PO Box 1464, Paraparaumu Beach Kapiti 5252, New Zealand

Nigel Coventry

Phone: 64-4-2973131 [email protected]

w w w. i n s i d e t o u r i s m .c o m Supporting the industry since 1982

ISSUE 962

Member: PATA, TIA, Skal ISSN 1179-2418

Tourism Brand Index + 72.7

Glenn Wedlock auction gets off to flying start TWO return business class tickets from Auckland to the US worth $18,000 have been donated to the Glenn Wedlock auction by AirNZ, following IT’s appeal last week. Promises of donations are fast coming into: editor@ insidetourism.com. (See pg6)

January 30th, 2014

Confidence returns to Christchurch CHRISTCHURCH’S tourism industry is putting its post-quake struggle behind it and moving into 2014 confident of higher visitor numbers and continued business growth. “For the first time in a number of years we can say that tourism in Canterbury is experiencing a similar rising tide as the rest of New Zealand as we head into the heart of summer,” Christchurch and Canterbury Tourism CEO Tim Hunter tells IT.

INSIDE City becoming a must-visit again - pg3 Hoteliers optimistic - pg4 Destination on the rise - pg5 Auction items flowing in - pg6 Wild About New Zealand by Geoff Ensor - pg7 Speakers’ Corner Fenton - pg8

by

Darien

Minister and others congratulate IT - pg9 Chinese still demand shopping tours - pg10 PM outlines initiatives - pg11 Kiwi Asian leaders meet - pg12 Steady growth expected - pg13 Wealthiest spending less - pg15 NZ 10th most destination - pg16

favoured

“Visitor numbers have strengthened considerably from all of our long-haul markets and much of our primary accommodation in key locations has very high occupancy. The self-drive market from China has grown steadily all year and this is quickly becoming a major component of our inbound business across Canterbury. If the Chinese travellers would learn to keep left it would be perfect.’’ In the months immediately following the February 2011 earthquake, visitors stayed away from Christchurch. But the city has emerged from the rubble and is being consistently singled out by travel writers as one of the most exciting destinations anywhere. The New York Times has ranked the city number two on its list of 52 places to visit in 2014. TripAdvisor has named it the South Pacific’s “number one destination on the rise”. The resurgence in Christchurch’s popularity is evidenced by the growing number of air services into the city. Domestically, AirNZ has 28 extra planes flying into Christchurch each week, while internationally it is trialing direct flights between Christchurch and Perth. It has also scheduled 22 charter flights from Japan to Christchurch over summer. Singapore Airlines has added 10 extra services, while China Southern Airlines will bring the first commercially flown B787 Dreamliner to Christchurch as part of a one-off charter programme for Chinese New Year. It will arrive from Guangzhou on February 3 with up to 228 passengers, Mr Hunter says. “The extra airline services reflect the demand for travel to Christchurch and should lead to some healthy growth in our tourism numbers,” says Mr Hunter. “In the year ended June 2013 we had 205,000 visitors come through the Christchurch i-SITE centre. We’re anticipating a 27 percent increase on that number this year.” Although accommodation in Christchurch remains tight in peak months, there are 290 properties open offering 5,042 guest rooms. A new backpacker (to pg3) IT962 - January 30th, 2014



Pages Past Ten years ago in IT... BATTERED by a series of problems, international tourism arrivals fell 1.2 percent in 2003, the biggest decease ever. But the outlook for 2004 is much brighter according to WTO (now UNWTO). The industry never collapsed and the decline was limited. Despite everything there were still 7,000,000 extra travellers between 2001 and 2003. This will be a year of massive opportunity for the region’s airlines, airports and the tourism industry believes CAPA. It could and should be the best year ever says MD Peter Harbison. Qantas is ending its relationship with Origin Pacific and expanding New Zealand domestic flights by adding Christchurch-Rotorua and double-daily Christchurch-Wellington. The environment court has given the go ahead for an artificial surf reef in Lyall Bay, Wellington. Qualmark is launching “exclusive” as an accommodation category. IT launched Pages Past this week.

15 years ago in IT... PM Jenny Shipley hinted at details of the Saatchi and Saatchi rebranding concept when she launched a major NZTB (now TNZ) promotion in London. She mentioned Neonz, a network of eminent overseas New Zealanders, first highlighted by Saatchi CEO Kevin Roberts at the 1998 annual tourism conference. AirNZ is doing its best to attract more Japanese people here. But one IT reader wonders if it helps that the latest timetable published in Japan calls them “fright” numbers. It’s done twice. Presumably for emphasis. Southern World Vacations CEO Richard Peate said on TV1 that operators are worried NZTB has lost three top chiefs in a month. This reflects “substantial conflict” between the board and Tourism Minister Murray McCully. Labour tourism spokesman Damien O’Connor says Mr McCully has intervened too often caused too much friction and not left the board alone. Zimbabwean Ian Macfarlane is NZTB’s new marketing manager. He arrived in New Zealand on holiday a year ago and loved it so much he returned to Cape Town, sold up and migrated here. New NZTB chairman Peter Allport says that while he believes the board’s role is offshore it is still responsible for ensuring what is promised is delivered in New Zealand.

20 years ago in IT... WITH increasing numbers of Koreans and Chinese visitors NZTB is looking to see how industry personnel can best host them. CEO Ian Kean and manager Asia Fergus Brown are off to China to talk to the industry. The Japanese market is at a turning point. No longer do Japanese visitors want to be spoke to in their own language. They now prefer to talk in English to add to their overseas experience says Queenstown Promotion Board (now Destination Queenstown) staff member Hilary Finny.

