Table of Contents Market and Organisation Challenges... 1 Strategic Themes... 1 Primary Growth Goals... 1

Transcription

1 Five year strategic plan 2014

2 Table of Contents SUMMARY... 1 Market and Organisation Challenges... 1 Strategic Themes... 1 Primary Growth Goals... 1 INTRODUCTION... 2 Status of the Canterbury Tourism Sector... 2 New Zealand Tourism Outlook... 4 Inbound Visitor Markets Outlook... 6 International Market Challenges... 7 Domestic Tourism Trends... 7 Strategic Themes of the Five Year Plan... 8 Other Guiding Principles Stages of Recovery MARKETING Strategic Priorities Inbound International Air Capacity Forecast Key Performance Indicators CONVENTION BUREAU Situation Analysis Strategic Priorities Key Performance Indicators CHRISTCHURCH I-SITE VISITOR CENTRE Situation Analysis Major Challenges Future Opportunities Strategic Priorities Alignment with CCT Strategic Themes Key Performance Indicators BUSINESS PARTNER PROGRAMME Situation Analysis Major Challenges Strategic Priorities Alignment with Strategic Themes Key Performance Indicators... 36

3 CRUISE SECTOR Situation Analysis Canterbury Cruise Sector Strategic Priorities and Activities Key Performance Indicators VISITOR SECTOR RECOVERY PLAN Situation Analysis Major Challenges Strategic Priorities Alignment with CCT Strategic Themes Key Performance Indicators... 45

4 Summary Market and Organisation Challenges 1. Poor performance of the holiday market from Australia since the 2011 earthquakes. 2. Christchurch Central city physical environment requires improvement. 3. New visitor services and attractions are needed in our region to improve visitor appeal. 4. Leverage off the increased investment by TNZ in key source markets, the luxury market and business events sector. 5. Deliver first class communications to both intending travellers and the travel trade on the recovery of Christchurch. 6. Build a new brand positioning for Christchurch. 7. Develop a sustainable future funding model for CCT. Strategic Themes 1. Recover the Australian Holiday Market 2. Prepare our industry for the ongoing rise of Asian middle class travellers 3. Improve online engagement with intending travellers 4. Re-grow our international air connections 5. Recover our share of the New Zealand conferencing market as infrastructure is restored 6. Lead the implementation of Visitor Sector Recovery Plan 7. Develop a new world class visitor centre in Christchurch 8. Develop a stronger domestic tourism strategy that offsets the highly seasonal demand pattern of inbound tourism. Primary Growth Goals International Guest Night Growth in Canterbury International Visitor Arrivals into Christchurch 1,820,000 (2013/14) 411,000 (2013/14) 2,345, , % over 5 years +32% over 5 years Christchurch & Canterbury Tourism Five Year Strategic Plan

5 Introduction Status of the Canterbury Tourism Sector More than three years on from the February 2011 Christchurch Earthquake international tourism performance in New Zealand remains a two speed affair. International visitor accommodation nights in the North Island as at YE December 2013 were 6% ahead of the 2010 levels at 6.9 million nights per year whereas the South Island s tourism sector was still 11% behind the 2010 levels at 6.1 million nights. This gap is the equivalent to 1.19 million fewer visitor nights per year. In visitor spend terms the South Island has lost $670 million over the past three years and is running in the current year at a level that is still $176 million per year lower than A high proportion of this income deficit is from our largest market Australia which has not recovered at anything like the rate of long haul markets. International Visitor Guest Nights YE Dec 2010 YE Dec 2013 Variance to 2010 Christchurch City 1,585, ,600-45% South Island 6,918,200 6,153,300-11% North Island 6,499,400 6,927,200 +6% All New Zealand 13,417,600 13,080,500-6% The withdrawal of a substantial proportion of visitor accommodation in Christchurch and the earthquake damaged nature of the city have been two key factors that have kept many visitors away. Two thirds of the South Island international guest night deficit has occurred in Christchurch City. The progressive reduction of flight frequency and air seats on Trans Tasman routes into Christchurch has also made it more difficult and expensive to find convenient travel solutions. Combined holiday arrivals by Australians into all three South Island airports at year end December 2013 was only 195,000 at a level which was 20% below the 2010 performance. This stay away phenomena from the Australian market has lasted far longer than expected and remains our most significant marketing challenge. Long haul markets have responded faster and in a more supportive way to the Christchurch situation. Over the last two summers we experienced a wave of new interest from long haul independent travellers many who were keen to see what had happened the city as how it was taking on the challenges of rebuild. Our international visitor markets bottomed out in winter 2012 and in the 2013/14 year we experienced a 12% lift in international visitor guest nights in Christchurch City and an overall increase across the province of 8%. Across our region we are seeing the visitor mix changing with an increasing proportion of Asian origin travellers, delivering a broader range of ethnicities. We are also seeing the average age of travellers getting younger. We observe that the China market is growing considerably faster than any other origin country and the reasons for travel are broadening. Lonely Planet and New York Times endorsements of Christchurch for its resilience, creativity and comeback spirit has helped both the image of the city and the visitor recovery process. Shortage of hotels constraining the group travel market Whilst FIT travellers are returning in increasing numbers, group travel has remained constrained due to the lack of hotel room availability in Christchurch City in peak travel months. CCT has identified more than 25 tour companies that have still not been able to find suitable accommodation in Christchurch for their regular group series tours. Christchurch & Canterbury Tourism Five Year Strategic Plan

6 With four more hotels opening in the inner city during 2013 this situation has improved however group tour product planners around the globe continue to express concerns that the hotels that are now open in the inner city centre are not in an environment that can easily satisfy visitors. Creating a satisfactory visitor environment outside of these hotels will be a key challenge for much of the life of this five year plan. The upside of the Christchurch limitations is that much of the tour group nights displaced from Christchurch have been placed in regional tourism centres around Canterbury such as Tekapo, Ashburton, Methven, Kaikoura and Hanmer Springs. This has provided a strong and sustained economic boost to these tourism economies in the form of hospitality, accommodation and retail earnings. We have come a long way in restoring our tourism infrastructure in the past three years and can tout the following list of accomplishments: Tourism Recovery Milestones - Achieved: New Terminal at Christchurch International Airport May 2011 Re-opening of Christchurch Casino May 2011 Re-opening of Canterbury Museum September 2011 New Restart Shopping Mall opens in Central City October 2011 Direct Flights re-instated from Tokyo to Christchurch over summer months October 2011 New i-site Visitor Centre in Botanic Gardens November 2011 New Court Theatre opens in Addington November 2011 Quake City Exhibition opens in Canterbury Museum February 2012 New Rugby Stadium in Addington February 2012 Ellerslie International Flower Show returns February 2012 Magic Bus returns to Christchurch June 2012 Central City Blueprint released July 2012 Ibis Hotel re-opens in Central City September 2012 Icefest First new major event since the earthquakes September 2012 Lonely Planet list Christchurch as number six on its list of Top 10 Cities for 2013 October 2012 New 900 person Conference Space completed at Air Force Museum February 2013 Quake City Exhibition opened in Re:Start Mall February 2013 Christchurch Gondola re-opens March 2013 Copthorne Commodore completed a new hotel wing April 2013 Direct air service Perth to Christchurch announced commencing in Dec 2013 April 2013 New Regent Street re-opens April 2013 Rendezvous Hotel re-opens May 2013 Transitional Cardboard Cathedral opens July 2013 Novotel Hotel re-opens August 2013 Heritage OGB re-opens August 2013 Quest Apartments re-opens August 2013 Hotel 115 (formerly Hotel off the Square) Re-opens August 2013 New Carlton Hotel Bar and Restaurant opens September 2013 Rydges Latimer Hotel opens November 2013 Christchurch Tramway Worcester Blvd route opens up October 2013 The Tannery in Woolston opens with retail and hospitality November 2013 Hotel Montreal, 27 Rooms Old Chateau Blanc Suites) 5 Star October 2014 Christchurch & Canterbury Tourism Five Year Strategic Plan

7 Tourism Improvements Coming Up: Old All Seasons Hotel (name not yet known), approx 280 rooms Quarter The Terrace Bar & Restaurant precinct opens on Oxford Tce Quarter Christchurch Convention Centre (new Anchor Project) 2018 Our visitor industry across the province has benefitted from a strong domestic market that has been driven by three major influencing factors: 1. During 2011 and 2012 many Christchurch residents took respite from their earthquake circumstances by holidaying in favorite holiday spots around the Canterbury province. 2. The summer of 2012/13 produced a superb run of hot dry weather which encouraged many Cantabrians to enjoy their summer holiday in their home province and take more weekend breaks. Walking and biking have become increasingly popular leisure activities that are taking local people further afield across our region. 3. The rebuild projects in Christchurch have boosted accommodation occupancy with a broad range of accommodation types being used in both Christchurch and nearby towns. New Zealand Tourism Outlook Following a strong growth run in the 1990s through to 2005 the New Zealand tourism sector has faced an accumulation of challenges since 2005 that has slowed growth performance and diminished value. In setting the scene for the international tourism environment we are dealing with, Ministry of Business Innovation and Employment (MBIE) have summarised it in the New Zealand Tourism Sector Outlook report as follows: Visitor spending in New Zealand has trended lower over the five years to Visitor numbers have risen, but they are coming from closer countries, staying shorter periods and spending less. This has created a challenging environment for many tourism operators. The composition of visitors has shifted significantly. There are many more visitors from Australia, China and other emerging economies. Many of our traditional markets like the UK, USA, Canada and Europe have been weak and have been most affected by the GFC. This has reduced the number of high spending visitors. Visitors from emerging Asian countries like China have tended to spend less than traditional long haul markets but this appears to be changing. Chinese visitors spent 67% more per day than US visitors in 2012 whereas 15 years ago they spent 40% less than US visitors. Rising visitor numbers provide a base of support for the tourism sector but a rapidly changing mix of visitors means that the sector has to adapt to fewer holidaying visitors, fewer visitor days and lower average spend per day." 1 1 Source: MBIE Tourism Outlook Report August 2013 Christchurch & Canterbury Tourism Five Year Strategic Plan

8 The Next Five Years As we look to the next five years in inbound tourism we expect our tourism outcomes will be shaped by the following influencing factors: 1. Instability in major western market economies due to the ongoing and far reaching effects of the GFC and the burden of sovereign debt servicing particularly in Europe and the USA. 2. A significant growth in Asian origin traffic to New Zealand as middle class wealth drives a boom in both leisure and immigration related travel. 3. A prevailing high New Zealand dollar driven by export income growth and New Zealand s high interest rate environment. This will continue to impact more significantly on visitor spend and length of stay rather than on overall volumes of visitation. 4. With the exception of China, airlines servicing New Zealand are expected to be restrained in capacity additions as they seek to improve earnings in an environment where there is no competition on 6 of our top 10 long haul air routes into New Zealand. 5. Whilst new generation long haul aircraft such as the Boeing 787 and Airbus A350 will be more efficient performers on the long thin routes to New Zealand further escalation in fuel price may require us as a country to focus on near markets around the Pacific Rim. 6. The low level of participation of Low Cost Carriers (LCCs) on long range air routes connecting New Zealand to the world will mean that New Zealand will attract fewer budget travellers. Tourism New Zealand Marketing Investment Our tourism outcomes will however be favourably influenced to some degree by the extra funding that has been allocated to Tourism New Zealand to pursue: 1. A greater share of high wealth luxury travellers 2. Attract more business tourism, events and major conferences 3. Open up new emerging markets in Indonesia, South America and the Middle East 4. Increase core funding for new marketing campaign initiatives in Tourism New Zealand s Priority one and two markets Tourism New Zealand s budget will increase $29.5m, from $83.8m to $113.4m, for the financial years 2014 and 2015, increasing to $115.8m in 2016 and This additional funding will allow Tourism New Zealand to remain and in some cases up-weight its activity in New Zealand s core markets, while also being able to focus on and resource opportunities of high value in emerging market and high value sectors. Tourism New Zealand see the top six markets (Australia, China, USA, UK, Germany and Japan) remaining integral to the on-going success of the New Zealand tourism industry in both the long and short terms. Priority 1 core markets: Australia, China and USA Priority 2 core markets: UK, Germany and Japan Priority 3 markets: Peninsula South East Asia, France, Rest of Europe, Korea and Canada Priority emerging markets: India, Indonesia and Latin America High value visitors will be attracted through increase promotion in the business events and special interest categories. This activity will be across the spectrum of priority markets. Christchurch & Canterbury Tourism Five Year Strategic Plan

