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On behalf of the Board and Leadership team, we are

delighted to present Tourism New Zealand’s Annual

Report for the past financial year ending 30 June 2017.

A dramatic year of change

The past year has been one of the most dramatic for

tourism in New Zealand, with record arrivals, further

growth in holiday spend and solid performance by

Tourism New Zealand. It has also seen the industry and

government engage in meaningful discussions about

the necessary infrastructure for the future.

We ended the financial year with total arrivals growing

10% to 3.6 million and holiday arrivals at 1.9 million

(up 12%). This puts us ahead of global tourism trends,

which show international visitor arrivals grew by 3.9%

for the 2016 calendar year, and 6% in January-June

2017 (Source: UNWTO World Tourism Barometer).

While total arrivals were up, total international visitor

spend was $10.25 billion, flat against the FY16 result.

Total holiday spend increased a pleasing 4% to $6.55


While the peaking of expenditure was disappointing

it was not unexpected given the significant growth in

spend seen over recent years. A contributing factor

here has been the strength of the New Zealand dollar

against a number of major currencies. Medium and

long-term forecasts for tourism spend remain positive

with growth expected from the Asian markets as well

and the US and UK. International visitor spending is

forecast to exceed $15 billion a year by 2023, up 52%

from the $10 billion recorded in FY17.

Against these top-line results, it was a year of change

for Tourism New Zealand. We expanded our presence

into Argentina and began our first full year of trade

activity in the Philippines, while also making the

difficult decision to close our Thailand office and

focus our efforts on the rest of South East Asia. We

farewelled outgoing chief executive Kevin Bowler

in October and soon after saw a change in tourism

ministers. Then in April we welcomed Stephen

England-Hall as new chief executive.

Given FY17 was the final year in Tourism New Zealand’s

four-year strategy, we began a significant programme

of consultation to develop a new strategy, completing

this process in December 2016. The strategy takes

our successes of the past and the challenges we face

together and outlines three key priorities for Tourism

New Zealand: to widen our measure and targeting of

value; to manage our markets as a strategic investor

would and to work more closely with others to build

knowledge and expertise.

We began this work through a significant partnership

with New Zealand’s largest tourism operator, the

Department of Conservation (DOC). Under the

partnership DOC will use our consumer research and

international visitor data to develop new products

and enhance the visitor experience on the DOC estate.

Research completed with 6000 New Zealanders and

active considerers from Australia, China, the US and

Germany is now being used to determine which tracks

will be promoted in a full campaign later this year.

One of our key objectives for FY17 was to continue

our work in shifting the seasonal profile of arrivals by

investing all marketing funds into promoting

Chair and Chief Executive Report

Kerry Prendergast

Tourism New Zealand Chair

Stephen England-Hall

Tourism New Zealand Chief Executive