1. FOREWORD INTRODUCTION MARKETING CONVENTION BUREAU CHRISTCHURCH i-site VISITOR CENTRE... 24

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2 CONTENTS 1. FOREWORD INTRODUCTION... 2 BUSINESS PLANS 3. MARKETING CONVENTION BUREAU CHRISTCHURCH i-site VISITOR CENTRE CRUISE SECTOR INDUSTRY PARTNERSHIP FINANCE AND ADMINISTRATION... 33

3 1. FOREWORD I am delighted to present the Christchurch & Canterbury Tourism 2016/17 Business Plan. The Plan is based on CCT s Five Year Strategic Plan , and has been carefully designed to be in alignment with Tourism NZ s strategic priorities, the 2015 Christchurch Visitor Strategy, the Canterbury Mayoral Forum draft Visitor Strategy 2016 and with Christchurch International Airport s priorities for route development. As Christchurch progresses with the ongoing earthquake recovery initiatives, CCT is pleased to continue to play its part in the recovery of the inbound tourism sector, which is now the largest single export industry in New Zealand. The current tourism boom has already provided a substantial boost to the visitor industry in many parts of regional Canterbury, and Christchurch city can look forward to sharing the economic and social benefits of this as the new city centre takes shape and tourists return in numbers. This Business Plan has been prepared under the auspices of outgoing Chief Executive, Tim Hunter, who has recently departed the company after five years managing the organisation through the post-earthquake period. The undersigned holds the position of Interim Chief Executive pending a restructuring initiative by the Christchurch City Council. Vic Allen Interim Chief Executive Christchurch & Canterbury Tourism Ltd 1

4 2. INTRODUCTION 2.1. Our Purpose To grow the overall prosperity of Christchurch and Canterbury through the economic and social contribution of our visitor economy. Our primary functions: Christchurch & Canterbury Tourism (CCT) A. Innovatively market our region to prospective visitors B. Provide high quality visitor information and booking services C. Represent and advocate for our visitors and our industry D. Communicate effectively with our key stakeholders on tourism issues, trends and opportunities Christchurch & Canterbury Convention Bureau (Bureau) A. Successfully market the city and region to domestic and international conference, meetings and incentive customers and professional conference organisers 2.2. Recent Performance Over the past 12 months 1 CCT has made considerable progress in the following output areas: Marketing: An active online strategy that has delivered over 560,000 visits to christchurchnz.com CCT has been an active supporting partner in the Tourism New Zealand (TNZ) and Christchurch International Airport (CIAL) led South Island Journeys campaign in Australia which saw $1.05mil invested into the market with strong results from trade and airline partner s helloworld, Air New Zealand and Jetstar and a 44% increase in active visits to CCT has hosted 28 trade familiarisations (famils) from 15 markets, 119 companies and 231 individuals. During this time CCT has also hosted 42 individual media with approximately half of them coming via TNZ s International Media Programme The CCT trade development team have delivered a series of new customer service and product development workshops to tourism operators across the region and managed the Roadside Food project aimed at upgrading the food offering for Asian travelers across Canterbury Delivered a further iteration of the Pockets of Awesome domestic campaign aimed at encouraging more New Zealanders to visit Christchurch in its transitional phase. Implemented a Canterbury-wide Short Walks campaign aimed at driving visitation to the wider region with partner Air New Zealand Visitor Centre 18% growth in visitors using the Christchurch i-site Opened a satellite i-site in the Re:Start Mall to improve access to visitor information over the summer peak period 1 12 months January to December

