NEW ZEALAND TOURISM STRATEGY by yiq68006

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									DRAFT

NEW
ZEALAND
TOURISM
STRATEGY
2015
ACKNOWLEDGEMENTS
Many people have contributed to this draft Strategy. Over 400 delegates provided initial
input at the Tourism Industry Conference in August 2006. Consultation continued in more depth
with over 40 meetings involving 200+ participants, plus a number of individual consultations,
between October 2006 and January 2007. These meetings included representatives from
the private sector, local and central government, universities, and related organisations.

A Ministerial Advisory Group, chaired by Hon Damien O’Connor, Minister of Tourism and
comprising private sector, local and central government interests provided advice throughout
the process. The Tourism Industry Association, Ministry of Tourism and Tourism New Zealand
guided preparation of the document. Geoff Burns as Strategy Director and Ross Corbett as
Project Manager provided vital input to the consultation process and development of the draft.




2     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
       TABLE OF

       CONTENTS
       THE CHALLENGE                                                                 4

  1    A DRAFT STRATEGY                                                              5

 2     INTRODUCTION                                                                  6
2.1    Benefits Of Tourism To New Zealand                                             6

 3     ACHIEVEMENTS 2001 - 2006                                                      9

 4     STRATEGY 2007 – 2015                                                         12
4.1    The Vision                                                                   12
4.2    Focus For 2015                                                               15
4.3    New Zealand Tourism - The Future                                             16
4.4    Building A Framework For Action                                              18

 5     NEW ZEALAND DELIVERS A WORLD-CLASS VISITOR EXPERIENCE                        19
5.1    Context                                                                      19
5.2    Issues                                                                       21
5.3    Priorities                                                                   23
5.4    Actions                                                                      23
5.5    Targets                                                                      26

 6     NEW ZEALAND’S TOURISM SECTOR IS PROSPEROUS
       AND ATTRACTS ONGOING INVESTMENT                                              27
6.1    Context                                                                      27
6.2    Issues                                                                       28
6.3    Priorities                                                                   36
6.4    Actions                                                                      36
6.5    Targets                                                                      38

  7    THE TOURISM SECTOR TAKES A LEADING ROLE IN PROTECTING
       AND ENHANCING THE ENVIRONMENT                                                39
 7.1   Context                                                                      39
7.2    Issues                                                                       40
7.3    Priorities                                                                   43
7.4    Actions                                                                      43
7.5    Targets                                                                      46

 8     COMMUNITIES AND REGIONS RECOGNISE
       AND VALUE THE BENEFITS OF TOURISM                                            47
8.1    Context                                                                      47
8.2    Issues                                                                       48
8.3    Priorities                                                                   50
8.4    Actions                                                                      50
8.5    Targets                                                                      52

 9     IMPLEMENTATION PLAN                                                          53

10     MONITORING AND EVALUATION                                                    53

 11    GLOSSARY AND ABBREVIATIONS                                                   54




                                          DRAFT NEW ZEALAND TOURISM STRATEGY 2015   3
THE CHALLENGE
The draft New Zealand Tourism Strategy 2015 presents direction for the
tourism sector to 2015. It is a major step forward, based on the way the
world is today and how we currently fit within it.

Over the eight year term of the plan, the world and New Zealand within
it, can expect to see accelerating change. There will be intensified
pressures from climate change, rapid evolution in consumer attitudes and
expectations, and further challenges to our security and biosecurity. The
extent to which New Zealand, and the tourism sector, transforms these
challenges into opportunities will have a major impact on our
future prosperity.

We have the opportunity to go beyond what is presented in this draft, to take a far bolder and
more daring approach to the development of tourism into the future. I sense a strong desire
throughout the sector to create a tourism industry that is a global leader in sustainability.
I urge you, as you prepare your response to this draft, to propose how best this can be achieved.

The New Zealand tourism industry’s product is our country and our people. Promoting and
marketing these attributes has sustained the industry for over 100 years, to the point where
today it has become New Zealand’s largest export industry and a driver for New Zealand’s
economy. Creating more value will be the key to tourism’s further economic contribution.

The overall sustainability of our nation is central to the future of our tourism industry and will
significantly impact on how we can market New Zealand to the world. The true potential of our
tourism industry will be realised only if we can represent a country with unique credentials in
the sustainability of our environment, industry, culture and society, and if we can execute a
clear plan for continual improvement.

The 100% Pure New Zealand brand provides New Zealand with an opportunity other countries
can only wish for. Its influence goes well beyond tourism, defining how our country and our
exports are viewed across the globe. Tourism’s and the nation’s ongoing challenge is how,
together, we step up to the mark, and sustain the meaning of 100% Pure New Zealand, keeping
it alive for the world to admire and respect.

To meet this challenge, we must look beyond the tourism sector. Leadership in sustainability
can only be achieved if the country and all its industries are committed to it. Government is
committed to this.

I ask the tourism sector to pick up the challenge - to reach beyond what is proposed in this draft
Strategy, to deliver bold and aspirational results that will inspire the rest of New Zealand.




Hon Damien O’Connor
Minister of Tourism




4     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
A DRAFT STRATEGY
SEND US YOUR COMMENTS
                                                                                                         1
Tena koutou

We are pleased to release the draft New Zealand Tourism Strategy to 2015. The New Zealand
Tourism Strategy gives vision and direction to lead the entire tourism sector into the future.

Your feedback is essential. We want to know your views on the direction proposed in the draft
NZTS 2015, the issues it outlines, and the actions that are proposed. The Tourism Strategy
is for the whole tourism sector, and the whole sector needs to support its vision and work to
implement its recommendations to achieve the success we want. We ask that you read the
draft with the following questions in mind:

•   Is the direction proposed in the draft NZTS 2015 the right one to ensure New Zealand’s
    tourism sector is as successful as it can be?

•   Do you think the issues and priorities for the tourism sector identified in the draft
    are the most important ones?

•   Is there anything important missing?

•   Do the recommended actions address the identified issues?

•   We have deliberately included a large number of wide ranging actions. Which ones do you
    think are the most important to go forward to the final NZTS 2015?

•   What is your response to the Challenge laid out by the Minister of Tourism?
    What might we need to change in the draft NZTS 2015 to address it?

•   Is there anything else you would like to comment on?

An electronic template for your comments is available on www.nztourismstrategy.com or these
can be provided by email to info@nztourismstrategy.com by midday, Wednesday 27 June 2007.




Ray Salter                        Fiona Luhrs                                George Hickton
Ministry of Tourism               Tourism Industry Association               Tourism New Zealand




                                                           DRAFT NEW ZEALAND TOURISM STRATEGY 2015   5
INTRODUCTION                                                                                        2
THIS IS THE DRAFT NEW ZEALAND TOURISM STRATEGY TO 2015 (NZTS 2015).
IT UPDATES THE FORMER NEW ZEALAND TOURISM STRATEGY 2010
(NZTS 2010), PREPARED IN 2001.
THE STRATEGY TO 2015 MEETS THE CHALLENGES THAT NEW ZEALAND
TOURISM FACES OVER THE NEXT 8 YEARS AS A RESULT OF CHANGES IN
THE GLOBAL AND LOCAL TOURISM MARKET PLACE.
The draft NZTS 2015 sets out challenges for the entire tourism sector.

It is made up of 3 main parts:

1. An overview of tourism in New Zealand and achievements since 2001.
2. Development of the strategy for 2007–2015, including a vision, the focus to 2015,
      and strategy structure.
3. Four outcomes with associated actions designed to deliver on the vision.
The audience for the strategy is everyone connected to or involved in New Zealand’s tourism
sector, including operators, local government, central government, training, education and
research institutions. The strategy covers an eight-year period to 2015, and a further update is
envisaged around 2012.

Following the receipt of sector-wide feedback, a detailed implementation plan, outlining
responsibilities, timeframes and estimated costings will be prepared for the final NZTS 2015.



BENEFITS OF TOURISM TO NEW ZEALAND                                                                  2.1
TOURISM IS A LARGE AND GROWING PART OF NEW ZEALAND’S ECONOMY.
With total tourism expenditure of $17.5 billion, it is our biggest export sector accounting
for 18.7% of all exports. It contributes 9% to national Gross Domestic Product, employing
1 in every 10 people in the national workforce.1

Tourism is a big and diverse sector, with more than 11,000 individual enterprises and linkages
to almost all parts of New Zealand’s economy. Directly or indirectly, tourism encompasses
a multitude of businesses including hotels, farms, tours, garages, markets, taxis, vineyards,
supermarkets, training organisations, dairies, shops, ferries, coaches and airlines.

Domestic tourism makes up just over half of all tourism expenditure and although it is not
forecast to grow at the same rate as international arrivals (1% for domestic overnight travel and
4% for international arrivals by 2012) it remains a major component of the sector. The viability
of many tourism businesses depends on income from both international and domestic visitors.
Domestic travel is particularly important in the low season, and product development for the
domestic market often provides a springboard for international growth opportunities.




1   Tourism Satellite Account, 2005, Statistics New Zealand.




6          DRAFT NEW ZEALAND TOURISM STRATEGY 2015
Unlike most other export sectors that produce a product and deliver it to markets, tourism’s
product is almost anywhere visitors choose or are able to go - our outstanding landscapes,
marae, sporting and cultural events, museums, historic buildings, parks and gardens, forests,
national parks, coastal areas, cities and indeed entire communities. Tourism is anything that
visitors do, or consume. In one way or another, all New Zealanders are involved in the sector
either as visitors or as hosts.

Tourism is important for New Zealand’s future economic growth. Tourism provides jobs,
household income, and many other attractive reasons to invest, for both government
and the private sector. For example:

•     Tourism is our largest export sector, contributing $8.1 billion, or 18.7% of exports.
      Domestic tourism contributed a further $9.4 billion to the economy for the year ended
      March 2005. This represents 9% of New Zealand’s Gross Domestic Product, and employs
      9.8% of New Zealand’s workforce, or one in ten jobs.2

•     Tourism adds value to other export sectors through the promotion of New Zealand’s brand
      internationally, and to other industries within New Zealand that benefit from adding tourism
      experiences to their product offering (e.g. farm stays, factory tours, winery restaurants and
      cellar door sales). 2.4 million visitors experience New Zealand products and food at the
      source of production.

•     Tourism has been a significant driver of regional economic growth supporting the
      revitalisation of towns and communities. The development of local visitor products and
      experiences has helped build regional pride and resulted in the beautification of towns.
      People have been attracted back by employment opportunities in areas where traditional
      industries have experienced decline.

•     Tourism has provided Maori with important opportunities to nurture, celebrate and
      present their culture – traditional and contemporary - to the world. In turn, the Maori culture
      continues to add unique value to tourism in New Zealand. Tourism has also provided a
      vehicle (commercial and non-commercial) for other dimensions of New Zealand culture
      to be celebrated through our art and craft, museums, galleries, retail outlets and events.

•     Tourism adds value to, and has been a major beneficiary of, our network of national
      parks and other protected natural areas. The $8.8 million annual government spending
      on Fiordland National Park is associated with 1,600 jobs, direct tourism expenditure of
      $196 million, value-added income of $78 million and household income of $55 million.3
      Concessionaires both benefit from and add value to conservation lands.

•     As the sector has grown, tourism has increasingly become one of the key drivers for local
      government investment in infrastructure and leisure facilities including sports stadiums,
      museums, art galleries, convention centres as well as urban renewal. These facilities provide
      a level of infrastructure and other leisure services and facilities that successfully provide
      for the needs of residents and visitors alike.




2   Tourism Satellite Account 2005, Statistics New Zealand
3   Department of Conservation, 2006.




                                                             DRAFT NEW ZEALAND TOURISM STRATEGY 2015   7
KEY STATISTICS ABOUT TOURISM
TOURISM IS ONE OF THE WORLD’S FASTEST GROWING INDUSTRIES.
UNITED NATIONS WORLD TOURISM ORGANISATION FORECASTS TO 2020 FOR
TOTAL WORLD INTERNATIONAL TOURIST ARRIVALS ARE EXPECTED TO GROW
AT AN AVERAGE ANNUAL RATE OF 4.1%.
EAST ASIA / PACIFIC INTERNATIONAL ARRIVALS ARE EXPECTED TO GROW AT
AN AVERAGE ANNUAL RATE OF 6.5%.
NEW ZEALAND’S INTERNATIONAL VISITOR ARRIVALS HAVE DOUBLED SINCE
1993 TO 2.42 MILLION IN 2006.
FORECAST ANNUAL GROWTH IN INTERNATIONAL VISITOR ARRIVALS IS 4% ON
AVERAGE FOR THE NEXT SEVEN YEARS.
                                                                         4




4   Sources: United Nations World Tourism Organisation Forecasts, International Visitor Arrivals,
    Statistics New Zealand: New Zealand Tourism Forecasts, 2006-2012, Ministry of Tourism




8          DRAFT NEW ZEALAND TOURISM STRATEGY 2015
ACHIEVEMENTS
2001 - 2006
                                                                                                                                  3
THE RECOMMENDATIONS IN THE NZTS 2010 GUIDED ACTIVITIES AND DECISION-MAKING
IN THE SECTOR FROM 2001 TO 2006. SOME OF THE MANY RESULTING ACHIEVEMENTS
ARE SUMMARISED BELOW.

TOURISM IS A MAJOR DRIVER OF THE NEW ZEALAND ECONOMY
Total tourism expenditure grew from $13.7 billion to $17.5 billion between 2000 and 2005.
For the year to March 2005, tourism contributed 18.7% of exports and 9% of New Zealand’s
Gross Domestic Product. Domestic tourism expenditure grew from $7.8 billion in 2000 to $9.4
billion in 2005. International expenditure grew from $5.9 billion in 2000 to $8.1 billion in 2005.5


NEW ZEALAND’S GLOBAL MARKETING CAMPAIGN IS RECOGNISED
AS ONE OF THE WORLD’S BEST
The ‘100% Pure New Zealand’ brand has been successful in positioning New Zealand
as an aspirational destination in our key markets, and has won many awards, for example
the 2004 PATA Grand Award. The single message delivered globally has enabled a very high
level of recognition.6 Consumer awareness of the brand has meant New Zealand as a destination
has sustained a top three placing over the last eight years in many major travel polls.7
The brand has been evolved for use in the international media programme, Tourism
New Zealand’s consumer website, events promotion and leveraging.


