AUCKLAND DESTINATION OVERVIEW

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1 AUCKLAND DESTINATION OVERVIEW JUNE 218 An in-depth overview of Auckland s visitor economy from the latest arrival, accommodation, spend and cruise data through to past five-year commentary. Prepared July 218, by the Research and Evaluation Unit

2 2 CONTENTS KEY FINDINGS 3-4 VISITOR ARRIVALS DATA INTERNATIONAL VISITORS REASON FOR VISIT 6 MARKET 7-11 AUCKLAND COMPARED TO OTHER PORTS 12 DOMESTIC VISITORS REASON FOR VISIT 13 ORIGIN OF VISITORS 14 ACCOMMODATION DATA INTERNATIONAL DOMESTIC GUEST NIGHTS AVERAGE LENGTH OF STAY INTERNATIONAL DOMESTIC 2 SPEND DATA INTERNATIONAL DOMESTIC TOURISM SPEND PRODUCT 24 INTERNATIONAL SPEND MARKET AVERAGE SPEND BY VISITOR PER COUNTRY 27 FIVE YEAR TRENDS IN KEY MARKETS REASON FOR VISIT BY MARKET CRUISE DATA VISITOR ARRIVALS AND SPEND 35

3 3 Key Tourism Data 2.69 m 5.59 m 7.32 m International Visitors YE June % Domestic Overnight Visits YE June % Commercial Guest Nights YE May % $4.36 b $4. b $8.36 b International Tourism Spend YE June % Domestic Tourism Spend YE June % Total Tourism Spend YE June %

4 4 KEY FINDINGS INTERNATIONAL The year to June 218 saw a record breaking 2.69m international visitor arrivals, an increase of 3.1% on the previous year. The month of June saw 148,864 international visitors, down 1.4% on the previous June. Holiday visitor arrivals contributed the most to the annual growth, numbers were up 3.% on the previous 12 months. Arrivals from China saw the biggest growth, up 11.6% on the previous year. For the year ending May 218, international guest nights in commercial accommodation (3.48m) were up 3.2% on the previous year. International spend was $4.36b, up 8.4% for the year. In the year to June 218, Chinese visitors spent $914m, up 15.2% on the previous year. Spending from the UK ($35m) was up 18.1%, the US ($375m) up 3.4% and Australia ($828m) up 3.7%. DOMESTIC There were 5.59m overnight visits by domestic visitors in Auckland in the year to June 218, up 1.7% on the previous year. Visiting friends and relatives (VFR) was the main reason for domestic visitation to Auckland, with 2.86m overnight visits recorded for the year to June 218 (up 1.3%). For the year ending June 218, the highest visitation of all regions to Auckland was from Waikato-based visitors (92,628 overnight visits), with an decrease of 4.9% on the previous year. There was strong growth from Wellington visitors (556,844 visits), up 16.9% compared to the previous year. For the year ending May 218, domestic guest nights in commercial accommodation (3.84m) were down 5.4%. Domestic spend was $4.b and had increased by 6.8%. OVERALL There were 7.32m guest nights in commercial accommodation in Auckland in the year to May 218, down 1.5% on the previous year. In the year to June 218, total tourism spend in Auckland was $8.36b, up 7.6% on the previous year.

5 Auckland Tourism Visitor Arrivals Data 5

6 6 International visitor numbers continue to rise, with 3.1% more visitors in the year to June 218 4, 35, 3, 25, International visitor arrivals in Auckland, reason for visit YE % change The year to June 218 saw a record breaking 2.69m international visitor arrivals, an increase of 3.1% on the previous year. 2, 15, +3.1% The month of June saw 148,864 international visitors, down 1.4% on the previous June. 1, 5, +3.% +3.4% Holiday visitor arrivals contributed the most to the annual growth (1.33m), numbers were up 3.% on the previous 12 months. June holiday visitor numbers were down 18.8% compared with June % Business Holiday/Vacation Visit Friends/Relatives TOTAL ALL TRAVEL PURPOSES Visitor arrivals vs. previous year / YE June , % YE June 218 2,69, % Source: ITM data, Statistics NZ

