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					New Zealand
Market Profile
     2011
    NEW ZEALAND
    Market Overview
1.1 Market Overview                                                                               New Zealand
                                                    Total Population1                4,388,415 (November 2010 est.)
There was $2.161 billion in total
                                                     Major cities2                   City                         Population
expenditure from New Zealand
                                                    (ranked by population)           > Auckland                   1,354,900
in 2010. The Tourism Industry
                                                                                     > Christchurch                390,300
Potential estimates that the New
                                                                                     > Wellington                  389,700
Zealand market has the potential to
grow to between $3.413 billion and                  Language/s                       English and Maori
$4.157 billion in total expenditure                 Currency                         New Zealand Dollar (NZD)
by 2020.                                            GST/VAT     3
                                                                                     15 per cent (GST)
In 2010:                                            Annual Leave                     Four weeks
                                                    Entitlement4
> New Zealand was Australia’s
  largest inbound market for visitor                Public holidays5                 > 1 -2 January               New Year’s Day
  arrivals. There were 1,161,800                                                     > 6 February                 Waitangi Day
  visitor arrivals, a five per cent                                                  > 22 April                   Good Friday
  increase compared to 2009.1                                                        > 25 April                   Easter Monday
> New Zealand was Australia’s third                                                  > 25 April                   Anzac Day
  largest inbound market for total                                                   > 6 June                     Queen’s Birthday
  expenditure with $2.161 billion spent
                                                                                     > 24 October                 Labour Day
  on trips to Australia, an increase of
  eleven per cent compared to 2009.                                                  > 25 December                Christmas Day
> New Zealand was Australia’s third largest                                          > 26 December                Boxing Day
  inbound market for visitor nights, with           Weather6                         > Spring, summer and autumn are very
  14,252,812 nights spent in Australia.                                                mild throughout New Zealand.
> New Zealand was Australia’s second                                                 > Winter (June-August) tends to be wet and cool,
  highest ranking inbound market for                                                   with snow in the Southern Alps. The western areas
  dispersed nights, with 7,089,224                                                     of the South Island, receive the most rain.
  nights spent outside Sydney,
  Melbourne, Brisbane and Perth.                    Market Outlook                   For economic, political and market outlooks, please refer to the
                                                                                     New Zealand profile, published by the Department of Foreign
> The average length of stay for visitors from                                       Affairs and Trade.
  New Zealand was 14 nights, compared
  to the global average of 34 nights.               Visa                             For information on visa requirements for New Zealand, please
                                                                                     visit the New Zealand High Commission.
> New Zealand ranked first for the
  number of repeat visitors, with 94 per            Sources:
  cent of visitors being repeat visitors.           1
                                                        Statistics New Zealand (Accessed 16 November 2010)
> The largest purpose of visit segment from
                                                    2
                                                        Statistics New Zealand (Accessed 16 November 2010)
  the market was holiday, representing              3
                                                        Inland Revenue New Zealand
  40 per cent of total arrivals.                    4
                                                        Department of Labour New Zealand
> Of all visitor arrivals from New Zealand,         5
                                                        Department of Labour New Zealand
  the largest age demographics of visitors          6
                                                        World Travel Guide New Zealand Climate
  were 30 to 44 years and 45 to 59 years.2
Sources:
1
 ABS Overseas Arrivals and Departures,
Australia, December 2010
2
 TRA International Visitor Survey,
December Quarter 2010




2    NEW ZEALAND Market Profile | Market Overview
    NEW ZEALAND
    Market Performance
2.1 Arrivals Trends
The New Zealand market                                               The growth in arrivals for 2010 was driven                   against 2009. New Zealand businesses
performed well in 2010 with                                          by the holiday segment, representing 40 per                  were not committing to conferences and
                                                                     cent of arrivals and up four per cent on the                 conventions during the global financial crisis
total arrivals showing a solid five                                  previous year. This was due to the prevalence                reflecting in 2010 results, 12 to 18 months
per cent growth in the calendar                                      of low cost airfares for Australia which                     later. Industry feedback indicates that the
year 2010, against the previous                                      has helped stimulate travel. The growth in                   planning cycle now appears to be getting
year. The leisure and business                                       aviation capacity during 2009 and 2010                       shorter for this segment.
segments performed well,                                             also helped stimulate arrivals growth in                     The growth in the leisure and business
                                                                     the market.                                                  sectors bodes well for growing yield out of the
however whilst overall business
                                                                     Business travel, representing 18 per cent                    New Zealand market; as these two sectors
arrivals were up, business travel
                                                                     of arrivals, was up nine per cent for 2010.                  contribute the highest spend per night.
was not for conference and                                           However, conference and convention arrivals
convention purposes.                                                 were down four per cent for the same period