9 Inbound Visitor Markets Outlook In August 2013 MBIE published the following tourism outlook reports that indicate that with the exception of China, Australia and the USA we can expect lacklustre growth outcomes between 2013 and These forecasts were developed by NZIER and moderated by a panel of New Zealand tourism organisations that include NZTIA, TNZ, Air New Zealand and Auckland Airport. Inbound Total Arrivals Major Markets Market Forecast Net Gain Growth Avg Annual Growth Rate Australia 1,170,000 1,356, ,000 16% 3% Canada 47,000 53,000 6,000 13% 3% China 217, , ,000 83% 17% Germany 66,000 75,000 9,000 14% 3% Japan 73,000 63,000 (10,000) -14% -3% Korea 55,000 55,000 - Nil 0% UK 177, ,000 (8,000) -5% -1% USA 181, ,000 32,000 18% 4% Other 599, ,000 18,000 3% 1% Total 2,585,000 2,997, ,000 16% 3% Note: Based on MBIE forecasts reviewed by technical committee including representatives from Air New Zealand, TIA, TNZ, Auckland Airport, NZIER Of more concern is the weaker outcomes expected for holiday visitor arrivals over the next five years which indicates that Japan and UK will decline by 17% and 22% respectively over this five year period and that the substantial Australian market will struggle to maintain an average annual growth rate of 2% per year across the period. With Asian visitors replacing these markets, stay days in New Zealand will decrease considerably. Inbound Holiday Arrivals Major Markets Market Forecast Net Gain Growth Avg Annual Growth Rate Australia 429, ,300 39,900 9% 2% Canada 23,400 24,500 1,100 5% 1% China 155, , , % 20% Germany 44,800 48,300 3,500 8% 2% Japan 50,500 42,000 (8,500) -17% -3% Korea 37,100 35,800 (1,300) -4% -1% UK 61,600 48,300 (13,300) -22% -4% USA 98, ,700 13,100 13% 3% Other 267, ,500 (2,400) -1% 0% Total 1,169,200 1,360, ,800 16% 3% Christchurch & Canterbury Tourism Five Year Strategic Plan

10 Whilst the most nourishing future growth opportunities for New Zealand represented by these forecasts will be from China, the USA and Australia, the Christchurch and Canterbury region will need to focus on boosting confidence to visit our region from a range of markets. Before the 2010 and 2011 earthquakes our region enjoyed a very high share of New Zealand visitor nights from the Australian, Japan and Korean markets. It is important that we reclaim our historical share of these high value markets at the same time as pursuing other growth opportunities. International Market Challenges The main international challenges for Christchurch and Canterbury will be to: Recover the high volume holiday market from Australia to 2010 levels within this five year period. Improve the Christchurch Central City visitor experience and facilitate the development of new visitor attractions in our region. Deliver first class communications to both intending travellers and the international travel trade in respect to the rebuild of Christchurch and the status of our tourism infrastructure. Leverage off the increased marketing investment by TNZ in business events and in development of the luxury market. Build a new brand positioning for Christchurch that coincides with key progress points in the rebuild of Christchurch. Leverage off the increased marketing investment by TNZ in our key source markets of Australia, China. The USA, Japan and Europe by partnering initiatives that are relevant to our Business Plan. Domestic Tourism Trends The Christchurch and Canterbury region has been influenced by four different and distinctive trends in domestic tourism since The two trends that have boosted domestic bed nights have been: Local Short Breaks More Christchurch residents taking short breaks outside of the city and in their region. This has most significantly boosted bed nights in Kaikoura, Hanmer, Akaroa, Tekapo and Twizel and also had positive impacts in Timaru and Methven. This created considerable extra business in the accommodation, retail and hospitality sectors in 2011 and 2012 but is now starting to wane. Christchurch Rebuild The damage assessment and rebuild planning processes have generated a considerable increase in demand for commercial accommodation and hospitality businesses during mid-week periods in Christchurch and surrounding Selwyn and Waimakariri districts. This demand is likely to be maintained and increase as the larger rebuild projects in Christchurch get under way. This demand surge is putting pressure on accommodation supply and is competing for beds with the leisure holiday sector. The two trends leading to the decline in domestic bed nights have been: Lower Demand for Leisure Stays The demand trend that has slipped the most since 2011 relates to a sharp decline in short term leisure stays in Christchurch for holiday purposes (as opposed to visiting friends and relatives) and a large drop off in short term stays for the purpose of attending national sporting events and fewer entertainment events. Whilst these impacts have not been specifically measured Christchurch City is still unable to host national sporting events in 13 major sporting codes (about 1/3 of pre earthquake) and the volume of entertainment events that would attract audiences from outside of the city has reduced by more than 50%. Christchurch & Canterbury Tourism Five Year Strategic Plan

11 Decline in Conferencing Since 2011 the Christchurch share of the domestic multi-day conference market has dropped from 25% to 3% but has recovered slightly in the past 24 months to 9%. Improvement from an impaired state of performance is primarily dependent on the rate at which conferencing hotels are rebuilt and the re-establishment of a Convention Centre in Christchurch. In our Five Year Plan we identify the need to establish a stronger domestic tourism strategy that offsets and complements the highly seasonal demand pattern of international visitor arrivals. Strategic Themes of the Five Year Plan Recover the Australian Holiday Market Australian holiday arrivals into Christchurch have fallen more than 40% since February TNZ Research indicates that 25% of Active Considerers of a New Zealand holiday in Australia would not consider a trip to Christchurch and 18% would not consider a trip to Canterbury. It will be important to target the group that will consider a trip (75%) and improve their conversion rate. The Australian holiday market wants more information about Christchurch; things to see and do in Canterbury and access to better travel deals. Prepare our industry for the ongoing rise of Asian middle class travellers Holiday growth from China to New Zealand has increased by 90% in the last three years and is forecast to grow by 250% in the next six years. The rate of visitation to the South Island has however been low. Other major Asian origin markets will grow at a greater rate than the western world except for Japan and Korea. Middle class Asians are looking for more high value and unique tourism experiences and have a high interest in food and shopping. Our region needs to develop new tourism experiences that suit these markets. Christchurch is highly likely to be serviced by direct flights from China by 2015/16. It will be very important to optimize the opportunities that this will bring. Improve online engagement with intending travellers Usage of our website for trip planning purposes declined significantly after the earthquake events of 2011 and remains below the pre-earthquake level of interaction. We have developed a new web platform that has the potential to take tourism content to a broader organic search and social media audience using both PCs and mobile devices. More and more travellers in the future will plan and book online. Future Marketing Communications campaigns will require heavy use of online capability. Re-grow our international air connections Christchurch has lost more than 20% of its international air capacity since the 2011 earthquakes and to date airlines are reluctant to replace it. Air Asia X withdrew long haul services from Christchurch in May 2012 leaving us with only two airlines providing us with year round connectivity to long haul markets. The current state of Trans Tasman schedules leaves us 19% short of the pre-quake seat capacity on Trans Tasman services. This is the equivalent of 17 fewer flights each week. This situation means more Australian holiday travelers than we would like get to us via other domestic entry points and reduces our ability to be price competitive in peak demand months when flights are very full. We have the prospect over the next 5 years of improving Australian flight frequency and gaining new direct services from China, Adelaide and the USA. Christchurch & Canterbury Tourism Five Year Strategic Plan

12 The most likely international air capacity growth scenarios are that Trans Tasman seats will grow by 18% by 2018/19 to 821,000 seats per year which will be near to the level of air capacity we enjoyed in 2009/10. Long haul capacity direct into Christchurch is expected to grow by 80% to 223,000 seats per annum based on an increase in capacity operated by Singapore Airlines and establishment of new direct air routes from USA and China in 2016 and 2017 respectively. Recover our share of the New Zealand conferencing market as infrastructure is restored Christchurch once led the market in New Zealand for the highest share of multi day domestic conferences (24%) and is determined to re-take that position once conference and hotel infrastructure is restored. This plan makes the assumption that a new Convention Centre will not be back in operation until late 2018 and that during the first two years number of events per year would gradually move up from 25 to reach 70 per annum. Increasing use of alternative venues such as the Air Force Museum and the Transitional Cardboard Cathedral are an integral part of this plan. In the medium term the best market opportunities for attracting conferencing and events will be in the domestic rather than international environment. Lead the implementation of Visitor Sector Recovery Plan (VSRP) Several areas of the VSRP require ongoing input from CCT: Improving the state of the central city for visitors re-occupying inner city accommodation is a high medium term priority. CCT inputs are required to assist accommodation investors with analysis of future demand levels and connecting them with property, design and construction sector expertise. More frequent application of the Sports Tourism Plan event assessment model will improve the number of events we can host in the province and boost weekend occupancy for the accommodation sector. CCT can play an active role in influencing new airlines that considering direct routes to Christchurch by building confidence in the tourism capabilities of Christchurch and Canterbury. Working in partnership with key city agencies to define the brand attributes of Christchurch City in its rebuilt state and develop a branding and promotion strategy for the city for rollout from 2017/18 and beyond. Develop a new world class visitor centre in Christchurch As a result of the earthquake related loss of our central city visitor centre CCT has the opportunity to completely re-think the delivery aspects of visitor information and booking services. Visitors are increasingly resorting to online services to research their destination accommodation, activity needs and to complete bookings. The growth in the use of sophisticated mobile devices has accelerated this trend. Preliminary analysis indicates that we will need to consider a blend of manned and automated information services as well as evaluating the options of satellite sites that improve our information footprint. Christchurch & Canterbury Tourism Five Year Strategic Plan

13 Being close to commonly used visitor transport and key activities will also be key influences that will determine the optimal location. Other revenue generating opportunities need to be examined. Develop a stronger domestic tourism strategy that offsets and complements the highly seasonal demand pattern of international visitor arrivals The heavy losses we have suffered across the province from the decline in Australian holiday visitors could in time be substituted with domestic visitors if we can successfully market an appealing leisure proposition to New Zealanders. The rebuild of Christchurch is placing heavy demand on city accommodation from Monday to Friday but leaving commercial accommodation with very low occupancy over the weekends. As sports, event and hospitality infrastructure is recreated, Christchurch city will improve its capacity to host more weekend events. There will come a time near the mid-point in this plan when the quantum of opinion domestically is that the new city that is forming is worth a leisure visit. This will be the time to pique interest in leisure visits to Christchurch around its curiosity value and its new energy. Other Guiding Principles The following guiding principles will continue to influence the consumer and trade marketing strategies outlined in this plan: Align our marketing with MBIE and TNZ high yield tourism strategy. Keeping the travel trade well informed of the recovery progress in Christchurch and reminded of the iconic status of our main tourism attractions across Canterbury. Improve consumer and trade knowledge of all Canterbury tourism icons. Stages of Recovery The chart below provides a synopsis of the expected physical recovery processes in Christchurch and what this means for the state of visitor infrastructure and the anticipated visitor experience over the next five years. The initial analysis indicates that the city will have more challenges than selling points over the first three years of the rebuild and that a concerted effort to re-market Christchurch to the world with an eye-catching new brand should not take place until 2017/18. This is not to say that the transitional city should not be marketed in the meantime. It is essential that more visitors come to Christchurch to enable them to: a) Experience the excitement of a city in transition; and b) Ensure that we keep visitor flows to the rest of Canterbury and its tourism icons as strong as possible. Christchurch & Canterbury Tourism Five Year Strategic Plan