7 7 Strong growth from the Chinese market in the year to June 218, up 11.6% There was strong growth for the Chinese market up 11.6% for the year end June 218 with a 3.1% increase compared to the month of June 217. There was also strong year on year growth for the year from Korea (12.6%) and the US (1.9%). There was a year on year decrease in the UK market (5.3%) and June arrivals were down 76.5% compared with the previous June. These decreases may be due to the World Masters Games and Irish and British Lions Tour events during April to July in , 12, 1, 8, 6, 4, 2, Visitor arrivals in Auckland by key markets Australia United Kingdom China, People's Republic of United States of America Source: ITM data, Statistics NZ

8 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M6 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M month visitor arrivals from individual markets 7, Australia 5, China 6, 5, 45, 4, 35, 4, 3, 3, 25, 2, 2, 15, 1, 1, 5, Business Holiday/Vacation Visit Friends/Relatives Business Holiday/Vacation Visit Friends/Relatives Visitor arrivals vs. previous year / YE Visitor arrivals vs. previous year / YE June , % YE June , % June , % YE June , % Source: ITM data, Statistics NZ

9 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M6 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M month visitor arrivals from individual markets 9, Japan 9, Korea 8, 8, 7, 7, 6, 6, 5, 5, 4, 4, 3, 3, 2, 1, 2, 1, Business Holiday/Vacation Visit Friends/Relatives Business Holiday/Vacation Visit Friends/Relatives Visitor arrivals vs. previous year / YE June 218 3,68-7.3% YE June ,176.9% Visitor arrivals vs. previous year / YE June 218 3,72 1.6% YE June , % Source: ITM data, Statistics NZ

10 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M6 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M month visitor arrivals from individual markets 1, Germany 25, UK 9, 8, 2, 7, 6, 15, 5, 4, 1, 3, 2, 5, 1, Business Holiday/Vacation Visit Friends/Relatives Business Holiday/Vacation Visit Friends/Relatives Visitor arrivals vs. previous year / YE Visitor arrivals vs. previous year / YE June 218 1, % YE June , % June 218 4, % YE June ,72-5.3% Source: ITM data, Statistics NZ

11 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M6 216M7 216M8 216M9 216M1 216M11 216M12 217M1 217M2 217M3 217M4 217M5 217M6 217M7 217M8 217M9 217M1 217M11 217M12 218M1 218M2 218M3 218M4 218M5 218M month visitor arrivals from individual markets 7, Canada 3, US 6, 5, 4, 25, 2, 3, 15, 2, 1, 1, 5, Business Holiday/Vacation Visit Friends/Relatives Business Holiday/Vacation Visit Friends/Relatives Visitor arrivals vs. previous year / YE Visitor arrivals vs. previous year / YE June 218 1,6 4.2% YE June ,96 1.4% June , % YE June , % Source: ITM data, Statistics NZ

12 213M6 213M8 213M1 213M12 214M2 214M4 214M6 214M8 214M1 214M12 215M2 215M4 215M6 215M8 215M1 215M12 216M2 216M4 216M6 216M8 216M1 216M12 217M2 217M4 217M6 217M8 217M1 217M12 218M2 218M4 218M6 Rolling 12 month arrivals 12 Auckland has seen 7.5% growth in international visitor arrivals per annum over the last five years Auckland has seen an average of 7.5% growth in international visitor arrivals per annum over the last five years (up 3.1% in the last year). Queenstown saw the fastest growth of the four destinations an average of 19.% per annum over the last five years (up 11.1% in the last year). 3,, 2,5, 2,, 1,5, 1,, 5, 12 month rolling visitor arrivals Christchurch has seen an average of 7.% growth in international arrivals per annum over the last five years (up 8.5% on 217). Wellington saw an average of 3.1% growth per annum over the five year period (down 4.3%). Year End Auckland airport Christchurch airport Wellington airport Queenstown airport Source: ITM data, Statistics NZ