                                                             History of Arrivals from New Zealand into Australia
                                                                           Source: ABS Overseas Arrivals & Departures
                           1,400,000


                           1,200,000
                           1 200 000
 Total Arrivals per Year




                           1,000,000
          ivals




                            800,000


                            600,000
                            600 000
    al




                            400,000


                            200,000


                                  0
                                   Dec80   Dec82   Dec84   Dec86   Dec88     Dec90     Dec92      Dec94     Dec96       Dec98   Dec00   Dec02   Dec04   Dec06   Dec08    Dec10




                                                                                                                                   NEW ZEALAND Market Profile | Market Overview     3
NEW ZEALAND

Market Performance
2.2 Australia’s Market Share

Australia’s Market Share of New Zealand’s Total Outbound
> Outbound travel from New Zealand has increased from 1.3 million trips in 2000, to
  2.0 million in 2010 (forecast based on partial data updated on 2 December, 2010).
> Australia’s share of New Zealand’s total outbound market has
  decreased from 64 per cent in 2000, to 57 per cent in 2010.

                                                                       New Zealand Total Outbound & Australia's Market Share
                                                                                  Source: Tourism Economics (Tourism Decision Metrics)
                                     5,000                                                                                                                                            80.0%
                                             1,283      1,287         1,293       1,374          1,733          1,872         1,861      1,978      1,965      1,917        2,012
                                             63.7%      63.3%         61.1%       61.1%          59.6%          58.7%         57.8%      57.5%      56.7%      57.9%        57.3%
        Outbound Travellers (000s)
                       lers
          tbound ravellers      s)




                                     2,500
                                     2 500                                                                                                                                            40.0%
                                                                                                                                                                                      40 0%
              nd




                                        0                                                                                                                                             0.0%
                                             2000           2001       2002       2003           2004           2005           2006      2007       2008       2009        2010 (f)
                                                                         l    b   d(     )
                                                                     Total Outbound (000s)                                Australia's Share of Total Outbound ( )
                                                                                                                                li     h     f     l    b   d (%)
                                                                                                     Note: 2010 is a forecast value



Top Five Outbound Destinations
> In 2010, New Zealander’s top five outbound destinations were Australia,
  the United States, the United Kingdom, Singapore and Fiji.
> Australia ranked 1st among all outbound destinations.

                                                                          Top Outbound Destinations from New Zealand
                                                                                Source: Tourism Economics (Tourism Decision Metrics)
                                     1 400
                                     1,400


                                     1,200
                           0s)
    Outbound Travellers (000s)




                                     1 000
                                     1,000
                 ellers




                                      800


                                      600
     utbound
         und




                                      400


                                      200


                                        0
                                                Australia             United States          United Kingdom                 Singapore              Fiji                Thailand

                                                2000          2001      2002          2003        2004          2005           2006      2007      2008       2009        2010 (f)
                                                                                                     Note: 2010 is a forecast value




4      NEW ZEALAND Market Profile | Market Overview
NEW ZEALAND

Market Performance
2.3 Main Purpose of Visit and Age




                                                                  Visitors from New Zealand by Age and Purpose of Visit for 2010
                                                                           Source: Australian Bureau of Statistics, Overseas Arrivals & Departures



                                                                                                                                                                                    Other
                                       l         l d
                                   Total New Zealand                                                                                                                                91 987
                                                                                                                                                                                    91,987 (8%)
                                   1,161,662 (100%)                                                                                                                             +
                               +
                                                                                                                                                                                -
                               -