14 Christchurch: Stages of Recovery Inner City Environment 2013/ / / / / /19 Infrastructure Repairs (Roading and underground) Disruptive Disruptive Disruptive Lessening Demolitions Active Partial Partial Rebuild Projects Moderate Intensive Intensive Intensive Intensive Moderate Avon River Park Under Construction Under Construction Under Construction Environment Experience Rating Poor Poor Improving Acceptable Acceptable Good Tourism Infrastructure - Inner City (between 4 avenues) 2013/ / / / / /19 Hotels (Operational) 7 (+10 outside Central City) 9 (+10) 10 (+11) 11 (+11) 12 (+12) 12 (+12) Backpacker (Operational) 13 (+11 outside Central City) 13 (+11) 13 (+11) 13 (+11) 13 (+11) 13 (+11) Hospitality The Carlton Hotel Arts Centre Restaurant The Terrace Opens Acceptable Good Good Victoria Street Redevelopment Stranges Lane Retail The Tannery Cashel Mall Re-Development Limited Limited Acceptable Acceptable Attractions & Activities Transitional Cathedral Tram Opens Atrium at Cathedral Junction Ilex Botanic Gardens Visitor Centre Hagley Oval upgrade Isaac Theatre Royal Avon River Park (partly complete) Visitor Information Botanic Gardens i-site Expanded Premises in Botanic Gardens Art Gallery Opens Avon River Park complete New Gorilla Attraction at Orana Park Move to permanent premises First full year in permanent location Other Tourism Developments 2013/ / / / / /19 Trans Tasman Capacity Capacity growth pa 6% 3% 3% 2% 2% New International Services PER-CHC 2 x pw Dec Apr PER-CHC 2 x pw Dec Apr PER-CHC 2 x pw Dec Apr PER-CHC 3 x pw Dec Apr PER-CHC 3 x pw Dec-Apr PER-CHC 3 x pw Dec-Apr - CAN-CHC 3 x charter CAN-CHC 3 x charter CAN-CHC 3 x charter CAN CHC 3 x pw commence Nov 2017 CAN-CHC 4 x pw Marketing Phase SIN-CHC extra 10 flights SIN-CHC extra 23 flights Dec-Jan SIN-CHC extra 23 flights Dec-Jan SIN-CHC extra 3 x pw Dec Mar LAX-CHC 3 x pw 6 Months per year from Nov SIN-CHC extra 4 x pw Dec Mar LAX-CHC 3 x pw 6 Months per year SIN-CHC extra 4 x pw Dec Mar LAX-CHC 3 x pw 6 Months per year 2013/ / / / / /19 Marketing Status Transitional City Transitional City Transitional City New City New City New City Marketing Budget Status Quo (with CTP) Status Quo (with CTP) Status Quo (with CTP) Status Quo (with CTP) Enhanced Budget Enhanced Budget Branding "Christchurch Reimagined" "Christchurch Reimagined" "Christchurch Reimagined" "Christchurch Reimagined" New Branding New Branding Airport key: LAX Los Angeles CAN - Guangzhou CHC Christchurch PER - Perth SIN Singapore Christchurch & Canterbury Tourism Five Year Strategic Plan

15 Marketing Strategic Priorities Recover the Australian Holiday Market Why is Australia so important? For many businesses across our tourism sector Australia remains New Zealand s most important market. Currently the Australian market generates 44% of total arrivals to New Zealand which equates to 1.2 million short term visitors per year. The Australian holiday market provides 460,000 visitors annually. In addition to having the greatest overall scale this market has the highest rate of repeat visitation and generates visitors throughout the calendar year thus providing a consistency of tourism revenue that our industry values. The sustained drop off in Australian holiday arrivals into Christchurch since 2010 eroded this important bread and butter market for Canterbury by 45% equating to a loss of 96,000 visitors per annum. As a consequence the recovery of the Australian Holiday market remains the number one strategic priority for Christchurch & Canterbury Tourism (CCT) because of the sheer economic scale of the business lost. Strategies to address the decline in the Australian holiday market There are many factors that influence the Australian holiday market to travel. Improving demand levels in a convincing way will require a multi-level marketing interventions from perception change elements to driving immediate conversion. Various partnership approaches will be required to leverage and heighten the level of activity. The most significant of these will be relationships with trans-tasman airlines, Tourism New Zealand and Christchurch Airport. The accommodation industry s intrinsic link with tourism growth means that there will be a time in the next five years when the restoration of the Christchurch city visitor infrastructure will reach a point where CCT should significantly increase Christchurch-focused campaign activity within this market. The specific timing for this significant step up in marketing outputs and investment is likely to be required in the 2016/17 timeframe. Dynamics on the Eastern Seaboard compared with Western Australia will mean that the approach to both markets needs to be varied. The eastern seaboard will continue to deliver the largest quantity of holiday visitors and the aim of restoring visitor numbers to pre-2011 numbers will continue to be the primary focus. In Western Australia our aim is to grow demand on the new Perth direct air services to Christchurch are extended beyond summer only and open up a direct arrival channel on a year round basis. To achieve this CCT will need to work with key partners to establish new demand in all seasons. Activities to Support this Strategic Priority Undertake regular market research to maintain a clear and current understanding of the key issues that influence Australian visitor perceptions of our destination. Deliver campaigns that address these key issues and combine both perception changing elements and conversion activity. Focus on both the Eastern Seaboard and Western Australia markets and target travelers who are closest to the conversion stage. Christchurch & Canterbury Tourism Five Year Strategic Plan

16 Deliver trade education to ensure travel sellers are continually updated on the tourism status of our region and grow travel seller confidence and endorsement. Regular Canterbury messaging is required to improve knowledge of our core tourism experiences and sustain levels of demand. Over the early years of the five year plan maintain at least quarterly sales calls to key Australian cities. Maintaining an active schedule of media activity will ensure Christchurch and Canterbury information is in front of the Australian audience on a regular basis. Timeline Activities 2013/14 Market Research Evaluate the barriers and motivations of holiday market Campaign Activity Year /15 Year /16* Year /17 Year /18 Year /19 Eastern Seaboard Campaign Activity Western Australia Campaign Activity Trade Education Travel Trade Training and Activity Media Presence Media and PR Australian Presence Note: Darker shading represents higher activity and investment. * Presumes that based on tourism infrastructure developments within Christchurch city that this is the appropriate time to increase marketing activities. Embrace the Opportunities of the Rise of the Asian Middle Class It is evident from the Tourism Sector Outlook that non-traditional markets are going to grow significantly over the next five years. We expect Asian arrival growth to exceed 6% year-on-year over the coming decade, driven by increasing wealth among Asia s middle classes, and particularly from China. The change in personal spending power of these developing markets is turning from expenditure on the necessities of daily living to greater affordability of overseas travel. China leads the way In 2013, Chinese outbound traveller numbers reached 90 million, however only 15% of these trips were to long haul destinations. Due to the double digit annual growth in holiday visitors from China for many years this market has now become New Zealand s second largest source of international visitors. The visitor spend has also significantly increased from $721 to $912 million over the past 12 months making this market also the second largest spending market after Australia. Chinese arrivals into Christchurch have followed similar growth patterns albeit off a smaller base. The dynamics of those visiting the South Island are significantly different to North Island visitors with higher numbers of Independent Holiday Travellers, with longer stays (17.4 nights versus 6.2 nights respectively) and a more varied accommodation style. Chinese credit card transactions have increased by 65% across South Island merchants in the 2013/14 year and have increased to 38% of total transactions in New Zealand. Christchurch Airport s marketing efforts are focused on attracting a direct air service into Christchurch which will substantially increase our share of Chinese arrivals to New Zealand once this goal is achieved. Christchurch & Canterbury Tourism Five Year Strategic Plan

17 Tourism New Zealand have a strong focus on actively targeting high value visitors through the Premium Kiwi Partnership programme that identifies a small group of travel agents who have the most potential to develop higher quality, longer stay itineraries. Regulatory changes by the Chinese government have also meant that low cost shopping commission subsidized tours have been banned. If the enforcement is maintained this will raise the value of Chinese inbound tourism and encourage mono-new Zealand holidays and FIT travellers. Other Asian markets are being opened up In addition to China, the emerging markets of namely India and Indonesia have specific importance with the similar growth prospects as the middle classes increase their travel consumption. Tourism New Zealand have substantially increased staff resource and marketing budgets in India and have opened a three person office in Jakarta. Christchurch and Canterbury have historically been consistently present in itineraries for the Indian market with key travel sellers having a good knowledge of the region s visitor offerings. CCT will factor this new market into future planning. Tourism industry education will remain an important facet of CCT s priorities for both the China market and other high growth markets across Asia. If the South Island is to become a permanent feature in Asian itineraries then the quality of their visitor experience will need to improve. This will be largely driven by improved tourism operator engagement with the product and customer service requirements of these travellers. Activities to Support this Strategic Priority A significant focus will be on supporting Christchurch Airport s intention to develop a direct service from China by 2016/17 by consistently building visitor demand prior to service commencing. This could involve initiating joint venture marketing activity in both China and other North Asia feeder markets prior to the service launch, improving visitor engagement through social media and ramping up the education on key trade in these markets. CCT is participating as a contributory partner in placing a trade marketing representative in China as a partner in the South marketing initiative to grow holiday arrivals to the South Island ahead of the commencement of new direct air services. Aligning products to the emerging markets of Asia will ensure that the Canterbury visitor experience is matched to the visitor requirements from these markets. This could include working with a core group of Canterbury tourism operators who have specific interest in these markets to ensure they embrace these opportunities and participate in relevant marketing initiatives organised by CCT or South. The Cricket World Cup in 2015 will offer more significant exposure of Christchurch in India and other sub-continent markets. CCT plan to put substantial resource into briefing and hosting media over this period. Building trade relationships both with Inbound Operators and in-market China-based trade will be a core mechanism to grow the market. CCTs initial strategy is to work in collaboration with other South Island RTOs in the South project for the formative years of Chinese market development. As the market matures we envisage that CCT would develop its own trade marketing capabilities to service the China market and other Chinese speaking markets across Asia. Christchurch & Canterbury Tourism Five Year Strategic Plan

18 Timeline Activities 2013/14 Industry Support Up skill our industry with Chinese market knowledge Industry product support for Asian Markets Trade Activities Relationship building with NZ based Chinese market IBOs SOUTH represent CCT at Chinese market trade events CCT build relationships direct with Chinese based travel sellers Media and Online Activities CCT Chinese market social media presence CCT Chinese market website content CCT Chinese market online and media joint venture activity CCT media activity to support Cricket World Cup in 2015 Staffing Up skill whole of CCT marketing team (alongside Industry) Employ Chinese speaking marketing team staff Part-time Year /15 Full-time Year /16* Note: Darker shading represents higher activity and investment. * Assuming direct flights with China into Christchurch are established within this year. Year /17 Year /18 Year /19 Improve Online Engagement with Intending Travellers Recent trends in planning behaviour by intending travellers and visitors on the ground There has also been a significant increase in the number of visitors engaging with social media to plan and share experiences, both during and post travel. Visitors are now engaging with digital media throughout the travel process from prior to departure through to post trip reviews. One recent study found travellers who visit a destination marketing organisation site (such as christchurchnz.com) within 45 days prior to booking their holiday arrangements on an online travel agency site, made 38 visits to different travel sites before purchasing the holiday package. This increased use of technology is contributing to the creation of a much more informed and empowered traveller, due to the abundance of information (accurate and not) that it makes available. CCT needs to ensure it is actively contributing to this profuse supply of information while ensuring the representation of the city and regions remains accurate, relevant and appealing. Our website is our marketing backbone CCT believe the organisation s online presence is the backbone of its marketing offering. It is the place where all activity (media, trade, campaigns and communications) can be directed to. The goals for this online presence is to enhance the effectiveness and engagement levels of as a communication platform for potential visitors. Christchurch & Canterbury Tourism Five Year Strategic Plan