13 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun The year to June 218 saw 5.59m domestic overnight visits, up 1.7% on the previous year 6,, 5,, 4,, Domestic overnight visits in Auckland, reason for visit YE % change 1.7% 1.3% The year to June 218 saw a substantial 5.59m overnight visits from domestic visitors, an increase of 1.7% on the previous year. Visiting friends and relatives (VFR) was the main reason for domestic visitation to Auckland, with 2.86m overnight visits recorded for the year to June 218 (up 1.3%). Overnight visits for domestic visitors visiting Auckland for holiday purposes were also high (1.15m overnight visits), up 4.8% on the previous June. 3,, 2,, 1,, - 4.8% 15.1% -14.6% Business Holiday Other Total VFR Visitor arrivals vs. previous year / YE YE June 218 5,586,57 1.7% Source: AA Traveller Monitor

14 14 Strong growth for visitors from Wellington to Auckland, up 16.9% For the year ending June 218, the highest visitation of all regions to Auckland was from Waikato-based visitors (92,628 overnight visits), with a decrease of 4.9% on the previous year. Overnight visits from the Bay of Plenty were also high (717,573 visits), up 5.1% on June 217. There was strong growth from Wellington visitors (556,844 visits), up 16.9% compared to the previous year. In contrast, the year to June 218 saw a decline in visitors from Northland (631,332 visits, down 4.8%) and Canterbury (295,825 visits, down 12.1%). 1,2, 1,, 8, 6, 4, 2, - Domestic overnight visits by visitor origin Bay of Plenty Canterbury Northland Waikato Wellington Source: AA Traveller Monitor

15 Auckland Tourism Accommodation Data 15

16 Guest nights Guest nights 16 There were 7.32m commercial guest nights in Auckland in year to May 218 8, 7, 6, 5, 4, 3, 2, 1, Domestic vs. International guest nights Auckland There were 7.32m guest nights in commercial accommodation in Auckland in the year to May 218, down 1.5% on the previous year. For the year ending May 218, international guest nights (3.48m) were up 3.2% on the previous year, while domestic guest nights (3.84m) were down 5.4%. Domestic guest nights International guest nights New Zealand For the month of May 218, there were 3k domestic guest nights in Auckland (down 6.5% on the previous May) and 257k international guest nights (down.4%). For NZ as a whole, international guest nights grew by 4.9% and domestic guest nights increased 1.4% on the previous year. 6,, 5,, 4,, 3,, 2,, 1,, Domestic guest nights International guest nights Source: Statistics NZ Accommodation Survey *CAM data is only available after a two month lag.

17 Rolling 12 month Guest Nights 17 Auckland s average growth was 2.2% over the last five years (down 1.5% on the last year) Otago had the fastest growth in commercial guest nights at 6.1% compound average annual growth over the last five years (up 4.% on the last year). 8,, 7,, 6,, 5,, 4,, 3,, Rolling 12 month guest night numbers 2,, Auckland s average growth over the last five years was 2.2% (down 1.5% on the last year). 1,, Canterbury had the second fastest growth at 5.6% over the last five years (up 9.9% on the last year). Wellington s five year growth was 2.9% (up 1.8% in the last year). Year End Auckland Wellington Canterbury Otago Source: Statistics NZ Accommodation Survey

18 Guest nights 18 Average length of stay for VFR was high at 11.5 nights for the year to March 218 (up 21.1%) Average length of stay YE March, International No. of nights 36.9 In the year to March 218, average length of stay was highest for those visiting Auckland for educational or study reasons (up 6.3%), in comparison to March Average length of stay for VFR was high (at 11.5 nights) for the year to March 218, up 21.1% on the previous year. In contrast, average number of nights per visitor in Auckland were down for holiday (down 28,8%), business (down 7.9%) and conference or convention (down 8.2%) visitors compared to March YE Mar 14 YE Mar 15 YE Mar 16 YE Mar 17 YE Mar 18 Holiday VFR Business Education or study Conference or convention Other reason Source: IVS MBIE. Please note, this data is published on a quarterly basis.