5 Convention Bureau: Recent boost to promotional resources includes new videos, a refreshed christchurchconventions.com website with enhanced venue information, including floor plans and specific venue video content The Bureau has also re-entered the Australian market by attending four conference business to business tradeshows to re-establish industry relationships within the Australian Professional Conference Organisers (PCOs) and the corporate meeting and incentive sector The Bureau completed 24 Christchurch City conference bids and maintained our share of the New Zealand conference market at 9% generating more than 90,000 delegate days Other: During the year CCT continued to actively re-build its Business Partner programme which now includes 490 businesses Provided further economic advice and guidance to the Christchurch City Council (CCC) Steering Group established to re-instate a cruise wharf in Lyttelton Comprehensive briefings to a range of potential international investors on new hotel opportunities in Christchurch and Tekapo, and investment opportunities in the new Christchurch Adventure Park Initial discussions with Auckland International Airport Ltd and other parties regarding opportunities for collaboration, as Auckland is the major gateway airport for international visitors and also provides the largest market for domestic tourism. discussions with Tourism New Zealand and Air New Zealand to continue in 2016/17. Continue to support local major sports events, with CCT having a seat on the organizing committee for every major event where the City Council has the lead role Visitor Sector Operating Environment International Markets Visitor Sector performance for New Zealand over the past 12 months has achieved growth levels that have not been achieved for several decades. The 2015 year finished with 9.6% growth and a record 3.1 million visitors. The holiday market grew by 14.3% and arrivals for conference and convention events grew by 9.5% Factors driving the tourism sector The strong visitor arrival trends into New Zealand have been driven by: A 7% increase in inbound air capacity to New Zealand to 7.4 million seats per annum A more attractive NZD which is now 10% lower than a year ago against the USD A surge in holiday demand for New Zealand from the larger Asian markets of China, Taiwan, India and South Korea Increased travel interest from China and Japan as a direct result of security concerns about travel to the Middle East and Europe Steady recovery in the US economy and an improving economic outlook in Europe Increased investment by Tourism New Zealand in our key markets Canterbury has enjoyed some of this growth but has lost ground to the rest of New Zealand due to the Christchurch rebuild and the structural changes in travel patterns that arose after the 2011 earthquake events. International visitor nights in Canterbury including Christchurch have improved by 12% in the past year to reach 2.1 million nights per annum compared with the pre-earthquake level of 2.4 million recorded in the 2009/10 year. The visitor night situation in Christchurch is still gradually improving and has now reached 72% of pre-quake levels. 3

6 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% -20% -25% -30% -35% -40% -45% -50% 6% 9% 8% 3% 3% 3% 1% 4% 5% 0% 3% 1% -1% -1% -6% -8% -8% 0% -15% 2% -1% 1% -2% 0% -2% -4% -3% -5% -5% -9% -7% -24% -38% -38% -39% -42% -46% -2% 6% 34% New Zealand International Guest Nights International Guest Nights All NZ vs Canterbury Region 16% 6% 3% -2% -30%-28% -29% -34% -32% -32% -4% -3% -5% -4% -8% -10% 3% -43% -42% -40% -42% -43% -45% 4% -36% -37% -2% -8% 7% -21% -25% 4% -3% -4% -2% -29% -31% -30% -34% 11% 8% -28% -27% -28% 3% -34% 7% 2% -1% -26% -25% Canterbury International Guest nights 6% 12% -19% -18% -21% 3% 4% -2% -22% -26% -25% -28% 10%10% 12% 7% 8% 5% -16% -21% -25% -24% -28% 14% 15% -6% -11% 20% -2% 6% -22% 11% 18% 18% 7% 23% -6% -12% -15% -16% -10% 18%18% 13% 8% 10% -12% -18% -18% Note: this data compares growth performance vs same month of previous year up to January 2012, from February 2012 onwards compares growth to prequake results of same month of % -8% International visitor trends to Canterbury Whilst the Canterbury tourism sector has performed strongly from all major markets, due to the rebuild Christchurch City has not harnessed as many bed nights as it could have, particularly given that air capacity into Christchurch Airport and accommodation availability has significantly improved in the past 12 months. Since 2010 international guest nights in the Canterbury area outside of Christchurch have improved materially to reach a level that is now 18% ahead of the pre earthquake performance whereas guest nights in Christchurch sit 28% behind the 2010 level. This two speed recovery performance (province vs city) relates mainly to the rebuild status of Christchurch, the limited progress with the major Anchor projects and the ongoing rate of physical recovery in Christchurch. Changes to the aviation environment have changed the itinerary flow of international visitors with more Australians choosing Queenstown as their South Island arrival point and more northern hemisphere travellers, who predominantly use Auckland as their arrival point, overflying Canterbury on direct services to Queenstown. Nevertheless, Christchurch remains by far the largest South Island gateway airport for both domestic and international travellers. The Australian holiday market to Canterbury has been the most severely compromised of all of our major markets. Holiday arrivals into Christchurch Airport are now 45% lower than they were in 2009/10. Over the last two years the increased seats on the Tasman air service to Christchurch have been largely taken up by long haul international visitors rather than Australian. 4