19 Online Traffic History of Christchurchnz.com YE June Outcomes 2008/ / / / / /14 Total Traffic 358, , , , , ,544 Annual Growth - 6% 35% -37% 27% 25% Australia and NZ Traffic 240, , , , , ,214 Average Time on Site 2:52 4:08 3:33 3:52 2:37 2:27 It is also vital that we re-grow the number of intending travellers that use our website in advance of a visit to New Zealand. International web traffic on our site has recovered and currently sits above the level that it was prior to the 2011 earthquakes. In 2012/13 CCT underwent two significant changes on Firstly, the Tourism New Zealand operator database was integrated into the site which meant tourism operators listings on christchurchnz.com became free. As a result the number of listings increased by over 200 and updating the listings became the responsibility of the operators themselves. The second project completed was a refresh of the site which meant the site became responsive (mobile friendly), the flexibility of page templates was increased and the sitemap changed to allow increased depth of content. Future website developments In the initial years of our five year plan our priority focus will be on content development and ensuring that christchurchnz.com becomes rich with inspirational themed-content. However within the next five years the technological changes impacting on the way tourism functions will challenge the current model of christchurchnz.com. The most significant of these relates to booking interaction and will need to be assessed and integrated as applicable. The technology changes being advanced by consumer preference and expectation will continually have to be balanced with the needs of the tourism industry stakeholders. Activities to Support this Strategic Initiative: As social media has surpassed traditional word-of-mouth as the primary source of inspiration for travel CCT will need to play an active role in propagating and responding to conversations travellers are having about our destination online. Constant technology adaptation by world travellers will require us to keep pace with the technologies that evolve around travel information and travel planning. Whilst CCT is unlikely to be the technology trend setter we will need to keep pace with: a) The technologies being used; and b) The rate at which consumer user behaviour is changing. Continue to ensure that the website is rich with Canterbury tourism content and is a contemporary reflection of the best tourism experiences available. Ensuring staffing and project budgets keep up with our digital marketing and consumer information needs. Re-growing our international air connections Prior to the 2011 earthquakes the South Island of New Zealand enjoyed a higher proportion of international guest nights than the North Island at approximately 54% of all nights in New Zealand 2 yet South Island airports were the destination for fewer than 18% of all international air seats. For long haul routes the South Island received barely 7% of all long haul airline seats into New Zealand. 2 Source: IVS Christchurch & Canterbury Tourism Five Year Strategic Plan

20 This distortion in the apportionment of routes came about through a range of factors: Auckland is the closest air point from the origin city for most long haul air routes. Auckland has the highest population catchment for outbound travel. Air NZ which provides over 40% of international air services has become increasingly focused on Auckland as its primary crew and fleet base in New Zealand. Auckland Airport has been an aggressive marketer in attracting new air capacity. Since the 2011 earthquakes the Christchurch share of air capacity has further eroded with Christchurch now having only 16% of Trans Tasman seats and less than 5% share of direct long haul seats. Whilst Tourism New Zealand and NZTIA have raised few concerns with the allocation of inbound air routes, the current scenario has some adverse impacts on tourism flows that should be of concern to tourism marketers if they want to make New Zealand not just easy to think of, but also easy to buy and easy to use. From a travellers perspective placing a reliance on the Auckland hub has the following limitations as it: 1. Requires most long haul travellers to pay for domestic air fares and/or ground transport up and down the country in both directions. This itinerary backtracking that imposes unproductive travel time and added travel expense. 2. Limits the ability of travellers to book open jaw itineraries going in one city and coming out of another. 3. Restricts direct access for travellers from countries such as Japan and Korea whose travellers have a very high preference for South Island experiences and South Island only itineraries. 4. Has stifled the development of South Island tourism from the China market because for many Chinese travellers the very short length of stay in New Zealand does not permit a two island itinerary. Primary Air Service Goals Next Five Years 1. Re-growing air capacity on Trans Tasman East Coast routes to a level that is at least 90% of the pre earthquake level by 2018/ Establishing a regular year round direct air connections from Perth 3. By 2017 have established at least three direct air services per week from a major hub airport in China. 4. Re-establishing a direct air connection with the USA by the end of Re-building direct air capacity from Japan using both scheduled and charter services that deliver to the seasonal travel needs of this market Activities to Support this Strategic Initiative: Align CCT marketing and airline partnership strategies with Christchurch Airport air route development goals and priorities. This is anticipated to require a strong trade marketing push into the USA and China to support the further development of these markets ahead of new direct air services. A list of proposed air service developments is set out in the Inbound International Air Capacity Forecast chart for Christchurch (refer chart below). Air Capacity Targets Next Five Years 1. Progressively grow Trans Tasman scheduled capacity into Christchurch from 700,000 seats (2013/14) to 820,000 by 2018/ Progressively grow long haul scheduled capacity into Christchurch from 125,900 seats (2013/14) to 223,500 by 2018/19. Christchurch & Canterbury Tourism Five Year Strategic Plan

21 Inbound International Air Capacity Forecast Direct into Christchurch International Airport - Five Year Plan 2014/ /19 Trans Tasman Routes Air Route from Actual seats 2012/13 Actual seats 2013/14 Perth 0 9,828 Dec-Apr Forecast 2014/15 9,126 Dec-Apr Sydney 351, , ,939 6% Melbourne 156, , ,898 7% Coolangatta 40,974 51,124 50,508 Nil Brisbane 136, , ,446 8% Forecast 2015/16 9,126 Dec-Apr 389,277 3% 177,055 3% 52,023 3% 136,420 3% Forecast 2016/17 19,800 3 x pw Dec-Apr 397,063 2% 180,596 2% 53,064 2% 139,148 2% Forecast 2017/18 19,800 3 x pw Dec-Apr Total from Australia 684, , , , , , ,773 Variance on prior year 2% 6% 3% 3% 2% 2% 405,004 2% 184,208 2% 54,125 2% 141,931 2% Assumptions: Known filed scheduled air service information through to June Perth service to increase to 3 x flights per week from 2016 and change from 767 to 787. Other routes: gradual restoration of capacity (in 2-3% pa range) based on ongoing recovery of Australian inbound market to CHC. Sydney to Christchurch route may need higher capacity lift due to high growth performance from Asian markets accessing the South Island over Sydney. Forecast 2018/19 19,800 3 x pw Dec-Apr 413,104 2% 187,892 2% 55,207 2% 144,770 2% Long Haul Direct Services Air Route from Actual seats 2012/13 Actual seats 2013/14 Forecast 2014/15 Singapore 104, , ,200 extra 23 flights Dec-Jan Narita 18,499 17,026 13,338 5% Japan Charters 1,404 6 charters 3, charters Guangzhou or Hong Kong x CNY Charters Forecast 2015/16 109,200 extra 23 flights Dec-Jan 13,388 5% Forecast 2016/17 119,400 extra 3 x pw Dec-Mar 18,900 3 x pw 777/787 Nov-Mar Forecast 2017/18 124,500 extra 3 x pw Dec-Mar 18,900 3 x pw 777/787 Nov-Mar x CNY Charters x CNY Charters Los Angeles ,100 3 x 777 (6 months) 39,000 3 x 787 pw 28,100 3 x 777 (6 months) Forecast 2018/19 124,500 extra 4 x pw Dec-Mar Total Long Haul Seats 123, , , , , , ,500 Variance on prior year 2% -2% 0% 35% 26% 6% 18,900 3 x pw 777/787 Nov-Mar 52,000 4 x 787 pw 28,100 3 x 777 (6 months) Assumptions: Based on SQ known intention for 2014/15 and expected Asian market growth performance in out-years. Narita-Christchurch service is retained at 3 flights per week for summer season of mid Nov to end Mar. Assumes will change to B777 or 787 from Nov Japan Charters: Air NZ advise that these operations will not continue. Either Air NZ or one of the Chinese international carriers commences direct scheduled operations to CHC by summer 2017 based on China market growth and forecast demand. Assumes with long haul fleet expansion that Air NZ is able to add a LAX-CHC B777 service on 3 days per week by Nov Source: Sabre ADI Christchurch & Canterbury Tourism Five Year Strategic Plan

22 Offset and complement the highly seasonal demand pattern of international visitor arrivals through tactical domestic activity Domestic market has a mix of growth and declining segments Outlined in the Introduction section were four key influencers on domestic demand conditions for visits to Canterbury, these being: More weekend shorts breaks out into the Canterbury region from Christchurch Increased business travel to Christchurch for rebuild purposes Lower demand for leisure and event based stays in Christchurch Fewer conferences being held in Christchurch due to limited venues Two of these trends have increased domestic guest nights and two have countered the increase leaving YE June 2013 figures at no change for the Canterbury province on the previous year but up 6% for Christchurch City. In overall terms the domestic market has been less impacted than international markets by the earthquake events. Christchurch City domestic guest nights have been in modest recovery since mid 2012 and are rising through a level that is 18% behind the pre-earthquake levels at million guest nights per year. Dramatic change in the visitor mix While accommodation and airline capacity constraints have impacted on domestic leisure travel demand in peak travel months the statistics themselves fail to indicate the change in the nature of domestic visitor mix. Based on feedback from the industry the domestic holiday market for leisure purposes has significantly declined into Christchurch City. The headline numbers reflect a substitution of traveller type with more commuting rebuild workers, more business visits and an increase in Visiting Friends and Relatives (VFR) traffic. These dynamics are specific to Christchurch when compared to the wider Canterbury region. Outside of Christchurch the domestic holiday market for leisure purposes has stayed strong as many Christchurch residents seek short breaks and weekends away within a reasonable driving distance. This has improved the tourism outcomes in centres such as Kaikoura, Hanmer and Tekapo. Recent research in Auckland and Wellington showed there has been a decline in demand for Christchurch as a visitor destination. Quantitatively it was found that the two most significant barriers deterring people from visiting Christchurch was the difficulty in finding accommodation and earthquake damage. Qualitatively people had a great deal of empathy and compassion for Christchurch residents. As sports and event infrastructure is recreated in Christchurch, the city will improve the capacity to host weekend events for the domestic market. Activities to Support this Strategic Priority Recent domestic market research and campaign outcomes has confirmed that investing in domestic campaigns to attract short break leisure stays in Christchurch City is a flawed proposition in the medium term given the compromised physical state in the inner city and the very slow rate of redevelopment. Christchurch & Canterbury Tourism Five Year Strategic Plan

23 Positioning a domestic holiday with a stronger Canterbury component remains a medium term goal. New Zealanders are still holidaying in the wider Canterbury region in reasonable number and providing them with more reasons to visit can be successfully built around events and special interest themes. The first special interest theme that was promoted to a broad domestic audience in 2013/14 was walking and hiking. The next priority categories have been identified as Mountain Biking, Road cycling, golf and fishing. Over the life of the Five Year Plan and if funding permits, we will implement a range of marketing activities highlighting special interest themes and events in the domestic market as well as implementing conversion activity with accommodation operators, transport and airline partners. As Christchurch rebuilds it s sporting and entertainment venue infrastructure we will introduce promotion activity that rebuilds weekend travel demand to Christchurch. As the form of the new city clearly emerges in Christchurch we will need to consider domestic campaigns from 2016 that pitch the city as a must see for a short break holiday and inclusion in all full South Island itineraries. Media hosting and communication activity in the domestic market will continue to focus on a blend of Christchurch and Canterbury provincial messages and stories. Where possible CCT will partner with other city agencies to heighten the messages about Christchurch. Need for an externally focused Events Strategy for Christchurch As Christchurch City re-establishes its sporting and events infrastructure it is essential that the city establishes an outward focused events strategy that: 1. Identifies both major and minor event goals on a long term basis. 2. Takes account of the prevailing tourism sector seasonality which makes major events difficult to host in the Feb-Mar period each year. 3. Focuses on events that have high potential to attract a nationally or internationally sourced visitor audience as well as strong local community support. 4. Focus on events that can be supported by existing and new sports/entertainment venues. 5. Is adequately funded to ensure success. Timeline Activities Campaign Activity 2013/14 Year /15 Year /16* Year /17 Year /18 Year /19 Canterbury Special Interest Domestic Campaign Activity Christchurch Tactical Activity in Auckland and Wellington Bigger Christchurch Rebrand Domestic Campaign Media Presence Christchurch and Canterbury Activity Direct Marketing Direct Communications with Christchurch and NZ Databases Note: Darker shading represents higher activity and investment. * Presumes that based on tourism infrastructure developments within Christchurch city that this is the appropriate time to increase marketing activities. Christchurch & Canterbury Tourism Five Year Strategic Plan

