Matakauri Lodge, Queenstown. newzealand.com/luxury LUXURY TOURISM NEW ZEALAND INSIGHTS REPORT FIRST EDITION NOVEMBER 2017
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1 Matakauri Lodge, Queenstown newzealand.com/luxury LUXURY TOURISM NEW ZEALAND INSIGHTS REPORT FIRST EDITION NOVEMBER 2017
2 PERFECTION FROM EVERY PERSPECTIVE New Zealand is fast becoming a favourite R&R location for the world s wealthy elite. Cecil Peak, Queenstown As a country we fulfil many of the premium set s ideal holiday criteria: safety, luxury accommodation options, unique activities (from golf to adrenaline-filled adventures), and a friendly, welcoming population. In the past year premium luxury lodge accommodation visitor spend has increased by 42% and international research forecasts this trend will continue. International high net-worth visitors have the potential to provide economic benefit beyond tourism, through other high value purchases.. The challenge has always been how to attract a group of people who have the ability to travel anywhere in the world and who are inundated by competing luxury providers. In 2013 Tourism New Zealand developed a strategy to ensure New Zealand was front and centre in the luxury market. It sets out how we are building sector knowledge, developing strong industry partnerships, refining our priority target markets, and leveraging high profile celebrity relationships to highlight New Zealand s fresh perspective on luxury to Ultra High and Very High Net Worth Individuals (UHNWI / VHNWI). This approach, led by our dedicated Premium team, and in collaboration with premium industry partners, has been highly successful to date. In this inaugural report we highlight: Market insights: what we know about the luxury market An experience-led approach: Tourism New Zealand s work in the sector New Zealand s unique point of difference in the luxury market We appreciate your support of our continuing work focused on attracting high value visitors to New Zealand. Lisa Gardiner International Business Events & Premium Manager 2
3 TOPLINE RESULTS TARGET MARKET INSIGHTS Four years on from the establishment of TNZ s premium strategy, a better understanding of our audience is emerging. To ensure we provide them with the best offerings, here is a snapshot of what we know about the premium market. GRAPH: COMPOSITION OF GLOBAL HIGH NET WORTH INDIVIDUALS USD $5-30m Wealth Range >USD $30m 145,200 Ultra High Net Worth Individual (UHNWI) 1,388,100 Very High Net Worth Individual (VHNWI) The Landing, Bay of Islands Tourism New Zealand s marketing strategy focuses on the top tiers representing 1.5m individuals. TOP 5 COUNTRIES OF ORIGIN AND % OF GENERATED REVENUE 7% 4% United Kingdom Germany DURATION 70 % of trips were up to three weeks in duration Source: Marketview Nov % China 14% Australia 50% United States Source: Luxury Lodges of New Zealand 32 % of luxury lodge customers returned to New Zealand at least once over the last five years CREDIT CARD RANKING Source: Marketview Nov 2016 GROWTH IN SPEND AT THE LUXURY LODGES OF NEW ZEALAND INCREASED 141 % BY From year end March 2012 to March 2017 Source: Luxury Lodges of New Zealand MOST VISITED REGIONS Auckland Waikato Otago But Waikato and Otago accounted for nearly 50% of spend by visitors of luxury lodges Source: Marketview Nov 2016 USD $1-5m 13,831,600 Number of Adults NEW ZEALAND.COM STATISTICS FOR PERIOD JAN 1ST - DEC 31ST, 2016 SHOWS: Source: Capgemini Financial Service Analysis, 2016 Globally the luxury travel market is expected to garner $1.154 billion by 2022 (Allied Market Research). The luxury travel market is projected to be the fastest growing segment of the travel industry worldwide (Allied Market Research)..Affluent survey respondents rated travel as their top (67%) passion in what matters to them, with spending quality time with family at #2 with 65%.(Survey of Affluence and Wealth) Over the next 10 years, the growth rate in outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%). (Future Traveller Tribes 2030, Amadeus) Twitter and Facebook are the leading communication tools for wealthy consumers to share information with friends and family.they also ranked far higher in terms of advertising reach and engagement than traditional advertising. (Shullman Research Centre) Luxury travellers rated New Zealand at number 7 in the top ten popular international destinations in (Virtuoso Luxe Report 2017) 360K total referrals from luxury, golf, yacht, heli, lodge or fly-fishing pages off newzealand.com TOP TRAFFIC AND REFERRAL MARKETS Source: Adobe Analytics VISITS 57 % 30 % Desktop Mobile 1. Australia 2. United States 3. New Zealand 4. China 5. Germany 6. United Kingdom $ 450m Roundtrip Business Class Airfares to NZ from top six priority markets (Pro-rated by length of stay four nights or longer. Sourced from IATA GAP, indirect bookings only. Purchased year ending Aug 2017) 3