7 Post-earthquakes, we have seen Australian visitor arrivals decline in market share at Christchurch, while increasing at Auckland and Queenstown. Tasman capacity into Christchurch is now 760,000 compared to 290,000 seats at Queenstown. Direct flights between Auckland and Queenstown have increased by 60% over the past three years, however this is off a low base and the incremental seats are less than for Auckland to Christchurch 5

8 More beds and air seats are catalysts to recovery In five years Christchurch has regained 48% of the international visitor nights it lost after the February 2011 earthquake event. The gradual but sustained improvement has been driven mainly by recent additions of international air services into Christchurch and the ongoing replacement of the commercial accommodation especially in the hotel and backpacker sectors. Over the past two years the improvements in these areas are: Christchurch Supply Capability 2013/ /16 Variance Available Rooms in Commercial Accommodation 5,096 5, % International Air Seats into Christchurch 822, , % Much of our international traveller growth has occurred out of Christchurch Across the broader Canterbury province we are seeing continuing gains in international visitor nights as the regions of Canterbury continue to handle many visitor nights that would have previously been spent in Christchurch City. A 24% increase in guest nights over the past three years now means that the guest nights outside of Christchurch are 18% ahead of where they were pre-earthquake. The benefits of this dispersal effect are however being constrained as key tourist areas of Canterbury are being overwhelmed by accommodation demand in peak travel months. This has become a serious constraint to further growth in the Mackenzie region. As already highlighted the recovery of international guest nights in Christchurch, which is currently 72% of 2009/10, is slowing and this summer has fallen well behind the national inbound growth rates. Steady growth is expected to resume as the city rebuild proceeds new hotels come on stream. As the new City centre takes shape and visitors return in substantial numbers, the challenge will be to retain the increased volume of business in the provincial centres such as Mackenzie and Hanmer Domestic Market The domestic market to Christchurch has been subdued in the past year and grew by only 2%. Factors influencing this slow growth are: Business and government travel to Christchurch City has plateaued and fallen slightly due to the hiatus of progress with some of the Government s Anchor Projects The Christchurch share of the domestic conference market has plateaued at 9% when in the preearthquake period it was 24%. Without progress on building a replacement Convention Centre further gains in conferencing business is difficult to achieve because of the lack of large venues 6

9 Cancellation of major events such as the Ellerslie Flower Show and the lack of development of new events Leisure travel and event related tourism has lessened due to the physical loss of venues and the resultant decline in sports and entertainment events. The perception outside of Christchurch that nothing is on or there is nothing to do has also restricted demand and is an issue that CCT is active in addressing The domestic market outside of Christchurch grew by 4% in the last year and at million nights has been increasing at a similar rate since 2009/10. In 2011/12 the Canterbury visitor industry outside of Christchurch benefitted significantly from Christchurch residents increasing the number of short breaks they were taking within their own province. This provided healthy levels of increase for districts such as Mackenzie, Hurunui and Kaikoura and the legacy of this post earthquake peak in visitation has stimulated the frequency of domestic trips on an ongoing basis Core Sources of Funding for 2016/ / / /17 Christchurch City Council $2,402,228 $2,494,200 $2,497,000 Mackenzie District Council $152,219 $228,447 $221,000 District Councils $55,000 $55,000 $55,000 Operator annual fees $234,394 $277,216 $297,144 Interest $89,666 $53,800 $28,600 Australia GST refund $9,975 $6,000 $6,000 Visitor Sector Recovery $75, Canterbury Tourism Partnership $1,686,150 $500,000 $485,000 $4,705,382 $3,614,663 $3,587, Scope of CCT Outputs The Business Plan outlines planned CCT initiatives in the following operational areas: A. Visitor Information: Visitor information and booking centre in Christchurch B. Marketing: Maintaining core marketing functions including domestic and Australia marketing communications, online activity, PR reach, research, media hosting, trade training and communications C. Convention Bureau: Seeking out new growth in conference opportunities and optimising the use of both new and existing conferencing and accommodation facilities across the region D. Cruise Sector: Delivering practical support to ensure a range of Canterbury ports can accept cruise ships whilst the Lyttelton Port is out of operation E. Industry Partnership: Work in partnership with tourism businesses to enhance their capabilities and gain access to new sales and marketing opportunities. Consult on the future focus of CCT marketing activities 7