PRIVATE SECTOR REINVESTMENT IN ASSETS AND INVESTMENT
IN NEW PRODUCT CONTINUES TO INCREASE
New investment and re-investment has continued across all sectors of the tourism industry.
The accommodation sector in particular has seen strong growth. Hotel and other short term
accommodation providers have seen more than $1.1 billion of investment between 2001 and
2006. Hotel investment in Auckland, Wellington and Christchurch has seen growth rates of
between 13 and 28% between 2005 and 2007, with Queenstown seeing growth rates in excess
of 30%. It is estimated that approximately $1.3 billion will be invested into the hotel sector in
the next ten years. Three major hotels are under development and further significant hotel
developments are in the pipeline. The luxury lodge sector has expanded enormously over the
past 6 years. Hundreds of bed and breakfast businesses are spread throughout the country and
many commercial holiday parks have been upgraded.

There has been significant product development in activities and attractions and some transport
operations. From 2002 to 2006 a total of 142 new export ready products and companies
exhibited at TRENZ. In 2007 TRENZ is exhibiting 47 new export companies and 58 new export
products. Personalised tours – based on interpretation of nature or Maori culture - are a good
example of product designed specifically for the international visitor market.




5   Tourism Satellite Account, 2005. All TSA figures are for years ending in March.
6   ‘100% Pure New Zealand’ is recognised as the 10th strongest nation brand in the world: Anholt – GMI Nation Brand Index
7   Such as the Lonely Planet, Conde Nast Traveller, the UK Guardian and Observer and Daily Telegraph.




                                                                                    DRAFT NEW ZEALAND TOURISM STRATEGY 2015   9
MORE MAORI INVOLVED IN TOURISM
Our most unique feature – Maori culture - has strengthened its presence in tourism since 2001.
Twelve percent of New Zealand’s tourism workforce is Maori, comprising 91% employees and
9% employers. A large proportion are small operators, with 65% being self-employed without
employees. Around 20% of international visitors to New Zealand experience Maori cultural
activities.8 There are now an estimated 350+ Maori tourism businesses in New Zealand.9
Establishment of the New Zealand Maori Tourism Council and 14 Maori Regional Tourism
Organisations has assisted some existing operators to expand and new businesses to enter
the sector.


LOCAL GOVERNMENT MORE ENGAGED IN THE TOURISM SECTOR
Local government plays a huge role in the tourism sector. It remains the primary investor
in Regional Tourism Organisations, the i-SITE Network, essential visitor infrastructure,
and a vast range of attractions ranging from museums, parks and gardens, to walkways,
galleries and urban environments. Since 2001, over 10 councils have prepared tourism plans
or strategies, Regional Tourism Organisations have continued to develop operational best
practice and have formed International Marketing Alliances with Tourism New Zealand.
A number of Regional Tourism Organisations have invested heavily in attracting and
promoting events (e.g. Auckland, Wellington, Christchurch) and in domestic or international
(particularly Australian focused) campaigns to drive visitation. The ‘Have a love affair with
Wellington’ campaign is an excellent example.


GREATER CENTRAL GOVERNMENT PARTICIPATION
IN THE TOURISM SECTOR
Central government’s role in facilitating the growth and management of tourism has expanded
since 2001. This includes consistent and ongoing investment in national marketing through
Tourism New Zealand, the establishment of a Ministry of Tourism, development of the core
tourism data set, and support for research, events and tourism focused Major Regional Initiatives.
A suite of business assistance programmes have been introduced. There has also been a focus on
the development of tourism planning tools for local government including a Tourism Flows Model
and grant assistance to rural communities faced with major water and wastewater infrastructure
pressures resulting from tourism growth.


TOURISM IS WORKING TO MINIMISE ENVIRONMENTAL EFFECTS
Since 2001, many businesses large and small have continued to invest in environmental
and conservation schemes.

•     In recent years Air New Zealand and some major road transport operators have made
      large-scale, voluntary investments in fuel-efficient aircraft and coaches. Air New Zealand’s
      investment in Boeing 777s, and the newest Boeing 787s, means much more efficient aircraft,
      and the airline has saved $18 million since 2004 in fuel burn through implementing new
      operating procedures (this represents a 58,000 tonne reduction in greenhouse
      gas emissions).

•     Over 160 tourism businesses in six regions have participated in the Ministry for the
      Environment and Ministry of Tourism’s Sustainable Tourism Charters programme.




8   Measurement of Maori in Tourism, Ministry of Tourism, October 2004
9   37% are guided tours, 15% accommodation, 15% arts/crafts, 12% attractions, 11% retail, 7% eating out, 5% transport, 5% concerts/hangi,
    1% Marae stay. Source: NZ Maori Tourism Council.




10         DRAFT NEW ZEALAND TOURISM STRATEGY 2015
•   In 2002, the Tourism Industry Association (TIA) led an initiative to promote Green Globe
    21 amongst operators and encourage them to become compliant. Around 100 tourism
    businesses and the community of Kaikoura are now certified to Green Globe 21.

•   TIA worked in partnership with the Energy Efficiency and Conservation Agency in
    2003-04 and delivered seminars to tourism operators on how to make their businesses
    more sustainable.

•   Stakeholder working groups to address tourism waste management and tourism activity
    on conservation lands have been established. These include private sector, government
    and interest group representation.

•   Since 2001 assessment criteria in the annual Tourism Industry Awards have included
    a measure of carbon usage. Special awards include the Green Globe award and the
    Conservation in Action Award.

•   The annual New Zealand Tourism Industry Conference has been carbon-neutral for most
    of the last five years.


MANAGEMENT OF TOURISM OPPORTUNITIES
ON PUBLIC CONSERVATION LAND CONTINUES TO IMPROVE
Planning for and managing tourism and recreation on public conservation lands has continued
to improve. Developments include:

•   funding an ongoing national programme of upgrades to visitor facilities;

•   a Recreation Opportunities Review;

•   improvements to the tourism concession process;

•   a Visitor Monitoring Toolkit to assist management of effects on visitor experiences
    and natural values;

•   the establishment of a Tourism on Public Conservation Lands Forum for tourism
    and conservation interests to discuss and address shared issues; and

•   the inclusion of a new Conservation Award, recognising the efforts of operators
    who contribute towards conservation projects in the annual Tourism Industry Awards.




                                                          DRAFT NEW ZEALAND TOURISM STRATEGY 2015   11
STRATEGY
2007 - 2015
                                                                                             4

THE VISION                                                                                   4.1
THE VISION OF THE NZTS 2010:


“IN 2010, VISITORS AND THEIR HOST COMMUNITIES
UNDERSTAND AND EMBRACE THE SPIRIT OF
MANAAKITANGA (HOSPITALITY),
WHILE NEW ZEALANDERS’ ENVIRONMENT AND
CULTURE IS CONSERVED AND SUSTAINED IN THE
SPIRIT OF KAITIAKITANGA (GUARDIANSHIP),
AND TOURISM IS A VIBRANT AND SIGNIFICANT
CONTRIBUTOR TO THE ECONOMIC DEVELOPMENT
OF NEW ZEALAND.”


KAITIAKITANGA
The guardianship and sustainable management of natural, built and cultural resources
for the collective benefit of current and future generations


MANAAKITANGA
Sharing exceptional and natural hospitality, knowledge and beliefs, on the basis of mutual
respect between host and visitor




12    DRAFT NEW ZEALAND TOURISM STRATEGY 2015
The principles of manaakitanga and kaitiakitanga are still as valid today as they were in 2001.
The sector’s contribution to the New Zealand economy has grown significantly since that
period. In the period of 2001-2007, the settings the sector operates within have changed
significantly. The pursuit of sustainability has taken on new urgency. The sector’s future depends
on long-term sustainable strategies for its economic, social, environmental and cultural goals.
Sustainability must guide all sector activity.

This overarching view of sustainability reflected in the vision presents a powerful way
for New Zealand’s tourism sector to position itself for the future. Sustainable development
is that which:

“MEETS THE NEEDS OF THE PRESENT WITHOUT COMPROMISING THE ABILITY
OF FUTURE GENERATIONS TO MEET THEIR OWN NEEDS”.                                               10




The strategic approach taken in the New Zealand Tourism Strategy 2015 reflects the aims of
sustainable development, considering and weighing both short and long-term goals and impacts.
The NZTS 2015 is focused on delivering an enduring future for tourism - New Zealand’s leading
export industry - that will maximise tourism’s value to all New Zealanders.

The sustainable tourism sector envisaged in the NZTS 2015 requires us to achieve a balance
between ensuring the financial success of our businesses and the satisfaction of our customers,
protecting our physical environment and supporting our communities. For New Zealand,
a sustainable tourism sector means that:

•      businesses will be financially profitable, able to reinvest in their business and to attract
       and retain the skilled workforce they need;

•      the natural environment will be protected and enhanced, and the environmental footprint
       of the tourism sector will continue to shrink;

•      our customers will enjoy their experiences travelling in New Zealand, and be motivated to
       travel here from around the world because of the unique tourism product and experiences
       we offer, within the context of a sustainable tourism sector;

•      our communities will benefit from tourism and value its contribution.

In this way the vision’s principles of manaakitanga and kaitiakitanga will be achieved.
We will respect and share hospitality with our visitors, communities and each other, while
protecting and managing the natural, built and cultural resources on which we depend.

The NZTS 2015 therefore endorses the vision and values contained in the NZTS 2010, but
builds upon these on the path to 2015. To be a sector that is economically, environmentally,
socially and culturally sustainable, to be at the forefront of a globally competitive and
sustainable New Zealand, tourism must show inspirational leadership and active private-public
sector collaboration.




10   World Commission on Environment and Development (The Brundtland Report), 1987




                                                                                DRAFT NEW ZEALAND TOURISM STRATEGY 2015   13
                   TOURISM IS AT THE FOREFRONT OF A GLOBALLY
                   COMPETITIVE AND SUSTAINABLE NEW ZEALAND
                            Environmental management                 Environmental management
                                    en route                                 offshore



                                              TOURISM TAKES A LEADING ROLE
                                                                                                             Effective
  Quality                                     IN PROTECTING AND ENHANCING
                                                                                                          infrastructure
experiences                                    NEW ZEALAND’S ENVIRONMENT
                                                                                                              funding


                                                                                         COMMUNITIES
              NEW ZEALAND DELIVERS
                                             INCREASING THE VALUE                        AND REGIONS
                 A WORLD CLASS
                                                  OF TOURISM                            RECOGNISE THE
               VISITOR EXPERIENCE
                                                                                       VALUE OF TOURISM

 Effective
                                                                                                              Visible
coordinated
                                                                                                          contribution to
 marketing                                     TOURISM IS PROSPEROUS AND                                   communities
investment                                    ATTRACTS ONGOING INVESTMENT


                  High
                                                                                               Skilled
                  value
                                                                                               people
                 visitors               Year round                   High performing
                                         tourism                       businesses




To achieve the vision for tourism in 2015, four outcomes have been identified which provide
a framework for the actions in this Strategy:

NEW ZEALAND DELIVERS A WORLD-CLASS VISITOR EXPERIENCE
NEW ZEALAND’S TOURISM SECTOR IS PROSPEROUS AND ATTRACTS
ONGOING INVESTMENT
THE TOURISM SECTOR TAKES A LEADING ROLE IN PROTECTING
AND ENHANCING NEW ZEALAND’S ENVIRONMENT
COMMUNITIES AND REGIONS RECOGNISE AND VALUE THE BENEFITS
OF TOURISM
These outcomes are presented in the diagram above and provide the headings and framework
for the way this draft NZTS 2015 is set out.




14     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
FOCUS FOR 2015                                                                                             4.2
Within the four outcomes identified above, the sector needs to focus on particular areas more
than others. During the many conversations held across the sector in developing this draft,
the following five issues were consistently raised as ones the sector must address to get to the
future we want. We are confident that by focussing co-ordinated effort on the outcomes and
actions that have been developed in the draft Strategy to address these issues, we will deliver
on the sector’s vision for 2015. The five issues are:


1. INCREASE YIELD
Tourism businesses must achieve better returns on investment. Without improved profitability,
tourism businesses will not be able to re-invest to maintain or improve the quality of their
product, or make the sector more attractive for employees in an increasingly competitive
labour market.

Growing both expenditure per visitor, and yield for individual businesses through the value
they obtain from each visitor, is essential. Growth in visitor numbers is necessary, but secondary
to a focus on yield.

Moving beyond competition based solely on price and focusing on increasing yield makes
businesses more successful so they can deliver on the principles of kaitiakitanga and
manaakitanga and the vision of the NZTS 2015.


2. PROTECT AND ENHANCE OUR ENVIRONMENT
The tourism sector must act immediately to minimise and mitigate its environmental footprint.
Preserving and enhancing the natural environment that so much of our tourism product relies
on has been central to New Zealand tourism since it began over 100 years ago. Climate change
is an issue that ranges far beyond New Zealand’s local environment, and, as international
concern accelerates, achieving best practice environmental management is more fundamental
than ever to the industry’s future success.

The environmental realities of how the sector manages waste and energy onshore, and of being
a long-haul travel destination for many of our target markets must be addressed. The sector
needs to understand what is important to our visitors, demonstrate decisive leadership, and take
bolder actions than to date.