                                                                                                                                                                                    Employment
                                                                                                                                                                                    37,362 (3%)
                                                                                                                                                                                +

                                                                                                                                                                                -


                                                                                                                                                                                    Education
                                                                                                                                                                                    13,150 (1%)
                                                                                                                                                                                +
Total Number of Visitors
                  sitors




                                                                                                                                                                                -
        mber




                                                                                                                                                                                    Business
                                                                                                                                                                                    204,415 (18%)
                                                                                                                                                                                +

                                                                                                                                                                                -


                                                                                                                                                                                    Visit Friend/ Relatives
                                                                                                                                                                                    348,892 (30%)
                                                                                                                                                                                    348 892
                                                                                                                                                                                +

                                                                                                                                                                                -


                                                                                                                                                                                    Holiday
                                                                                                                                                                                    465 856
                                                                                                                                                                                    465,856 (40%)
                                                                                                                                                                                +

                                                                                                                                                                                -



                                        d
                                     Under 15yrs            15 to 29yrs                 30 to 44yrs                     45 to 59yrs                         60yrs & over
                                     107,758 (9%)          207,232 (18%)               283,415 (24%)                   337,402 (29%)                       225,855 (19%)
                           +                           +                         +                                +                                  +

                           -                           -                          -                               -                                  -



                           Note: Rate of Change charts show year on year changes for 2007 to 2010.
                           Above the axis line indicates growth, below the axis line indicates decline.




                                                                                                                                                         NEW ZEALAND Market Profile | Market Overview         5
NEW ZEALAND

Market Performance
2.4 Expenditure and Nights


                                                                      Average Visitor




                                                                 Spend $2,073 per trip
                                                                 Stay 13.7 nights
                                                                 Spend $151 per night




                                                                     Purpose of Visit




            Holiday                            Visiting friends                     Business                              Other
            Spend $2,216 per trip              and relatives                        Spend $1,831 per trip                 (including education
            Stay 12.2 nights                   Spend $1,542 per trip                Stay 6.9 nights                       and employment)
            Spend $181 per night               Stay 12.9 nights                     Spend $265 per night                  Spend $3,801 per trip
                                               Spend $119 per night                                                       Stay 40.5 nights
                                                                                                                          Spend $94 per night




                                                                        Age Groups




            15 to 29 years                     30 to 44 years                       45 to 59 years                        60 years & over
            Spend $2,353 per trip              Spend $1,890 per trip                Spend $2,033 per trip                 Spend $2,091 per trip
            Stay 22.6 nights                   Stay 9.8 nights                      Stay 10.4 nights                      Stay 14.7 nights
            Spend $104 per night               Spend $193 per night                 Spend $196 per night                  Spend $142 per night



                 For more information on international visitors to Australia, see Tourism Research Australia’s International Visitor Profiles.
                                                  Source: TRA International Visitors Survey (2006 to 2010)




6   NEW ZEALAND Market Profile | Market Overview
NEW ZEALAND

Market Performance
2.5 Dispersal




                                                 Nights Spent in Australia by Visitors from New Zealand
                                                    S       International Vi it S
                                                    Source: I t    ti                      2006 20 0 A        Ni ht      Year
                                                                        l Visitors Survey, 2006-2010, Average Nights per Y



                                                                                                                                                             Legend
                                                     Darwin
                                                     117,828k nights                                                                                         0 to 13,275,400
                                                     1% of all nights                                                                                        13,275,400 to 21,586,000
                                                                                                                                                             21,586,000 to 61,368,800
                                                                                                                                                             61,368,800 to 117,828,000
                                                                                                                                                             117,828,000 +
                                                                                                                                                             Not available

                                                                                                                                            Cairns




                                                                                                                                                                               Brisbane
                                                                                                                                                                               1,437,057k nights
                                                                                                                                                                               10% of all nights
                                                                                                                                                                                 Gold Coast




  Perth
  830 555k
  830,555k nights
  6% of all nights
                                                                                                                                                                         Sydney
                                                                                                                                                                         2,949,198k nights
                                                                                                                                                                         22% of all nights