10 2.6. Visitor Forecasts Guest Nights (CAM) 2013/ /15 Year /16 Year /17 Year /18 Year /19 Year /20 Accumulated Gain by Year 5 International Guest Nights in Christchurch 965,654 1,122,168 16% International Guest Nights in Canterbury 1,820,776 2,049,696 13% Domestic Guest Nights in Christchurch 1,312,110 1,322,206 1% 1,256,828 12% 2,254,666 10% 1,355, % 1,369,943 9% 2,412,492 7% 1,389, % 1,479,538 8% 2,557,242 6% 1,430,817 3% 1,583,106 7% 2,685,104 5% 1,473,741 3% 1,693,923 7% 2,819,359 5% 1,547,429 5% 571,755 51% 769,663 42% 225,223 17% Domestic Guest Nights in Canterbury 2,532,919 2,590, % Total Nights in Christchurch 2,277,764 2,444, % Total Nights in Canterbury 4,353,695 4,640, % 2,655, % 2,612, % 4,910, % 2,708,535 2% 2,759, % 5,121, % 2,776, % 2,910, % 5,333, % 2,845, % 3,056,847 5% 5,530, % 2,973, % 3,241,352 6% 5,793, % 383,049 15% 796,978 33% 1,152,712 25% International Visitor Arrivals (IVA) direct into Christchurch Australian Travellers 209, , % Long Haul Origin Travellers 201, , % Total 411, , % 226,938 4% 235,261 7% 462, % 233,747 3% 251,729 7% 485,476 5% 240,759 3% 266,833 6% 507, % 246, % 282,843 6% 529, % 252, % 296,985 5% 549, % 34,737 17% 77,115 38% 111,852 27% Future Assumptions: The direct services from Guangzhou to Christchurch commenced in December They will continue on a three times per week basis Trans-Tasman airline capacity into Christchurch increases by an average annual growth rate of 2-3% per annum The six times per week China Airlines services over Australia will operate each summer between November and March Annual arrival growth rates for inbound tourism will moderate to a range of 4-5% per annum over the forecast period Christchurch continues to add at least 400 rooms per year of hotel standard accommodation Convention Centre is in startup phase with 15 events in 2019/20. Ultimate potential is 70+ events per year 45-50% of current international visitors to Christchurch arrive directly by international air services into Christchurch 8