3. FOCUS ON PEOPLE
A tight labour market demands attractive and competitive pay rates and working conditions.
Tourism is a service industry and high quality tourism experiences rely on delivery of world class
service standards. Without the right numbers of appropriately skilled people, quality, high yield
products cannot be delivered, nor will the principle of manaakitanga and the Strategy vision to
2015 be achieved.


4. ENCOURAGE YEAR ROUND TRAVEL
Reducing seasonality by increasing the proportion of visitors who travel in the off season
is essential to improve asset utilisation, and therefore sector yield and financial sustainability.
An optimum spread of domestic and international tourism can only be achieved by developing
new products, giving visitors a reason to travel off-peak, through coordinated campaigns and
events, and a commitment to better pricing strategies.




                                                            DRAFT NEW ZEALAND TOURISM STRATEGY 2015   15
5. RESPECT COMMUNITY VALUES
Communities, in one form or another, host all of our visitors, be they international or domestic.
Without community support, the vision’s core principle of manaakitanga cannot be delivered.
At the community level, a sustainable tourism sector means more effective engagement with
local communities so that they not only understand and value tourism’s contribution but are
also satisfied that any impacts are appropriately managed.



NEW ZEALAND TOURISM – THE FUTURE                                                                    4.3
How has New Zealand tourism performed since the launch of NZTS 2010?

•      The average annual growth in international visitor expenditure in New Zealand over
       2001-2006 was 4.0%. The slower rate of growth for expenditure compared to arrivals
       reflects the significant exchange rate fluctuations of the New Zealand currency over the
       period and the inability to increase the value proposition of the industry.

•      Over the 2001-2006 period, New Zealand's average annual growth in international
       visitor arrivals was 4.9%. This compares to 3.4% growth for global tourism arrivals
       for the same period.

•      Growth in New Zealand's inbound tourism has slowed over the last two years with
       international visitor arrivals in 2006 totalling 2.42 million, or 1.6% above 2005.

•      Domestic tourism growth has been modest with an average annual growth rate of 1.5%
       over 2001-2006. A significant drop in domestic tourism activity over 2004-2005 occurred
       because of strong growth in outbound travel by New Zealanders due to the competitive
       aviation market, particularly to Australia and the Pacific islands.


WHAT RATE OF GROWTH IS ANTICIPATED?
Looking ahead, the New Zealand Tourism Forecasts 2006-201211 indicate:


     COMPONENT                                    2012 OFFICIAL FORECAST   EXTENDED TO 2015

     International visitor arrivals               3.1 million              3.5 million
                                                  or 4% annual growth
     International visitor                        $10 billion              $12 billion
     expenditure                                  or 6.5% annual growth
     Domestic overnight trips                     18.5 million trips       18.9 million trips
                                                  or 0.9% annual growth
     Domestic Expenditure                         $8.2 billion             $8.8 billion
     (day and overnight trips)                    or 2.7% annual growth


The biggest impediment to achieving or exceeding forecast growth lies with a shortage of
appropriately skilled labour for the sector, associated with close to full employment in the
New Zealand economy, particularly in the high season. Higher growth in visitor arrivals requires
more labour inputs as well as investment in technology. In a sector that pays less on average
than other sectors, this suggests that further growth in tourism must focus more on growing




11   New Zealand Tourism Forecasts 2006 – 2012.




16         DRAFT NEW ZEALAND TOURISM STRATEGY 2015
expenditure per visit, increasing profitability and spreading the seasonality of arrivals rather
than focusing just on total arrivals and expenditure, both of which have dominated sector
practice to date. Such an emphasis will help lift yields in the sector, which in turn will enable
tourism businesses to better compete for labour.

Given New Zealand’s distance from international markets and the relative investment in time
and money required to get here, New Zealand will always be a niche destination. In order to
retain and grow its market share New Zealand must continue to compete successfully against
other destinations in the global marketplace.


WHAT KIND OF TOURISM IS BEST FOR NEW ZEALAND?
Twenty years ago, the debate over what type of tourism is best for New Zealand was largely
confined to how many international visitors would be appropriate. Now the debate is much
more complex. Today, there are a number of factors to be considered, including:

EXPENDITURE AND SEASONALITY IN TOURISM
New Zealand’s highest spending visitors per trip are generally from Europe (longer stay during
the peak season) but per day are from Hong Kong and some other Asian markets (short stay,
high spend per day). In terms of seasonality (i.e. those who visit off-peak), the best markets are
Australia and North Asia (China, Korea) and the markets least inclined to travel outside of peak
season are from Europe and the UK. New Zealand needs to optimise returns from these markets,
both by continuing to be selective about the segments it aims to attract, and by building a
product base and sales skills that achieve more spend per visitor. Managing growth in the peak
season (between November and March) must be coupled with driving new growth into April
and beyond.

DOMESTIC TOURISM
The international and domestic components of New Zealand’s tourism sit roughly equal with
each other in terms of total expenditure. While international visitor expenditure is forecast
to exceed that of domestic expenditure over the next decade, domestic tourism has and will
continue to be an important part of the sector. We need to ensure that attention is not focused
on international tourism at the expense of the domestic market, which can respond very quickly
to off-peak reasons to travel. Long-term, domestic tourism may play an increasingly important
role in the sector if international travel is adversely affected by peak oil and/or climate change.

CLIMATE CHANGE
Different markets and travel modes produce different levels of carbon emissions and have
differing dependence on oil. Coach travel produces less emissions per person per kilometre than
private cars or campervans yet about 60% of all international arrivals are free independent
travellers or Interactive Travellers12. The sector needs to understand and be one step ahead of
consumer preferences about climate change and the management of environmental impacts.
We need to develop smart and creative actions in areas that really matter to consumers and
that mitigate perceived and real risks associated with being a long-haul destination for many
of our major markets.




12   Tourism New Zealand, 2007.




                                                             DRAFT NEW ZEALAND TOURISM STRATEGY 2015   17
CONCLUSION
In broad terms, the best kind of tourism for New Zealand is sustainable tourism, that is, tourism
that delivers maximum benefit - economic, social, cultural, and environmental - with as few
unwanted effects as possible. For the tourism industry to deliver on these aspirations, we must:

•   focus on steady, managed growth that emphasises growing expenditure per arrival;

•   attract visitors who respect New Zealand’s environmental, cultural and social environments
    and who share our values;

•   provide a wide range of product (from luxury lodges through to holiday parks and from
    wilderness backcountry experiences through to urban attractions) that promotes interaction
    with New Zealand’s environmental, cultural and social values and that contributes towards
    our economic objectives;

•   maintain and grow the quality of the full range of product that meets the needs
    of our ideal visitors;

•   provide compelling reasons for visitors to extend their travel into the shoulder months
    of April and October;

•   encourage visitors to travel off the beaten track and experience the local character
    of New Zealand’s regions; and

•   grow travel for conventions, incentives and major events to assist in addressing
    both seasonality and yield challenges.



BUILDING A FRAMEWORK FOR ACTION                                                                     4.4
The remainder of this Strategy, guided by the structure of the diagram on page 14, sets out the
framework of action that arises for each outcome this strategy is focused on. Associated with
each outcome is a set of recommended actions.




18     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                                                                                                       5
NEW ZEALAND DELIVERS


A WORLD-CLASS
VISITOR EXPERIENCE
CONTEXT                                                                                                5.1
NEW ZEALAND’S REPUTATION AS A VISITOR DESTINATION RELIES ON OUR ABILITY TO
CONSISTENTLY PROVIDE WORLD-CLASS VISITOR EXPERIENCES.
World-class experiences are distinctive, environmentally friendly, authentic, and deliver unique
stories and superb service to our customers. They must also be internationally competitive.
For the visitor, the experience starts at the planning stage and encompasses perceptions of
the destination, information and booking, the product that is delivered (through our people,
accommodation, transport, attractions, activities, facilities, airports and border control etc.) and
whether that product meets – or preferably exceeds – the promise.

Key to all of these is quality. Delivering quality experiences to our domestic and international
visitors will drive New Zealand’s reputation more than any other initiative, and is central to
achieving the Strategy vision.

A CHANGING MARKET MIX
While the international market has had a much higher profile, the domestic market continues
to make up the largest part of the industry both in terms of visitor numbers and expenditure.
However, international visitor spend has been increasing at a much faster rate than domestic
visitor expenditure, and this is forecast to continue.

The markets that make up our international visitor mix are changing. Figure 1 shows actual
and forecast arrivals growth in New Zealand’s core international markets. Most major markets
are stable (Australia, United Kingdom, United States), but some Asian markets are becoming
increasingly important, notably Korea and China.

Different markets require different approaches, although the need for increasingly advanced
technology is common to all. The time required to create awareness of a brand and move
this towards preference for that brand, and then actual travel, makes international marketing a
long-term investment requiring a long-term approach. Government investment in New Zealand’s
primary tourism markets generates a sizeable economic return (the return on investment
in the Australian market is 26:1, the UK 11:1 and the US 16:1) 13 so any shift needs to improve
on these results.




13   Ministry of Tourism, 2005.




                                                            DRAFT NEW ZEALAND TOURISM STRATEGY 2015   19
                           FIGURE 1: VISITOR ARRIVALS BY TOP SEVEN INTERNATIONAL MARKETS
                                          AUSTRALIA           UK         UNITED STATES          JAPAN      CHINA         SOUTH KOREA             GERMANY

                           1,400
                                   Actual data up to 2006 and forecasts from 2007




                           1,200




                           1000
VISITOR ARRIVALS (000’s)




                           800




                           600




                           400




                           200




                           0
                                   ‘99    ‘00     ‘01     ‘02      ‘03     ‘04      ‘05   ‘06   ‘07f ‘08f ‘09f ‘10f          ‘11f   ‘12f       ‘13f   ‘14f   ‘15f
                                                                                            YEAR
                                                Source: International Visitor Survey and New Zealand Tourism Forecasts (Ministry of Tourism)


                           As virtually all of our international visitors arrive by air, our international visitor flows are
                           determined by the dynamics of the different airlines that fly into New Zealand. The airline
                           industry is highly competitive. Decisions about flight routes and frequency are based on
                           business profitability in the global context. Decisions on routes can affect our international
                           visitor profile, for example, visitor arrivals from China have increased further following the
                           recent addition of direct Air New Zealand flights to and from Shanghai. We can influence airline
                           decisions on flying to New Zealand through ensuring ease of access, appropriate infrastructure,
                           and a destination that is attractive to visitors, but we cannot control airlines’ business decisions.
                           It is essential to continue co-ordinating existing marketing by airlines with other offshore
                           marketing investment, in particular prioritising relationships with those airlines that have
                           a long term commitment to flying to and from New Zealand.

                           THE QUALITY PROMISE
                           A quality brand promise is achieved by delivering a credible and relevant message to key
                           markets and New Zealand has achieved this through the ‘100% Pure New Zealand’ brand.
                           By developing a clear target market - the Interactive Traveller, New Zealand has successfully
                           matched a quality promise with a type of visitor that promise will best satisfy.

                           The ‘100% Pure New Zealand’ campaign is regularly cited as one of the best destination
                           marketing campaigns in the world. There is a very strong awareness of the brand considering
                           New Zealand’s relatively small investment in international marketing activity. The brand has
                           continued to stay relevant in an increasingly crowded brand environment but needs ongoing
                           and increased investment to maintain and grow share of voice internationally.




                           20      DRAFT NEW ZEALAND TOURISM STRATEGY 2015
QUALITY INFORMATION
Visitor information must make it easy for potential travellers to buy New Zealand product.
This means providing accurate, accessible information available in ways that meet the changing
needs and media preferences of visitors, including through pre-visit and en-route information
channels. Domestic and international consumers are taking more control of their information
needs by:

•   researching travel options online;

•   seeking the opinion of fellow travellers and making their own opinions public
    (blogs, podcasts, word of mouth);

•   booking directly with businesses and closer to the time of travel; and

•   leaving more arrangements until after arrival.

QUALITY PRODUCT
New Zealand’s stories, people, and the regional differentiation of landscapes within a
small country have strong appeal to domestic and international travellers seeking a point
of difference.

Our natural attractions and adventure activities are treasured by New Zealanders and
renowned throughout the world. New Zealand’s network of national and marine parks, and
world heritage areas have international standing. Within this setting, Maori culture provides
a key distinctive element. It is the combination of the two that provides New Zealand’s unique
positioning in the world.

Quality products are those that match or exceed expectations and receive high levels of visitor
satisfaction. The sector recognises quality product through: Qualmark, the industry’s quality
assurance programme, the Tourism Industry Awards and through hospitality sector standards
and awards. Visitor satisfaction with the New Zealand product is traditionally high, but needs to
be better understood across the full range of geographic and demographic segments.
Visitor satisfaction is measured primarily through the International Visitor Survey (IVS),
Tourism New Zealand research, Domestic Travel Survey (DTS), and Regional Visitor
Monitor (RVM).



ISSUES                                                                                                    5.2
The following issues need to be addressed in order to achieve this outcome:

IMPROVING AND CAPITALISING ON THE AWARENESS OF NEW ZEALAND
IN OFFSHORE MARKETS
International tourism markets are highly competitive and the costs of projecting New Zealand
into these markets are increasing. Australia has substantially boosted its government
investment in tourism, and other competitors have emerged with product offers not dissimilar
to New Zealand’s. New Zealand’s share of voice is likely to decline internationally without the
investment of adequate resources for international marketing in key markets, and important
emerging markets.




                                                           DRAFT NEW ZEALAND TOURISM STRATEGY 2015   21
RESPONDING TO DYNAMIC INTERNATIONAL MARKETS
New Zealand’s tourism product, distribution channels, market intelligence, infrastructure
and approach to business are oriented to our past and present visitor mix. The tourism sector
must meet the challenge of responding quickly to realise new opportunities and address risks
as markets emerge (e.g. China, India), or flatten and decline.

