United Kingdom

UK & Europe Market Update Gregg Anderson, Regional Manager UK/Europe - August 2008 VIEW MARKET UPDATE

The United Kingdom is New Zealand’s second largest source of international visitors and visitor expenditure.

In the year ended July 2008, New Zealand welcomed 290,725 visitors arrivals, a 3.5 per cent decrease on the previous year. However, the outlook overall is positive, with visitor arrivals from the UK forecast to increase annually by 2.1 per cent from 2008 to 2014.

The UK continues to be New Zealand’s most stable long-haul market; although it is generally considered that 2008 will be a challenging year and that the effect UK's economic downturn cannot be underestimated.

Ongoing rises in food, petrol and household costs combined with a general economic slow down continue to play on consumer confidence leading to a general slowdown to most holiday destinations. Fortunately a large proportion of New Zealand’s target market in the UK is older and therefore better insulated from economic concerns.

Most long haul airlines are announcing fare increases via fuel surcharges or are responding to increased costs by grounding aircraft or cancelling flights across the Northern winter.

Visitors from the UK tend to favour a relatively independent style of travel. Private homes of family or friends are the most frequently used accommodation (41 per cent) and the most common transport type is cars or vans (71 per cent).

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