24 Take a leadership role in the branding of the future city and region Notwithstanding the current physical state of Christchurch it is not difficult to see that the long-term potential for developing a very attractive new city proposition for Christchurch. A city re-emerging with superior infrastructure will have increased visitor demand because of the ease of experience and the curiosity of travellers to see what a new city can be. Combined with the backdrop of a stunning region with grand scenery and diverse activities it will make for a priority choice in most international visitor s itineraries. This new identity for the city and region is exciting and one that needs to be carefully developed and articulated to ensure it adequately reflects the new visitor experience in an inspiring way. Branding will be an exceptionally important part of this process and in order to ensure that CCT accomplish their goals the branding communications need to be both powerful and succinct. Branding for the city and region will also be a means to unify stakeholders, stimulate product development and highlight the new experiences that make the place distinctive. A high impact promotion of a new city brand gives CCT the opportunity to connect with visitors at many more touch points than ever before to communicate with both new and repeat visitors. Social media channels provide us with the opportunity to reach a huge global audience at reasonable cost. There are three core groups that the city branding exercise needs to consider and engage with residents, visitors and investors. The exercise has to be an open minded process that aims to secure a brand solution that can unify the requirements of all three groups. CCT will be the city agency with the biggest sole focus on promoting the city externally and by that virtue should take an active leadership role in putting the concept together. A key point to consider is the digital effect on branding moving forward. The biggest impact that technological innovations have relate to how they alter consumer behaviour how we communicate, buy, work, relax, learn, consume and react. All of the above have a direct influence on destination brand image, preference and affinity. User generated content enables consumers to thoroughly compare options, rate experiences, post images and make comments to assist others. This means there is no room for hype and exaggeration. It means that experiences and benefits delivered must always meet or exceed what has been promised. Activities to Support this Strategic Initiative: Christchurch & Canterbury Tourism will take an active leadership role in the city branding exercise. Christchurch & Canterbury Tourism Five Year Strategic Plan

25 Key Performance Indicators Main KPI Indices 2012/ /14 Year /15 Guest Nights (CAM) Year /16 Year /17 Year /18 Year /19 Accumulated Gain by Year 5 International Guest Nights in Christchurch 840, ,654 15% International Guest Nights in Canterbury 1,660,300 1,820,776 10% Domestic Guest Nights in Christchurch 1,236,900 1,312,110 6% 1,047,735 9% 1,920,919 6% 1,371,155 5% 1,110,599 6% 1,997,755 4% 1,419,145 4% 1,210,553 9% 2,117,621 6% 1,454,624 3% 1,331,608 10% 2,255,266 7% 1,534,628 6% 1,424,820 7% 2,345,477 4% 1,603,687 5% 459,166 48% 524,701 29% 291,577 22% Domestic Guest Nights in Canterbury 2,420,100 2,532,919 5% International Visitor Arrivals (IVA) direct into Christchurch 2,621,571 4% 2,687,110 3% 2,740,853 2% 2,836,782 4% 2,931,886 3% 388,967 15% Australian Travellers 212, , ,464 4% Long Haul Origin Travellers 182, , ,028 4% Total 395, , ,492 4% 223,988 3% 220,529 5% 444,517 4% 232,947 4% 246,993 12% 479,940 8% 239,936 3% 279,102 13% 519,038 8% 245,934 3% 298,639 7% 544,573 5% 36,834 18% 96,689 48% 133,523 32% Future Assumptions: Convention Centre in startup phase with 25 events in 2017/18 and 45 events in 2018/19. Ultimate potential is 70+ events per year. A new direct service from Los Angeles to Christchurch service commences in late 2016 on a 3 x per week basis. Direct air services from China commence on a 3 x per week basis from 2017/18 onwards. Trans-Tasman capacity to Christchurch increases by 6% in 2014/15 (known) and in out years in range of 2-3% per year Overall tourism arrival growth into NZ stays in the 3% - 4.5% annual growth. Only 50-55% of current international visitors to Christchurch arrive directly by international air services into Christchurch. 3,200,000 3,000,000 2,800,000 2,600,000 2,400,000 2,200,000 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000, , , , ,000 0 Commercial Guest Nights Forecast - Christchurch /14 (actual) 14/15 15/16 16/17 17/18 18/19 International Domestic Total Christchurch & Canterbury Tourism Five Year Strategic Plan

26 Convention Bureau Situation Analysis Since the 2011 earthquake events the Christchurch & Canterbury Convention Bureau (CCCB) has focused on the domestic market to rebuild our conference sector. As a result of this focus our domestic meeting and conference enquiries has increased from 2% to 9% in terms of national market share. This indicates that a good recovery path is possible with a focus on small-medium size conferences despite the shortage of large conference venues in the central city. The accommodation situation has improved in recent years with the reopening of at least 600 additional hotel rooms since In 2015 Christchurch will host two major sporting events ICC Cricket World Cup and the FIFA U20 World Cup. The city will also host three mid-large conferences in The Convention Bureau continues to maintain a focus on the domestic conference sector in the small to medium size band of delegates. This delegate range is well catered for within the current conference venues within Christchurch and Canterbury. The Wigram Air Force Museum constructed a new aircraft display space during 2012 and made this available for conferences to Vbase in February This new venue space is capable of seating people. The venue is currently marketed as a de-facto convention centre however has limitations relating to limited break-out space and its location on the outskirts of Christchurch. The considerable distance from city centre hotels adds time to conference days and extra transport cost to conference bids. In August 2014 the NZ Government announced that they had entered into a master planning process for the Christchurch Convention Centre precinct project. The successful developer and operator who would be contracted to run the master planning process for the project were the Plenary Group and Accor. The Convention Centre precinct timeline indicates that the construction of stage one of Convention Centre precinct project will commence in 2015 with a projected completion date of 2 nd quarter Prior to the Earthquake the Convention Centre previously hosted an average of 50 conventions per annum. 10% were over 1000 person conferences and the remainder were person events. Since the demolition of the old Convention Centre the city has only hosted two international conferences over 400 pax. The economic loss associated with this limitation is significant and has resulted in our share of the domestic conference market sinking from 24% to 9%. 4 Source: CCDU Market Update 6 th September 2013 Christchurch & Canterbury Tourism Five Year Strategic Plan

27 Within the Australian convention industry there is now an enshrined lack of confidence in the city s ability to deliver large conferences so public relations and media remain important to communicate the new Convention Centre capability and hotel redevelopment. Prior to 2011 Christchurch enjoyed a 45% share of the Australian conference market into New Zealand. The business event sector has effectively split into two halves with a relatively confident and enthusiastic domestic corporate sector showing a return of confidence in the city since the seismic activity has dissipated. The Australian market has made it clear that it has no interest in Christchurch until such time as the city has a centrally located convention centre and central city hotels capable of residential conferencing. Australian Professional Conference Organisers see the city as a hard sell to clients, but there are some indications that the Australian market is softening this stance following announcements regarding the timelines and appointed operators to the master planning process on the new Convention Centre recently announced by the NZ government. The Bureau will work closely with the preferred venue operator ACCOR to convert the interest generated into confirmed business and work closely with the Tourism NZ Business Events team to market the city and relevant venues to the wider international market. To overcome our roadblocks to success the Bureau has undertaken some perception changing activities such as PCO famils, incentive buyer famil and securing industry specific tradeshows to improve confidence in the city's conference product and the visitor experience. Christchurch has played host to the Convene South trade show for two consecutive years. This domestic event has been a successful Auckland based industry tradeshow since Hosting Convene South allows Christchurch and the wider Canterbury region to showcase our current business event facilities, talk about future plans and projects and provides us with an important opportunity to provide a positive conference experience to NZ domestic Professional Conference Organisers (PCOs), corporate and incentive events companies. To leverage this opportunity the Bureau has built a triple famil programme to showcase the city and wider Canterbury region pre-convene South. Images of Convene South Famil Number of Completed Bids by CCCB number of bids for year / / / / /2014 Christchurch & Canterbury Tourism Five Year Strategic Plan

28 Accommodation Impacts on Conference Sector The conference hotel situation has begun to begin to ease slightly with two hotels with significant conferencing capacity back in operation. These two residential conference venues are The Rydges Latimer Hotel with a 500 pax conference capacity and the Novotel Hotel which has capacity for 130 conference delegates. Very little information is available on the reopening timelines of the Millennium and Old Rydges Hotels. The conference hotels that remain closed or have been demolished provided the bulk of the residential conference capacity in Christchurch city. The lack of capacity in dedicated conferencing hotel stock has an ongoing effect on the conference industry s confidence in Christchurch s ability to deliver a quality visitor experience to delegates. This situation is especially evident in the Australian market. The Professional Conference industry remains reluctant to offer bid opportunities to Christchurch although this situation should improve with the Convention Centre project timeline announcement. The table below outlines the current hotel conference capacity: Type Property Rooms Capacity Hotel Ashley Hotel Hotel Chateau on the Park Hotel Copthorne Hotel Commodore Airport Hotel Heartland Hotel Cotswold Hotel Heritage Hotel OGB Hotel Pavilions Hotel & Apartments Resort Peppers Clearwater Resort Hotel Sudima Hotel Hotel The George Hotel The Classic Villa Hotel The IBIS Hotel Hotel The Novotel Hotel Hotel Rendezvous Hotel Hotel Rydges Latimer Hotel TOTAL 1,553 2,300 As New Zealand s second largest city and a major gateway to the South Island, Christchurch has a long term need for more new hotels with significant conference space if it intends to be a serious player in the NZ business events industry. It is therefore essential that CCT plays an active role in the years ahead in briefing potential hotel investors about the future demand prospects for the city and province. Other Influencing Trends and Factors Tourism New Zealand will invest 34 million dollars in their Business Events unit. The Christchurch & Canterbury Convention Bureau (CCCB) needs to ensure that its strategy and activity is closely aligned with TNZ where this is relevant to our current capabilities. Part of the ongoing strategy of the Convention Bureau is to leverage bid opportunities for the city and region through the TNZ Conference Assistance Programme. Any announcements about the building of new four and five star hotels will improve the potential to grow business event opportunities in Christchurch and Canterbury. Christchurch & Canterbury Tourism Five Year Strategic Plan

29 In 2012 the Convention Bureau ceased all Australia activity but will evaluate the best method of Australian representation for the future with the preferred operator for the new Christchurch Convention Centre. CCCB maintains a domestic sales strategy of quarterly sales calls in New Zealand major centres and activation of famils to the city for identified pieces of significant conference business. Strategic Priorities Grow the economic return from business event visitors and thereby support the following CCCB Strategic priorities: Recover our share of the New Zealand Conferencing Market as infrastructure is restored Keep Christchurch in the consideration set for small and medium conferences in the domestic market. Maintain frequent communication with business event stakeholders. Elevate the visibility of new conference capability as it is developed in Christchurch. Increase resource in the Convention Bureau depending on market growth and development needs based on performance potential. Over the next two years prioritise targeting of the corporate meeting market over the larger association market as the city will struggle to attract and accommodate association conventions until more hotel capacity and large venues are restored. Target specific sectors that have potential through special interest to conference in Christchurch e.g. earth sciences/agri business/construction/medical/education. Recommence marketing activity in Australia The Australian market still provides considerable future opportunity in both the convention and incentive market sectors. Between years 2-3 of this plan our Bureau will need to develop a marketing strategy in partnership with the new venue operator of the Convention Centre to target the Australian MICE sector. Once we have an improved resource of 4 and 4.5 star accommodation and boutique properties in Christchurch we will increase our marketing focus on the incentive travel capabilities of the city and region. Align the Christchurch and Canterbury Convention Bureau with Tourism NZ/Government Growth Agenda in Business Events Ensure that the Convention Bureau leverages the reach and capabilities of the Tourism New Zealand Business Events unit to take advantage of new opportunities for city conference bids through the Conference Assistance programme. Take advantage of Tourism New Zealand s international marketing reach to communicate the city s conferencing proposition. Investigate partnering with the larger venues such as the new Convention Centre operator to access the ICCA framework and database for international conference leads. Target the small-medium size domestic conference market In years 1-2 of the plan Christchurch will be venue constrained for larger events. In the context of available facilities (conference and accommodation) generate more business event prospects for small to medium conferences. Host conference buyers in the city and region when a specific piece of conference business has been identified and to secure the conference for the city. Secure Convene South permanently in Christchurch as a Business event sector trade show and continue to support the event with investment in bringing domestic conference buyers to Christchurch. Christchurch & Canterbury Tourism Five Year Strategic Plan