4 The Landing, Bay of Islands AN EXPERIENCE-LED APPROACH: TOURISM NEW ZEALAND S WORK IN THE SECTOR Tourism New Zealand s premium sector strategy aims to improve the awareness of New Zealand as a luxury destination amongst High Net Worth Individuals (HNWI) and their trusted advisors with the ultimate goal of increasing the number of high value visitors to New Zealand. We know that the needs and desires of luxury travellers are diverse. Some travel to New Zealand with a set plan in mind for how they want to spend their time; others will take each day as it comes and adapt their itinerary to whatever takes their fancy. Tourism New Zealand highlights experiences to luxury travellers that will provide them with a return story worth sharing among their exclusive networks. Tourism New Zealand works closely with New Zealand s luxury travel sector to ensure agents can provide an ideal experience for luxury travellers with customised local experiences that have the personal touch. This is achieved through unique personalised campaigns, agent familiarisations, and promotion of the 100% Pure New Zealand experience with partner networks. LUXURY LODGES OF NEW ZEALAND PARTNERSHIP Tourism New Zealand works closely with the Luxury Lodges of New Zealand a portfolio of 32 highly qualified unique properties. Luxury Lodges of New Zealand collates revenue data from each lodge twice a year (summer and winter) an aggregated report is used by Tourism New Zealand for a measure of sector growth. Year End - March 2017, luxury lodge accommodation spend in New Zealand was up 42% year-on year. We ran a print and digital campaign with US Town and Country Magazine from May-July 2017 comprising of print ads, advertorial, sweepstake sponsorship, online and social media support and media famil (end of 2017). We partnered with Luxury Lodges of New Zealand around the sweepstake component, offering a luxury trip to New Zealand with five nights accommodation at three luxury lodges. The three month campaign reached over 3.2m readers/impressions, with an average net worth of $1.8m USD. A total of 36,599 entries made it the second-highest performing sweepstakes Town and Country had run. 4
5 Annandale, Christchurch Mount Alfred, Queenstown HARNESSING THE POWER OF SOCIAL MEDIA Tourism New Zealand continues to explore new ways of engaging with our luxury audience and has partnered with Facebook and Google to test out content delivery targeted at different premium profiles on Facebook. We have evolved the Facebook-led campaign in FY18 to target UHNWI in primary markets (US, UK, Germany, Singapore, Hong Kong and Australia) with creative advertisements that support the entire Dream, Plan, Booking process. Of significance is the booking ads which drive consumers to the first ever luxury trips pages (a version of the deals pages that exist on newzealand.com) - created by working with luxury travel partners globally. Complementing this campaign, we have refreshed the Tourism New Zealand Luxury Hub ( With insights from Luxury Lodges of New Zealand visitor surveys, digital deep dives and global luxury brand case studies, the hub landing page was refined and module content focuses around top experiences luxury visitors come for lodges, walking and hiking, wine and cuisine, fly fishing, golf and super yachting. The premium sector consulted with a variety of external stakeholders in the development of the content for the specific modules. facebook.com/purenewzealand instagram.com/purenewzealand WHO YOU KNOW: THE JAMES CAMERON EFFECT If you happen to like helicopters like I do, you could see 10 of the most stunning places you ll see in your lifetime in a day. James Cameron on New Zealand In 2016 we partnered with award winning film maker, renowned