Industry Consultation Day 21 st April Tim Hunter Chief Executive
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1 Industry Consultation Day 21 st April 2015 Tim Hunter Chief Executive
2 A long hot summer + rise in inbound demand To New Zealand 2,900,000 2,800,000 International Visitor Growth to NZ +5% 2,700,000 +6% 2,600,000 2,500,000 +3% +3% -2% 2,400,000 2,300,000 2,200, Note: Variance is year on year. Data range January to December
3 Most city major attractions are back in operation 食後はアンティグア ボートシェッドまで徒歩で移動し ( 150m) エイボン川のパンティングで水面から優雅に植 フラワー フェスティバル期 物園を観光していただきま 間中の大聖堂広場す ( 所要約 30 分 )
4 More improvements Accommodation openings New venues Many more bars and restaurants The Tram extension The Restaurant Tram
5 Stunning new buildings
6 CCT has been resolute about trade communications and training
7 Conference demand exceeds supply
8 .. gave us 24 extra services into Christchurch this summer providing 6,400 more seats from Asia & Europe
9 Shift in Tasman Air Seats the CHC loss became ZQN gain, and some Tasman Seats into CHC Tasman Seats into ZQN 900, , , , , , , , , , , , , , , , , ,000 75, ,000 50, ,000 25, ,
10 Trans Tasman Seat Supply (Oct 2014 Mar 2015) New China Airlines services lifted Sydney Christchurch capacity Air NZ & Virgin Australia also added more seats on MEL, BNE & SYD routes Seats into Last Year This Year Variance Auckland 1,457,030 1,425,277-2% Christchurch 367, , % Wellington 251, ,456-8% Queenstown 87, , % All Ports in NZ 2,163,269 2,173, %
11 Structural shifts in tourism demand. Christchurch has retained much of it s gateway status, but has lost some of it s destination status Evidenced by: Australia holiday arrival preference has shifted to Queenstown Large loss of international visitor nights in Christchurch City - still down 35% Many group tour operators remain reticent to put Christchurch back in their New Zealand itineraries The domestic leisure market has contracted due to fewer sports and entertainment events in Christchurch in the weekends
12 In 2011 The tourism sector in Christchurch recognised two post earthquake needs: Replacing core tourism infrastructure quickly would shape the profile of our tourism recovery: A new Convention Centre Replacing accommodation after devastating losses in the hotel and backpacker sectors Getting tourism attractions and activities up and running Replacing hospitality restaurants, bars and cafes And Creating 2-3 blocks of normality in the central city to provide a corridor of normality
13 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 International Guest Nights NZ vs Canterbury 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50% 8% 6% 9% 3% 3% 3% 4% 5% 1% 0% 3% 1% -1% -1% -6% -8% -8% 0% -2% -4% -3% -5% -15% -9% -7% -1% 1% -2% 0% -5% -24% -46% 2% -38% -38% -39% -42% -2% 6% 34% 16% 6% 3% -2% -30% -28% -29% -34% -32% -32% New Zealand International Guest Nights -8% -10% -4% -3% 3% -4% -5% -43% -42%-40% -42% -43% -45% -36% -37% 4% -8% -2% -25% -31% 7% -21% -4% -3%-2% -29% -30% -34% 4% 8% 11% -28% -27% -28% Canterbury International Guest nights 3% -34% 7% -1% -26% -25% 2% 6% 12% -18% -19% -21% 3% 4% -2% -26% -25% -28% 12% 10%10% -22% -16% -25% 7% 8% 5% -28% -24% -21% 14% 15% -6% -11% 20% -2% 6% -22% Note: this data compares growth performance vs same month of previous year up to January 2012, from February 2012 onwards compares growth to pre-quake results of same month of % -12%
14 Christchurch versus Rest of Canterbury Commercial Accommodation Stats: CHC vs DTO Updated to year Ending June International Visitor Nights in Commercial Accommodation Year Christchurch Nights Canterbury except CHC % out of CHC Total Nights 2009/10 1,656, ,665 33% 2,470, /11 1,176, ,550 41% 1,987, /12 742, ,501 51% 1,507, /13 840, ,702 49% 1,660, /14 965, ,122 47% 1,820,776 Variance to Pre EQ -690,584 40, ,127-42% 5% -26% Domestic Visitor Nights in Commercial Accommodation Year Christchurch Nights Canterbury except CHC % out of CHC Total Nights 2009/10 1,539,419 1,019,804 40% 2,559, /11 1,431,570 1,131,593 44% 2,563, /12 1,171,869 1,237,091 51% 2,408, /13 1,236,897 1,183,234 49% 2,420, /14 1,312,110 1,220,809 48% 2,532,919 Variance to Pre EQ -227, ,005-26,304-15% 20% -1%