IT962 - January 30th, 2014



(from pg1) and budget hotel opened this month in the central city, adding 43 rooms, while a new five-star hotel with 47 rooms is due to open in July. The Sudima Hotel is due to complete its $20 million extension, which will add 40 rooms. This year will also see the start of work on Christchurch’s new convention centre. The Avon River park that will form a green ribbon through Christchurch’s new CBD is already under construction, as is a $100 million retail and entertainment precinct that will front on to the river park and be known as The Terrace. In Christchurch’s popular Botanic Gardens, work is nearing completion on a glass pavilion visitor centre being built to mark the garden’s 150th anniversary this year. New bars, cafes and restaurants are opening across the city all the time. In Victoria Street, which has become a hospitality hub with 15 top restaurants, cafes and bars operating within a two-block area, another eight establishments are due to open in the first half of this year. In the past 12 months:

Cathedral Square.

* The city’s new transitional cathedral, designed out of cardboard tubes by renowned Japanese architect Shigeru Ban, has opened.

* The Port Hills gondola has resumed operation. * The heritage Tramway has resumed operations, on a limited city route. * Canterbury Museum has opened a new Quake City earthquake exhibition in the Re: Start Mall, and has celebrated its greatest attendance levels ever at Rolleston Ave Museum for the Street Art Rise exhibition, on until late March.

* The restoration of the New Regent St shopping precinct has been completed. * Cathedral Junction has reopened. * Cathedral Square has reopened and is again a welcoming place for visitors, including a visitor kiosk and outdoor seating area. “The progress in Christchurch is exciting,” says Mr Hunter. “The city is changing day by day and that makes it a very interesting destination for visitors.”

City becoming a must-visit destination again CHRISTCHURCH tourism is reviving in 2014, with the city and Canterbury becoming a must-visit destination for international and domestic visitors. “More and more hotel accommodation is opening up, with at least four significant hotels up and running in central Christchurch and more to come,” confirms Canterbury Employers’ Chamber of Commerce CEO Peter Townsend. “Tourism was a hard-hit sector post-February 2011, mainly due to a lack of accommodation. It is therefore good to see more quality offerings becoming available,” he tells IT. “Ironically, almost all of the tourism offerings outside the central city survived the earthquakes well. It is important that potential visitors to Christchurch and Canterbury understand our famous regional tourism infrastructure is well placed to host domestic and international tourists.

Peter Townsend.

“Of course this extends well beyond greater Christchurch and it has been clear tourism right across the South Island was negatively impacted by the catastrophe. It is time to rectify that.” Mr Townsend says Christchurch is being internationally recognised

(to pg4)

IT962 - January 30th, 2014



(from pg3) on several international fronts as one of the most interesting cities to visit in the world. “It’s not surprising when you consider the opportunities that have manifested themselves within and beyond the downtown urban area, as we embark on recreating New Zealand’s second largest city. “We welcome interest in the destruction that has occurred in our region. There are lessons here for everybody and there is no doubt the disaster and the rebuild hold attraction for most of us. All the visitors I speak to are interested in having a look at the centre of Christchurch and are invariably stunned when they get a clearer and current picture of what has occurred and the opportunities that are unfolding. Tourism has been and will continue to be, one of the major economic drivers in our region,” he says. “As we go somewhere new in the context of the rebuild of our city, that position will only be reinforced.”

Hoteliers optimistic, says Dearsley TIA-member Christchurch hotels sold more rooms during the last quarter of 2013 than in the same period in 2012: almost 94,000 compared to almost 72,000 in 2012. “During this time the number of rooms available in the city grew 49 percent, so this shows there is a much larger demand than the same time a year ago,” says Tim Dearsley, who manages the central city Ibis. “There are no new known hotel developments that have commenced, so any new build will not happen till 2015.” The owners of Chateau Blanc Suites have announced that they will repair the remaining 27 rooms as a five-star hotel to open this later this year or early 2015. The property is close to The George Hotel and the Christchurch Casino.

Tim Dearsley.

Mr Dearsley notes the government has announced that, as well as considering the five final applications for the new convention centre, it is actively looking for an operator to run it. Completion is set for 2017. Holiday arrivals from Australia dropped by 2,000 during September, reversing a trend likely caused by more direct ski flights from Australia to Queenstown. Singapore Airlines has been flying two extra flights into Christchurch and AirNZ has charter flights from Japan. China Southern has announced a charter flight direct to Christchurch during Chinese New Year. Latest government estimates is that $40,000 million is to invest in the Christchurch rebuild over the next 20 years. Some 1,700 government employees will move back into the CBD with 20 public sector departments and agencies moving into the CBD in 2016. They will occupy 24,000sq m of office space. It is expected that less than 10 percent of the investment has occurred at the end of 2013, so 2014 and beyond will show a large increase in growth. Construction of the “strip” hospitality has started and has been renamed “The Terrace”. It is hoped part of it will be open by November 2014. “Five or six bars or restaurants are opening each month,” Mr Dearsley says. “A detractor is the lack of events in the city during the weekends, although this is improving with the World Buskers Festival which is a popular draw card. There is a feeling of optimism in the city with many more visitors and local people coming into the CBD than a year ago. “People are starting to see progress being made and this is a positive sign.”