China presents a particular challenge, as around one third of the Chinese outbound leisure
market over the last few years has been of low quality, dominated by controlled shopping
commissions. China is New Zealand’s fastest growing international visitor market, and projected
to be the 4th largest within three years.

CONSISTENTLY MEETING AND EXCEEDING EXPECTATIONS
Providing quality tourism experiences is a strength of New Zealand’s tourism industry, however
quality levels are not consistent. In an environment of increasing visitor numbers and low entry
barriers to the industry, there is a tendency to revert to competition based solely on price, with
limited attention to quality.

In order to deliver high quality experiences to visitors at all stages of their journey, the sector
must continue to invest in developing distinctive, unique and value-added product, in providing
world-class facilities and in ensuring service is of a high standard. Monitoring visitor perceptions
of their experience to ensure we meet or exceed visitor expectations is essential.

Delivering on the promise of world-class visitor experiences requires a workforce with the right
people, skills and motivation. This issue is covered in more detail on page 30.

STRENGTHENING THE DOMESTIC TOURISM PROPOSITION
The performance of the domestic tourism industry has been relatively flat in recent years.
This is due to a number of factors including an increase in outbound travel by New Zealanders
and changing consumer preferences with purchases such as housing seen as substitutes for
holidays. Domestic tourism supports a vibrant and profitable visitor industry and attention to
growing this market and maximising the value that tourism operators get from it is needed.

GROWING MAORI TOURISM
Maori tourism adds a rich dimension to both the domestic and international visitor experience
and creates a vital point of difference for New Zealand. Potential lies in building greater levels
of participation by Maori in the sector – not just in offering product and experiences that
are traditionally viewed as Maori but in infusing cultural elements across the full range of
tourism product.

DELIVERING INFRASTRUCTURE THAT SUPPORTS AND STRENGTHENS THE QUALITY OF
OUR TOURISM PRODUCT
Appropriate, quality infrastructure underpins the visitor experience. Central and local
governments, and the private sector all have critical roles to play. Suitable airport facilities,
efficient border control, the provision of travel information and effective transport links are
essential parts of the first and last impressions of New Zealand. Travelling within New Zealand,
certainty of electricity supply, the availability of safe drinking water, an efficient, easy to
navigate roading network, and facilities such as rubbish disposal, public toilets, carparking and
information provision are vital in supporting the visitor experience.




22    DRAFT NEW ZEALAND TOURISM STRATEGY 2015
PRIORITIES                                                                                                5.3
For New Zealand to deliver a world-class visitor experience, we need to ensure that:

•   New Zealand is renowned by visitors as a desirable, high quality destination.

•   New Zealand’s product is easily booked by both trade and consumers.

•   The i-SITE network is recognised by visitors as being a valued source of high quality
    and objective visitor information.

•   Qualmark is recognised by consumers as a mark of tourism quality.

•   Maori actively participate and invest in the sector.

•   Domestic travellers contribute towards a strong level of demand for visitor products
    and services.

•   The tourism sector has a long term commitment to monitoring visitor satisfaction and
    perceptions of quality, and New Zealand’s position relative to competitor destinations.

•   New Zealand’s infrastructure supports a quality visitor experience at all stages
    of the journey.



ACTIONS                                                                                                   5.4
NEW ZEALAND IS RENOWNED BY VISITORS AS A DESIRABLE,
HIGH QUALITY DESTINATION
TO ACHIEVE THIS, WE NEED TO:
5.4.1   Invest in strengthening New Zealand’s global marketing campaign.
5.4.2   Establish a consumer campaign for the China market to leverage existing trade
        development activities, and lift the quality and length of stay of holidays marketed
        in China. This would sit alongside work being done to strengthen the Approved
        Destination Status system.
5.4.3   Optimise and coordinate New Zealand’s offshore marketing investment (public and
        private) to improve effectiveness, make best use of marketing funds and realise potential
        economies of scale.
5.4.4   Ensure that unique elements of Maori culture are reflected in New Zealand’s brand
        positioning and in national and regional product development.

NEW ZEALAND’S PRODUCT IS EASILY BOOKED BY BOTH
TRADE AND CONSUMERS
TO ACHIEVE THIS, WE NEED TO:
5.4.5   Develop and implement an ongoing monitor of distribution channel use and trends
        in both international and domestic markets to direct investment towards the most
        effective channels.
5.4.6   Educate tourism operators in selecting and optimising the most appropriate distribution
        channel/s for their product.




                                                           DRAFT NEW ZEALAND TOURISM STRATEGY 2015   23
5.4.7    Invest in technology that enables more real time management of bookings
         and other inventory.
5.4.8 Complement offshore channels with strengthened distribution systems within
      New Zealand to cater for the increasing numbers of independent international
      and domestic visitors who research and book during travel.
5.4.9    Work with Maori, the New Zealand Maori Tourism Council and Maori Regional Tourism
         Organisations to ensure that quality Maori tourism products and services are better
         integrated throughout the full range of wholesale and retail distribution channels.

THE i-SITE NETWORK IS RECOGNISED BY VISITORS AS BEING A VALUED
SOURCE OF HIGH QUALITY AND OBJECTIVE VISITOR INFORMATION
TO ACHIEVE THIS, WE NEED TO:
5.4.10 Build on the common business and information systems across the i-SITE network to:
         »    Ensure a consistent, quality experience at i-SITEs across the country;
         »    Provide visitors to every i-SITE with access to a nationwide database of tourism
              products and services.
5.4.11   Undertake research to better understand the ways that the i-SITE network can
         complement the visitor experience in the future. This will build on previous research
         into the information needs of i-SITE users.

QUALMARK IS RECOGNISED BY CONSUMERS AS A MARK OF QUALITY
TO ACHIEVE THIS, WE NEED TO:
5.4.12 Broaden Qualmark’s coverage of the visitor experience by integrating new categories
       into the existing range of gradings and endorsements.
5.4.13 Assess systems to improve quality of delivery and service standards. This is particularly
       important for the quality of interpretation and story-telling and provision of on-site
       interpretation at visitor attractions.
5.4.14 Increase consumer understanding of the Qualmark grading system in both the domestic
       and international markets to grow confidence in selecting Qualmark-endorsed products
       and services and knowledge of what these should deliver.

MAORI ACTIVELY PARTICIPATE AND INVEST IN THE TOURISM SECTOR
TO ACHIEVE THIS, WE NEED TO:
5.4.15 Continue to build business capability through the provision of the Maori Tourism
       Facilitation Service as well as increasing participation in quality accreditation schemes
       such as Toi Iho and Qualmark.
5.4.16 Assist businesses to incorporate Maori dimensions throughout the full range of tourism
       products and services.
5.4.17 Expand the range of Maori products and services being offered to the international
       and domestic markets.
5.4.18 Strengthen relationships between Regional Tourism Organisations and Maori Regional
       Tourism Organisations to maximise the development of Maori tourism product that
       reinforces regional differentiation and meets visitor demand.




24       DRAFT NEW ZEALAND TOURISM STRATEGY 2015
DOMESTIC TRAVELLERS CONTRIBUTE TOWARD A STRONG LEVEL OF
DEMAND FOR VISITOR PRODUCTS AND SERVICES
TO ACHIEVE THIS, WE NEED TO:
5.4.19 Establish a domestic tourism working group, comprising of representatives
       from Regional Tourism Organisations, key transport operators, and accommodation
       representatives to develop a specific domestic tourism strategy.
5.4.20 Promote the importance of regional campaigns in driving the domestic market
       and investigate a national incentive for local government to invest in this activity.
5.4.21 Expand the Regional Visitor Monitor and the Domestic Tourism Survey to include
       consumer purchasing behaviour, drivers of visitation and travel trend data.
5.4.22 Create opportunities to stimulate domestic travel, with a focus on reasons to travel
       such as events, and shoulder and off-season packages.

THE TOURISM SECTOR HAS A LONG TERM COMMITMENT TO MONITORING
VISITOR SATISFACTION AND PERCEPTIONS OF QUALITY, AND
NEW ZEALAND’S POSITION RELATIVE TO COMPETITOR DESTINATIONS
TO ACHIEVE THIS, WE NEED TO:
5.4.23 Increase the accuracy of the International Visitor Survey and Domestic Tourism Survey.
5.4.24 Monitor visitor perceptions of the importance of and their satisfaction
       with Maori tourism.
5.4.25 Integrate satisfaction research from all agencies into one common platform or database.
5.4.26 Continue with the Regional Visitor Monitor (RVM) on a regular basis and encourage
       use of the RVM in other regions yet to be surveyed.

NEW ZEALAND’S INFRASTRUCTURE SUPPORTS A QUALITY VISITOR
EXPERIENCE AT ALL STAGES OF THE JOURNEY
TO ACHIEVE THIS, WE NEED TO:
5.4.27 Ensure appropriate levels of investment in all infrastructure (such as roads,
       broadband, water, wastewater, public toilets, signage and carparking) to meet
       growing visitor demand.
5.4.28 Work with airport authorities and central government border control agencies to ensure
       they have the appropriate information to plan for tourism growth and provide sufficient
       staff and resources at peak times.
5.4.29 Investigate the case for developing a national convention centre in Auckland.




                                                            DRAFT NEW ZEALAND TOURISM STRATEGY 2015   25
TARGETS                                                                                            5.5
FOR THE FINAL NEW ZEALAND TOURISM STRATEGY 2015, TARGETS WILL BE DEVELOPED
TO MEASURE PROGRESS TOWARDS ACHIEVING THE OUTCOME: NEW ZEALAND DELIVERS
A WORLD-CLASS VISITOR EXPERIENCE.
Targets will reflect the final recommended actions that are agreed on. Targets will be clear, time
specific and measurable.

Examples of potential target areas that could be developed for this outcome are:

•   a target percentage of visitors responding to satisfaction surveys reporting that they are
    ‘highly satisfied’ with their experiences relative to competitor destinations; and

•   a target for increased uptake of Qualmark.




26     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                                                                                                       6
NEW ZEALAND’S TOURISM SECTOR


IS PROSPEROUS &
ATTRACTS ONGOING
INVESTMENT
CONTEXT                                                                                                6.1
THE SUCCESS OF NEW ZEALAND’S TOURISM SECTOR IS ULTIMATELY DEPENDENT ON
THE PERFORMANCE OF ITS BUSINESSES.
To remain prosperous and attract ongoing investment, the tourism sector must provide
attractive returns to businesses on the capital they have invested. This means focusing
on improving profitability at a faster rate than growing the number of visitors. While many
businesses are making money from tourism, it is questionable whether enough of them
are generating returns consistently high enough to justify reinvestment in their business.
Reinvestment and new investment is crucial to maintain product, innovate and compete globally.

Successful tourism businesses are those that will be best able to respond to the challenges
raised in this, and other sections of this Strategy. These businesses will:

•   focus on maximising profit and maintaining the long term success of the business by;

    »   using resources more efficiently (e.g. staff, capital, energy);

    »   charging appropriate prices that reflect both business costs, and the value offered
        to customers;

    »   planning and marketing effectively; and

    »   investing in quality accreditation and environmental sustainability

•   re-invest, or successfully compete for capital investment to allow the business
    to grow and develop;

•   compete successfully for quality people; and

•   compete successfully in the international marketplace.

The benefits of achieving this outcome will be delivered to:

•   businesses, through profits that reflect a competitive rate of return on owners’ investments,
    allowing expanding business options;




                                                            DRAFT NEW ZEALAND TOURISM STRATEGY 2015   27
                               •   communities, through the benefits of visitor expenditure, high quality employment and
                                   businesses that can pay their way through rating and other mechanisms; and

                               •   the New Zealand economy, through optimal generation of Gross Domestic Product, export
                                   earnings and international connectedness.



                               ISSUES                                                                                                                                       6.2
                               PAST FOCUS ON VOLUME, RATHER THAN VALUE
                               Over the last decade, tourism in New Zealand has been characterised by growth in visitor
                               numbers. Figure 2 below shows that growth in total visitor expenditure is almost solely
                               due to growth in visitor arrivals. Note that this graph does not reflect the impact of currency
                               fluctuations on visitor spending. Increasing visitor spend can create the potential for successful
                               businesses to obtain greater returns from visitors.


                               FIGURE 2: TOTAL INTERNATIONAL VISITOR EXPENDITURE
                               (ACTUAL AND FORECAST) AND AVERAGE SPEND PER TRIP
                               $12,000                                                                                                                                 $12
                                           Actual data up to 2006 and forecasts from 2007
                                                                                                                                                       $11.2b (2015)



                               $10,000                                                                                                                                 $10

                                                                                                    Total International Expenditure
                                                                                                    (Excludes International Airfares)

                               $8,000                                                                                                                                  $8
AVERAGE SPEND PER TRIP (NZ$)




                                                                                                                                                                             TOTAL SPEND (NZ$ BILLIONS)
                                                                                          $6.4b (2006)

                               $6,000                                                                                                                                  $6




                               $4,000                                                                                                                                  $4

                                                                                                      Average Spend per Trip
                                                                                                      $2,899 (2006)

                               $2,000                                                                                                                                  $2




                                           * Please note: exchange rate fluctuations are not reflected in this graph.
                                   $0                                                                                                                                  $0
                                     ‘99      ‘00     ‘01      ‘02      ‘03     ‘04      ‘05      ‘06     ‘07f ‘08f ‘09f ‘10f           ‘11f   ‘12f   ‘13f   ‘14f   ‘15f
                                                                                                        YEAR

                                                     Source: International Visitor Survey and New Zealand Tourism Forecasts (Ministry of Tourism)




                               28        DRAFT NEW ZEALAND TOURISM STRATEGY 2015
INSUFFICIENT PRIVATE SECTOR YIELD
Improving tourism sector yield was a key goal of the original NZTS 2010. However, research
suggests that the strong economic growth in tourism over the last five years has been linked
to growth in visitor numbers, rather than increased profits. The NZTS 2010 recommended
examining the drivers of financial and economic performance in the sector. The subsequent
research has provided an understanding of yield performance across the tourism sector.14
‘Yield’ is the benefit that remains in a business or community after all costs are extracted.

