New Zealand

Market Profile Performance overview In 2013, New Zealand was Australia’s largest inbound market for visitor arrivals, fourth largest market for total expenditure and third for visitor nights. It was the second largest market for total dispersed nights1 during 2013. The October 2013 issue of Tourism Research Australia’s bi-annual Tourism Forecasts estimates that visitor arrivals from New Zealand will increase 5 per cent in 2013/14 and 4 per cent in 2014/15, with an annual compound growth rate of 3 per cent expected until 2017/18.

$3.4-4.2bn Potential for the New Zealand market to be worth by 2020 (Tourism 2020)

$2.3bn

total spend

Total spend from New Zealand in 2013 (up 2 per cent on 2012)3

1,193,200

Aviation routes from New Zealand to Australia2

arrivals

New Zealand visitor arrivals in 2013 (up 0.7 per cent on 2012)4

15.1m

Cairns

total nights

New Zealand visitor nights spent in Australia in 2013 (down 3 per cent on 2012)3

Sunshine Coast Brisbane Gold Coast

Perth Adelaide

Sydney Auckland

Melbourne

Hamilton Rotorua Wellington Christchurch

Queenstown

43%

dispersed nights1

Percentage of total New Zealand visitor nights spent outside gateway cities in 2013 (same as 2012)3

Dunedin

Australia ranks

1st

among all outbound destinations for New Zealand travellers5

Visitor profile in 2013 94% repeat visitors3 72% of total arrivals are for leisure3 45-59 years largest demographic3 $2,127 average spend3 14 nights average stay3 Apr-Aug peak booking period

Consumer research For detailed research into how New Zealand consumers view Australia and what motivates them to visit the country, see www.tourism.australia. com/statistics/fact-sheets

Feb-May and Sep-Nov peak travel period

1. Dispersed nights refer to nights spent outside gateway cities of Sydney, Melbourne, Brisbane and Perth. 2. Source: CAPA - Centre for Aviation, Official Airline Guide (OAG), and Tourism Australia analysis.

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New Zealand Market Profile 2014

3. Source: International Visitor Survey, Tourism Research Australia. 4. Source: Overseas Arrivals & Departures, Australian Bureau of Statistics. 5. Source: Tourism Decision Metrics, Tourism Economics.

New Zealand

Market Performance Arrivals trends History of Visitors from New Zealand into Australia

History Historyofofvisitors visitors(000s) (000s) New NewZealand Zealand

Source : Australian Bureau of of Statistics , Overseas Arrivals andand Departures Source : Australian Bureau Statistics , Overseas Arrivals Departures

1,200 1,200 1,000 1,000 800 800 600 600 400 400

YE Dec 2013 YE Dec 2013

YE Sep 2012 YE Sep 2012

YE Dec 2011 YE Dec 2011

2008 2008

YE Dec 2010 YE Dec 2010

Source: Australian Bureau of Statistics, Overseas Arrivals & Departures

2007 2007

YE Dec 2009 YE Dec 2009

2006 2006

YE Dec 2008 YE Dec 2008

2005 2005

YE Dec 2007 YE Dec 2007

2004 2004

YE Dec 2006 YE Dec 2006

2003 2003

YE Dec 2005 YE Dec 2005

2002 2002

YE Dec 2004 YE Dec 2004

2001 2001

YE Dec 2003 YE Dec 2003

2000 2000

YE Dec 2002 YE Dec 2002

- -

YE Dec 2001 YE Dec 2001

200 200

YE Dec 2000 YE Dec 2000

International visitor arrivals (000s) International (000s) International visitor visitor arrivals arrivals (000s)

1,400 1,400

2009 2009 2010 2010 2011 2011 2012 2012 2013 2013

History of Visitors from New Zealand by Purpose of Visit

International Internationalvisitors visitorsbybymain mainpurpose purposeofofvisit visit New Zealand New Zealand

International visitor arrivals (000s) International visitor visitor arrivals arrivals(000s) (000s)

1,400 1,400

Source : Australian Bureau of Statistics , Overseas Arrivals and Departures Source : Australian Bureau of Statistics , Overseas Arrivals and Departures

1,200 1,200

Holiday Holiday

1,000 1,000

VFR VFR

800 800

Business Business

600 600 Education Education

400 400

Employment Employment

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New Zealand Market Profile 2014

