and May."
Kevin Bowler says South Korea was a bright spot in April, with
arrivals up almost 35 per cent. Traditionally one of our most
volatile markets, South Korea returned to growth in December 2009
following 19 months of decline.
Tourism New Zealand is running a joint promotion with Auckland
International Airport through May and June, which should help
maintain growth momentum.