11 2.7. Shape of Future Tourism Flows to Christchurch and Canterbury CCT is forecasting moderate growth in commercial guest nights to all of Canterbury providing that more accommodation and airline capacity comes on stream over the next five years and the delayed Anchor Projects in Christchurch are progressed Christchurch Scenario Christchurch City has the potential to get back to its pre-earthquake guest night levels of 3.2 million nights of commercial accommodation used per year by 2019/20 providing that the supply of visitor beds grows and good progress is made with restoring inner city infrastructure. Christchurch will need to add at least 400 hotel rooms (or equivalents) per year over the next five years based on the following forecast demand drivers: The direct air services from Guangzhou to Christchurch will continue on three times per week basis The six times per week China Airline services over Australia will operate each summer between November and March Trans-Tasman airline capacity to Christchurch increases by an average growth rate of 2-3% per year Annual arrival growth rates for inbound tourism will average 4% - 5% per annum across the forecast period Convention Centre is in start-up phase with 15 events in 2019/20. Ultimate potential is 70+ events per year Canterbury Scenario Both domestic and international visitor demand is expected to remain strong for the regions of Canterbury outside of Christchurch. Achieving growth beyond the forecast levels is at risk of becoming constrained by the following factors: Limits dictated by accommodation supply in the Mackenzie, Hurunui, Akaroa and Kaikoura between November and April. High demand for the finite bed capacity and other resources in Queenstown are anticipated to slow down overall South Island visitor growth particularly from international markets. Our forecast goal of increasing total guest nights in Christchurch and Canterbury from 4.6 million to 5.8 million visitor nights by 2019/20 will also require CCT to continue investing in: Productive consumer marketing programmes Delivering an intensive programme of trade marketing activities Providing quality online and physical visitor information services Strengthening business events marketing Supporting new major events initiatives The activities outlined in this Business Plan are planned to support these strategic aspirations. 9

12 Risks to achieving Visitor Forecast Risk of not achieving these long term visitor goals includes: Not achieving marketing outcomes due to inadequate funding A significant economic meltdown occurs in China that influences wealth outcomes around the world and reduces leisure travel demand More earthquake activity in Christchurch/Canterbury materially reduces visitor demand and/or reshapes visitor flows. 10

13 /17 Strategic Priorities for CCT Successfully re-instate a full service Visitor Centre in Christchurch Move from temporary premises in the Botanic Gardens into the Arts Centre Double our information and retail space to enhance visitor engagement Broaden our marketing reach and service offering including more extensive use of online chat Boost the economic outcomes and visitor satisfaction from the China holiday market Assisting Canterbury operators so there is increased alignment with the needs of Chinese independent travelers Optimising our trade marketing impact to educate Chinese travel sellers on Canterbury operators Enhancing our digital engagement with Chinese travelers Support the recovery of the holiday market through leveraging key TNZ and CIAL projects Active participation in CIAL or TNZ led campaign activity in the Australian market Supplement CIAL and TNZ activity with additional media and PR activity in the Australian market Significantly support the trade and media activity from TNZ Grow Canterbury s share of the domestic visitors through a strong domestic marketing strategy Drive conversion through promotion of Canterbury special interest themes Continue with Christchurch focused marketing activity to North Island audiences Engage with Christchurch locals through regular and relevant communications Improve online engagement with intending travellers Heightened use of social communities to tell our stories with a specific focus on imagery Use social media as primary marketing communication tool in selected markets Continue adapting to the rise of mobile use by travelers Content optimisation on christchurchnz.com and our social channels Position Christchurch as a business events destination to drive economic value to our region Increase business event activity for Christchurch and Canterbury from the New Zealand and Australian markets Leverage the capability and reach of the TNZ Business Events unit to grow our international conference market share Take a lead role within the region s business events industry Provide leadership on key issues impacting on tourism outcomes and opportunities in the city and region Advocate for the industry and our visitors with Christchurch rebuild agencies Engage with the wider Canterbury District Tourism Organisations and the Canterbury Mayoral Forum for alignment of approach and activity Deliver a Business Partner programme that engages tourism operators with CCT and the Bureau Seek external opportunities and partnerships to strengthen the business delivery capabilities of tourism businesses Provide frequent, consistent and informative communication channels for tourism businesses in Canterbury 11