30 Run a regional famil programme in conjunction with the Convene South event annually. Increase the hosted buyer sponsorship to include targeted Australian buyers from year 2-3. Continue to develop and increase the domestic database of corporate conference organisers and PCOs. Maintain a regular sales call cycle to the NZ conference industry in major NZ cities. Provide regular updates to wider NZ industry on conferencing and accommodation capabilities in the Christchurch and Canterbury region. Seek more joint venture activity with potential partners CINZ/South/TNZ Business Events/Air NZ to bid on major business events within our region. Communicate the city s conferencing capabilities Continue to ensure that is well nourished with listings, imagery, video content and stories about the sector. Maintain communication with the Australian market through the quarterly CCCB newsletter and through the MEETINGs tradeshow. Grow Australian market activity as and when timelines for the Convention Centre and new hotels and venues are announced. Elevate venue capability as part of the regular sales cycle domestically. Develop a business events image library that compliments the CCT destination image library. Produce at least four industry communication pieces per year to update PCOs, Conventions and Incentives New Zealand (CINZ) and Business Events Media per year. Maintain industry profile through the hosting of Business Events specific journalists in Christchurch and Canterbury. Annually update collateral including B roll video for use by TNZ Business Events Unit for the new TNZ Business events website and offshore activity. Improve measurement of C & I sector in Christchurch and Canterbury Work with Ministry of Business Innovation and Employment (MBIE) to identify venues that have significant business event business - Meetings, Incentive, Conference and Exhibitions. Educate and encourage all venues to contribute to the monthly and quarterly Convention Data (CAS) data collection so that we develop a meaningful performance dataset that can realistically measure trends and progress. Establish annual goals to increase the regions share of national delegate days for business events annually based on the regions evolving capabilities. Increase membership of CCCB Continue to provide Convention Bureau partners with business leads generated through the CCCB website and sales activity. Measure effectiveness and business won for the region and regularly report this success back to bureau partners. Play an effective advocacy role for members with key city stakeholders. Maintain strong relationships with our bureau partners. Continue to organise regional presence at the annual MEETINGs Trade show. When appropriate activate more offshore sales activity for CCCB partners. Progressively restore CCCB partnerships fees towards 2010 levels MEETINGs Trade show stand 2014 as conference business and confidence returns to the city. Actively target new bureau partners as venues open. Christchurch & Canterbury Tourism Five Year Strategic Plan

31 Develop a strategy for Asian Incentive During year one develop a medium to long term strategy to extend our communication reach about incentive travel opportunities in Canterbury as the high end accommodation capabilities in Christchurch city are restored. Work closely with TNZ Business events unit as they develop Asian opportunities in the conference and incentive sectors in key Asian markets such as China, Indonesia and India. Prepare to employ an incentive specialist as these opportunities develop in years 2-3 of this plan. Grow the regions exposure through the TNZ Business events international media programme. Prepare regional specific information and sample itineraries for TNZ Business Events unit targeting Asian business. Timeline Year Year 1 Year 2 Activities 2013/ / /16 Recover our share of the NZ Conference market as infrastructure is restored Sales calls NZ NZ Trade events Domestic marketing Add extra Convention Bureau staff resource Part time Full time Develop Australian marketing resource prospective JV partners may include Convention Centre, TNZ or CINZ Align CCCB with TNZ/NZ Government growth agenda in business events Pursue new opportunities for TNZ CAP bids JV with partners to invest in ICCA database and resource to mine for opportunities Activate Business Events Australian marketing campaign Year /17 Improve measurement of the Business events sector in Christchurch & Canterbury Identify new venues & encourage participation in data collection set Target the small and medium sized domestic conference market Continue regional coordination and participation at MEETINGs New Meetings stand design from June 2014 Secure Convene South annually and maximize regional exposure through famil series Communicate the city s conference capabilities Maintain regular sales call cycle in Wellington and Auckland Christchurchconventions.com website upgrade including planning tool resource Develop key incentive market landing pages on christchurchconventions.com Year /18 Year /19 Christchurch & Canterbury Tourism Five Year Strategic Plan

32 Year Activities 2013/14 Retain and increase partnership of CCCB Provide advocacy and leadership within the Canterbury Business events community Recover membership funds to pre quake levels with incremental fee increases annually Develop a strategy for Asian incentive market Develop an Asian incentive marketing and activity plan Strong imagery for incentives and Business events Asian incentive landing pages on christchurchconventions.com Employ Incentive specialist resource for Asian market Note: Darker shading represents higher activity and investment. Year /15 Year /16 Year /17 Year /18 Year /19 Key Performance Indicators Targets Year 2013/14 Year /15 Year /16 Year /17 Year /18 % NZ market share of MICE* Lead generation for CCCB members Number of CCCB members * As measured by the MBIE Convention Activity Survey Year /19 Christchurch & Canterbury Tourism Five Year Strategic Plan

33 Christchurch i-site Visitor Centre Situation Analysis We have been operating from our current temporary building, located just inside the Botanic Gardens since November beside the Canterbury Museum on Rolleston Avenue. CCT has been granted ongoing tenancy in this location through until April 2016 for the purpose of operating a Visitor Centre. In 2013 CCC granted us permission to extend the i-site by 27sqm which was completed by the end of February 2014 and has improved sales space in the building by 30%. While this part of the city (Rolleston Ave) remains a major visitor hub CCT will continue to investigate and research options for a more permanent location in the central city. Additionally, a satellite option was considered during the summer of 2013/14 and as a result we had a presence in Cathedral Square during this period. This information kiosk assisted visitors with information, way-finding and bookings. Extended i-site in the Botanic Gardens Performance Financial Year 2009/ / / / /14 Visitors 424, , , , ,499 Turnover $8,755,423 $5,806,865 $2,333,885 $3,137,000 $3,073,333 Business Mix Recent Trends $600, Christchurch i-site - Market Spend 2012/13 vs 2013/14 $500, $400, $300, $200, $100, $- Domestic Germanic Europe British Isles Australia North America China/Hong Kong Japan 2012/ /14 Christchurch & Canterbury Tourism Five Year Strategic Plan

34 The domestic market has declined in performance over the last year, driven in part by the end of the exclusive Red Zone tour, which was the only way to access the central city behind the cordon until June The cordon was removed in June This relative decline is also due to increasing performance from international markets as the overall visitor recovery continues. It is pleasing to see growth in three traditional markets: British Isles; Australia and North America. The Australian recovery continues with growth in 2013/14 of almost 23%. Germanic Europe (Germany and Switzerland) continues to be a key market, however it has declined slightly (5%) and is now the third largest market. The slight reduction from the Chinese market belies the overall trend towards increasing visitor numbers from this market. Chinese visitors, particularly FIT, are generally extremely tech savvy, therefore often book activities directly using mobile technologies. 35% of total i-site sales are for attractions and activities which is a common trend across the New Zealand i-site network and reflects the fact that a number of visitors are waiting to see what the weather is doing before making the commitment to purchase. 37% of total i-site sales are for transport bookings, which also reflects late decision making. 23% of total i-site sales are for accommodation, which is up on The predominance of visitors have either pre-booked their accommodation, or are happy to do this themselves when they reach their next destination. Major Challenges Demand for visitor information and booking services remains highly seasonal. Increased use of mobile devices means that an increasing percentage of bookings are direct to the operator. Specialist online discount booking sites have eroded our market share. A shortage of backpacker/hostel style accommodation in Christchurch city in peak travel months has limited sales when compared to the pre-earthquake scenario. Accommodation availability in the peak summer months has been restricted but is now improving except in the backpacker sector. A relative lack of investment in hotel developments, which will result in a potential shortage of hotel capacity from 2016 onwards. This in turn will drive up room rates to extremely high levels, Converting enquiries into sales has become more difficult as travelers increasingly use the i-site to shop around. This trend is aided by the increasing prevalence of mobile technologies. Ongoing road works throughout the city continue to make it difficult for travelers to not only find their way to the i-site but also to navigate the city. Parking around the i-site area has become more difficult to find due to the scale of road repairs, the lack of public car parks and the severe parking shortage at Christchurch hospital. A general lack of signage, or out-of-date signage (which points visitors to the pre-earthquake i-site location), continues to impede the visitor s ability to locate the i-site. Rebuild activity in the central city has been very slow but will ramp up over the life of this plan. Christchurch City has a serious shortage of post 5.00pm tourism activity experiences, particularly within the Central City. Staff recruitment has become more difficult in a tight labour market. Christchurch & Canterbury Tourism Five Year Strategic Plan

35 Future Opportunities We will have a brand new city by 2017/18 onwards to showcase to the world. We will have one of the world s newest visitor information centres. Moving to a new site will offer us the benefits of being co-located with complementary businesses. In larger permanent premises we have the opportunity to broaden our revenue streams (luggage storage, retail, cafe) to offset the trend in fewer commissioned booking sales. Vending machines/self-service kiosks for fast ticket sales (Tram, Gondola, Punting, International Antarctic Centre, Combos). More use of satellite locations and roaming staff will be needed to broaden our catchment of visitors. Provision of free Wi-fi will attract more visitors to the i-site. Chinese FIT sales will rise considerably as this large inbound market continues to grow. Strategic Priorities Optimise the value of the Christchurch i-site extension a. To allow for eight staff to actively engage with visitors at any one time, an increase of 33%. b. More efficiently and effectively transact business. c. Reduce queuing in the busy summer season. d. Increase revenue earning opportunities due to less customer attrition. e. Increase revenue streams through additional Business Partner membership (brochure display) and wall advertising opportunities. Evaluate a range of new central city options a. To ensure that the future i-site Visitor Centre has good visitor catchment and is co-located with complementary businesses. b. To enable the i-site to move from its current transitional site to a permanent site by mid-2016, possibly by as early as July c. To provide a visitor experience that meets and exceeds future visitor needs, expectations and preferences. d. That provides a world class visitor experience. Requirements and capabilities of our future i-site Location Services & Facilities Booking Options Information Needs Where visitors go! Street frontage with great signage Near visitor transport hubs and car parking Near hotels and other commercial accommodation Close to retail and hospitality outlets Close to the Convention Centre Complemented by satellite locations especially in summer months Free Wi-Fi Decision making space Roaming concierge Multi lingual staff Multi lingual information Fast Confirmed booking Live inventory 24 hour booking service Self-service kiosks/vending machines Self-service kiosks Maps, physical and virtual Live chat/twitter feeds Experienced and knowledgeable staff Christchurch & Canterbury Tourism Five Year Strategic Plan