19 19 For YE March 218, on average Chinese visitors stayed 6.6 nights in Auckland, up 16.% In the year to March 218, the average length of stay for Chinese visitors was 6.6 nights, up 16.% on the previous year. Average length of stay was also up for Australia (up 6.% to 5.5 nights) and the US (up 6.% to 5.2 nights). UK visitors had the highest average length of stay (7.7 nights), although this was down significantly (51.%) on the previous year. Average length of stay was also high for Germany (7.5 nights) and Canada (7.3 nights). Country YE Mar 14 YE Mar 15 YE Mar 16 YE Mar 17 YE Mar 18 % change Australia % China % US % UK % Germany % Canada % Japan % Korea % Source: IVS MBIE. Please note, this data is published on a quarterly basis.

20 Av. Length of stay 2 On average, domestic visitors stayed 2.2 nights in Auckland for the year ending June 218 On average, domestic visitors stayed in Auckland for 2.2 nights for the year ending June 218. There was no change on the previous year Average Length of stay YE June, Domestic 2.2 There has been a slight downward trend in the average length of stay for domestic visitors to Auckland, over the last 24 months Source: AA Traveller Monitor

21 Auckland Tourism Spend Data 21

22 1/7/215 1/8/215 1/9/215 1/1/215 1/11/215 1/12/215 1/1/216 1/2/216 1/3/216 1/4/216 1/5/216 1/6/216 1/7/216 1/8/216 1/9/216 1/1/216 1/11/216 1/12/216 1/1/217 1/2/217 1/3/217 1/4/217 1/5/217 1/6/217 1/7/217 1/8/217 1/9/217 1/1/217 1/11/217 1/12/217 1/1/218 1/2/218 1/3/218 1/4/218 1/5/218 1/6/218 Monthly spend ($m) % increase in tourism spend in the year to June 218 $6 $5 Monthly tourism expenditure in Auckland In the year to June 218, total tourism spend in Auckland was $8.36b, up 7.6% on the previous year. International spend was $4.36b, up 8.4% for the year. Domestic spend was $4.b, and had increased by 6.8%. The month of June saw gains in domestic spend which was up 1.4% while international spend was down 1.1%. $4 $3 $2 $1 $ Domestic International Source: MBIE MRTEs. Please note MRTEs are provisional until the TSA for the March year are published and are frequently revised always use the most recent data available.

23 23 The month of June saw $39m domestic spend, a 1.4% increase on the previous June 3% 25% 2% % Change in tourism expenditure in Auckland International spend in June decreased by 1.1% (to $261m) compared with the same month in 217. Domestic spend was $39m for the month, up 1.4% on June 217. Overall, this resulted in a.3% increase in total tourism spend ($57m) in Auckland for June 218 compared with the previous year. 15% 1% 5% % +1.4% Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun -1.1% -5% -1% Domestic International Source: MBIE MRTEs. Please note MRTEs are provisional until the TSA for the March year are published and are frequently revised always use the most recent data available.

24 Spend ($m) 24 International and domestic tourism spend by product for June International and domestic monthly tourism expenditure in Auckland, by product Spend ($m) % change Accommodation services % Cultural, recreation, and gambling services % Food and beverage serving services % Other passenger transport % Other tourism products % Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products % % Retail sales - other % Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Source: MBIE MRTEs. Please note MRTEs are provisional until the TSA for the March year are published and are frequently revised always use the most recent data available.

25 12 month spend ($m) 25 Chinese visitors spent $914m in the year to June 218, up 15.2% on the previous year $1,2 $1, Rolling 12 month tourism expenditure in Auckland China Australia Australian tourism spend was up (3.7%) on the previous year to $828m. Spend from the US in the year to June 218 was also up 3.4% to $375m. $8 $6 Rest of Asia UK USA There were positive year on year changes for the UK (up 18.1% to $35m) and Germany (up 8.6% to $137m). $4 Rest of Europe Chinese visitors spent $914m in the year to June 218, up 15.2% on the previous year. $2 Germany $ Year End Source: MBIE MRTEs. Please note MRTEs are provisional until the TSA for the March year are published and are frequently revised always use the most recent data available.