IT962 - January 30th, 2014



Ibis first hotel to open in CBD THE Ibis Christchurch has had an excellent 2013 and followed on from an outstanding reopening on September 4 the previous year. “We were very proud to reopen the first hotel in the CBD following the February 2011 earthquake and we received extremely good press coverage right around the world,” says GM Tim Dearsley. “The hotel continues to be successful. In the 16 months we have been open we have accommodated more than 78,000 guests, plus served more than 40,000 breakfasts and 27,000 dinners. Guest feedback has been very encouraging towards the hotel and to the efforts made by Christchurch to rebuild the city and the tourist industry.” The Ibis’s sister property, the Novotel Christchurch Cathedral Square, reopened in September and had a strong performance ever since.

Number one Destination on the Rise in the South Pacific New Regent Street.

CHRISTCHURCH is winning favour with TripAdvisor users, who have voted the city as the number one Destination on the Rise in the South Pacific. The website says, although Christchurch is still recovering from the February 2011 earthquake, it “abounds with arts, adventure and optimism’’ and describes it as the “gateway to the beautiful Canterbury region”. TripAdvisor users rated the area for its “dramatic vistas and adventure sports, set against a backdrop of lofty peaks”. In the central city, visitors were impressed by the new and reopening attractions and businesses. “TripAdvisor is a very influential website and its recommendations carry a lot of weight with travellers, so we’re thrilled to see Christchurch feature so prominently on its list of destinations on the rise,’’ says Christchurch and Canterbury Tourism CEO Tim Hunter. “Clearly people are excited about what they see happening in Christchurch and share our belief that a very bright future lies ahead for our city. To get this endorsement from TripAdvisor so soon after Lonely Planet named Christchurch as one of the top places to visit in 2013 bodes well for the future of our tourism industry.’’ Mr Hunter says there has been significant progress on Christchurch’s road to recovery. “Several hotels have reopened, the heritage tramway and the gondola have recommenced operations, and the café and shopping precinct in historic New Regent St has swung back into life.” Work has begun on the creation of a river park that will form a green ribbon through the CBD. “The Avon River precinct is the first in a series of anchor projects that will completely transform our central city and it is very exciting to see it taking shape,’’ Mr Hunter says. “When all the anchor projects are complete Christchurch is going to be the envy of cities around the world and a destination unlike any other.’’

City entering exciting phase - Key NOW much of the ground work has been completed, the more tangible and visible side to Christchurch’s redevelopment will become obvious, PM and Tourism Minister John Key told Parliament on Tuesday. “We are entering an exciting phase for the future of the city. Construction will continue rapidly for the next several years, and there will be very obvious progress throughout 2014. Christchurch residents can look forward to watching the skyline of their new city rise around them.”

IT962 - January 30th, 2014



$18,000 tickets, autographed tie, signed Gollum statues and lunch at Huka are among goodies donated so far... TWO return business class tickets from Auckland to the US worth $18,000 have been donated to the Glenn Wedlock auction by AirNZ, following IT’s appeal last week. PM and Tourism Minister John Key has given a signed tie. Two 15cm Gollum statues sculpted by Daniel Cockersell and created by the same artists and craftspeople who worked on The Hobbit trilogy have been given by Weta Workshops. Each has been signed by Sir Richard Taylor. Sudima Hotels is donating a family bonanza package at Sudima Lake Rotorua which includes two nights accommodation, including cooked breakfast for two adults and two children.

Glenn and Jo Wedlock with daughter Ava.

Heritage Hotel Management is providing a night’s accommodation and breakfast for two at Heritage Auckland, CityLife Auckland, CityLife Wellington or Heritage Hanmer Springs. The Scenic Hotel Group is providing accommodation and breakfast for two at any Scenic or Heartland Hotel in New Zealand.

Huka Lodge is also giving lunch for two including wine while Auckland’s The Big Foody Food Tours is offering an Auckland artisan tour for two. THL is providing two family vouchers for a Waitomo combo product and a four-berth Britz Motorhome seven-day package. Skyline Enterprises is providing a gondola ride, lunch and three luge trips for two at Skyline Queenstown and a gondola ride, wine tasting and dinner for two at Skyline Rotorua. Other companies are considering what they too can donate. IT launched the appeal last week to help Mr Wedlock, who is still working as GM commercial business development at Auckland Airport, despite not having much longer to live unless expensive treatment can be maintained. Without the treatment the chances of him being around this Christmas are not strong, his wife, Jo, tells IT. Mr Wedlock, who has three children, was diagnosed with cancer two years ago. His drugs cost up to $25,000 a month, as they are not funded in New Zealand. IT editor Nigel Coventry says Mr Wedlock has done more for New Zealand tourism than many and deserves industry support. Donated items will be put up for auction on TradeMe in March. There is still time to add to the auction by emailing details of the product or service to: editor@insidetourism. com.

* For cash donations please visit Telecom Foundation’s wbsite: givealittle.co.nz.

Auckland, Christchurch among world’s most popular cities AUCKLAND is the world’s 51st most popular destination with 2,100,000 visitors a year and Christchurch is 84th with 1,735,000 arrivals a year, according to a new top 100 Cities Destination ranking by Euro Monitor. Arrivals increased seven percent in Asia Pacific last year while Auckland’s increased 7.7 percent but Christchurch’s decreased half a percent. Sydney was 51st with 2,626,000 with 0.2 percent growth. Melbourne was 88th with 1,677,000 arrivals but growth of 14.4 percent. Top city was Hong Kong with 21,830,000 visitors, followed by Singapore with 19,818,000 and Kuala Lumpur with 13,315,540 arrivals.