15 Importance of Anchor Projects to Tourism sector When announced in 2012 the Anchor Projects were intended to anchor the recovery of the city The projects that are of the most importance to the tourism sector are: 1. The Avon River Park 2. The Convention Centre 3. The re-development of the Square 4. The Retail Precinct 5. The Metro Sports Hub 6. The Performing Arts Precinct
16 Need for a cruise wharf at Lyttelton Christchurch is missing out on the very large cruise ships that are coming to New Zealand As a result cruise arrivals are now in decline Being able to operate into both Akaroa and Lyttelton will boost visitor spend in Canterbury by $113 million (+56%) over the next 10 years When Lyttelton was accepting cruise ships inner city Christchurch visitor spend was 185% higher than compared with Akaroa cruise
17 What else is needed to effect a successful tourism recovery Acknowledgement that visitors nourish the inner city environment Create an inner city environment that allows small businesses to return not just the 7,000 sq metre developments Sports infrastructure needs to be re-instated quickly building the Metro Sport Hub is urgent Establish direct air services from China Develop new visitor attractions We need further hotel developments to realise our 2018/19 visitor forecasts and support a new Convention Centre
18 Christchurch Accommodation Capacity Category of accommodation rooms pre EQ Rooms now Variance to pre EQ No. of properties (now) Hotels 4,265 1,939-55% 22 Motels 1,819 1,859 +2% 124 Backpackers % 27 Other 1, % 127 All Accommodation 7,878 5,190-34% 300
19 Future Visitor Strategy
20 Destination 2025 Discussion Paper Provides a good definition of the current composition of the total visitor industry It highlights the need for Christchurch to pitch itself as both a primary visitor destination and as a gateway to the South Island It identifies an urgency for all stakeholders to act on a united strategy to improve visitor sector performance It highlights the need for both council and government to speed up the delivery of the city s physical recovery by expediting the anchor projects which currently are all significantly delayed It sets aspirational goals which the city and visitor industry can focus on It describes a positive and uplifting visitor vision for our city
21 Symbiosis Every Day Kaikoura Tranz Alpine Hurunui Methven/Mt Hutt Christchurch Aoraki Mt Cook & Tekapo Akaroa & Banks Peninsula Ellerslie 2014
22 Christchurch and Canterbury A Symbiotic Relationship. we are mutually dependent on each other s existence This plays out in various ways: Christchurch is the major hub for international and domestic air arrivals for our region Christchurch has 50% of the region s commercial beds Christchurch is the base for most of the South Island s rental car fleets, coach fleets and passenger train services But: The districts of Canterbury have most of our key tourism attractors And much of our outdoor tourism experiences And arguably the region s best scenery and road trip content
23 Christchurch versus the Rest of Canterbury 1,800,000 International Visitor Nights in Commercial Accommodation 1,800,000 Domestic Visitor Nights in Commercial Accommodation 1,600,000 1,600,000 1,400,000 1,200,000 1,000, , ,000 1,400,000 1,200,000 1,000, , , ,000 Christchurch Nights Canterbury Excl. CHC Christchurch Nights Canterbury Excl. CHC Forecast Christchurch Forecast Canterbury Forecast Christchurch Forecast Canterbury
24 CCT Funding in 2014/15 $2.9 mill core funding plus $1.5mill in Canterbury Tourism Partnership (CTP) Projects Business Partners Districts Interest CIAL & MBIE CCC Core CCC for CTP
25 Canterbury Tourism Partnership Projects 3 x Australian Marketing campaigns Visitor insights research Akaroa cruise arrival facilitation Information kiosk in Square China market projects information, social media, web development, Chinese OVG, lunch food project
26 Future Funding Options Higher Business Partner Fees Voluntary Industry Contributions especially for large campaigns Industry funding of specific trade initiatives based on prospectus style approach
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