Chris Roberts Tourism Industry Association New Zealand 7 months in... How are we doing? Tourism 2025 in Action - Insight Tourism 2025 in Action - Connectivity Tourism 2025 in Action - Value Tourism 2025 in Action – Visitor Experience Tourism 2025 in Action – Productivity Good progress Insight: China Toolkit, Regional Indicators Visitor Experience: CWC2015 Single Visa, Safer Journeys Productivity: Chinese market transformation, Service IQ engagement Target for Value: Well. Convention Centre, emerging markets, special interests Connectivity: Air NZ/Singapore, new services, ASA liberalisation Work in progress Insight: Cruise data, IVS, NZ Tourism Inc. approach Visitor Experience: DOC/operators relationship Productivity: TGP applications, business capability, TLA support Target for Value: VFR of International students, Halal tourism Connectivity: India ASA, China ASA Tourism 2025 Scorecard Short term overseas visitor arrivals (Year end September) 3,000,000 2,500,000 Acutal counts 2,000,000 1,500,000 1,000,000 500,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 International visitor length of stay (Year end September) 30.0 Average stay days Median stay days Days 20.0 10.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Accommodation total guest nights (Year ended August) 34,000,000 33,000,000 32,000,000 31,000,000 30,000,000 29,000,000 28,000,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 International and domestic expenditure (Year ended March) 30.0 International Domestic $ (billion) 20.0 10.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Contribution to GDP (Year ended March) 10.0 Percent Indirect tourism value added Direct tourism value added 5.0 0.0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Tourism employment (Year ended March) 200,000 Number of FTEs Indirect Direct 100,000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Total net cruise expenditure Cruise passengers (excl crew) (Year end August) (Year ended August) 330 250,000 320 200,000 310 $(million) 150,000 300 100,000 290 50,000 280 270 0 2012 2013 2014 2012 2013 2014 International student expenditure and international student arrivals < 12 months (Year ended March) 2.5 56,000 International student expenditure International arrivals for education < 12 months 2.0 52,000 48,000 1.0 44,000 0.5 0.0 40,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Arrivals $ (billion) 1.5 New Zealand vs the World... Annual change in Chinese and total international visitor arrivals; New Zealand compared to key competitors (Year ended July 2014) 30 Short term Chinese arrivals Total short term visitor arrivals 25 Percent 20 15 10 5 0 USA Canada Australia Destination Country New Zealand State of the Industry - Australia • Spend growth since 2009: 3.6% pa • 2020 Tourism Plan stretch goal now requires 9.9% pa • Better news on supply side – air services – employment – accommodation Trans-Tasman comparison Australia New Zealand Direct GDP contribution 2.8% 4.0% Direct employment 4.7% 4.7% Total visitor spend +4% +5% Domestic visitor spend +5%, +1% +3.2% International visitor spend +7.4% +7.4% Australia/NZ China USA UK Germany Japan +3% +16% +7% +13% +11% -7% -4% +26% +53% +12% +63% -7% Tourism 2025 Domestic aspirational spend 21.0 20.6 20.0 19.8 19.0 19.1 18.3 18.0 17.6 17.0 17.0 16.0 16.3 15.7 15.0 15.1 14.5 14.0 13.9 13.4 13.0 12.8 13.0 12.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Tourism 2025 International aspirational spend 20.0 19.6 19.0 18.4 18.0 17.0 17.4 16.0 16.4 15.5 15.0 14.6 $ billion 14.0 13.8 13.0 13.0 12.0 12.3 11.6 11.0 10.9 10.0 10.3 9.8 9.0 9.6 8.0 2012 2013 2014 2015 2016 2017 2018 Year 2019 2020 2021 2022 2023 2024 2025 Tourism 2025 - Total aspirational spend 41.0 40.2 39.0 38.3 37.0 36.5 35.0 34.8 33.0 $ billion 33.1 31.0 31.6 30.1 29.0 28.7 27.0 27.3 26.1 25.0 24.9 23.0 23.7 22.6 22.6 2012 2013 21.0 2014 2015 2016 2017 2018 Year 2019 2020 2021 2022 2023 2024 2025 Staying the course What do tourism operators need? • Timely, relevant and accessible information • A culture change - use insight for business decision-making How to achieve it? • Team approach – public and private sector - to insight creation and use IATA 20 year passenger forecast: 3.3b flyers in 2014… …7.3b in 2034 Five fastest-growing markets: China, US, India, Indonesia, Brazil Asia-Pacific fastest growing region: 1.1b flyers in 2014… …2.9b in 2034 • Infrastructure – Accommodation catch-up – Convention Centres – Cruise opportunity – Attracting investment “The world is awash with cash… bring me your projects, I need projects to take people’s breath away” Andrew Robb, Australia Trade Minister • China and emerging market evolution • Leveraging international students and their families and friends • Tourism’s contribution to Christchurch economic recovery Getting the Workforce Right: • People & Skills strategy • Working visa reform “Working holiday visas are a stunning success” Scott Morrison, Australia Immigration Minister • Regional and seasonal dispersal – Conferences, events, emerging markets, special interest – Domestic growth – Cruise – Manage pinch-points, spread the benefits • Technology investment • Product development • Border reform and visa facilitation “The only barrier to a common NZ-Australian border is the sharing of intelligence and criminal record data” Michael Pezzullo, Secretary of Immigration and Border Protection • • • • • • Adventure safety Infusing Māori culture Multi-language provision Wi-Fi Measure dissatisfaction Celebrate success Chris Roberts Tourism Industry Association New Zealand