IT962 - January 30th, 2014



DoC wants a strong, vibrant industry I joined DoC last year from TIA and became director of the Commercial Partnerships Unit. I am from a farming background and was a commercial pilot in the tourism sector and AirNZ Link for 20 years, followed by eight years as TIA advocacy manager. In both my roles I worked closely with the department on a range of issues that spanned aircraft operations over national parks, concession allocation, safety and a range of conservation challenges common to tourism and the department. I’m passionate about the outdoors and head for the hills as often as possible but, as yet, I have not joined the growing league of mountain bikers, preferring instead the traditional tramping methods still enjoyed by some. I’ve joined a team that is experienced, committed and passionate about growing conservation. My predecessor, David Wilks, laid a platform of new and innovative thinking that has helped create a sense of momentum and excitement.

By DoC commercial partnerships director Geoff Ensor.

My team, many of whom have a tourism background, cover a range of work that broadly falls under the headings of maintaining and developing conservation partnerships on and off public conservation land, marketing and the ongoing development of the visitor centre network. I look forward to each section of the unit being covered in more depth in future issues. Working well with partners is not new for DoC. It has worked with thousands of individuals and groups since its inception in 1987 and those relationships continue to be critical to delivering great conservation outcomes. The AirNZ partnership with DoC in recent years is a particular case in point. Together we can get a conservation message to a wide audience through various media and improve people’s understanding of economic benefit of retaining natural values, which translate directly to economic values for all New Zealand. Similarly, over many years, DoC has provided interpretation information to the industry, which has added value to the visitors’ experience and ensured the brand reputation for NZ Inc remains intact and keeps New Zealand as a desirable destination - domestic and international. What has changed is the degree of focus and resource DoC is applying to existing and new relationships in order to grow conservation. For the tourism industry this is good news. Like you, the department wants a strong, vibrant tourism industry that provides fantastic visitor experiences and is sustainable in the broadest sense of the word. Working more closely together will make us a powerful force for positive change: environmentally, culturally and economically.

Battle for Our Birds launched by Minister CONSERVATION Minister Nick Smith yesterday (Wednesday) launched DoC’s largest species protection programme called Battle for Our Birds. “Our native birds are in decline and the kiwi will not exist in the wild for our grandchildren unless we do more to protect them. Rats, stoats and possums must be controlled to stop them killing 25 million native birds a year. It is like having a Rena disaster, which killed 2,000 birds, every hour,” Dr Smith said. “This problem is particularly urgent this year because we are facing a one in 10 to 15 year large beech mast that will drop about a million tonnes of seed in autumn. This flood of food will trigger a plague of an additional 30 million rats and tens of thousands of stoats. When the seeds germinate in spring, these starved predators will annihilate populations of our endangered birds. “I know there are people, regardless of the science, who will oppose the use of poisons, Dr Smith said. “The comprehensive conclusions of the independent Parliamentary Commissioner for the Environment and the Environment Protection Authority make plain that 1080 is safe and the only practical tool that will work. Reason must trump prejudice about poisons when the very species that define our country like kiwi are at stake.” IT962 - January 30th, 2014



Industry showing real leadership As Labour’s new spokesperson for tourism, I’m discovering that New Zealand’s tourism industry is diverse, vibrant and exciting. The industry showed real leadership last year in the debate around the Mondayisation of Waitangi and Anzac Day when those days fall on a weekend - about twice in every seven years. It was refreshing to hear TIA’s constructive approach when it told the select committee hearing submissions on the Bill that providing a day off on Monday when Waitangi Day and Anzac Day fell on the weekend would boost domestic tourism, increase productivity and create real economic benefits across many sectors. I was surprised to learn that domestic tourism is worth $38 million a day to New Zealand but, as a Kiwi, I can understand why many of us love to spend our weekends and holidays travelling this beautiful country. New Zealand’s relative isolation to the rest of the world is part of our attraction to tourists. However it is also a major challenge to our tourism industry. New Zealand does not have the option of being a stopover. We must market ourselves as a destination.

by Labour Party tourism spokeswoman Darien Fenton.

New Zealand’s brand is the most crucial factor in successfully marketing ourselves as a destination overseas. Any damage to our brand can translate to significant disruption to our tourism industry, so it is essential we protect and promote the New Zealand brand. The New Zealand Story creates a great narrative about our people, culture and character, and I am keen to discuss with operators how it works for them and what the government needs to do to promote it further. The role of government in tourism infrastructure is vital. As transport spokesperson for Labour, the portfolios intersect at many levels. Whether it be from cycling and walking infrastructure, to public transport, to international arrivals at airports and ports, the role of government, working with local authorities is crucial. But tourism should never be forgotten in the crucial areas of the conservation estate and DoC initiatives and the need to ensure visitor infrastructure as part of the Christchurch rebuild. Tourism needs more than just a convention centre in Auckland. Tourism is significant to New Zealand’s economy and it is vital for the industry that there is high level recognition and support from the government. While having the PM as Tourism Minister sends a great message, I wonder whether we should be considering the reestablishment of a dedicated Ministry of Tourism. The subsuming of tourism in the mega-ministry, MBIE, needs review, and I would be interested in your feedback. One of the big issues the industry has to come to terms with is a safety standard. It only takes a couple of fatalities in adventure tourism for our reputation to take a hit internationally. I know that the majority of the industry take safety very seriously, but is more education needed? Is drug testing the only answer? There are significant changes coming to our health and safety regulatory regime and tourism operators will face more stringent requirements with regard to the safety of their employees. This is in response to a disastrous domestic employment record of death and injury in New Zealand and all industries will have to comply, regardless of their previous safety record. Finally, there is a perception that the industry is a low wage and highly casualised industry. This may not or may not be true, but I would be keen to discuss how we change this perception. We need to encourage young New Zealanders to see the tourism industry as a career path worth having, and ensure the jobs created by increased tourism give them the skills to build a career in this vital industry. IT962 - January 30th, 2014