PRIVATE SECTOR YIELD
Private sector yields15 in the tourism sector from 1999-2003 have been moderate, but some
key parts of the tourism sector have been performing poorly. For example, with the exception
of backpacker hostels, the accommodation sector is characterised by relatively low financial
yields. The increasing value of real estate in New Zealand means that investors may be satisfied
by capital gains on their property investment, rather than seeking increased profits from their
accommodation business. The measurement approach, focusing on the ratio of business profits
to assets, will also have been affected by the rapidly rising asset value of real estate.

In the transportation sector, travel agencies showed high profits relative to their asset base, as
did local bus and taxi companies. Air transport and long distance bus and rail companies had
lower yields, due to rising costs and competitive pressures.

One of the most significant features of the tourism sector is the large number of Small to
Medium Enterprises (SMEs). These enterprises operate in highly competitive environments and
some compete on price to try and increase their market share. Tourism businesses must develop
the capability to set prices at a level that generates ongoing returns on the capital invested in
their business, rather than focusing on maximising the volume of business.

There are opportunities in the sector to cluster in order to draw on economies of scale and
resource efficiencies (for instance in supply chains, or marketing investment), or to code-share
equipment where possible in order to lower costs, especially in the shoulder period and off-
season. There are opportunities across the accommodation sector to improve investor prospects
(in new hotels, for example) through pricing strategies, benchmarking, and more effective
cooperation within the hotel sector and between hotels and other parts of the industry.

MARKETING AND PRICING CHALLENGES
Overall, the Interactive Traveller market delivers on the outcomes New Zealand wants. By
matching New Zealand’s product offer to the visitor segment where it has most appeal and
similar values, proportionately larger volume growth of Interactive Travellers compared to other
market segments has been achieved. The Interactive Traveller delivers on seasonal spread and
regional spread goals, has higher satisfaction levels, and more readily recommends New Zealand
to others.

However, while the Interactive Traveller segment has higher average disposable income than
other visitors, this is not linked to higher expenditure on the ground. Maximising the revenue
New Zealand generates from visitors requires:

•       tourism operators to use product development, pricing and up-selling or cross-selling to
        achieve higher visitor spend;



14   The yield research programme is a joint industry-government project undertaken by Lincoln University in association with the Tourism
     Industry Association and Ministry of Tourism.
15   Private sector yield in this research programme means: a ratio of profits to assets. Assets are what would be recorded on a business’s
     statement of financial position i.e. capital assets, such as property and equipment, and current assets such as cash in the bank, receivables,
     and prepaid expenses. The higher the ratio, the greater the return on investment.




                                                                                        DRAFT NEW ZEALAND TOURISM STRATEGY 2015            29
•   the development of appropriate product to encourage spend;

•   ensuring visitors are aware of the product and opportunities available; and

•   a sales and marketing focus on attracting visitors that deliver the best economic return
    to New Zealand.

BUSINESS ASSISTANCE PROGRAMMES
A range of business assistance programmes have been developed to assist with product
development, industry capability (pricing, managing distribution channels, marketing) and
clustering of operators. The result has been a lack of consistency in approach and some
confusion through the sector as to which programme and organisation to take the lead from.
Programmes and agencies include:

•   some Economic Development Agencies and Regional Tourism Organisations who,
    at the regional level, provide tailored assistance programmes to local operators;

•   New Zealand Trade and Enterprise Biz courses;

•   the Ministry of Tourism and Te Puni Kokiri’s Maori Tourism Facilitation Service; and

•   the Tourism Industry Association’s ongoing business assistance initiatives
    for tourism operators.

There is a case for rationalising programmes and focusing assistance on lifting yield
performance and developing quality products.

WORKFORCE CHALLENGES
Tourism is a labour intensive industry. People are the sector’s major asset, and quality
interactions between visitors and hosts are what visitors value, remember, and gain great
satisfaction from.

CHANGES IN THE LABOUR MARKET
Fundamental changes have occurred in New Zealand’s labour market since the development
of the NZTS 2010, including:

•   a drop in unemployment to unprecedented levels (currently stable at approximately 3.6%);

•   a corresponding rise in labour to full utilisation levels (hours worked by those in employment);

•   the emergence of skilled, semi and unskilled labour shortages right across the economy; and

•   the emergence of tourism specific skill shortages, particularly in order to meet future growth
    based on the industry’s current structure.

Underpinning these changes is a strong performance in the economy as a whole with
strong volume growth in tourism. Demographic changes in New Zealand’s workforce are also
occurring as the baby boomer generation starts to leave the workforce, with far fewer numbers
of New Zealanders entering to replace them. These underlying conditions are not projected
to fundamentally change in the medium and longer term.




30     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                              Significant tourism volume growth has been possible through the availability of relatively
                              cheap labour. Further growth on this basis can be considered to be severely constrained
                              (refer to Figure 3).


                              FIGURE 3: PROJECTION OF TOTAL NEW ZEALAND WORKFORCE AND
                              TOURISM WORKFORCE TO 2016

                                                               TOTAL NEW ZEALAND WORKFORCE               TOURISM WORKFORCE *


                              5,000,000                                                                                                         250,000

                                                                                                                        2.5% Growth Per Year




                              4,000,000                                                                                                         200,000
TOTAL NEW ZEALAND WORKFORCE




                                                                                                                                                          TOURISM WORKFORCE
                              3,000,000                                                                                                         150,000


                                                                                                                         1.4% Growth Per Year



                              2,000,000                                                                                                         100,000




                              1,000,000                                                                                                         50,000




                                          * Based on a 4% average annual growth in international visitors
                                            and 1% average annual growth in domestic visitors
                                     0                                                                                                          0
                                               2001                        2006                         2011                           2016
                                                                                         YEAR
                                                    Source: National Labour Force Projection, High Scenario (Statistics New Zealand)




                                                                                                         DRAFT NEW ZEALAND TOURISM STRATEGY 2015    31
                                       In the current labour market, workers will flow to the most productive areas of the economy
                                       (i.e. attracted by the ability of more productive businesses to pay higher wages).
                                       As shown in Figure 4 below, tourism wage rates do not compare well.


                                       FIGURE 4: EMPLOYMENT COMPENSATION BY INDUSTRY
                                                                   TOURISM CHARACTERISTIC INDUSTRIES             TOURISM RELATED INDUSTRIES

                                                                         NON TOURISM RELATED INDUSTRIES               ALL INDUSTRIES
                                       $55



                                       $50



                                       $45
AVERAGE COMPENSATION (NZ$ THOUSANDS)




                                       $40



                                       $35



                                       $30



                                       $25



                                       $20



                                       $15



                                       $10
                                                   1999                   2006                      2001                      2002            2003
                                                                                                  YEAR

                                                                        Source: Tourism Satellite Account (Statistics New Zealand)




                                       Immigration will be needed to ensure enough labour is available to meet projected growth
                                       in visitor numbers. However:

                                       •     Immigration that supports low wage industry models would not be supported by current
                                             government immigration policy.

                                       •     Working holiday schemes offer benefits, but are short-term and reciprocal.

                                       •     Large scale immigration has potential to create issues for New Zealand distinctiveness
                                             and possibly the quality and authenticity of the visitor experience.

                                       •     Immigration generates its own demands on the labour market (by increasing
                                             economic growth).

                                       •     Attracting immigrants to live in the areas where they are most needed, and ensuring
                                             affordable accommodation is available can be issues for operators.




                                       32      DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                           Older people remaining in, or returning to the workforce, and parents returning to the workforce
                           are also potential sources of future labour. Tourism will be competing against other, potentially
                           higher paying sectors, to attract these workers.

                           People and their skills are vital contributors to the tourism sector, requiring a whole of sector
                           strategic approach and coordination. This work has been started by the Tourism and Hospitality
                           Leadership Group.16 However the underlying issue to be addressed is business profitability -
                           businesses that are successful can support and benefit from highly performing employees,
                           those that are not, cannot.

                           SEASONALITY
                           Flattening out seasonal peaks and troughs is important for increasing business profitability
                           and providing better opportunities for people to stay employed in the sector. New Zealand’s
                           tourism sector is highly seasonal with the bulk of visitation occurring between November and
                           March (refer to Figure 5). The high season sees the tourism industry operating at or beyond full
                           capacity in terms of plant (accommodation, transport) and workforce, and in some locations
                           domestic and international visitors have reported an adverse response to congestion.17


                           FIGURE 5: SEASONALITY OF INTERNATIONAL VISITOR ARRIVALS BY MAIN
                           REASON FOR VISIT IN THE YEAR ENDED JUNE 2006

                                                                HOLIDAY               VISITING FRIENDS AND RELATIVES                BUSINESS

                           160




                           140




                           120
VISITOR ARRIVALS (000’S)




                           100




                            80




                            60




                            40




                            20




                                0
                                     JUL        AUG        SEPT       OCT        NOV        DEC        JAN         FEB           MAR    APR    MAY         JUN

                                                                     Source: International Visitor Arrivals (Ministry of Tourism)




                           16   Consisting of industry associations and training organisations and government representatives.
                                The Group’s report is available at: www.tianz.org.nz/Current-Projects/Workforce-Strategy.asp
                           17   DOC visitor monitoring data for Franz Josef Glacier and Tongariro Crossing.




                                                                                                                 DRAFT NEW ZEALAND TOURISM STRATEGY 2015    33
                           New Zealand’s seasonality is reinforced by a number of interconnected factors:

                           •        the concurrence of New Zealand’s domestic summer holiday season; school holidays;
                                    and Christmas, where friends and relatives visit from overseas;

                           •        predominance of summer/outdoor experiences in the product mix; and

                           •        northern hemisphere holiday visitors preferring to travel in their winter.

                           While there has been some progress in widening shoulder seasons, the bulk of tourism growth
                           over the last five years has served to reinforce existing seasonality patterns (refer to Figure 6).

                           Seasonality issues:

                           •        are highly inefficient for tourism businesses in terms of asset utilisation and return
                                    on investment (as even more plant is required that can only be partially utilised); and

                           •        pose crowding and ‘quality of the experience’ concerns.


                           FIGURE 6: SEASONALITY OF INTERNATIONAL VISITOR ARRIVALS

                                                              YE JUNE 2000              YE JUNE 2003               YE JUNE 2006

                           350




                           300




                           250
VISITOR ARRIVALS (000’S)




                           200




                           150




                           100




                               50




                               0
                                     JUL      AUG       SEPT      OCT        NOV        DEC        JAN         FEB        MAR     APR   MAY   JUN
                                                                 Source: International Visitor Arrivals (Ministry of Tourism)




                           34          DRAFT NEW ZEALAND TOURISM STRATEGY 2015
The NZTS 2010 highlighted seasonality as a key issue and some of those recommendations and
other activities are gaining traction. These include:

•   regional differentiation strategies by Regional Tourism Organisations and Tourism
    New Zealand and marketing partnerships specifically targeting seasonal demand in the
    Australian market;

•   recognition of the seasonality benefits of major events e.g. the Lions tour conducted over
    the 2005 winter;

•   development of the less season-specific conference and incentive market; and

•   good shoulder season results from Interactive Travellers.

The shoulder and low seasons provide significant room for growth for the tourism sector, but
this challenge should not be underestimated - New Zealand’s seasonality patterns are very
stable and have proved difficult to shift to date. Compelling reasons to travel are required.

TOURISM RESEARCH AND MANAGEMENT OF CORE DATA
The sector is better placed in terms of research than it was in 2001, particularly with the
development of the Core Tourism Dataset managed by the Ministry of Tourism. New partnership
projects, such as the Regional Visitor Monitor and Hotel Council New Zealand collections, have
been developed and a major yield research project has been advanced. Key issues yet to be
addressed to support the sector are:

•   The quality of the Core Tourism Dataset, particularly improvements to the International
    Visitor Survey and Domestic Travel Survey. The desired level of quality for national and
    regional level data, budget implications of any increased sample sizes, and means to
    establish expenditure and yield as the key performance measures of the sector need to
    be determined.

•   A sector-wide effort is needed to develop reliable sector and regional data to supplement the
    Core Tourism Dataset, through building on existing information and partnership programmes
    such as the Regional Visitor Monitor.

•   A mechanism is needed to determine and action research priorities. The previous
    Tourism Research Council New Zealand lacked direct mechanisms (beyond the government
    commitment possible through the Ministry of Tourism) to implement its decisions.

•   The nature of current funding sources (through the Foundation for Research Science
    and Technology and Public Good Research Fund) do not support the practical research
    needs of the sector. An industry – government partnership model is desirable to direct,
    fund and manage research for the sector’s wider benefit.




                                                          DRAFT NEW ZEALAND TOURISM STRATEGY 2015   35
PRIORITIES                                                                                         6.3
FOR NEW ZEALAND’S TOURISM SECTOR TO BE PROSPEROUS AND ATTRACT ONGOING
INVESTMENT WE NEED TO ENSURE THAT:
• Tourism businesses use competitive yield strategies, including pricing, to consistently
   increase their returns on investment.

•   New Zealand attracts visitors who have high expenditure levels and a willingness to pay
    for premium products and experiences.

•   In an increasingly competitive labour market, tourism is a preferred industry to work in,
    and attracts and retains an appropriately skilled workforce.

•   New Zealand’s peak season runs from October through to April, with visitors encouraged to
    visit in the low season by events and targeted packages that provide a strong reason
    to travel.

•   New Zealand’s tourism research is accessible, timely, of high quality and key to decision
    making in all aspects of the sector’s development.