YE Dec 2013 YE Dec 2013

YE Sep 2012 YE Sep 2012

YE Dec 2011 YE Dec 2011

2009 2009

YE Dec 2010 YE Dec 2010

2008 2008

YE Dec 2009 YE Dec 2009

Source: Australian Bureau of Statistics, Overseas Arrivals & Departures

2007 2007

YE Dec 2008 YE Dec 2008

2006 2006

YE Dec 2007 YE Dec 2007

2005 2005

YE Dec 2006 YE Dec 2006

2004 2004

YE Dec 2005 YE Dec 2005

2003 2003

YE Dec 2004 YE Dec 2004

2002 2002

YE Dec 2003 YE Dec 2003

2001 2001

YE Dec 2002 YE Dec 2002

2000 2000 YE Dec 2000 YE Dec 2000

-

YE Dec 2001 YE Dec 2001

200 200

2010 2011 2012 2013 2010 2011 2012 2013

Others Others

Total numbe

200,000 45 to 59 yrs 150,000 60 yrs & over

100,000 50,000

New Zealand -

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Market Performance Visitor Arrivals by Purpose of Visit for 2003-2013

New Zealand: Visitor Arrivals by Purpose of Visit 2003-2013 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures

600,000

Holiday 500,000 Total number of visitors

Total number of visitors

Visiting friends or relatives 400,000

Business Education

300,000

Employment

200,000

Others 100,000

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: Australian Bureau of Statistics, Overseas Arrivals & Departures

Visitor Arrivals by Age for 2003-2013

New Zealand: Visitor Arrivals by Age 2003-2013 Source: Australian Bureau of Statistics, Overseas Arrivals and Departures

400,000

Under 15 yrs

15 to 29 yrs

300,000 Total number of visitors

Total number of visitors

350,000

250,000

30 to 44 yrs

200,000 45 to 59 yrs 150,000 60 yrs & over

100,000 50,000 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: Australian Bureau of Statistics, Overseas Arrivals & Departures

New Zealand: Visitor Arrivals by Purpose of Visit 2003-2013 3

New Zealand Market Profile 2014 600,000

Source: Australian Bureau of Statistics, Overseas Arrivals and Departures

Holiday

Total S

300,000

60 yrs & over

200,000 100,000 2003

2004

New Zealand

2005

2006

2007

2008

2009

2010

2011

2012

2013

Market Performance Expenditure trends Visitor Spend by Purpose of New Visit forZealand: 2003-2013

Visitor Spend by Purpose of Visit 2003-2013 Source: International Visitor Survey (Tourism Research Australia)

Holiday

1,000,000

Visiting friends and relatives

Total Spend (A$ 000s)

Total Spend (A$ 000s)

1,200,000

Business

800,000

Education

600,000

Employment

400,000

Others 200,000 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: International Visitor Survey (Tourism Research Australia)

Visitor Spend by Age for 2003-2013

New Zealand: Visitor Spend by Age 2003-2013 Source: International Visitor Survey (Tourism Research Australia)

800,000

15-29 yrs

Total Spend (A$ 000s)

Total Spend (A$ 000s)

700,000 600,000

30-44 yrs

500,000 45-59 yrs

400,000 300,000

60 yrs & over

200,000 100,000 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Source: International Visitor Survey (Tourism Research Australia)

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New Zealand Market Profile 2014

New Zealand: Visitor Spend by Purpose of Visit 2003-2013

New Zealand

Market Performance Visitor profiles

Holiday

Spend per trip $2,178 Stay 12.1 nights Spend per night $179

Visiting Friends and Relatives

Spend per trip $1,433 Stay 12.5 nights Spend per night $115

Leisure

Spend per trip $1,842 Stay 12.3 nights Spend per night $150

Business

Spend per trip $1,945 Stay 7.6 nights Spend per night $256

International Visitor Survey (Tourism Research Australia). Note: Data refers to an average of 2009-2013

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New Zealand Market Profile 2014

New Zealand

Aviation Landscape >> The trans-Tasman route remains Australia’s busiest international route in terms of direct capacity and frequency. The majority of the New Zealand traffic to Australia originates from Auckland, Christchurch and Wellington.

Aviation routes from New Zealand to Australia

Cairns

>> Capacity growth to Australia rebounded in 2013, up four per cent on 2012, and further growth is expected in 2014 and 2015. >> Capacity is relatively steady throughout the year, with no clear seasonal peaks. Average loads remained stable in 2013, at 77 per cent, and are typically stronger during the first half of the year (January-April).