Minister and others congratulate IT “I would like to extend my congratulations to Inside Tourism for reaching this milestone. After 20 years of tourism reporting, I know IT is now firmly part of the New Zealand tourism landscape and commend Nigel for his ongoing attention to informing the rest of the sector.” - John Key, PM and Tourism Minister. *** “There is no better weekly round-up of industry news and views than Inside Tourism - an important resource for anyone working in tourism. As the driving force behind IT, Nigel deserves recognition for his dedication and commitment to the delivery of a regular publication that gets read by everyone in the industry. “15 years ago in IT is a particular favourite section of mine - it’s a good reminder that there aren’t too many new ideas. Congratulations Nigel. Here’s to another 20 years.” - Kevin Bowler, CEO TNZ.

CAMPAIGN MARKETING EXECUTIVE DESTINATION QUEENSTOWN Work with a high performing, passionate team to promote Queenstown as the Southern Hemisphere’s premier four season lake and alpine resort. Here’s your opportunity to make a difference in one of New Zealand’s leading tourism marketing organisations! This is a full time position and reports to the Marketing Manager. Successful candidates will demonstrate a strong understanding of Queenstown’s unique tourism environment. Your experience will be backed by a sound knowledge of tourism and marketing disciplines and a relevant tertiary degree. This is a broad based role providing marketing and administrative assistance for the development of Destination Queenstown marketing activity and campaigns, primarily targeting domestic and Australian markets. You’ll develop and maintain inspirational marketing collateral for all internal and external consumer, trade, media and C&I audiences. Day-to-day responsibilities include supporting the implementation of online and social media advertising initiatives, liaising with agencies and suppliers, analysing campaign performance, working with the Online & Market Insights Executive and assisting the wider team. Presentations/hosting outside of office hours will at times be required. To apply, please email your CV and cover letter to [email protected] before 5pm, Wednesday 12th Feb 2014. Job descriptions can be downloaded from www.queenstownnz.co.nz/information/employment

*** “Over 20 years, Inside Tourism has cemented its place as an essential source of news and information for our industry. I admire its comprehensive coverage of every tourism sector and all the major events across the industry. On behalf of TIA’s members, I’d like to congratulate Nigel for reaching this milestone. Compiling and distributing Inside Tourism every week is a huge effort and I admire his achievement.” - Martin Snedden, CEO of TIA. *** “Congratulations to Nigel and Linda for being the most read, reliable and informative tourism source of news in the past 20 years. Even with the digital age, if we didn’t have IT I’m not sure how we would be kept up to date with what’s happening across the industry. Well done, Nigel, and keep up the 100% trustworthy news of the day.” - Lesley Immink, CEO of TECNZ. *** “The holiday parks sector finds Inside Tourism the perfect way to keep up to date with what’s happening in the New Zealand tourism industry. “Nigel has been a regular attendee at our annual conference and all Holiday Parks Association members receive a copy of IT as one of (to pg10)

IT962 - January 30th, 2014



(from pg9) their member benefits. Congratulations, Nigel, on 20 years’ publishing IT.” - Fergus Brown, CEO of HAPNZ. *** “Congratulations to Nigel and his team. It is a fantastic achievement to keep IT going for 20 years. To keep IT current, relevant and up to date in today’s environment shows the esteem in which Nigel is held in the industry. “You can only keep those information flows going if you are trusted. All credit to Nigel, who has maintained the trust of the people and the industry for such a long, long, long time. I look forward to reading it in another 20 years in my bath chair somewhere. “ - Michael Baines, CEO MANZ. *** “Congratulations to Nigel for 20 years of researching, writing, and subbing his Inside Tourism. Nigel has provided a critical medium for communicating to our industry, thereby keeping us in touch with the plethora of antics, activities and actions of all the amazing people that make up the tourism sector. Well done, Nigel Coventry, you are a legend.” - Chris Tremain, former Associate tourism minister and MP for Napier. *** “Inside Tourism is without question THE source of tourism industry views, news and updates in New Zealand. To Nigel and the team (Linda), congratulations on a great 20 years of service to the industry. A genuine thank you.” - Oscar Nathan, GM Destination Rotorua. *** “I acknowledge your quite remarkable efforts to produce your publication for 20 years. I’ve been involved with the industry forever and you have been and still are a very professional publisher. Congratulations to you for your considerable efforts with your publication.” - Blair Sheehy, first life member, ITOC (now TECNZ). *** “Reaching 20 years is an amazing milestone and I congratulate Nigel and Inside Tourism on such an achievement. For me, IT is the leading news publication for our industry and a weekly must-read for at least the past eight years, enabling me to stay in tune with what’s going on and who’s doing what. I look forward to reading Inside Tourism for many years to come. - Kauahi Ngapora, CEO of Whale Watch Kaikoura. *** “My accolades go to Nigel for keeping IT alive and well during such a challenging couple of decades. Both the tourism and publishing industries have seen huge changes that could easily have killed off lesser publications. I also know how challenging it is to run a small business, which IT is. So the fact that you’re still fully in the game is a demonstration of your ability to remain credible, relevant, informative and stimulating to your audience. Take a bow.” - Peter Laurenson, marketing and sales manager, Zealandia.