                                                                                                                                                                 ACT
                                                                                                 Adelaide                                                        150,959k nights
                                                                                                                                                                 1% of all nights
                                                                                                 269,302k nights
                                                                                                 2% of all nights

                                                                                                                                                     Melbourne
                                                                                                                                                     1,805,306k nights
                                                Nights         % of Total                                                                            13% of all nights
     Top R i     O t id C it l Citi
     T 6 Regions Outside Capital Cities
                                                (000s)          Nights
     Gold Coast (QLD)                         1,964,341           14%
     Sunshine Coast (QLD)                      744,403             5%
     Tropical North Queensland                 423,055             3%
                                                                                                                                                 Hobart
     Australia's North West (WA)               237,699             2%
                                                                                                                                                 85,880k nights
     Australia's Golden Outback (WA)           217 034
                                               217,034             2%                                                                            1% of all nights
     Northern Rivers (NSW)                     161,782             1%




     Note: The above map shows visitor nights spent in tourism
     regions, as defined by the Australian Bureau of Statistics.
     Please note that there may be one or two key destinations
     within the boundaries of each region where the majority
     of visitor nights are spent.




                                                                                                                                NEW ZEALAND Market Profile | Market Overview                       7
NEW ZEALAND

Market Performance
2.6 Growth Outlook
The Tourism Forecasting Committee                                           The 2020 Tourism Industry Potential is
Forecast Issue 2 (November 2010) estimates                                  a rallying call to Australian industry and
that arrivals from New Zealand will increase                                governments to focus on increased returns        $140 billion
by 2.4 per cent in 2011 and 2.4 per cent in                                 from the tourism industry. The Potential,      Australian
2012, with a compound annual growth rate
of 2.5 per cent between 2009-2014.
                                                                            focused on overnight visitor expenditure,
                                                                            sets scenarios for growth for priority
                                                                                                                           Tourism
                                                                                                                              by 2020
                                                                            markets that exceed TFC forecasts. Globally,
                                                                            by 2020 the Potential for Australian tourism
                                                                            is estimated to be between $115 billion and
                                                                            $140 billion in overnight expenditure.
                                                                            There was $2.161 billion in total
                                                                            expenditure from New Zealand in 2010.
                                                                            The Tourism Industry Potential estimates
                                                                            that the New Zealand market has the
                                                                            potential to grow to between $3.413
                                                                            billion and $4.157 billion in total
                                                                            expenditure by 2020.


                                   Global Potential for Overnight Tourism Expenditure in Australia by 2020
                                       Source: International Visitors Survey & projection by BDA Marketing Planning
                     $150