adventurer and businessman James Cameron one of the few people in the world who has the ability to act as an influencer for the premium audience. Everything he does is considered carefully, from his love of adventure to his intellectual take on life. Cameron and his wife Suzy Amis Cameron spent four days filming, taking in the natural wonders of New Zealand s spectacular South Island. Capitalising on the filmmaker s international exposure, we launched a global marketing partnership campaign with American Express luxury publications Departures and Centurion (targeted at AMEX s 1.43 million high net wealth individuals who hold Platinum or the invitation-only Centurion American Express cards). The campaign garnered more than 12 million impressions across both print and digital editions of the publications, 200,000 Facebook engagements, and 80,000 visitor sessions to our dedicated luxury New Zealand hub. AMEX reported year-on-year Centurion and Platinum spend in New Zealand increased by 14% from off the back of Tourism New Zealand promotions. From the outset Tourism New Zealand s Premium strategy has been to use relevant content from influential people that our target market of U/V HNWI can relate to, authentically in channels where we can isolate and target the very wealthy. The approach has netted Tourism New Zealand s Premium team accolades and an international reputation. In 2017 Tourism New Zealand s 2016 US Restaurateurs campaign won Best Use of Native Advertising/Sponsored Content at the 2017 Content Marketing Awards - the world s largest and longest running international content marketing awards. 5
6 Huka Lodge, Taupō BUILDING PREMIUM PARTNERSHIPS Interaction with offshore trade is an integral and large component in the delivery of Tourism New Zealand s premium strategy. Principal partnerships are established where objectives deliver mutually beneficial outcomes, with a very specific focus on the growth of incremental business. Through core trade activity, the New Zealand luxury offering is served in a variety of ways to support our trade partners and drive conversion for their businesses and our New Zealand suppliers. Building trust through education, partner campaign support, consortia membership and famils provides a comprehensive relationship management approach to ensure our contact with the luxury trade sector is regular, valuable and advantageous for both parties. Each year the Tourism New Zealand Premium team attends 50+ premium business-generating events and education opportunities around the world, and conducts almost 1000 meetings with luxury product providers. FAMILS True luxury is getting exactly what you want, in the precise way you want it. It sounds straightforward, but it requires an actual human being to fulfil and I go back to the importance of the human connection. If you want to impress someone who has everything, make sure they get what they want before they have a chance to ask for it. Terrie Hansen, Senior Vice President of marketing for Virtuoso speaking to USA Today. In FY17 Tourism New Zealand s Premium team took more than 65 luxury agents from the US, UK, Europe, South America, and Asia around New Zealand. These famils allow us to showcase different regions, highlight different activities available (particularly in the shoulder seasons), introduce luxury tourism operators to agents and media, and demonstrate the type of experiences luxury clients can enjoy in New Zealand. For agents and personnel assisting luxury travellers it is essential for them to know first-hand what is available to them in New Zealand from information about a region and activities, down to minute details such as private airport facilities, travel times, weather patterns, types of water available, the linen used in a particular luxury lodge, and who makes the best mojito in an area. 6