Chinese still demand for shopping tours, says COTRI THERE has been a marked reduction in package tour holidays booked by Chinese, following the government clampdown on shopping tours, says the China Outbound Tourism Research Institute (COTRI) expert panel. “The law has clamped down on tour operators responsible for such tours which included such restrictive features as mandatory shopping breaks,” says the panel’s latest report. “As a result the prices for these package trips have gone up and in doing so have lost part of their appeal. The irony here is, that there is still a demand market for such trips in China, where any holiday at bargain-basement prices however limited the holiday options may be is better than no holiday at all.” IT962 - January 30th, 2014

10

PM outlines where government is at with its various initiatives THE government will work to further streamline passenger processing at international airports and evaluate the trial of SmartGate Plus - the next generation of automated border control technology, PM and Tourism Minister John Key told Parliament on Tuesday. It will continue to work towards the liberalisation of international air service agreements. The Ministry of Transport aims to hold at least seven further air service negotiations, building on the 29 new or amended agreements in place since 2011. Initiatives are being implemented to attract more international students to New Zealand. They include making it easier for students to work here while studying, and marketing and promotional activities to highlight New Zealand as an education destination, he said. “TNZ will continue to implement its new marketing strategy involving increased investment in emerging and existing tourism markets, leveraging international business events and helping businesses capture greater value from tourism. The Hobbit movies are again showcasing New Zealand as an attractive destination.” Mr Key said 15 trails in the New Zealand Cycle Trail network are complete and being used. All but one of the remaining trails will be completed by the end of summer. “This year the government will progress the remainder of its resource management reforms which, among other things, will reduce the number of consent applications that are required, reduce costs and reduce the length of time involved in processing consents. The reforms will ensure our planning framework is more proactive and avoids the consistent litigation and uncertainty of the current regime. At the same time, the reforms maintain a strong focus on environmental protection.” The reforms will help the improvement of freshwater resources. Building on the recommendations of the Land and Water Forum, the Government intends to introduce a national objectives framework for water quality. This framework will provide councils with a clearer process for setting quality limits, and a scientifically informed basis for doing so. The framework includes two national “bottom lines” for water quality.

Conferencing?

HEAD TO THE

Mr Key said the government will set up a record number of marine reserves, with three in the Subantarctic Islands and in Akaroa Harbour. “We will also conclude consideration of marine protection proposals on the West Coast and at Kaikoura. The government is consulting on a proposal to establish a new conservation park on Great Barrier Island, and will consider the advice of the New Zealand Conservation Authority on a new national park encompassing the Waipoua kauri forest in Northland.”

ACC admits it has no idea how many overseas visitors are killed or injured in NZ A complete conferencing venue in the heart of the Wairarapa! 0 8 0 0 S O LW AY

w w w. s o l w a y. c o . n z

THE ACC is unable to say how many overseas visitors are injured or killed in New Zealand each year because it does not collect such information according to advisor Stephanie Lewis. “Most overseas visitors list their New Zealand accommodation as their address, she tells IT. “ As such ACC is not able to accurately identify the number of claimants who reside overseas. ACC is also unable to differentiate between tourists and other overseas clients.” It has no details on injury types, either, because it relies on clients writing phrases such as “quad bike” or “water skiing” on their claim form. But this is not compulsory. IT had also asked ACC for its total cost for injuries to overseas visitors while in New Zealand and how much is recovered from them. IT962 - January 30th, 2014

11

Kiwi Asian leaders to discuss successful visitor hosting HOW New Zealand Asian leaders can contribute to growing Asian tourism in New Zealand and how to work in partnership with Kiwi businesses so visitors who come have a memorable experience will be highlighted at a special event in Auckland on February 17. It is being hosted by the inaugural chairwoman of New Zealand Asian Leaders Mai Chen, her advisory board and the Bank of New Zealand. “With the current legislative changes affecting New Zealand tourist operators for Chinese tour groups, this is an important and topical session for the visitor industry,” Ms Chen says. “A high calibre of industry professionals will provide a keynote address, including Internal Affairs and Local Government minister Chris Tremain, China Travel CEO Lisa Li, Settlers Tours Ltd director Dr Anne Zhou and TNZ chairwoman Kerry Prendergast.

Mai Chen.

Also in attendance will be New Zealand China Council executive director Patrick English, Glacier Investments Ltd director Jennie Sew Hoy, Bananaworks communications director Kenneth Wang and Patton Ltd group CEO Sameer Handa.

* NZ Asian Leaders is a professional organisation for top Asian New Zealanders who are CEOs and leaders and for high-achieving Asians in New Zealand who aspire to become leading CEOs. Its vision is to maximise the country’s successful business interface with Asia. Attendance is by invitation. Those interested in attending should email [email protected]

Mitchell Corp and Kiwi Holiday Parks form alliance MITCHELL Corp and Kiwi Holiday Parks have entered into a sales and marketing alliance, in which the former will work with travel partners and take over Kiwi Holiday Parks’ FIT and group trade reservations from February 17. ‘We are confident we can grow this business under our umbrella and find new markets for this unique style of Kiwi accommodation, which complements our other existing brands and products perfectly,” says Mitchell Corp CEO Matt Standing. “We can foresee numerous opportunities to grow our domestic and inbound markets with Mitchell Corps resources whilst maintaining our independence and individuality,” says Kiwi Holiday Parks chairwoman Jenny Russell. Christchurch-based Mitchell Corp is one of the largest sellers of commercial accommodation in the country and has been in business nearly 30 years. It operates with the Mainstay Hotels group, Golden Chain Motels and Oceana Apartments, as well as the Go Kiwi Hotel Pass, other wholesale products in Australia and the Ezibed consumer booking site. “Through this alliance we offer a unique service to all of our wholesale and agent partners, given we now cover virtually every type of accommodation available in New Zealand. We are the one-stop shop for your accommodation needs,” Mr Standing says. “Access to this wealth of inventory is easily accessed via our central reservations service and through our various online points of distribution.” Kiwi Holiday Parks has 48 Qualmark-rated properties nationwide, with a full spectrum of accommodation.