                                      Trend
                                      Potential
                     $130




                     $110
$Billions, nominal




                      $90




                      $70




                      $50




                      $30
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8                     NEW ZEALAND Market Profile | Market Overview
 NEW ZEALAND
 Aviation
3.1 Aviation Summary
> The trans-Tasman aviation route is                        > Both Jetstar and Pacific Blue added                                            Aviation Summary
  Australia’s busiest in terms of direct                      capacity on the trans-Tasman route
                                                                                                                              Major carriers              Air New Zealand,
  capacity and frequency to Australia. It                     in 2010.
                                                                                                                                                          Qantas, Pacific
  is a highly competitive route with five                   > There is a large range of airfares between                                                  Blue, Emirates,
  major airlines operating services to all                    Australia and New Zealand depending                                                         Jetstar
  major Australian ports, except Darwin.                      on the route and level of service. Whilst
> Very cheap flights have                                     there are some very cheap flights to                            Seasonal peaks              No clear seasonal
  stimulated tourism between                                  destinations across Australia with low                                                      peaks – fairly
  New Zealand and Australia.                                  cost carriers, the recent launch of the                                                     steady capacity
                                                              AirAsia-X service from Christchurch to                                                      year round
> Jetstar launched Melbourne to
  Auckland, Melbourne to Queenstown                           Kuala Lumpur for NZD99.00 one way is                            Australian cities           Adelaide,
  and Gold Coast to Queenstown                                opening up this region as a competitor.                         serviced                    Brisbane, Cairns,
  services in December 2010.                                                                                                                              Gold Coast,
                                                                                                                                                          Melbourne,
                                                                                                                                                          Perth, Sydney
                                                                                                                              Direct seats                3,643,100 seats
                                                                                                                              (calendar year 2010)        (up 2%)
                         Cairns: NZ(3) DJ(2) JQ(3)
                                                                                                                              Load factors                76% (up 2%)
                                                              Gold Coast:                                                     (calendar year 2010)
                                                              NZ(7) JQ(11) DJ(7)
                                                                                                                              Percentage change           16%
                 Brisbane: NZ(31) DJ(32) QF(14) JQ(7) EK(7)                                                                   in average airfares
                                                                                                                              Nov 2010 against
      Perth: NZ(7)                        Sydney: NZ(61)                                             Auckland: NZ(86)         Nov 2009
                                          QF(58) EK(14)                                              EK(21) QF(69)
                     Adelaide: NZ(5)
                                          JQ(14) DJ(17)                                              DJ(30) JQ(24)            Percentage change           -6%
                                                                                                     Hamilton: DJ(4)          in average airfares
                      Melbourne: NZ(36) EK(7)                                                         Rotorua: NZ(2)
                          QF(29) DJ(14) JQ(16)                                                                                Nov 2010 against
                                                                                                 Wellington: NZ(23)
                                                                                                 QF(21) DJ(11)                Sep 2008
       Key
                                                                                             Christchurch: NZ(31)
       ( ) Direct services per week                                Queenstown*:              JQ(23) DJ(21) QF(7) EK(7)        Sources:
       NZ: Air New Zealand, QF: Qantas,                     QF(4) NZ (4) DJ(2) JQ(4)                                          Department of Immigration and Citizenship
       EK: Emirates, DJ: Pacific Blue                                                  Dunedin:
                                                                                                                              Bureau of Infrastructure, Transport and
       NB. Direct services from Lan Airlines,                                          NZ(2) DJ(4)
                                                                                                                              Regional Economics
       Aerolineas, Royal Brunei Airlines and China
       Airlines haven’t been included in the                                                                                  International Air Transport Association
       diagram due to the minimal carriage of                  Source: International Air Transport
       NZ tourists to Australia                                Intelligence, AirportIS Northern Summer
       *Capacity is highly seasonal, fluctuating               (27 March 2011-29 October 2011)
       from 9 weekly services to 29 weekly                     2011 schedules and Origin Destination
       services during July and August                         traffic for year ended November 2010




                                                              Key airlines and share of passengers in 2010                    New Zealand Seats by Carrier
                                                                                                                                        Year End Dec10

   Airline                             2006          2007          2008            2009          2010
                                                                                                                                              48%
     Air New Zealand                     42%         42%            47%             46%              48%
     Qantas                              21%         19%            19%             17%              16%
     Pacific Blue                        7%           8%            11%             15%              15%                         4%
                                                                                                                                                         16%
     Jetstar                             6%           6%              6%               8%             9%                           8%
     Emirates                            9%          11%            11%                9%             8%                                9%      15%
     Other                               16%         14%              6%               5%             4%

Table includes direct and indirect capacity.
Source: Department of Immigration and Citizenship




                               Airline
                               Ai li                                       2006              2007                2008             2009         2010
                                                                                                                              NEW ZEALAND Market Profile | Market Overview    9
                           1   Air New Zealand                                     42%                42%               47%              46%             48%

                           2   Qantas                                              21%                19%               19%              17%             16%
NEW ZEALAND

Aviation
3.2 Aviation Forecast
> Aviation capacity growth increased on                       > The access from Auckland to                      > China Southern and China Airlines have
  the trans-Tasman route in 2010, with                          Melbourne and Cairns will                          announced plans to launch services
  stronger growth expected in 2011.                             continue to improve in 2011.                       connecting Australia and New Zealand
> Consolidation and interline agreements,                     > While Jetstar and Pacific Blue added               such as the China Southern Guangzhou
  such as the Air New Zealand and Pacific                       capacity in 2010, all carriers including           to Auckland and Melbourne service.
  Blue proposed alliance, and the potential                     Air New Zealand and Qantas are                   > Air New Zealand has 25 aircraft on
  reclassification of trans-Tasman services                     forecast to grow capacity in 2011.                 order, but only nine deliveries are
  as domestic routes are expected to                          > Jetstar plans to launch Cairns to Auckland         expected between 2011 and 2013.
  improve the sustainability of flights.                        services in April 2011. Jetstar is also
> Opportunities to further stimulate                            increasing its New Zealand domestic
  demand exist as airlines improve                              networks which will further improve
  access to relatively new Australian                           access to regional centres in New Zealand.
  ports like Perth, Adelaide and Cairns
  and introduce new product such as
  the A380 and flat beds on the route.