36 Provide a premium retail distribution service to our Business Partners and feedback to our industry on prevailing visitor needs; encouraging the development of new visitor attractions within Christchurch and Canterbury a. Identify product gaps through visitor feedback. b. Deliver on the Business Partner benefits we promote so that the i-site is considered a desirable distribution channel. Broaden the revenue base and ensure that the i-site business model stays relevant to the needs of visitors a. Ensure that our business model maximises opportunities to engage visitors and improve economic returns. b. Improve online interaction with intending visitors. c. Use our specialist language skills staff to optimise full itinerary revenue. d. Continuously assess new potential revenue streams that are relevant to visitor needs. e. Investigate opportunities to transact business outside normal operating hours. Ensure that our staff are outstanding local ambassadors, use professional sales techniques and demonstrate a high level of knowledge of our regions and tourism experiences a. Recruit and train passionate, enthusiastic staff who are committed to delivering a high quality visitor experience. b. Undertake ongoing sales and product training. c. Continue to create a culture that fosters a passion for the district and provides a total visitor experience across Christchurch and Canterbury. Alignment with CCT Strategic Themes The i-site strategies will contribute to the following CCT Strategic Themes: Recover the Australian market Prepare our industry for the ongoing increase in Asian middle class visitors Improve online engagement with intending travellers Develop a new world class visitor centre in Christchurch Improve consumer knowledge of all Canterbury tourism icons Key Performance Indicators FY Actual 2013/14 Year /15 Year /16 Year /17 Year /18 Year /19 Visitors 193, , , , , ,700 Turnover $3,073,300 $3,391,956 $3,934,669 $4,170,749 $4,420,994 $4,487,309 Notes: Visitor volume growth for 2014/14 to 2017/18 is based on increases of 4-5% (MBIE forecasts of annual increases of 2-4% with an additional 2-3% of market share recovery). 2015/16 also includes a one-off increase of 12,000 customers, due to moving into a new, higher profile permanent visitor centre. With a broadening of the revenue base we are estimating a one off growth step of +10% when we move into the new i-site in July 2015 with 6% pa growth in the out years as the new city matures and tourism products expand. Growth of 1.5% in 2018/19 reflecting the recovery will be more mature and the increasing influence of mobile devices impacting sales. Christchurch & Canterbury Tourism Five Year Strategic Plan

37 Business Partner Programme Situation Analysis The combined impact of the 2010/11 Canterbury earthquakes and the dramatic decline in visitor traffic has considerably diminished the Business Partner support base that CCT once had. Business Partner Category December 2010 June 2013 June 2014 Variance to 2010 Convention Bureau (CCCB) % Brochure Display Nil Other Categories General Membership Total % During 2012/13 we added new staff resource to re-grow the CCT business partnership base and introduce a new general category for tourism businesses wanting a closer connection with CCT activities and information. As a result we grew the number of Business Partner contracts from 350 to 397 during the year and increased the level of industry participation in CCT workshops and updates. Having cut participation fees by 50% in the wake of the February 2011 earthquake we are now focusing on improving revenue from the Business Partner programme as a priority. This plan proposes a range of initiatives to improve yield and broaden our partnership base by recruiting more new partners in key tourism locations across Canterbury. The ongoing need for a Business Partner programme is considered important for two reasons: 1. It meets the expectations of our major funder, Christchurch City Council, to have CCT activities also supported by private sector income from the tourism sector. This aligns with the principle of public and private sector partnership. 2. It creates an environment for quality communication with engaged stakeholders who have a vested interest in our strategies and activities. Major Challenges 1. As demand conditions have been strong in the accommodation sector due to the reduction in supply, we have experienced lower levels of participation by this sector in the Business Partner programme since Many accommodation providers have plenty of business and see only marginal benefit in tapping into CCT s distribution services and trade marketing when overall demand levels are so good. 2. The one price fits all policy that we applied to the fixed annual fee for brochure display in the initial business rebuild phase post-earthquake did not work well for all stakeholders or for CCT. When there is limited demand for specific products these fees can be hard to justify for some operators but conversely some large volume sellers who receive substantial sales pay very little for their brochure display space in the context of the sales results. 3. Due to weak levels of tourism demand in Christchurch since 2011 there has been very little new product development in the tourism sector in Christchurch at a time when innovation is sorely needed. Many travel sellers around the world are looking for new selling angles on Christchurch and are actively seeking new experiences to improve the appeal of a visit to our City. Christchurch & Canterbury Tourism Five Year Strategic Plan

38 Strategic Priorities Review the pricing structure of the Business Partner programme based on an assessment of the benefits of CCT activity to categories of business and size of operations This will require some detailed modeling of Business Partner benefits and feedback on these benefits through a Business Partner survey. CCT needs to do more communication work with District Tourism Organisations and their Councils on the role of CCT in driving visitor flows and tourism value with a long term view of increasing District contributions to our work. Evaluate where we could successfully broaden the Mackenzie model of subcontracting destination marketing services to other regions within Canterbury. Use the move to new i-site premises in Christchurch in 2016 as an opportunity to grow the revenue base for this operation Develop new digital promotional opportunities that can benefit key operators and broaden the i-site revenue base. Provide digital add-on options for brochure display membership; we could potentially do this with i- SITE apps, OVG apps and kiosk based advertising. Increase the proportion of the interior and exterior space that is available for product promotion and therefore display space sales. Improve our engagement with Business Partners on key strategic issues for tourism in the region and on marketing skills development and trade engagement CCT needs to be seen as a value driver and a marketing organisation that engages with its industry at a deep level. This will require more work in developing an annual programme of structured engagement over the next five years. In 2016/17 we will need to have a branding strategy in place for Christchurch City as it emerges as a new world city of considerable global interest. We will need to engage fully with our Business Partners on the brand development work and provide strong leadership on the brand requirements for the tourism sector in what will inevitably be an inter-agency process. Ensure that the work of CCT remains relevant to the whole of Canterbury and our broader industry partnership base The earthquake events of the past few years have required us to place a high emphasis to restoring and reviving the image of Christchurch. To some tourism businesses outside of Christchurch this may be interpreted as CCT only focusing on the Christchurch situation. Perception research in our largest international origin market Australia suggests that Australians still have only weak knowledge of the core tourism products across our province. It is essential that we strengthen the Canterbury content in our marketing work and ensure there is frequent and balanced exposure of the key tourism activities that define our region. We have identified the need to grow our business partnership base across the entire region through more frequent contact and engagement. Alignment with Strategic Themes The successful operation of the CCT Business Partner programme will support the achievement of the following strategic themes as all of these initiatives require effective industry engagement and participation: Preparing our industry for the ongoing rise of Asian middle class travellers. Recovering our share of the New Zealand conferencing market as infrastructure is restored. Christchurch & Canterbury Tourism Five Year Strategic Plan

39 Developing a new world class visitor centre in Christchurch. Developing a stronger domestic tourism strategy that offsets and complements the highly seasonal demand pattern of international visitor arrivals. Key Performance Indicators Business Partner Category 2013/14 Year /15 Year /16 Year /17 Year /18 Year /19 Convention Bureau (CCCB) % Brochure Display % General Membership % Total % Forecast BP Revenue $195k $218k $235k $270k $297k $317k 13% Avg Annual Growth Christchurch & Canterbury Tourism Five Year Strategic Plan

40 Cruise Sector Situation Analysis The recent season saw 119 cruises visit 699 ports and brought 202,700 visitors and 69,300 crew to New Zealand. This resulted in over 1.08 million passenger port days and 455,100 crew port days across the country. The season was also significant for having produced the highest number of exchanges (where a ship ends or starts its voyage), at 83,000 passenger exchanges. The total value added by the industry across all New Zealand regions was $365.3m. Passenger-related spend contributed over $273m (75%), crew-related spend contributed almost $29m (8%) and vessel-related spend contributed almost $64m (17%). For the upcoming season, bookings indicate that 124 cruises will make 712 port calls, bringing 205,700 passengers, 79,700 of whom will exchange in New Zealand, and 72,300 crew. They are likely to spend just over 1.13 million passenger port days and 473,200 crew port days. The total value added is expected to rise by $8.1m to $373.4m. The outlook for indicates that this will be New Zealand s biggest ever cruise season. This is due to the arrival of larger vessels, taking the average visiting vessel capacity up from just over 1,600 to almost 2,000. Forecasts show this will result in 119 voyages making 652 port calls, bringing 246,800 passengers and 83,200 crew. They are likely to spend a total of 1.29 million passenger port days and 519,000 crew port days. Passenger exchanges are also forecast to be the largest ever, at 90,600. This will drive a big increase in the economic impact over the previous seasons, to a national total of $421.5m. 5 Deployment to New Zealand is highly dependent on the port of Sydney. Congestion in Sydney has been an ongoing issue and will restrict growth in the medium to long term life of this plan. The deployment of cruise ships into Australia, New Zealand and Asia represents only 7% of global deployment of the world s cruise fleets. Shed 10 on Auckland s Queens Wharf has been commissioned as New Zealand s 1st turnaround terminal and has already proven to be size constrained. The completion of this cruise terminal has enabled Auckland to accommodate more ships and offer more opportunities to maximize pre and post cruising opportunities in New Zealand. The 2014 Market Economics report estimated average cruise passenger spend at a New Zealand port to be around $170 per day which was a non-weighted average spend for the season is estimated at around $172 per port day; this included retail, transport, dining, excursions and overland tours. This spend is comparable to alternative data sources being the international visitor spend (IVS) and domestic survey data (DTS) which indicate that spend per cruise passenger port day is around $168. The CCT funded Lincoln University report commissioned over the 2012/13 cruise season which measured expenditure from cruise passengers in Akaroa and Christchurch. The average daily spend was estimated at $122 which is lower than the 2014 CNZ Market Economics report. This is largely due to the distance between the port of Akaroa and Christchurch city. In comparison, the average expenditure of international visitors to New Zealand is $122 per person, per night, with average length of stay of 18.8 days. 6 New Zealand s Cruise Growth Globally, the cruise industry has an annual passenger compound growth rate of 7% for the period of using actual and forecast data (Cruise Market Watch, 2013). The cruise sector is said to be growing faster than any other part of the travel industry. In 2011 the 20 million passenger mark was broken and future projections indicate continued global growth. 5 Source: Cruise NZ Economic Impact Report Year end March Sources: Key Tourism Statistics, May 2013, MBIE, Cruise New Zealand and Cruise Downunder Christchurch & Canterbury Tourism Five Year Strategic Plan

41 This rapid growth of the global cruise industry has been reflected in New Zealand with over 250% growth in passenger numbers in the past five years (refer to Table One). The largest international source market of passengers is Australia, followed by the US and the UK. 7 Canterbury Cruise Sector The 2013/14 cruise season between October 2013 and April 2014 welcomed 84 cruise port calls across the wider Canterbury region. The bulk of the cruise port calls went into the tender port of Akaroa. Port calls during the 2013/14 season: - Akaroa 69 - Kaikoura 9 - Lyttelton 4 - Timaru 3 As a result of earthquake damage and other Lyttelton Port priorities Lyttelton will not be able to accommodate large cruise ships until an entirely new cruise or general wharf is built. A cruise wharf has not been included in the Lyttelton Port Company (LPC) 20 year redevelopment plan and CCT is currently completing a broad based economic evaluation to determine the impact of this decision. Lyttelton is able to offer an inner harbour berth to smaller vessels up to 220 metres. Akaroa has been the substitute port for Lyttelton and whilst successful in the most part, it remains a tender only destination which loses port calls from ships that do not carry tenders e.g. Voyager of the Seas operates 7-8 times per season with a loss to the region of 3,000 plus passengers and 2,000 crew on each cruise. New regions are looking to establish themselves as cruise ports which provide a strong competitor set for Akaroa. Kaikoura and Timaru are emerging cruise ports for the wider Canterbury region with potential for growth. Akaroa has seen the number of cruise passenger arrivals increase by 500% since February This substantial growth in cruise traffic has put pressure on the community and local infrastructure but has provided a much needed boost to the economy of Akaroa, Banks Peninsula and Christchurch City. Year 2008/09 4, /10 8, /11 21, /12 125, /13 143, /14 119,147 Total Passenger Arrivals 7 Sources: ECC (2012/2013 report) and CLIA (Travel Weekly Feb 2013).Cruise Lines International Association member lines only Christchurch & Canterbury Tourism Five Year Strategic Plan

