Tourism New Zealand’s annual expo TRENZ came to a successful close recently in Rotorua. The event was aimed at getting buyers from around the world under the same roof as some of New Zealand’s most important and relevant suppliers, providing both sides a platform to boost business. In addition, the event boasted interactive and informative discussions and press conferences for the media in attendance.
Addressing the attendees on the closing day of TRENZ, New Zealand Prime Minister John Key called 2014-15 the best year for tourism, revealing that NZ$ 600 mn was invested in international promotions, a move that has borne fruit. The Australia-New Zealand single visa increased the footfall from source markets that had otherwise not considered travel to New Zealand, he opined.
“International visitor numbers have increased by 7.1 per cent to 2.95 million, and expenditure has increased by 13 per cent to reach NZ$7.45 billion. The Chinese visitor market continues to grow with arrivals increasing by 23 per cent to over 295,000. As a critical part of New Zealand’s economy, I am committed to continuing to work with the tourism sector to build on its past success and help it realise its enormous potential,” he said.
He stated that, the last 12 months have been really positive for the tourism industry in New Zealand. The momentum from the Hobbit films and the general economic recovery around the world has given the tourism sector a huge boost, he added.
“It is now time to look ahead to the coming year and there’s a lot to be excited about. Forecasts show that growth in international arrivals is showing no sign of slowing down. Visitor arrivals are expected to grow 4 per cent a year, reaching 3.75 million visitors in 2021. That growth is going to put a lot of pressure on our infrastructure over the peak travel season in the summer, which is why Tourism New Zealand will be shifting its focus towards promoting off season travel,” he said.
He announced that, through the Tourism Growth Partnership, a government initiative that aims to support growth in the tourism industry by boosting innovation and increasing productivity, two more projects are in the pipeline. The Government is investing NZ$350,000 to support the development of a new spa complex on Rotorua’s lakefront, and NZ$1.5 million to support a new exhibition at Blenheim’s Omaka Aviation Heritage Centre. That funding is being matched to the tune of nearly NZ$14 million by the sector.
Furthermore, in a bid to make visa applications easier, Immigration New Zealand has been working hard on the implementation of Immigration online, he informed. From mid-June 2015, more services will move online – including visitor and work visas, and a world-first Chinese language visitor visa form. That means that by the end of this year, 60 per cent of visa applications will be able to be dealt with fully online, he added.
“The tourism industry is in good heart. More visitors are coming in, staying longer and spending more,” he said.
Speaking exclusively with T3 on the sidelines of TRENZ, Key stated that India is a key emerging market for the destination, and it seeing quite a lot of changes in terms of travel between the countries. “Our deal with Singapore Airlines has given us greater access to India. We want to go direct if we can; there has been a lot of talk on this subject. I don’t think it’s impossible,” he said.
A growth spurt
According to Chris Roberts, Chief Executive, Tourism Industry Association New Zealand (TIA), the last 18-24 months has been a great period for the country’s tourism industry, with the total spend increasing to NZ$ 23.7 bn, a 5 per cent rise. The country saw 2.8 mn international arrivals last year, a 5.4 per cent rise in numbers; NZ$ 13.3 mn spend by international visitors, a 7.1 per cent increase; and NZ$ 19.8 mn spend by domestic visitors, a 2.3 per cent growth.
The destination also boasts 7.8 mn airline seats, a 6.3 per cent increase; 1.4 mn seats catering to the Asian market; and 2,02,722 cruise passengers who contribute NZ$ 365.3 mn to the economy.
The aim for 2025 is to double the revenue from tourism to NZ$ 41 bn from the current NZ$ 24 bn. “Our priority now is to drive and track the progress of tourism. Increased air connectivity, increased productivity – both regional and seasonal dispersal, and target for value is our framework for Tourism 2025. Shift towards premium travel is Tourism New Zealand’s focus this year. We want to target value over volume,” said Roberts.
Jim Boult, Chairman, Tourism Growth Partnership informed that, of the 116 applications that were submitted for project developments, 24 (20 per cent) have been approved and work has commenced. The fourth round of applications will begin in July 2015. Roberts named convention centres as the need of the hour, adding that, despite establishments being planned in various cities, development is slow and embroiled in monetary and other challenges.
The India market
Roberts named China, India and Indonesia among the destination’s fastest growing source markets. Launching the Tourism Outlook at TRENZ, Michael Bird, General Manager Institutions & Systems Performance, Ministry of Business Innovation and Employment, New Zealand informed that, for the first time, emerging markets have been included in the forecast, highlighting the growth trajectory from India and Indonesia. This modelling of emerging markets will then be used to model future forecasts if successful.
According to Bird, the Indian arrivals’ forecast shows a 12 per cent growth per annum, at par with top markets such as Japan.
Andrew Fraser, Director – Marketing, Tourism New Zealand agreed that India is a strong emerging market, having reflected a footfall of 41,000 in 2014, up 27.5 per cent and fuelled in part by the Cricket World Cup. The Board’s focus now is to encourage travel during the shoulder season, i.e. October/November and March/April, travel periods that are perfect for the Indian traveller, thus increasing it’s importance as a source market.
Roberts announced that TRENZ will return to Rotorua in 2016 from 10-13 May.