                                                  New Zealand Outbound Seats to Australia
                 Year End Dec09                                     Year End Dec10                          Year End Dec11 (f)               Auckland
                                                                                                                                             Christchurch
                                                                                                                                             Wellington
                             61%                                             61%                                         63%                 Queenstown
     0%
                                                    0%                                                                                       Hamilton
     1%                                                                                          0%
                                                     1%                                                                                      Dunedin
     1%                                                                                            1%                                        Rotorua
                                                    1%
     2%        11%                                                                              1%
                                                                  11%                                      11%
                                                    2%
                           24%                                             23%                  3%                     20%




                                                  New Zealand Inbound Seats to Australia

                Year End Dec09                                     Year End Dec10                          Year End Dec11 (f)               Sydney
                                                                                                                                            Brisbane
                     44%                                             45%                                         41%                        Melbourne
                                                                                                                                            Gold Coast
                                                                                                                                            G ld C t
     1%                                             1%                                           1%                                         Perth
     1%                                                                                                                                     Cairns
                                                      1%                                             2%                        25%
      2%                           25%                                           24%                                                        Adelaide
                                                    2%                                               2%
          4%                                             5%
                     23%                                                                              5%
                                                                     22%                                          24%




           Pie charts refer to direct capacity.
           Source: Airport Coordination Australia, Centre for Asia Pacific Aviation
           Bureau of Infrastructure, Transport and Regional Economics
           International Air Transport Association




10    NEW ZEALAND Market Profile | Market Overview
 NEW ZEALAND
 Distribution
4.1 Distribution System
The New Zealand distribution system is undergoing significant change, as online bookings for short haul
travel grow rapidly. In response, traditional distributors are increasing their online capabilities. In recent times,
bookings to Australia have been driven by low airfares, leading to a trend where consumers book airfares first
and ground components later, rather than traditional package tours.