ACTIONS                                                                                            6.4
TOURISM BUSINESSES USE COMPETITIVE YIELD STRATEGIES, INCLUDING
PRICING, TO CONSISTENTLY INCREASE THEIR RETURNS ON INVESTMENT
TO ACHIEVE THIS, WE NEED TO:
6.4.1   Improve resource efficiencies for all businesses through more clustering, joint ventures,
        code shares and other industry cooperation initiatives.
6.4.2   Encourage more effective collaborative relationships between the hotel industry, inbound
        tour operators and airlines (on pricing, seasonal campaigns and packaging of products)
        to assist increased occupancy and profitability.
6.4.3   Streamline existing tourism business assistance programmes to provide a more
        effective service that focuses on improving yield/profitability and the development of
        quality products.

NEW ZEALAND ATTRACTS VISITORS WHO HAVE HIGH EXPENDITURE
LEVELS AND A WILLINGNESS TO PAY FOR PREMIUM PRODUCTS
AND EXPERIENCES
TO ACHIEVE THIS, WE NEED TO:
6.4.4 Target further market segments with good potential for increased spend per visit.
6.4.5 Build on existing products and services by adding components that increase the value of
      the visitor experience and encourage higher levels of spend.




36      DRAFT NEW ZEALAND TOURISM STRATEGY 2015
IN AN INCREASINGLY COMPETITIVE LABOUR MARKET, TOURISM IS
A PREFERRED INDUSTRY TO WORK IN, AND ATTRACTS AND RETAINS
AN APPROPRIATELY SKILLED WORKFORCE
TO ACHIEVE THIS, WE NEED TO:
6.4.6 Co-ordinate the sector's response to workforce and skills issues by:
         »   implementing the Tourism and Hospitality Workforce Strategy;
         »   ensuring the sector has a strong voice with labour, education and training policy
             makers; and
         »   continuing to identify and promote opportunities for the sector to increase its
             productivity.
6.4.7    Improve pay rates to attract and retain the right people into the tourism industry
         and ensure it remains competitive within New Zealand’s economy.
6.4.8 Ensure that government funded tertiary training is relevant for tourism employment
      through coordinated industry input to the Tertiary Education Commission and the
      education and training sector.
6.4.9    Identify opportunities to make the best use of people including:
         »   investing in technology where it improves business efficiency and can allow
             employees to be engaged in the most productive activities; and
         »   developing visitor experiences that require less labour intensive production
             or delivery methods without compromising quality.
6.4.10 Seek targeted immigration to fill pivotal skill gaps and assist in short-term high capacity
       periods. This will require industry coordination and effective linkages to the Department
       of Labour.
6.4.11   Facilitate the formulation of clusters or cooperative arrangements between businesses
         to manage workforce challenges, increase asset utilisation and foster employee retention.
6.4.12 Develop labour productivity measures for tourism businesses to monitor and improve
       the contribution that their people make to the performance of their business.

NEW ZEALAND’S PEAK SEASON RUNS FROM OCTOBER THROUGH
TO APRIL, WITH VISITORS ENCOURAGED TO VISIT IN THE LOW SEASON
BY EVENTS AND TARGETED PACKAGES THAT PROVIDE A STRONG REASON
TO TRAVEL
TO ACHIEVE THIS, WE NEED TO:
6.4.13 Identify and bid for major events to increase international arrivals in the periods
       where the tourism sector is underutilised.
6.4.14 Develop an action plan to maximise co-ordination between existing conference
       and incentive marketing activities and drive increased performance in this market.
6.4.15 Invest funding in seasonal marketing initiatives that target those markets (including
       domestic) more likely to travel in the shoulder and off-peak season.
6.4.16 Identify product development opportunities (e.g. Matariki celebrations) for shoulder
       and low seasons.




                                                            DRAFT NEW ZEALAND TOURISM STRATEGY 2015   37
NEW ZEALAND’S TOURISM RESEARCH IS ACCESSIBLE, TIMELY,
OF HIGH QUALITY AND KEY TO DECISION MAKING IN ALL ASPECTS
OF THE SECTOR’S DEVELOPMENT
TO ACHIEVE THIS, WE NEED TO:
6.4.17 Establish quality measures for the Core Tourism Dataset and determine and implement
       approaches to achieve the agreed quality standards.
6.4.18 Establish a suite of measures that track sector performance, including the ongoing
       financial performance of the tourism sector, seasonality measures and visitor
       satisfaction.
6.4.19 Extend the sectoral and regional data available to the sector, firstly through analysis
       of the Core Tourism Dataset and administrative data, and secondly through undertaking
       supplementary collections on a partnership/data sharing basis.
6.4.20 Develop an industry–government partnership model to advance sector research,
       including determining priority research and then directing, funding and managing
       the delivery of this research.


TARGETS                                                                                            6.5
FOR THE FINAL NEW ZEALAND TOURISM STRATEGY 2015, TARGETS WILL BE DEVELOPED
TO MEASURE PROGRESS TOWARDS ACHIEVING THE OUTCOME: NEW ZEALAND’S TOURISM
SECTOR IS PROSPEROUS AND ATTRACTS ONGOING INVESTMENT
Targets will reflect the final recommended actions that are agreed on. Targets will be clear, time
specific and measurable.

Examples of potential target areas that could be developed for this outcome are:

•   an increase in measured returns on investment across the tourism sector;

•   an increase in sector productivity levels;

•   an increase in expenditure per international visit;

•   an increase in tourism sector pay rates so they are equal to or above the New Zealand
    All Industries Average compensation per full time equivalent employee; and

•   a faster increase in visitor arrivals outside the traditional summer peak months than
    visitor arrivals within the summer peak months, with appropriate ratios for measurement
    to be developed.




38     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                                                                                                                                               7
THE TOURISM SECTOR TAKES


A LEADING ROLE
IN PROTECTING &
ENHANCING THE
ENVIRONMENT
CONTEXT                                                                                                                                        7.1
NEW ZEALAND’S NATURAL ENVIRONMENT IS THE PRIMARY MOTIVATION FOR TRAVEL
BY OUR INTERNATIONAL VISITORS AND PLAYS A MAJOR PART IN DOMESTIC LEISURE
TRAVEL. It is a cornerstone of the New Zealand experience and the basis for thousands
of tourism businesses. The importance of protecting our environment on which so much
of the industry depends is undisputed across the tourism sector, and was a key element
of the NZTS 2010.

New Zealand’s ‘100% Pure New Zealand’ positioning builds expectations about the experience
visitors can expect. Existing and future products and services aligned to that reputation must
fulfil that promise.

Existing initiatives intended to reduce the environmental impact of tourism in New Zealand
are wide-ranging18, but tend to be developed in isolation from each other. Therefore while the
number of tourism operators moving towards more environmentally focused business practices
is steadily increasing, gains are ad hoc and lack co-ordination.

The reputation of New Zealand through tourism’s marketing presence in offshore markets
adds value by association for example, food and beverage exports benefit from our 100% Pure
reputation. Onshore it enhances value for other industries through products such as farm and
winery tours and activities. However visitors’ experience of New Zealand’s physical environment
is clearly not limited to their interaction with the tourism sector. The global reputation of
New Zealand is at risk if other sectors of the economy are not equally and visibly responsible
towards the environment.

New Zealand is acknowledged worldwide as a conservation leader in its management of
one third of its land mass as public conservation lands. The relationship between tourism
and conservation areas has been mutually beneficial over many years. Increasing commercial
use of conservation areas, particularly over the last 10 – 15 years, has led to more active
and intensive management.

The concept of kaitiakitanga is embedded in the NZTS 2010 vision and provides the basis
for a distinctively New Zealand approach to environmental management, firmly connected to


18   Examples include: participation in Green Globe 21, and sustainable charters, investment by airlines and some large-scale road transport
     operators in fuel-efficient aircraft and coaches, and delivering carbon neutral conferences.




                                                                                       DRAFT NEW ZEALAND TOURISM STRATEGY 2015           39
New Zealand’s indigenous culture and history. Kaitiakitanga can be a means for New Zealanders
to understand and position themselves on environmental issues and provide a powerful message
to visitors about the connection between our people and landscape.

Kaitiakitanga means guardianship, care and protection. The principles of kaitiakitanga stress the
importance of managing natural and cultural resources and land for the collective benefit
of people living now, and for generations in the future.

A kaitiaki is a guardian, or temporary custodian, recognising that:

“WHATU NGARONGARO TE TANGATA, TOITU TE WHENUA”
“MAN WILL PERISH, BUT THE LAND REMAINS”
All members of the tourism sector have a role to play as kaitiaki - working to ensure the long
term management of New Zealand’s natural, cultural and built resources.

Carbon emissions, waste management and pressure on our icon locations are now some of the
key environmental issues facing the tourism sector. However, it is important that the response
to these issues is strategic and informed by an accurate understanding of consumer
expectations and preferences. In addressing environmental issues, the tourism sector cannot
shift its focus from providing the quality visitor experiences that inspire visitors to come to and
travel within New Zealand in the first place.

Environmental management issues that range beyond New Zealand’s shores pose key risks
and offer new opportunities. New Zealand is a long-haul destination for most of our international
markets, and concerns about carbon emissions and the environmental impacts of travel are
increasing in some of our core target markets, such as the United Kingdom and Germany.
The strategic challenge for the industry is to put the steps in place so that international
visitors are compelled to travel to New Zealand in part because of the way we interact with our
environment in what is likely to become a ‘carbon – constrained’ global travel market.
At the same time, it is imperative that the sector gets the basics right as well, for example,
recycling, energy and waste management.



ISSUES                                                                                                7.2
UNCERTAINTY
Responses to environmental concerns, especially climate change, are rapidly developing.
Charting a clear course of action for the sector is difficult given the following:

•   It is not yet clear how potential visitors will react in terms of their immediate and future
    purchase decisions. It is also likely that their views and behaviour will evolve quickly.

•   National policy is developing rapidly and the need for environmental management has
    gained significant traction but it is not yet clear what economy-wide or sector specific
    initiatives may be undertaken nor where responsibilities will lie.

A number of environmental programmes (some of which include certification) for businesses
and government agencies exist. Qualmark Environmental accreditation, specifically shaped for
New Zealand’s tourism sector, is currently being developed. Tourism operators do not yet have
a clear stepped pathway from entry level to fully developed best practice procedures. Simple
guides and toolkits that are easy to understand and implement are required.




40     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
SECTOR COORDINATION
Given New Zealand’s distance from key markets, the implications of our 100% Pure brand
promise, and the nature of our product, New Zealand’s tourism sector cannot afford the cost
of being an environmental laggard. However, given the uncertainties noted above, the cost
of achieving first mover advantage at a global level is likely to be beyond current resource
capabilities. There is also a risk that a rapid, knee-jerk reaction will be seen as opportunistic
and hollow.

A prompt, steady-handed and coordinated response is required, focusing on:

•      areas of leadership that resonate with consumers;

•      areas that businesses can translate into persuasive propositions for potential customers
       of the environmental benefits of their visit;

•      areas that will make a genuine difference in improving environmental performance;

•      integrated management with other government strategies (for instance, the New Zealand
       Energy Strategy); and

•      influencing international fora and agreements that will affect tourism development
       for New Zealand (for example, the European Commission).

TOURISM’S ENVIRONMENTAL PERFORMANCE
There are a range of areas where the tourism sector’s environmental performance needs
to be improved.

The tourism sector generates about 6% of all greenhouse gas emissions in New Zealand, a
relatively small contributor compared with other sectors. For international visitors, 90% of
carbon emissions are generated in getting to and from New Zealand.19 While Air New Zealand
has one of the world’s most fuel efficient fleets, it is not the only airline servicing the country,
and flights from our long-haul markets still generate significant carbon emissions.

Onshore transport dominates the industry’s carbon footprint, accounting for about 75% of
tourism’s direct energy use and emissions. Internal air travel, private vehicle and coach travel
feature most strongly. Options for travellers to reduce the impacts of their transport
use either through public transport, offsetting mechanisms, or fuel-efficient fleets are
currently limited.

New Zealand does not manage its waste to nearly the same standard that many international
visitors would at home. For example, even New Zealand’s major airports do not have facilities
for the public to separate waste for recycling. Waste management is inconsistent throughout
New Zealand, particularly in rural areas. Examples include roadside rubbish collection
and campervan waste. Our International visitors expect consistent and high standards of
environmental management throughout New Zealand.




19   TIA, 2002; Lincoln University 2006.




                                                             DRAFT NEW ZEALAND TOURISM STRATEGY 2015   41
Wider policies that impact on tourism’s environmental performance can also be inconsistent.
For example, while the Resource Management Act is an international leader in its effects-based
approach to development, New Zealand’s vehicle import standards and emission controls allow
the importation and operation of old, high carbon emitting coaches.

Transport regulation and enforcement and waste management standards will make a huge
difference to the sector’s environmental performance. However, such standards are economy-
wide in scope, so while the tourism sector has a role in influencing change, it is only one of many
players with varied and sometimes opposing interests.

IDENTIFYING THE ONGOING VALUE PROPOSITION
Businesses in the sector will need to develop a value proposition that is attractive to domestic
and international visitors who are environmentally focused. This means developing a product
base that enables the sector as a whole to extract more value from visitors, and that is
sufficiently compelling for visitors to accept the trade-offs they may have to make, in view of the
unique value of the experience they will gain.

The ongoing value proposition is not only about environmental management onshore in the
interests of protecting and enhancing our environment, but on the competitive advantage we
can gain internationally. Market research is needed to ensure we meet the expectations of our
future long-haul travellers on environmental sustainability.

LACK OF ACCEPTED, RELEVANT BENCHMARK MEASURES AND STANDARDS
The tourism sector lacks both baseline information on environmental performance, agreed
indicators to benchmark against, and a structured way of regularly measuring progress.20
There are no current international measures for monitoring environmental impacts in tourism
destinations, although these are likely to be developed in the near to medium future. This may
have significant implications for New Zealand’s international competitiveness given our distance
from long-haul markets.