Sunshine Coast Brisbane Gold Coast

Perth Adelaide

Sydney Auckland

Melbourne

Hamilton Rotorua Wellington

>> Cheaper fares on the route continue with increased price competition and new services launched to competitor destinations. The resumption of services to Hawaii and Bali in 2012 and 2013 is expected to place downward pressure on Australia’s market share (of outbound travel from New Zealand). >> Air New Zealand carried 47 per cent of all visitors from New Zealand into Australia in 2013. >> Carriers continue to trial and develop new services on trans-Tasman routes, with Air New Zealand and Virgin Australia operating seasonal services such as Christchurch-Perth (December-April), Auckland-Sunshine Coast (June-October) and launching Auckland-Perth on 3 December 2013.

Queenstown

Dunedin

>> The Qantas/Emirates alliance was approved on trans-Tasman services in 2013. Jetstar was also recently added to this agreement. Jetstar plans to temporarily deploy its new B787 aircraft on the Tasman route. Both Qantas and Jetstar plan to add seasonal Queenstown to Sydney/Melbourne services. Emirates deployed the A380 on Auckland-BrisbaneDubai services in October 2013.

>> The proposed simplification of the trans-Tasman border (eg customs and immigration processes) has the potential to open new routes, such as Canberra or Newcastle, and improve travel flows. Discussions continue between the Australian and New Zealand Governments.

Key airlines and share of passengers

7% 7% 8% 47% 14%

Airline Air New Zealand Virgin Australia Qantas Airways Emirates Jetstar Other

2009 46% 15% 16% 9% 8% 5%

Table includes direct and indirect capacity

17%

6

Christchurch

New Zealand Market Profile 2014

Source: Department of Immigration and Border Protection

2010 48% 15% 15% 8% 8% 5%

2011 50% 14% 14% 8% 8% 5%

2012 48% 18% 14% 8% 8% 5%

2013 47% 17% 14% 8% 7% 7%

New Zealand

Aviation Landscape Direct aviation capacity from New Zealand to Australia

Direct aviation capacity from New Zealand to Australia

Seats per year (‘000)

Seats per year ('000)

4,500

+5%

+3% 4,200

+4%

3,900

+6%

+1%

3,600

3,300 2011

2012

2013

2014 (F)

Source: Department of Infrastructure and Regional Development Source: Department of Infrastructure and Regional Development Note: (F) is a forecast based on Tourism Australia analysis, chart includes direct services only Note: (F) is a forecast based on Tourism Australia analysis

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New Zealand Market Profile 2014

2015 (F)

New Zealand

Distribution The New Zealand distribution system continues to evolve as online bookings for short haul travel grow. In response, traditional distributors are increasing their online capabilities. Bookings to Australia are primarily driven by low airfares and short/sharp sales, leading to a trend where consumers book airfares first and ground components later, rather than traditional package tours.

Distribution System Wholesalers/ Large Agents

Retail Agents

Online

Commission Level: 20% to 25%

Commission Level: 10% to 12%

Commission Level: 10% to 12%

>> New Zealand has three major wholesalers which work in alliance with the retail travel chains. They are House of Travel, Go Holidays (Stella Group) and Infinity Holidays (Flight Centre Group). There are also smaller and more specialised wholesalers in the New Zealand market such as AIM Holidays, Lifestyle Holidays and Air New Zealand Holidays.

>> There are approximately 400 listed retail travel agencies employing over 3,000 travel consultants in New Zealand.

>> Key travel websites include Air New Zealand, Qantas, Virgin Australia, Webjet, Wotif, Expedia, Harvey World Travel, and House of Travel.

>> Whilst there are preferred arrangements in place, wholesalers are open to deal with any retail agencies (with the exception of Infinity Holidays). Special Interest >> Operators who specialise in niche segments, such as events and sports travel, include The Experience Group, Williment Sports Travel and Showbiz Events & Travel.

>> The main listed retail brands are as follows: »» F light Centre with over 130 retail stores and 45 brokers »» H ouse of Travel with 70 retail stores and seven Orbit corporate travel stores »» U nited Travel with 69 branded and non-branded retail stores »» Harvey World Travel with 52 retail stores »» First Travel Group with 44 non-branded affiliated agencies »» Mondo with 12 Mondo, Mondo Travel Connect, Mondo Business Travel agencies »» Travel Managers organisation has 150 travel brokers »» Air New Zealand Holidays with 26 agencies »» Travel Smart with 8 branded and non-branded agencies, and »» The Travel Brokers organisation has over 110 travel brokers.