26 Monthly spend ($m) 26 Tourism spend from the Chinese market for June 218 was up 5.% on the previous June $14 $12 $1 Monthly tourism expenditure in Auckland, by market % change For the month of June, spend from Australia ($5.9m) was down 12.9% compared to June 217. Spend from China was $6.4m, up 5.% on the previous June. $8 $6-12.9% Australia China USA In contrast to June 217, spend from the UK ($11.7m) was down 51.7%, and the US ($2.4m) was also down.8% for June 218. $4 5.% UK -.8% $2 $ 1/7/216 1/1/216 1/1/217 1/4/217 1/7/217 1/1/217 1/1/218 1/4/ % Source: MBIE MRTEs. Please note MRTEs are provisional until the TSA for the March year are published and are frequently revised always use the most recent data available.

27 Spend ($) 27 Average spend for German visitors was $1,891 per visitor, up 13.3% on the previous June The average spend for Chinese visitors was $2,376 per visitor in the year to June 218, up 3.2% on the previous year. $3, $2,5 $2, Average tourism spend by visitor, per country Australia China Japan Korea Germany Average spend from UK visitors was up 24.7% to $2,49 per visitor. $1,5 UK Canada Average spend for Australian visitors was up (4.9% to $984 per visitor) on the previous year. $1, US There were positive year on year changes for Germany (13.3% to $1,891 per visitor) and the US (1.5% to $1,41 per visitor). $5 Source: MBIE MRTEs. Please note MRTEs are provisional until the TSA for the March year are published and are frequently revised always use the most recent data available.

28 Auckland Tourism Five year trends in key markets 28

29 International Visitor Arrivals 29 Five year visitor arrivals to Auckland, YE June 3,, International visitor arrivals to Auckland from all countries 2,5, 2,69,112 2,, 1,5, 1,, 5, ,328, , ,312 58,64 53,94 Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES Source: ITM data, Statistics NZ

30 3 Five year visitor arrivals from individual markets, YE June 9, 8, Australia 841,776 45, 4, China 384,784 7, 35, 6, 3, 289,94 5, 25, 4, 382,544 2, 3, 238,768 2, 14,224 1, 25,984 4, Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES 15, 1, 48,816 5, 11,728 1, ,912 Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES Source: ITM data, Statistics NZ

31 31 Five year visitor arrivals from individual markets, YE June 1, Japan 8, Korea 9, 8, 7, 6, 92,176 61,88 7, 6, 5, 69,952 47,712 5, 4, 4, 3, 3, 2, 1, 1,752 6,88 5, , 2, 1, 1,816 2,928 2, ,248 Business Holiday/Vacation Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES Education TOTAL ALL TRAVEL PURPOSES Source: ITM data, Statistics NZ

32 32 Five year visitor arrivals from individual markets, YE June 8, Germany 2, UK 7, 6, 5, 72,432 52,88 18, 16, 14, 12, 17,72 4, 3, 2, 9,856 1, 2,592 1, Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES 1, 81,376 8, 72,64 6, 4, 8,288 2, 1, Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES Source: ITM data, Statistics NZ

33 33 Five year visitor arrivals from individual markets, YE June 6, 5, Canada 56,96 3, 25, US 267,824 4, 2, 168, 3, 29,872 15, 2, 19,152 1, 53,488 1, 2,592 5, 19, Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES 7, ,2 Business Holiday/Vacation Visit Friends/Relatives Conventions/conferences Education TOTAL ALL TRAVEL PURPOSES Source: ITM data, Statistics NZ

34 Auckland Tourism Cruise Data 34

35 +7% + 11% + 8% $(m) + 6% + 25% 35 Cruise Tourism - Visitor arrivals and spend in Auckland Cruise visitor arrivals to Auckland Cruise spend in Auckland 35, 3, 25, 2, 179,8 192,2 213,9 23,8 244,5 36, $419 Passenger spend Crew spend Vessel spend Total 15, 2 Value add 1, 1 5, 212/13 213/14 214/15 215/16 216/17 217/18 211/12 212/13 213/14 214/15 215/16 216/17 217/18 Source: Market Economics. Cruise data comes out annually in July. * 217/18 figures have been forecasted

36 Ngā mihi Thank you KEY CONTACT Jaimee Raymond Research Specialist, Research and Evaluation

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