Wholesalers/ Large Agents                       Retail Agents                                   Aussie Specialists
Commission Level: 20% to 25%                    Commission Level: 10% to 12%                    > The Aussie Specialist Program has
> New Zealand has four major wholesalers        > There are approximately 450 listed retail       been discontinued in New Zealand.
  who work in alliance with the retail            travel agencies employing over 3,000
                                                                                                Inbound Tour Operators
  agencies. They are House of Travel Product,     travel consultants in New Zealand.
                                                                                                > The New Zealand market does not
  Go Holidays (Stella Group), Infinity          > The main listed retail                          use inbound tour operators.
  Holidays (Flight Centre Group) and Air          brands are as follows:
  New Zealand Holidays (Air New Zealand
                                                  • Flight Centre with over 141                 Business events
  Group). There are also smaller and more
                                                    retail stores and 45 brokers;               > New Zealand is the largest inbound
  specialised wholesalers in the New
                                                                                                  conference and incentive market for
  Zealand market such as AIM Holidays,            • House of Travel with 74 agencies;
                                                                                                  Australia. The lead time for travel planning
  Lifestyle Holidays and AOT Holidays.            • United Travel with 70 branded                 has traditionally been 12 to 18 months,
> Whilst there are preferred arrangements           and non-branded agencies;                     though more recent trends show this is
  in place, wholesalers are open to               • Harvey World Travel with 55 agencies;         shortening to as little as 6 months, with
  deal with any retail agencies with                                                              a strong consideration for Australia.
                                                  • First Travel Group with 44 non-
  the exception of Air New Zealand
                                                    branded affiliated agencies;                > There are a number of large companies
  Holidays and Infinity Holidays.
                                                  • Travel Smart with 28 branded and              including HOT Events, Go Conference &
Special Interest                                    non-branded agencies; and                     Incentive Management, Ci Events, Gilpin
> Operators who specialise in niche                                                               Travel and Williment Event Management
                                                  • Mondo with 32 Mondo, Mondo
  segments, such as events and                                                                    specialising in this sector as well as many
                                                    Travel Connect and Mondo Business
  sports travel, include the Experience                                                           boutique incentive houses, corporate
                                                    agencies plus 45 brokers.
  Group, Williment Sports Travel                                                                  travel agents and professional conference
                                                > The largest listed broker company is Travel     organisers throughout New Zealand.
  and Showbiz Events & Travel.
                                                  Managers with approximately 150 listed
                                                                                                > The Pacific Area Incentive and Conference
                                                  brokers, followed by The Travel Brokers
                                                                                                  Expo (PAICE) is the key trade show to
                                                  organisation with 74 travel brokers.
                                                                                                  showcase Australian conference and
                                                > There are a total of 21 Air New Zealand         incentive product. Held annually in
                                                  Holiday stores throughout New Zealand,          Auckland, over 150 conference and
                                                  and a contact centre of approximately           incentive planners attend this one-day
                                                  400 travel consultants selling direct           show to meet and learn more about
                                                  to New Zealand, Australia, the United           what is available in Australia for their
                                                  States, Canada and the United Kingdom.          clients. Information about this event
                                                                                                  can be found at www.paicexpo.co.nz.
                                                Online
                                                Commission Level: 10% to 12%
                                                > Online bookings for international
                                                  travel continue to grow, with 66 per
                                                  cent of all New Zealand visitors to
                                                  Australia booking their travel online.
                                                > Key travel websites include Harvey World
                                                  Travel, Mix and Match (House of Travel),
                                                  Air New Zealand, Qantas, Webjet, Jason’s
                                                  Travel Media, Ezibed, and Expedia.




                                                                                                 NEW ZEALAND Market Profile | Market Overview    11
NEW ZEALAND

Distribution

Brochures and Rates
                                                                           Brochures and Rates
             Brochure Validity                              > Varies across wholesale groups

             Brochure                                       > Varies across wholesale groups
             Space Policy
             Setting Rates                                  > Varies across wholesale groups

             Standard Rate                                  > Varies across wholesale groups
             Validity Periods



                                                                                         Seasonality of New Zealand Arrivals
                                                                                       Source: ABS Overseas Arrivals & Departures, 2006 to 2010

                                             40%
                                          more than
Variation from Monthly Average Arrivals




                                             the
                                           average
                                             20%
                     y
                 nthly    rage




                                               0%
             m




                                             -20%
                                          less than
                                             the
                                           average

                                             -40%
                                                      Jan        Feb         Mar         Apr         May            Jun           Jul             Aug         Sep   Oct   Nov           Dec
                                                                         ll
                                                                        All Purposes                            i
                                                                                                              Leisure                                 i
                                                                                                                                                   Business               Other
                                                                                                                                                                          Oth
                                                                       Avg: 93,321                            Avg: 65,166                           Avg: 16,933           Avg: 50,028



Seasonality
> The peak booking period for travel
  to Australia is April to August,
  the New Zealand winter.
> The peak travel period to Australia
  is September to October; however
  arrivals are relatively steady year
  round. The lowest figures for arrivals
  into Australia are traditionally
  during January and February.1
Source:
1
        Tourism Research Australia,
        International Visitor Survey, June 2010.