42 Short to Medium Term Trends 1. Not as many ships being deployed to Australasia as a result of some ships being scheduled out for routine refits. 2. Carnival Spirit (a fun ship ) operated for the first time in Australasia in 2012/13 but has been withdrawn as it was seen to compete too closely in the Australian market with other Carnival Corporation brands such as Princess and P&O. 3. Cruise lines are beginning to test the Chinese market by deploying some of their larger new vessels such as Quantum of the Seas (3,600 pax) into this market. 4. Canterbury will miss port calls from the Royal Caribbean Lines Voyager and Quantum class ships until a Lyttelton berth is available. These ships require an alongside cruise port berth due their inability to tender passengers. The trend in future seasons may see a decrease in the number of ships visiting the country as ships are replaced by larger vessels carrying more passengers. Larger ships are built and deployed over the northern hemisphere winter to the Australasian and Asian regions. This makes it particularly important that Lyttelton is re-commissioned as a cruise port as Akaroa is unable to cater for the new larger vessels that do not have tender facilities. Major Challenges: Improving the percentage of passengers that take part in shore excursions and increasing the value of passenger spend in the region. Address issues that are specific to Canterbury being: Lower on-board commitment to shore excursions than other New Zealand ports due to the geographical distance to Christchurch city and further afield excursions such as the TranzAlpine and wider Canterbury high country adventure tours. These excursions are high yielding shore excursions but are being distance challenged with the majority of port calls going to Akaroa instead of Lyttelton. Shore handlers (IBOs) and Cruise Lines want higher yield shore excursion products within the Akaroa and Banks Peninsula area which will require new shore excursions products to be developed. Christchurch attractions continue to get a lower share of cruise arrivals due to the travel distance from Akaroa. Attractions want more cruise passengers in the city. Many ships that could potentially berth at Lyttelton continue to choose Akaroa over Lyttelton because of the current diminished visitor arrival experience which in turn puts pressure on Akaroa. It will therefore be important that the Lyttelton tourism and hospitality community work actively to develop new experiences and visitor facilities. Keep the Akaroa community engaged with the benefits of cruise visits and supportive of cruise. To drive further long term growth we must: Maintain effective relationships with cruise lines and be cognizant that communication with cruise line executive management based in Australia and the USA must be regularly maintained. Keeping the cruise lines, cruise staff and shore handling companies (IBOs) engaged with Christchurch. Use visitor satisfaction survey results for Akaroa and Christchurch to drive product improvements and change. Continue to look for improvements in the visitor experience for disembarking passengers especially in Akaroa. Maintain and increase port visits to Canterbury cruise ports and identify and attracting new cruise lines to the Canterbury cruise ports. Christchurch & Canterbury Tourism Five Year Strategic Plan

43 Strategic Priorities and Activities Maintain existing and attract new cruise voyages to Canterbury cruise ports Continue to profile the region to cruise shore handlers and cruise representatives with special focus on Lyttelton, Christchurch and Akaroa. Accurately communicate the visitor experience offered in Christchurch. Maintain strong relationships with Cruise NZ and cruise agents ISS McKay and Tourism NZ. Remain actively involved with the cruise sector at a national level. Biennial attendance at the major global cruise shipping tradeshow CSM with Tourism NZ and Cruise NZ. Annual attendance at Cruise Down Under Conference to maintain existing relationships and build new relationships with Australasian and visiting key US cruise industry executives. In market updates to Carnival Australia and Royal Caribbean prior to the cruise season. Pursue opportunities to fund a dedicated cruise berth in Lyttelton e.g. Joint Venture partnership solutions. Increase the % of arriving cruise ship passengers that purchase shore excursions on both pre-booked and FIT basis Ensure the major cruise lines operating in New Zealand continue to receive accurate port information. Visit Carnival Australia prior to each cruise season to update staff and influence lecturers. Develop HD video and relevant imagery on the region for on board use by cruise lines with Tourism NZ and Cruise NZ. Host shore handling companies (IBOs) and cruise representatives from Australia and USA on tours of the city and region with a primary goal of profiling new tourism products suitable for cruise. Work with new and existing operators to identify and develop more cruise ready product with higher yield for shore excursion programmes. Continue to educate the tourism operators on how to make their product Cruise ready. Engage effectively with the Akaroa Community to ensure that welcoming approach can be maintained and local economic benefits are sustained Provide an advocacy role for tourism operators in the area. Ensure that the cruise industry needs are factored into preparations for each cruise season. Ensure the Akaroa community remains engaged and informed of the benefits of the cruise industry to the Akaroa business community. Improving access to visitor information and tour/activity products at all Canterbury arrival points Assist the industry to develop day trip products that are suitable for the FIT cruise market. Follow best practice in visitor information access and arrival handling from other NZ cruise ports. Advise DTOs and TLAs on the provision of visitor information and access to local activity and tour operators that meets the needs of the cruise lines and is acceptable for cruise passengers. Maintain or increase visitor satisfaction survey results Ensure consideration is given to providing adequate shelter when tenders arrive at the cruise wharves so as to maintain or improve cruise visitor satisfaction levels. Advocate with relevant stakeholders to ensure visitor information/activity purchase is considered in any cruise or tender wharf development plans. Ensure adequate public facilities such as toilets and Wi-Fi hot spots are available to arriving passengers in Christchurch. Christchurch & Canterbury Tourism Five Year Strategic Plan

44 Work with the Lyttelton community and Christchurch City Council to prepare Lyttelton for the return of cruise ship business Safety and the visitor arrival experience are high priority issues for the cruise lines and their IBO handling agents. Continue the dialogue with LPC, SCIRT and the Lyttelton tourism community on restoring visitor infrastructure and services. Investigate with cruise lines any opportunity to encourage investment in cruise port infrastructure. Continue to work with LPC and stakeholder groups to articulate the value of the cruise sector to the wider greater Christchurch economy. Measure the economic impact of cruise on the economy of Akaroa and Christchurch Undertake biennial research into the economic impact of cruise, including the numbers preferred activity options and measure increased average spend and passengers propensity to return to the region both in Akaroa and Christchurch. Timeline Year 1 Year 2 Year 3 Year 4 Year 5 Activities 2013/ / / / / /19 Maintain existing and attract new cruise voyages to Canterbury cruise ports Maintain strong relationships with relevant cruise sector leaders Biennial attendance at CSM tradeshow or TNZ cruise roadshow Attend Cruise Down Under Conference Provide annual in market updates to Australian based cruise lines Advocate for the cruise sector with the Lyttelton Port Company, Canterbury ports and relevant TLAs Increase the % of arriving cruise ship passengers that purchase shore excursions on both pre-booked and FIT basis Provide accurate Port information Develop cruise specific HD video and relevant imagery on the region Continue to educate and facilitate cruise product development Engage effectively with the Akaroa Community to ensure that welcoming approach can be maintained and local economic benefits are sustained Communicate and participate in pre cruise meetings with the Akaroa community board Improving access to visitor information and tour/activity products at Canterbury arrival point Ensure the provision of a visitor information service at port entry Continue to fund the cruise facilitation plan for Akaroa until 2016/17 Maintain or increase visitor satisfaction survey results Achieve or better a port satisfaction rating of 8.5 for Canterbury ports Christchurch & Canterbury Tourism Five Year Strategic Plan

45 Year 1 Year 2 Year 3 Activities 2013/ / / /17 Prepare Lyttelton for the return of cruise ship business Prepare a cruise facilitation plan in partnership with LPC and Lyttelton business community Communicate the rebuild of Lyttelton to cruise lines Measure the economic impact of cruise on the economy of Akaroa and Christchurch Measure the economic impact of the cruise sector on the Akaroa/ Christchurch economy biennially Note: Darker shading represents higher activity and investment. Key Performance Indicators Year /18 Year /19 New Zealand has enjoyed cruise growth of over 250% over the last five years, making cruise arrivals the fourth largest inbound market for New Zealand tourism. 8 While forecasts expect growth in passenger numbers to plateau around 200,000 passengers for NZ, the value added to the New Zealand economy is expected to increase due to more Auckland passenger exchange itineraries planned for upcoming seasons. Cruise Visits to Canterbury 2013/ / / / / /19 Port Calls * 80* 85* Potential passengers disembarking for day visits in Canterbury 123, , , , , ,000 * Forecast for assumes no cruise wharf is built in Lyttelton to accommodate Voyager class ships. South Island ports are forecast to experience a drop in the number of port calls in 2015/16 although the increase in average ship size will see the number of passenger port days increase. 8 Source: Statistics NZ YE 30 June 2014 & Cruise NZ Economic Impact Report 2014 Christchurch & Canterbury Tourism Five Year Strategic Plan

46 Visitor Sector Recovery Plan Situation Analysis Following the February 2011 Earthquake the Canterbury Earthquake Recovery Authority (CERA) requested CCT to lead the development of an Earthquake Recovery Plan for the tourism sector in Greater Christchurch. In late 2011 we completed extensive consultation with the tourism sector in Christchurch and developed a Visitor Sector Recovery Plan (VSRP). This plan was completed in July 2012 and outlines the specific impacts of the earthquakes on the visitor sectors capability and defines six key projects that will assist in accelerating the recovery of visitor flows to the city and region. Christchurch City lost more than a million visitor nights in the 2011/12 year as well as a large but unmeasured number of day visitors that would typically come into the city on arrival into the South Island or before leaving. More than two years on the overall reduction in visitor activity in the city is estimated to be 55-60% behind pre earthquake levels. Without fast track actions to provide the much needed central city accommodation and activities to address this drastic visitor depopulation, Christchurch has little prospect of mounting an effective recovery that revitalises the visitor industry. Without the interventions proposed in this recovery plan in four years time Christchurch will have only recovered 50% of the visitor nights lost following the 2011 earthquakes. A full recovery to 2010 visitor levels will take years. The four major fast track strategies in the VSRP are considered to be the key drivers of economic recovery in the tourism sector and will enable us in the next four years to grow visitor nights from 2.3 to 3.4 million and improve visitor spend by 60% from $529million pa (YE 2012) to $843 million pa (YE 2017). The primary projects in the VSRP are built around: Fast track re-builds and new builds of commercial accommodation Creating new inner city tourism infrastructure that delivers a viable Pop Up Transitional City experience by day and also by night Getting a new Christchurch Convention Centre built and operational by 2016 Air Service Developments re-instating Trans Tasman capacity and opening up two new routes from Asia by Two further projects around the development of a sports tourism strategy and placing a priority on building the Avon River Park precinct will significantly enhance the rate of recovery and economic returns but require further analysis before the total economic benefits can be identified. Christchurch & Canterbury Tourism Five Year Strategic Plan

47 The plan also identifies the importance of ensuring that visitor services development needs to be an integral consideration in the Christchurch rebuild to ensure that our city becomes a more iconic and must see visitor destination. A strong visitor industry will contribute enormously to the economic recovery of the inner city and the rate of recovery of many other economic sectors. Whilst the plan is endorsed by CERA and has been supported by MBIE in respect to research and consulting advice, there are key areas of the plan that have not yet received funding support from either local or central government, or the tourism sector and therefore cannot be activated. Central Government, through the CCDU has taken leadership and confirmed funding support for the Convention Centre project but has not yet been able to reveal the detail of the project despite the 16 months that have elapsed since its announcement. CCT reports to CERA on a quarterly basis on progress with the Visitor Sector Recovery Plan. Major Challenges Fast track re-builds of commercial accommodation have not occurred This had been the result of five contributory factors: During 2011 and early 2012 there was a rich sequence of aftershock activity. Significant delays in the Central City Rebuild Plan being activated. Uncertainty about the re-establishment of a Convention Centre in Christchurch. A very weak rate of tourism recovery impacting on investor confidence. Refusal by Central Government to put in place the investment incentives proposed in the VSRP. Progress with developing Pop Up Transitional City elements have not been sufficient to reactivate the central city as a primary visitor space Whilst the Restart Mall, Life in Vacant Spaces Initiatives and other outdoor art projects have contributed to making the central city more interesting, there has not been enough supporting infrastructure to make this a compelling place for visitors especially at night time. The priority that the CCDU has put on demolition activity denied us the opportunity of putting a private sector led restaurant precinct in Cathedral Square in The physical state of many parts of the CBD around Cathedral Square is not yet acceptable to many travel companies wanting to accommodate their clients in Christchurch. Progress with air capacity re-instatement and hotel repairs has been slower than expected Trans Tasman air capacity was eroded further in 2012 to a level that is 20% beneath the pre-eq level. Christchurch is operating with 17 fewer Trans Tasman services a week and an increasing amount of Trans Tasman traffic is being routed via Auckland and Wellington at peak demand periods. Whilst good work has been done by CIAL to attract new airlines from Asia there has been no replacement for the Air Asia X services to Christchurch that were terminated in May Christchurch & Canterbury Tourism Five Year Strategic Plan