7 INDUSTRY RECOGNITION United States: Virtuoso* Tourism Board of the Year Award: 2015, 2016, 2017 Australia: Luxperience Destination Award : 2015, 2016 Global: Best Use of Native Advertising in the Content Marketing Institute s 2017 Awards for US Restaurateurs campaign The Landing, Bay of Islands TRADE SHOWS: The premium sector exhibits at and attends key international luxury travel trade shows to provide a platform for the New Zealand luxury industry. For further information on upcoming luxury travel trade shows please click here. CORE PARTNERSHIPS & JOINT VENTURES Tourism New Zealand is a core partner of a number of luxury tourism networks extending our reach and understanding of the premium market. Major partners include (but are not exclusive to) Virtuoso, Traveller Made, Small Luxury Hotels, American Express and Signature. We have also partnered with Eden Luxury Collection, Ten Lifestyle Concierge, Carrier, Elegant Resorts, Scott Dunn, Art of Travel, Design Reisen, Windrose Finest Travel, Dertour Deluxe, Voyages Confidentiels, Swain Destinations, Country Holidays, Country Holidays, Lightfoot Travel and Downunder Endeavours. ONGOING TRAINING: Many luxury agents hold gold specialist status through the Tourism New Zealand s destination specialist training programme. This demonstrates their commitment to our destination each having experienced New Zealand luxury product first-hand through training modules, attendance at localised in-market events and famil participation. Research is currently underway to gather insights from luxury agents to develop an additional B2B support sales tool which will benefit client conversation and enhance agent product awareness. This would be an exclusive support tool for the luxury sector where personalised itinerary development and specialist trade product knowledge is paramount.. Wanaka *The awards are voted on by Virtuoso s 16,000-strong community of luxury travel advisors. 7
8 White Island, Bay of Plenty PUBLIC RELATIONS WHAT IS THE ROLE OF PR IN DRIVING VALUABLE TRAVEL TO NEW ZEALAND? Communications channels such as public relations We do this through: (PR) deliver brand messages through third parties (opinion leaders, independent media) to drive preference for visiting New Zealand, and assist in converting potential visitors into actual visitors. Put simply We share our stories through influencers that inspire travellers to choose New Zealand. Focussed IMP (International Media Programme) and content Leveraging the profile of others Strategic partnerships The Premium PR strategy involves a two prong PR approach in key markets to drive preference for UHNWIs to choose New Zealand. The elements of the PR programme include: 1. Focussed IMP 2. Content generation INTERNATIONAL MEDIA PROGRAMME PARTNERSHIPS YTD (SEPTEMBER 2017) Conde Nast Traveller UK Private Clubs USA Robb Report USA /Australia/UK Departures USA Conde Nast Traveller USA Vogue Online USA Mayfair UK Qantas Magazine AUS Centurion Global International Traveller AUS Qantas Magazine AUS Singapore Tatler Singapore $ 4,178,769m worth of equivalent advertising value secured by Premium PR Programme FY2017 $ 5,172,935m worth of premium content generated. Fy2017 RESULTS OFF THE BEATEN TRACK Author Jan Masters Media Outlet Harrods Magazine Live date 19 May 2017 Summary A review of New Zealand s luxury lodges COUNTRY OF ORIGIN/MARKET ESTIMATED ADVERTISING VALUE PRINT CIRCULATION UK $118, ,853 8
9 ROADTRIP ACROSS THE COUNTRY OF KIWIS Author Eva Miller-May Media Outlet Grund Genug Magazine Live date 01 September 2017 Summary The author presents New Zealand as a premium destination. High class accommodations and luxurious lodges are the focus of the article. In addition to the lodge portrait, the author describes her experiences in New Zealand and the kiwi lifestyle. PARADISE WHERE MILLIONAIRES ARE PREPPING FOR THE END OF THE WORLD Author Nadine Jolie Courtney Media Outlet Vogue USA Online Live date 06 March 2017 Summary A premium overview of a trip to New Zealand with a focus on luxury lodges and vineyards, also mentioning the US billionaires who have ties to New Zealand URL COUNTRY OF ORIGIN/MARKET ESTIMATED ADVERTISING VALUE PRINT CIRCULATION GERMANY $144, ,162 COUNTRY OF ORIGIN/MARKET ESTIMATED ADVERTISING VALUE UVPM USA $159,975 6,599,016 9
10 CONTACT René de Monchy Director Trade, PR & Major Events (Auckland) Lisa Gardiner Manager Premium & International Business Events (Wellington) Caroline Swallow Premium Marketing Manager (Auckland) Pauline Dwight Global Premium Trade Manager (Auckland) Kimberley Wallace Premium PR Manager (Auckland) Kate Fenton Europe Premium Trade Manager (London) Hadyn Fitzpatrick USA Premium Trade Manager (LA) Chisato Nishiyori Asia Premium Trade Manager (Singapore) 10
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