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New Zealand Market Profile 2014

Business Events >> New Zealand is the largest inbound conference and incentive market for Australia. The lead time for travel planning has traditionally been 12 to 18 months, though more recent trends show this is shortening to around three to six months. >> There are a number of large companies including HOT Events, Go Conference & Incentive Management, CiEvents, Gilpin Travel, and Williment Event Management specialising in this sector, as well as many boutique incentive houses, corporate travel agents and professional conference organisers throughout New Zealand. >> The Pacific Area Incentive and Conference Expo (PAICE) is the key trade show to showcase Australian conference and incentive product. Held annually in November in Auckland, more than 180 conference and incentive planners attend this one-day show to meet and learn more about what is available in Australia for their clients. Information about this event can be found at www.paiceexpo.co.nz

New Zealand

Distribution Trends

Planning a visit to market

Distribution >> With the majority of New Zealanders booking travel to Australia online, traditional retail groups and airlines are increasing their online booking capability to meet demand. >> International airline services operate regularly from Auckland, Wellington and Christchurch. Limited services are available from the South Island centres of Queenstown and Dunedin, and the North Island centres of Hamilton and Rotorua. >> Aggressively priced trans-Tasman airfares (particularly for the East Coast) position Australia as a very accessible travel destination for New Zealand consumers.

Planning and purchasing travel >> According to findings from Tourism Australia’s Consumer Demand Research project6, New Zealand respondents would use a mix of online and offline sources to research a trip to Australia. These include general internet searches, travel websites, brochures and talking to family and friends who have been. >> Further to this, over 50 per cent of consumers are purchasing airfares online. Ground portions are being purchased either online (directly to product) or through retail agencies for complex or regional itineraries. >> Many consumers use internet travel websites to research their holidays. However, traditional distribution channels remain a key source of information on holiday destinations and products.

Top tips for sales calls >> It is preferable to make regular sales visits each year to the New Zealand market. Sales calls can be made throughout the year, however avoid December and January as this is the summer holiday season. >> A consistent market presence through advertising and wholesale or retail activity for two or more years will help to build New Zealand industry relationships and achieve a greater return. >> The key market centres to visit are Auckland, Wellington and Christchurch. Key regional centres to visit are Hamilton, Tauranga, Nelson, Dunedin and Queenstown. >> For more general information on sales calls and planning a visit to market, please see Tourism Australia’s Planning for Inbound Success ebook at www.tourism.australia.com/inboundsuccess

Seasonality >> The peak booking period for travel to Australia is April to August (the New Zealand winter). >> The peak travel period to Australia is February to May and September to November, however arrivals are relatively steady year round. Seasonality of visitors from New Zealand

Seasonality of visitors from New Zealand

140,000 120,000 100,000

2013 80,000

2012

60,000

2011 2010

40,000

2009 20,000 0 Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Source : Overseas & Departures, Bureau of Statistics Source : Arrivals Overseas Arrivals & Departures,Australian Australian Bureau of Statistics

6. Tourism Australia, Australian Consumers Demand Research, conducted by BDA Marketing Planning, 2012.

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New Zealand Market Profile 2014

New Zealand

Distribution Key trade and consumer events Event

Location

Date

Flight Centre Travel Expo (winter)

Auckland

August 2014 (Held every August)

PAICE

Auckland

19 November 2014 (Held every November)

Flight Centre Travel Expo (summer)

Auckland Wellington Christchurch

February 2015

State Tourism Organisation Road Shows

Various

Various

State Tourism Organisation Workshops

Various

Various

Australian Tourism Exchange (ATE)

Melbourne, Australia

21-25 June 2015

Where to find more information Tourism Australia’s activities in New Zealand are managed from its Auckland office. For more information visit Tourism Australia’s corporate website at www.tourism.australia.com Australian State and Territory Tourism Offices operating in New Zealand include: Destination NSW, the South Australian Tourism Commission, Tourism and Events Queensland, Tourism Tasmania, Tourism Victoria, and Tourism Western Australia. Also see: NZ Country Brief published by the Department of Foreign Affairs and Trade at www.dfat.gov.au/geo For the latest arrivals statistics, visit: www.tourism.australia.com/statistics/arrivals For the latest International Visitor Survey statistics, visit: www.tourism.australia.com/statistics/international

Please note In March 2014, the Australian Bureau of Statistics (ABS) released revised estimates (covering the period from July 2004 to December 2013) for international visitor arrivals and departures in its Overseas Arrivals and Departures (OAD) publication. The changes reflect major revisions to the methodology for inputting missing traveller data, which led to substantial downward revisions for business travel and numerous markets. The International Visitor Survey (IVS) statistics incorporate the ABS changes to visitor arrival statistics from the March quarter 2005. Tourism Research Australia (TRA) advise that there is now a break in series for the IVS statistics from the March quarter 2005, and that previous editions of the IVS should be used with caution. For more information, please refer to the ABS and TRA websites, www.abs.gov.au and www.tra.gov.au.

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New Zealand Market Profile 2014