Bird flu increases as Chinese New Year starts H7N9 has killed 19 people in China and infected 96 so far this year, the official Xinhua news agency says, citing the Chinese Centre for Disease Control and Prevention. The jump in cases comes during the 40-day travel period around Chinese New Year, when Chinese are expected to make 3,600 million trips as families reunite. Chinese New Year starts tomorrow (Friday).

IT962 - January 30th, 2014

12

BMI expects steady growth for NZ SOLID increases across all key market indicators, including inbound and outbound travel, travel expenditure and hotel industry value, are predicted by US-based Business Monitor International (BMI), “reflecting New Zealand’s status as a potentially lucrative long-term investment destination”. “New Zealand offers visitors a range of attractions, including the rural mountains of the South Island, a variety of winter and summer sports, attractive metropolitan cities and eco-attractions, including whale watching, which make the country an enduringly popular holiday destination,” it says.

“Major hotel chains are taking more notice of New Zealand.”

It notes we are building a reputation as a sporting and cultural events destination. “BMI expects inbound arrivals to reach 3.3 million in 2017, up from 2.7 million in 2013, with particularly strong growth in arrivals from countries within the Asia Pacific region, due to the strength of burgeoning markets in China and India.” Similar increases are expected in outbound travel. “Tourism in New Zealand receives a great deal of support from the government, which is understandable, as tourism makes a substantial contribution to the country’s economy, making up 5.3 percent of GDP in 2012. We expect the industry’s contribution to overall GDP to grow steadily, to reach 6.9 percent in 2017. This is a substantial proportion of the country’s GDP,” it says. “For comparison, tourism in the UK contributed about two percent to the GDP in 2012, and India’s just 1.2 percent and is likely to remain the focus of government development. “Major hotel chains are taking more notice of New Zealand. For example Wyndham has opened two new Ramada hotels. However, BMI is only forecasting small growth in the number of new hotels as arrivals figures are not yet at the point of justifying further expansion.” Visit: www.fastmr.com.

China market no longer easy pickings? THE era of low hanging fruit in the China market has passed with virtually all tourism destinations and luxury brands now targeting it in some way or another reports China Luxury Advisors cofounder Sage Brennan. There will be an increase in FIT travel and fewer large coach tours as VIP groups shrink, he says in Jing Daily. The average in most markets is now fewer than 10. “What seemed to work easily for brands in attracting and engaging Chinese travellers last year won’t work this year as consumers’ sophistication and preferences are evolving rapidly.” Brands and destinations need to innovate faster than competitors in providing compelling serve and experiences for Chinese customers. The product development mantra ready, fire, aim comes to mind.” Tencent’s WeChat is a social network that is evolving fast and will become a compulsory social media application for luxury brands seeking to connect and build loyalty with Chinese tourists, he says. With 600 million users in China almost all Chinese travelling abroad has an account and uses it daily to communicate with friends while travelling. “WeChat allows brands to engage in a more personal conversation than they can with Sina’s WeiBo. If you are not looking closely at WeChat then you are already trailing far behind your most important customer.” Chinese tourists will expand the depth and breadth of desired tourism destinations this year, Mr Brennan says. “We expect to see increased tourism from China to lesserknown destinations such as Spain, Portugal, Prague, Texas and Brazil during 2014.” IT962 - January 30th, 2014

13

SPTI straight after TRENZ

THE inaugural South Pacific Tourism Exchange (SPTE) is to be held at the Pullman Auckland from May 22-23, South Pacific Tourism Organisation CEO Ilisoni Vuidreketi has just announced. * TRENZ is in Auckland from May 19-21.

h e tangata , h e tangata , h e tangata TNZ has this week welcomed three new staff members to its Wellington trade team. Paul Trowell has been made trade development manager, Stephanie Wagener is now trade development co-ordinator and Anita Whiteley holds the new role of product development specialist. Mr Trowell has spent the past two years as GM of the Falkland Islands Tourist Board and prior to that ran a marketing business. His early career included roles as sales and marketing manager at the Great New Zealand Touring Route, and various products including Huka Jet and Rainbow Springs.

Paul Trowell.

Ms Wagener previously worked for TIA in a project support role. Before that she was a junior research consultant with TRC Tourism Consultants. Ms Whiteley comes from Jetconnect Ltd, where she has worked since 2006. She has also worked for American Express in London, AirNZ, Flight Centre and United Travel. The Southpark Corporation has appointed Louis de Bievre GM of Taupo’s Kinloch Club and Rotorua’s Treetops Lodge and Estate. Mr de Bievre has been in the New Zealand industry more than 20 years, most recently as GM at Huka Lodge.

Louis de Bievre.

Dominik Strobel will be saying farewell to the Explore Group and his role as GM sales and marketing, after six years with the company. He started as business development manager in 2007 and set up the sales and marketing function within the company. He has grown the department from a team of two to nine. Mr Strobel plans a break from work and the industry to relax and decide what his next move will be. Destination Great Lake Taupo has appointed Zelia Horrell its sales and marketing manager. She starts on Monday. She previously worked for AJ Hackett in Queenstown, where she was responsible for the company’s nationwide online marketing.

Dominik Strobel.