VISITOR MANAGEMENT ON CONSERVATION LANDS
In managing public conservation land, the interests of tourism form part of the criteria of the
Department of Conservation’s new Strategic Direction21 in which decision making will recognise
society’s values, nature’s inherent qualities and scientific criteria. The increasing commercial
use of the conservation estate requires collaborative partnerships in order to achieve the best
outcomes for all parties.

Tourism in conservation areas generates substantial economic benefits to local
communities, and these effects are gaining more consideration in the decision making process.
However, tourism concessionaires will have to continue to invest in technology and procedures
that minimise the effects of their product on conservation values, and the recreational
experiences of other visitors to the conservation estate.




20 The   Department of Conservation has recently developed provisional standards for acceptable levels of crowding, conflict, satisfaction and
     displacement. These guide service delivery.
21   View the Strategic Direction at: www.doc.govt.nz




42          DRAFT NEW ZEALAND TOURISM STRATEGY 2015
PRIORITIES                                                                                                 7.3
FOR THE TOURISM SECTOR TO TAKE A LEADING ROLE IN PROTECTING AND ENHANCING
NEW ZEALAND’S ENVIRONMENT WE NEED TO ENSURE THAT:
•   The tourism industry and government work together to promote the principles of
    kaitiakitanga and ensure New Zealand’s environment is preserved for future generations.

•   The tourism industry is an early and visible adopter of mechanisms that offset carbon
    emissions during international and domestic travel.

•   Qualmark is recognised by consumers as a mark of quality in environmental performance.

•   The concept of kaitiakitanga is well understood by both the tourism industry and visitors and
    is integrated into New Zealand’s marketing campaigns and product offer.

•   The tourism sector actively works to improve its energy performance.

•   The tourism sector and the Department of Conservation continue to work together to ensure
    that conservation values are enhanced.



ACTIONS                                                                                                    7.4
THE TOURISM INDUSTRY & GOVERNMENT WORK TOGETHER TO PROMOTE
THE PRINCIPLES OF KAITIAKITANGA & ENSURE NEW ZEALAND’S
ENVIRONMENT IS PRESERVED FOR FUTURE GENERATIONS
TO ACHIEVE THIS, WE NEED TO:
7.4.1   Understand and use the concept of kaitiakitanga as the basis for the tourism sector’s
        actions to enhance the environment.
7.4.2   Develop indicators for the sector (at both a national and operator level) to measure,
        manage and monitor environmental impacts.
7.4.3   Investigate mechanisms and product development opportunities for visitors
        to offset carbon emissions through tangible conservation projects that encourage
        visitor interaction (e.g. ecological restoration, pest eradication and investment in
        renewable energy).
7.4.4   Participate in and influence global fora and agreements on environmental issues that
        affect New Zealand tourism.
7.4.5   Ensure that the industry and local government work together to manage visitor waste by
        providing the best fit-for-purpose infrastructure and systems.
7.4.6   Integrate practical ‘how to’ information and guidance on environmental management
        into one existing sector website.




                                                            DRAFT NEW ZEALAND TOURISM STRATEGY 2015   43
THE TOURISM INDUSTRY IS AN EARLY AND VISIBLE ADOPTER
OF MECHANISMS THAT REDUCE CARBON EMISSIONS DURING
INTERNATIONAL AND DOMESTIC TRAVEL
TO ACHIEVE THIS WE NEED TO:
7.4.7    Adopt alternative renewable transport fuels so that biofuels increasingly make up
         a greater proportion of all transport fuels used in the tourism industry.
7.4.8    Increase the uptake of diesel and hybrid powered vehicles in commercial fleets
         when making new purchases.
7.4.9    Improve fuel efficiency by:
         »    adopting best practice standards in terms of engine maintenance and reducing visible
              smoke emissions;
         »    recommending the most fuel efficient vehicles to visitors to meet their travel needs;
              and
         »    educating visitors on driving to improve fuel efficiency.
7.4.10 Commit to purchasing at least Euro IV standard engines for diesel transport fleets and
       begin planning to purchase Euro V standard engines when compatible fuel is introduced
       on 1 January 2009.
7.4.11   Inform consumers of initiatives being undertaken to adhere to international best practice
         for airline fleet management and emissions standards.
7.4.12 Adopt minimum standards for importing vehicles into New Zealand including vehicle
       emissions and minimum import age.

QUALMARK IS RECOGNISED BY CONSUMERS AS A MARK OF QUALITY
IN ENVIRONMENTAL PERFORMANCE
TO ACHIEVE THIS, WE NEED TO:
7.4.13 Accelerate the development of environmental elements in Qualmark accreditation
       to encourage tourism businesses to lift their environmental performance.
7.4.14 Expand Qualmark services to lift the capability of operators to deliver sustainable
       tourism products and services.
7.4.15 Investigate and develop ways to incentivise participation in Qualmark to ensure
       substantial uptake across the sector.




44       DRAFT NEW ZEALAND TOURISM STRATEGY 2015
THE CONCEPT OF KAITIAKITANGA IS WELL UNDERSTOOD BY BOTH
THE TOURISM INDUSTRY AND VISITORS AND IS INTEGRATED INTO
NEW ZEALAND’S MARKETING CAMPAIGNS AND PRODUCT OFFER
TO ACHIEVE THIS, WE NEED TO:
7.4.16 Understand the environmental aspirations of our current and future tourism markets
       and use this information to influence and shape New Zealand’s marketing and tourism
       product offer to these visitors.
7.4.17 Target visitors who support, and whose ethics and behaviours align, with New Zealand’s
       environmental values.
7.4.18 Develop national guidelines for running major events within New Zealand that
       incorporate environmental requirements into any government funded event.

THE TOURISM SECTOR ACTIVELY WORKS TO IMPROVE
ITS ENERGY PERFORMANCE
TO ACHIEVE THIS, WE NEED TO:
7.4.19 Use appropriate building standards both for new buildings and retrofits – ensuring quality
       buildings for future generations.
7.4.20 Work with organisations such as the Energy Efficiency and Conservation Authority, the
       Sustainable Business Network and others on initiatives for improving environmental
       management in tourism.
7.4.21 Adopt energy management practices and new technologies to reduce overall
       energy consumption.

THE TOURISM SECTOR AND THE DEPARTMENT OF CONSERVATION
CONTINUE TO WORK TOGETHER TO ENSURE THAT CONSERVATION
VALUES ARE ENHANCED
TO ACHIEVE THIS, WE NEED TO:
7.4.22 Engage tourism stakeholder interests early in the development of National Park
       Management Plans, Conservation Management Strategies and other related processes
       to ensure that policies and management solutions are developed in a collaborative, pro-
       active style and address visitor interests.
7.4.23 Ensure that visitor monitoring and evaluation tools are applied in a consistent manner
       across conservancies and that data is collected over time to determine appropriate
       management objectives, and shared with relevant tourism agencies.
7.4.24 Facilitate investigation of new developments in visitor services, facilities (walking trails,
       interpretation centres) and locations where this can provide viable social, cultural,
       economic and conservation benefits.
7.4.25 Investigate potential funding mechanisms for visitors to contribute towards adding value
       to the visitor experience, provision of facilities and services on public lands managed for
       conservation.
7.4.26 Manage issues at key sites perceived to be under pressure environmentally
       and/or socially.




                                                             DRAFT NEW ZEALAND TOURISM STRATEGY 2015   45
TARGETS                                                                                            7.5
FOR THE FINAL NEW ZEALAND TOURISM STRATEGY 2015, TARGETS WILL BE DEVELOPED TO
MEASURE PROGRESS TOWARDS ACHIEVING THE OUTCOME: THE TOURISM SECTOR TAKES A
LEADING ROLE IN PROTECTING AND ENHANCING NEW ZEALAND’S ENVIRONMENT.

Targets will reflect the final recommended actions that are agreed on. Targets will be clear, time
specific and measurable.

Examples of potential target areas that could be developed for this outcome are:

•   the percentage of tourism businesses that participate in an environmental accreditation
    programme;

•   that all visitors have an opportunity to participate in offsetting carbon emissions from
    international and domestic travel by a specific date; and

•   that relevant environmental indicators are developed for the sector to use.




46     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                                                                                                      8
COMMUNITIES & REGIONS


RECOGNISE AND
VALUE THE BENEFITS
OF TOURISM
CONTEXT                                                                                               8.1
NEW ZEALAND COMMUNITIES PROVIDE A CRUCIAL PART OF OUR VISITOR EXPERIENCE.
The relationship between visitors and hosts is reciprocal, and benefits flow both ways. It is
essential that communities recognise the benefits of tourism and that the tourism sector highly
values the role of host communities.

Communities, with local government leadership, are essential to delivering on the vision of
the Strategy. Communities have a dual role to play in both welcoming and supporting visitors
through manaakitanga, while at the same time protecting their local environment and culture
and managing any effects in the spirit of kaitiakitanga.

Manaakitanga is about sharing, and mutual respect between hosts and visitors. It is about
offering exceptional and natural hospitality, while recognising the mutual obligation that this
creates. In sharing with our visitors, they also share with us and with each other, becoming
kaitiaki of those experiences.

Interaction with ‘real New Zealanders’ is a major driver of satisfaction for international
and domestic visitors. Friendly, welcoming hosts are key to delivering a world-class visitor
experience. All New Zealanders are hosts, whether as employers or employees in the tourism
sector, or as the ‘average Kiwi on the street’. Most New Zealanders recognise and value their
role as hosts, and its importance for our international reputation. Our hospitality is often
reflected in the guidance and assistance offered by local people and businesses to
our visitors.

While nature provides the scenic backdrop for our tourism experience, communities,
led by local government, provide the setting. This includes:

•   infrastructure and facilities, such as roads, water supplies, waste management, parks and
    museums that our visitors use;

•   visitor information and marketing services through i-SITEs, signage and Regional Tourism
    Organisations; and

•   planning support for the sector such as regional tourism strategies, destination management
    plans, Long Term Council Community Plans and District Plans.




                                                           DRAFT NEW ZEALAND TOURISM STRATEGY 2015   47
Local government therefore has an essential role to play in destination management. Ensuring
that New Zealand’s regions, urban environments and communities are able to both meet visitor
needs, maximise the value they get from tourism, and plan for and manage any unwanted
impacts is a role that only local government is empowered to lead.

Communities and local government receive considerable benefit from tourism, but this is often
not ‘visible’ and therefore not clearly understood. Examples include:

•   visitor spending, providing economic benefit;

•   employment, supporting jobs and lifestyles;

•   facilities, retail outlets and services that the resident population alone could not sustain;

•   a vibrant, active community – tourism can drive the revitalisation of small towns engendering
    local pride and ownership – examples include Waiheke Island, Tirau, Greytown, Kaikoura and
    Geraldine; and

•   events establishing communities as desirable destinations with iconic characteristics such
    as the Hokitika Wildfoods Festival and the Bluff Oyster Festival.

Domestic visitors – New Zealanders travelling outside their own community - have their own
motivations, price sensitivities and expectations about their ‘traditional kiwi holiday’. Domestic
tourism contributes approximately 50% of visitor nights and expenditure, and sustaining this
will help to ensure a profitable industry.

It is essential that communities play an active role in creating the type of tourism sector that
they want, to meet their economic, social, environmental and cultural needs. Communities that
take an active role in planning for and managing tourism stand to gain substantial benefits,
and are more likely to satisfy visitors and deliver on the vision.



ISSUES                                                                                               8.2
DESTINATION MANAGEMENT
Local governments have a crucial role in delivering leadership, planning and management
to their communities to maximise benefits and minimise negative impacts from tourism. The
capability and focus of local authorities varies considerably around New Zealand, resulting
in uneven visitor and community experiences. Up-skilling local authorities and supporting
informed management of tourism is a continuing priority for this Strategy. Central government
can provide national level direction and assistance, and separately, the Department of
Conservation has responsibility for managing conservation lands as a destination.

In managing our destinations, there is a need to recognise the value to the tourism industry
of New Zealand’s iconic vistas, scenic views and the natural state of much of our environment.
As development pressures build for a range of reasons (from wind farms to housing) efforts
must be made to protect the environment and those features that form a crucial part of the
New Zealand experience. Tourism is dependent on the preservation and quality of New Zealand’s
natural environment. Where possible, values important to tourism such as vistas, water quality
and coastal access should be identified, and mechanisms established to protect them.




48     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
INFRASTRUCTURE FUNDING
Local government has expressed concerns about funding in relation to tourism. The key issues
raised are:

•      whether costs imposed by the tourism sector are being fairly recovered from that sector;
       and

•      whether local authorities have planned for and can fund the infrastructure (roads, signage,
       rubbish and waste disposal, recycling, toilets, museums, ports, airports, convention centres)
       required to meet tourism growth and visitor and community expectations.

Infrastructure issues are challenging, due to long planning lead times, the need to fairly allocate
cost and benefit across different sectors and extended time horizons, and the need to build for
future capacity with existing funding.

CAPACITY ISSUES
Capacity issues occur in certain parts of New Zealand at peak holiday times. At peak capacity,
accommodation may be full, public spaces such as parks, beaches or museums that are enjoyed
by both residents and visitors will be much more crowded than usual, and infrastructure or
services that are designed for average numbers may struggle to cope (for example port and
airport processing, toilet facilities, rubbish collection). Capacity and overcrowding issues impact
negatively on both the experience of the visitor and of the local community. Visitors are likely
to be less satisfied with their holiday. Local residents who experience social and environmental
impacts are likely to respond to tourism more negatively.