12                                        NEW ZEALAND Market Profile | Market Overview
NEW ZEALAND

Distribution
4.2 Trends
Distribution                                   > Further to this, consumers are purchasing     > During August 2010, the top travel
> With the majority of New Zealanders            their airfares online. Ground portions are      websites visited by New Zealand
  booking travel to Australia online,            being purchased either online (directly         consumers included: Air New
  traditional retail groups and airlines         to product) or through retail agencies          Zealand, House of Travel, Jetstar,
  are increasing their online booking            for complex or regional itineraries.            and followed by Webjet, Wotif, Trip
  capability to meet demand.                   > In the last year, 66 per cent of New            Advisor, and Stuff. These websites
> International airline services operate         Zealand consumers that travelled                represent the most popular travel sites,
  regularly from Auckland, Wellington            to Australia booked alone, online               ranked by the number of visits.4
  and Christchurch. Limited services are         and unassisted by a travel agent.             > During August 2010, the top three airline
  available from the South Island centres of     Consumers used search engines, other            travel booking websites for New Zealand
  Queenstown and Dunedin, and the North          travellers’ recommendations, television         consumers based on the number of visits
  Island centres of Hamilton and Rotorua.        advertising and travel agents, as their         were www.airnewzealand.co.nz,
> Aggressively priced trans-Tasman airfares      main sources of information.2                   www.jetstar.com and
  have positioned Australia well as a travel   > New Zealand consumers typically                 www.virginblue.co.nz.5
  destination for New Zealand consumers.         book their flights to Australia one
                                                 to three months prior to travelling.          Sources:
Planning and Purchase of Travel                  The reduced lead time is a result             1
                                                                                                   New Zealand Activation Study 2009/2010 #1211
> Airlines are driving a component buying        of regular fare sales to Australia by         2
                                                                                                   New Zealand Activation Study 2009/2010 #1211
   trend, where consumers buy airfares first     the airlines and travel retailers.3
   and ground later, rather than traditional
                                                                                               3
                                                                                                   Tourism Research Australia, International Visitor
                                               > Nearly all consumers use internet travel          Survey, April 2010
   package holidays. This trend was
                                                 websites to research their holidays.
   highlighted in a recent consumer research                                                   4
                                                                                                   Hitwise New Zealand, August 2010
                                                 Traditional distribution channels are
   study undertaken in New Zealand and is                                                      5
                                                                                                   Hitwise New Zealand, August 2010
                                                 also still a key source of information on
   echoed by New Zealand retail chains.1
                                                 holiday destinations and products.




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


4.4 Key Trade and Consumer Events
                                                      Key Trade and Consumer Events
 Event                                                    Location                                     Date
 Flight Centre Travel Expo                                Auckland, Wellington, Christchurch           February, July
 State Tourism Organisation Road Shows                    Various                                      Various
 State Tourism Organisation Workshops                     Various                                      Various




                                                                                                   NEW ZEALAND Market Profile | Market Overview        13
 NEW ZEALAND
 Contacts
Tourism Australia                               State and Territory                   Austrade
Tourism Australia’s activities in New Zealand   Tourism Organisations
                                                                                      Australian Consulate-General
are managed from the Tourism Australia
                                                South Australian Tourism Commission   PricewaterhouseCoopers Tower
Auckland office.
                                                Level 3, 125 The Strand               Level 7
Tourism Australia                               Parnell, Auckland                     186-194 Quay Street
Level 3 125 The Strand                          Tel +64 9 368 5381                    Auckland
Parnell, Auckland                               Fax +64 9 368 5380                    Tel +64 9 921 8819
Tel +64 9 915 2826                                                                    Fax +64 9 921 8820
Fax +64 9 915 2881                              Tourism New South Wales
                                                Level 3, 125 The Strand
                                                Parnell, Auckland
For trade enquiries please contact
                                                Tel + 64 9 307 7040
Amanda Hall (in New Zealand)
                                                Fax + 64 9 366 6173
Tel +64 9 915 2826
ahall@tourism.australia.com                     Tourism Queensland
                                                Level 2
                                                1 Teed Street
                                                Newmarket, Auckland
                                                Tel + 64 9 374 1780
                                                Fax + 64 9 374 1781

                                                Tourism Victoria
                                                Level 3, 125 The Strand
                                                Parnell, Auckland
                                                Tel +64 9 379 0425
                                                Fax +64 9 379 4361

                                                Tourism Western Australia
                                                Representative office
                                                419 Southlands Place
                                                Hastings
                                                Tel +64 6 878 9952
                                                Fax +64 6 878 9952




14   NEW ZEALAND Market Profile | Market Overview

				
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