Ms Horrell has worked as internet marketing specialist for web design and development and property management companies in Oregon, US. Marija Gecan is now sales director at Auckland’s Stamford Plaza. She previously worked as a national sales manager corporate and MICE for the Hilton Worldwide group as well as a Central North Island sales manager for Accor. Carnival New Zealand has announced the appointment of former Emirates sales executive Andy Bruce as its business development manager. Meanwhile Melissa Bannister will now be business development manager for Princess Cruises.

Marija Gecan.

Malcolm Johns has joined Christchurch Airport as CEO. He was previously CEO of InterCity Group for nine years and deputy chairman of TNZ for six years. Mr Johns is a director of TIA. He was also a sales manager for the Mount Cook Group, as a management consultant at Croxley Stationery and MD of Canadian-based Discover Holidays.

IT962 - January 30th, 2014

14

Wealthiest Chinese spending less overall, says latest Hurun report OVERALL spending by Chinese high net worth (HNWIs) individuals decreased 15 percent last year compared with 2012, while spending on gift giving was down 25 percent, according to the latest Hurun Chinese Luxury Consumer Report. It says this is possibly due to anti-corruption initiatives and a slow-down in the economy. For the first time, Louis Vuitton is no longer the preferred brand for gifting by men, losing to Hermès. Chanel continues as the preferred brand for gifting by women. Maotai is - for the third year running - the only Chinese brand that made it to the list, but it has fallen one place to 14th. Whilst leather accessories proved most popular overall, jewellery brands had a bad year in the gifting market. For men, red wine and watches are the preferred choices for gifts under RMB 20,000, with imported spirits such as whiskey and cognac up two places into third. For women, the preferred choices are jewellery, fashion and watches. Travel vouchers rose fastest, ranking fourth this year. When selecting gifts for the elderly, more than half the individuals chose healthcare products, followed by travel vouchers and houses. For children, consumer electronics ranked top, followed by clothing. The super-rich had a tendency to gift travel vouchers to women, the report says.

HNWIs busier than ever - so less time for leisure CHINA’S wealthy are busier than ever, on business trips eight days a month, up one day on 2014, says the latest Hurun Chinese Luxury Consumer Report. Time for leisure dropped 20 percent, judging by results of interviews with 393 mainland Chinese millionaires, who were each worth at least US$1,600,000. Among them were 41 people worth more than US$16 million. The report shows the average Chinese millionaire took 7.5 days holiday the previous year. The Hurun China Business Confidence Index rose for the first time in five years, with three out of 10 survey respondents highly confident in the economy. Some 64 percent are emigrating, or planning to do so, up from 60 percent, mainly as a result of one third of super-rich now already emigrated. Watch collecting has been overtaken for the first time in five years, by traditional Chinese ink painting collecting. Almost 29 percent prefer the UK as a place to educate children at high school level, compared with the US at 26 percent. But 36 percent favour the US for undergraduate and above education. The survey also shows 40 percent of super-rich plan to use private jets. Half of thesem plan to time-share. While red wine and watches are gifts of choice under RMB 20,000 an item, travel vouchers and healthcare products are the fastest-growing gifting categories. Wealthy Chinese prefer reading but travel remains the top leisure activity. Australia has replaced France as a luxury travel destination for the first time in four years. Among the super-rich, 61 percent do not smoke, while 40 percent claim not to drink alcohol. This has doubled over the past five years. On average, Chinese HNWIs sleep 6.5hrs a night, going to bed at 12:30am and waking up at 7am. Favourite places to emigrate to are the US, Europe, Canada, Australia, Singapore and Hong Kong in that order. IT962 - January 30th, 2014

15

Popular places for study... THE UK is the preferred destination for education to secondary school level among the Chinese-super rich, followed by the US, Canada, Australia, Switzerland and New Zealand. The latter is preferred by 3.6 percent of respondents. For higher education the most popular countries are the UK and the US, while Australia and Canada swap positions. New Zealand is again sixth, with 4.8 percent of the total.

NZ 10th most favoured destination THE preferred international destinations are Australia, France, Dubai, Switzerland, Maldives, the US, Japan, Germany, Singapore and New Zealand in that order, although we are favourite “star performer” luxury destination. Yachts have become the toys of the super-rich, with about 40 percent of those interviewed owning one. This has increased 10 percent over 2012. Ferretti has shot back into the top spot as the best yacht brand. The internet is the most popular form of obtaining information. Print sources are second, followed by TV and social activities. Super-rich individuals claim watching television is the most popular way to gather news relating to financial activities.

ProGuides attack “fraudsters” FRAUDSTERS in the tourism industry, who do not play to the rules and may damage New Zealand’s reputation, have come under attack from ProGuides. “We have high standards when it comes to professionalism in New Zealand’s tourism industry. Our aim is to raise the profile of the profession,” says chairwoman Vera Huehn. “We work very hard to maintain high standards and it is really disappointing to find out that there are companies sending tour groups to New Zealand without using legitimate operators or comply with the rules of the country. “Sustainability and security can only be ensured when everyone follows the same rules.” She is urging all tourism workers to work under legal requirements. “If you are not aware of the laws and respective licensing please talk to your operator or employer or the appropriate authorities in New Zealand,” she says. “You will also find useful information online.”

First class swizz A Chinese man has been discovered using a first class air ticket to obtain free meals and drinks at a VIP airport lounge nearly every day for a year. The Kwong Wah Yit Poh reports he changed his flight itinerary more than 300 times so he could enjoy facilities at the Xi’an Airport in Shaanxi. He then cancelled his ticket for a refund when its validity was about to expire.

IT962 - January 30th, 2014

16