AFFORDABILITY
Affordability for some tourists has been publicly raised as an issue, for example, in regard to the
availability of camping ground accommodation. The focus of this Strategy on driving increased
yield across the sector and achieving greater spend from international visitors in particular
will lead to higher prices for some products, as well as higher quality and greater efficiencies.
There is a tension between increasing the contribution of tourism to New Zealand’s economy
from higher spend by visitors, and ensuring that New Zealanders can continue to afford tourism
experiences that deliver what they want. Domestic visitor expectations, as well as their drivers
for satisfaction and price sensitivities, must be considered.

REGIONAL BENEFITS
Travel itineraries, especially for international visitors, have remained largely the same for the
last thirty years. Changes that have occurred have been led either by innovative product at
the local level (for example whale watching in Kaikoura), or changing travel patterns as our
visitor markets mature, and shift away from coach travel and more towards independent travel.
Regional spread of visitors facilitates a wider flow of benefits throughout a region. However, it
also means a wider spread of costs and impacts. In addition, carbon emissions added by more
visitor travel are likely to be an issue in the future. Communities have a role to play in deciding
where and how they would like tourism to occur across their region, acknowledging that tourism
spread requires planning, infrastructure and new, innovative product, as well as bringing effects
that must be managed.

Tourism delivers considerable economic benefit to regions, supporting jobs and lifestyles across
regions and remote communities. However, tourism in New Zealand is currently characterised
as a low-wage and seasonal industry.22 In developing strategies for economic development and
diversification, regions need to consider all of these aspects of the tourism industry.



22   Issues of seasonality and wage rates are addressed elsewhere in the NZTS 2015.




                                                                                      DRAFT NEW ZEALAND TOURISM STRATEGY 2015   49
PRIORITIES                                                                                          8.3
FOR COMMUNITIES AND REGIONS TO RECOGNISE AND VALUE THE BENEFITS OF TOURISM
WE NEED TO ENSURE THAT:
•   The tourism sector actively participates in the planning and management
    of its communities.

•   Local authorities recognise the significant benefits received from tourism and lead
    destination management and planning initiatives and processes.

•   Tourism decision making by local government, communities, iwi and the tourism sector
    is informed by research into price sensitivity, satisfaction drivers and the regional pattern
    of domestic tourism.

•   Regions and communities preserve and promote their local character and incorporate
    this into all aspects of the visitor experience.



ACTIONS                                                                                             8.4
THE TOURISM SECTOR ACTIVELY PARTICIPATES IN THE PLANNING AND
MANAGEMENT OF ITS COMMUNITIES
TO ACHIEVE THIS, WE NEED TO:
8.4.1   Engage with communities at a strategic level by standing for election to community
        boards; economic development agencies and Regional Tourism Organisation boards,
        conservation boards and councils.
8.4.2 Contribute to local government processes by providing co-ordinated comment and
      submissions on District Plans (e.g. on the protection of iconic vistas), Long Term Council
      Community Plans, annual business plans, regional tourism, destination management or
      economic development strategies and Resource Management Act processes. Use best
      available advice and information to assist in participating in local government processes,
      such as Have Your Say published by the Tourism Industry Association.
8.4.3 Continue to strengthen the governance, management and operations of Regional
      Tourism Organisations through wider uptake of the “Roles and Guidelines for Tourism
      Organisations” advice produced as a result of the NZTS 2010.
8.4.4 Increase ongoing funding to Regional Tourism Organisations through a more proactive
      use of the range of funding tools currently available, to provide more certainty and
      greater streams of revenue for promotion of domestic tourism, and where appropriate
      international tourism.
8.4.5 Work with local governments to increase the value that tourism brings to their
      communities and to manage and mitigate any undesirable effects.
8.4.6 Support iwi and hapu who are considering the role they may play in working with
      the tourism sector in the development of iwi and hapu management plans.




50      DRAFT NEW ZEALAND TOURISM STRATEGY 2015
LOCAL AUTHORITIES RECOGNISE THE SIGNIFICANT BENEFITS RECEIVED
FROM TOURISM AND LEAD DESTINATION MANAGEMENT AND PLANNING
INITIATIVES AND PROCESSES
TO ACHIEVE THIS, WE NEED TO:
8.4.7   Refine and promote the existing set of tools available to assist local governments
        to plan for, invest in and manage tourism.
8.4.8 Prepare tourism strategies or destination management plans that clarify strategic
      directions, management of growth, infrastructure requirements, product development
      opportunities and community outcomes from tourism.
8.4.9 Review the Local Government Strategy for Tourism (Postcards From Home).
8.4.10 Participate in national decision-making on tourism issues (such as tourism strategy
       development, tourism policy, funding mechanisms).

TOURISM DECISION MAKING BY LOCAL GOVERNMENTS, COMMUNITIES,
IWI AND THE TOURISM SECTOR IS INFORMED BY RESEARCH INTO PRICE
SENSITIVITY, SATISFACTION DRIVERS AND THE REGIONAL PATTERN OF
DOMESTIC TOURISM
TO ACHIEVE THIS, WE NEED TO:
8.4.11 Undertake research into affordability issues for domestic tourism, including expectations,
       price sensitivities and pricing mitigation options.
8.4.12 Undertake research into the perceptions and experiences of crowding at times
       of peak capacity from a community perspective, including assessment of impacts on
       communities and visitor satisfaction, case studies, management options and tools for
       local authorities to use. This should sit alongside work previously undertaken by the
       Department of Conservation in relation to capacity issues on the conservation estate.

REGIONS AND COMMUNITIES PRESERVE AND PROMOTE THEIR
LOCAL CHARACTER AND INCORPORATE THIS INTO ALL ASPECTS
OF THE VISITOR EXPERIENCE
TO ACHIEVE THIS, WE NEED TO:
8.4.13 Strengthen existing and establish new events and products that promote regional
       identity and differentiation.
8.4.14 Secure a stronger ongoing funding commitment from local government for i-SITEs
       to ensure longer term planning certainty.
8.4.15 Build the capability of the i-SITE network to promote local culture, connections
       with the local tangata whenua, and the iconic landscape of each region.
8.4.16 Communicate and promote the concept of manaakitanga and its importance
       in the hosting of both domestic and international visitors.
8.4.17 Develop a Local Host awareness programme for communities, associated industry
       and local government.




                                                          DRAFT NEW ZEALAND TOURISM STRATEGY 2015   51
TARGETS                                                                                            8.5
FOR THE FINAL NEW ZEALAND TOURISM STRATEGY 2015, TARGETS WILL BE DEVELOPED
TO MEASURE PROGRESS TOWARDS ACHIEVING THE OUTCOME: COMMUNITIES AND
REGIONS RECOGNISE AND VALUE THE BENEFITS OF TOURISM.
Targets will reflect the final recommended actions that are agreed on. Targets will be clear, time
specific and measurable.

Examples of potential target areas that could be developed for this outcome are:

•   the percentage of councils that recognise relevant tourism issues in District Plans and Long
    Term Council Community Plans by 2015;

•   that a specific number of regions have tourism strategies by 2015; and

•   that a Local Host tourism awareness programme is developed or sourced and delivered on a
    regular basis.




52     DRAFT NEW ZEALAND TOURISM STRATEGY 2015
IMPLEMENTATION PLAN
AN IMPLEMENTATION PLAN WILL BE DEVELOPED, FOLLOWING SECTOR FEEDBACK ON
                                                                                                         9
THE DRAFT NEW ZEALAND TOURISM STRATEGY 2015, TO ENABLE US TO MONITOR AND
MANAGE IMPLEMENTATION OF THE STRATEGY. DEVELOPMENT OF THE IMPLEMENTATION
PLAN WILL REQUIRE:
•     Identification of responsibilities, lead agencies and the additional participants needed to
      ensure the delivery of each action.

•     Identification of budget implications for each action.

•     Consideration of private sector capability to joint-fund projects.

The suggested implementation plan would be structured as follows:


                                                    LEAD AGENCY /
                                                                              BUDGET
    ACTION                 TIMING / PRIORITY        ORGANISATION
                                                                              IMPLICATIONS
                                                    RESPONSIBLE




MONITORING & EVALUATION 10
A MONITORING AND EVALUATION FRAMEWORK WILL BE DEVELOPED. THIS WILL PROVIDE
PERFORMANCE MEASURES AGAINST WHICH IMPLEMENTATION OF THE STRATEGY WILL BE
MONITORED AND EVALUATED.
The suggested implementation plan would be structured as follows:


    OUTCOMES                                        MEANS OF
                           KEY INDICATORS                                     RESPONSIBILITY
    AND ACTIONS                                     VERIFICATION




                                                              DRAFT NEW ZEALAND TOURISM STRATEGY 2015   53
GLOSSARY                                                                                                   11
Added Value                                     Increased worth in terms of the return on investment


Carbon Emissions                                Releases of greenhouse gases as measured in tonnes
                                                of CO2 (carbon dioxide) released into the atmosphere

Competitiveness                                 Qualities or features of a destination
                                                or product that attract customers over
                                                other destinations or products

Concessionaire                                  A business licensed to operate in areas managed
                                                by the Department of Conservation

Conservation                                    The preservation and protection of natural and
                                                historic resources for the purpose of maintaining
                                                their intrinsic values, providing for their appreciation
                                                and recreational enjoyment by the public and
                                                safeguarding the options for future generations
                                                (Conservation Act 1987)

Conversion                                      Turning intent to travel into actual travel

Domestic Travel Survey                          Telephone survey of New Zealand households
                                                to measure the activities and expenditure
                                                of New Zealanders travelling for holidays,
                                                business or to visit friends and relatives

Global Campaign                                 New Zealand’s offshore marketing programmes,
                                                encompassing the 100% Pure brand

Green Globe 21                                  An environmental accreditation programme

Gross Domestic Product                          The market value of all final goods and services
                                                produced within a country in a given period of time.
                                                GDP = consumption + investment
                                                + government spending + exports – imports

Indicators                                      Elements of a sector where change in volume, form,
                                                composition, presence or absence can be measured
                                                over time. For instance, level of carbon emissions,
                                                spend per visit, number of operators engaged
                                                in environmental accreditation programmes




54    DRAFT NEW ZEALAND TOURISM STRATEGY 2015
Interactive Traveller          Interactive Travellers are regular
                               international travellers who consume a wide
                               range of tourism products and services.
                               They are travellers who seek out new experiences
                               that involve engagement and interaction

International Visitor Survey   Survey of visitors leaving New Zealand
                               to measure their activities and expenditure

i-SITE                         New Zealand’s official network
                               of visitor information centres

Kaitiakitanga                  The guardianship and sustainable management
                               of natural, built and cultural resources for the
                               collective benefit of current and future generations

Manaakitanga                   Sharing exceptional and natural hospitality,
                               knowledge and beliefs, on the basis of
                               mutual respect between host and visitor

Productivity                   A ratio between inputs (labour,
                               materials) and outputs (revenue)

Qualmark                       The New Zealand tourism industry’s mark of
                               quality, managed through Tourism New Zealand
                               and part owned by the Automobile Association

Share of Voice                 New Zealand’s share of advertising spend in source
                               markets relative to other competing destinations

Sustainability                 The concept of managing natural, social, cultural
                               and economic resources for present and future
                               generations. In the context of tourism, this refers
                               to present and future visitors and host communities

Sustainable Charters           A three-year pilot programme to improve
                               environmental performance of tourism
                               businesses. The regions involved are:
                               Northland, Bay of Plenty, Rotorua, Southland,
                               Nelson/Marlborough and Wanaka

Tourism Forecasts              Annual forecasts prepared by the Ministry
                               of Tourism covering the main tourism
                               variables with a seven year outlook

Tourism Sector                 Private sector, public sector (central and local
                               government), community organisations and
                               non-governmental organisations involved directly
                               or indirectly in tourism. The sector encompasses
                               visitors, the environment, industry and communities




                                              DRAFT NEW ZEALAND TOURISM STRATEGY 2015   55
Tourism Satellite Account                         Analysis by Statistics New Zealand to
                                                  integrate tourism within New Zealand’s
                                                  official national accounts

TRENZ                                             New Zealand’s largest annual international
                                                  tourism tradeshow, where overseas buyers
                                                  of tourism products meet with local operators

Value Proposition                                 An offer to visitors that results in more benefit
                                                  to them (through satisfaction, financial reward
                                                  or other measures) than the costs incurred

Yield                                             The net return on investment (after all
                                                  costs and all revenue is accounted for)




ABBREVIATIONS
ADS             Approved Destination Status
DOC             Department of Conservation
DTS             Domestic Travel Study
EDA             Economic Development Agency
EECA            Energy Efficiency and Conservation Authority
EU              European Union
FTE             Full Time Equivalent (a measure for numbers of full time employees)
GDP             Gross Domestic Product
GST             Goods and Services Tax (12.5% on all goods and services)
IVS             International Visitor Survey
LGNZ            Local Government New Zealand
MAG             Ministerial Advisory Group
MfE             Ministry for the Environment
MRTO            Maori Regional Tourism Organisation
MTFS            Maori Tourism Facilitation Service
NZMTC           New Zealand Maori Tourism Council
NZTE            New Zealand Trade and Enterprise
NZTS 2010       New Zealand Tourism Strategy 2010
NZTS 2015       New Zealand Tourism Strategy 2015
PATA            Pacific Asia Travel Association
RTO             Regional Tourism Organisation
RVM             Regional Visitor Monitor
SME             Small to Medium Enterprises (usually up to 10 FTEs)
TIA             Tourism Industry Association
TMT             Ministry of Tourism
TNZ             Tourism New Zealand
TRENZ           Tourism Rendezvous NZ (the industry’s largest trade show)
UK              United Kingdom
US              United States of America




56      DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                               NOTES




DRAFT NEW ZEALAND TOURISM STRATEGY 2015   57
NOTES




58   DRAFT NEW ZEALAND TOURISM STRATEGY 2015
                               NOTES




DRAFT NEW ZEALAND TOURISM STRATEGY 2015   59

								
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