14 BUSINESS PLANS

15 3. MARKETING 3.1. Situation Analysis With record visitor numbers coming into New Zealand the majority of stakeholders in the Canterbury tourism industry have had a positive year. The ability of our tourism infrastructure to handle the summer peak has been thoroughly tested with the limitations of accommodation becoming a dominant issue in much of the South Island. Christchurch city visitor numbers are progressing well but have some way to go to meet pre-earthquake levels. Key stakeholder feedback indicates that this is linked to the lack of the inner city experience which some visitor markets find hard to understand five years on from the earthquakes /17 Focus A. CCT s will give priority to promoting shoulder and off peak periods for all activity. B. The key markets of focus will continue to be China, Australia, Domestic New Zealand and Business Events from all countries. C. The intention is to sustain a base level of trade and media support for other international markets. This support will align with the CIAL strategy of building demand for direct services (which is predominantly South East Asia, China and Australia) and TNZ s market focus Strategic Priorities CCT s marketing activity will be centred on four strategic priorities Boost the economic outcomes and visitor satisfaction from the China holiday market Many Canterbury operators identify this market as one of the biggest opportunities. CCT has significantly increased the level of focus on this market and has now taken on two staff who solely focus on the China market, has established excellent relationships with China market inbound operators and continue to increase the industry s knowledge of the market. The commencement of the China Southern direct service into Christchurch in December 2015 is bringing unprecedented opportunity to the region. The strength of this opportunity lies in the visitor mix on the new service with 50% of loads originating from China and approximately 80% of this being high value independent travellers. CCT s current China focus will be further finessed in the following areas: A. The industry approach of upskilling operators and undertaking projects that will drive consumer satisfaction. This is largely born from the differing expectations of the Chinese market B. The consumer approach of using direct channels to increase the presence of Canterbury C. The trade approach is intended to maximise the exposure of Canterbury products with travel sellers and promote new itineraries that enable better peak season dispersal 12

16 The results of the 2015/16 year showed a variety of success with this market across the region for example the Mackenzie region is clearly on an established travel flow, Hurunui and Hanmer Springs is growing with other regions realising slower growth from the China market. In 2016/17 CCT will work with district partners and operators themselves to better understand the specific needs for operators and having a tiered structure to working alongside them rather than just grouping Canterbury as having the same requirements. CCT has also had significant success working with the Top of the South cluster alongside the Regional Tourism Organisations (RTOs) of West Coast, Marlborough, Nelson/Tasman, Kaikoura and Hanmer Springs. The rationale for promoting this itinerary is to drive regional dispersal. It aims to direct Chinese visitors away from the over-loaded tourist routes during peak periods to assist with evening out the distribution of visitors and increase visitor satisfaction. China Focused Activities: Work alongside tourism operators who are already established in the China market to share knowledge and insights. Create a cluster of mid-tier operators who are looking to become work more intensely in the market but are unable to from a resource perspective and offer them a specific set of digital and trade benefits. Continue to work directly with all Canterbury based operators through frontline workshops and one-on-one meetings to up-skill them on the China market requirements. Address any key challenges and barriers for this market. For example continue with the Food project and assist with any visitor signage requirements. Produce a Chinese language Official Visitor Guide for the region. This will be printed in a substantially larger quantity than in the 2015/16 year with additional distribution through key channels. Grow the CCT Weibo and WeChat social media activity, both through organic content and partnering with TNZ and other stakeholders for promotional campaigns. Content and development support for the current CCT Chinese website (christchurchnz.com) and Chinese social channels. Continue to strengthen relationships with key inbound operators. Including multiple sales calls, training events and famils. Some events and activities are likely to have a Top of the South focus to them. Attend applicable off-shore travel trade events, including CIAL Kia Ora South events held in Guangzhou and Taipei. Events could also align with Christchurch Inc. partners to align tourism and education messages at an off-shore event. Sustain a heightened presence for the Canterbury region at TRENZ for the China market and undertake specific famils during this time Support the recovery of the international holiday market through leveraging key TNZ and CIAL projects Australia For the 2016/17 year CCT propose a amending the focus for Australia. Previously the recovery of the Australian holiday market has sat as a standalone strategic priority. While it remains the biggest challenge for the Canterbury region, taking the responsibility of recovering the Australian market is no longer a realistic goal for CCT due to reduced funding levels. The focus for CCT in the Australian market now becomes one of participation and support of TNZ and CIAL led activity. Both organisations have an MOU to work alongside each other to promote the Christchurch gateway to holiday visitors. The focus for the past two years has been on a South Island wide road trip concept and this year both organisations have indicated that the messaging could be expanded to include a Canterbury short break message component. CCT aims to ensure that the Canterbury region and specifically the operators are well represented and involved in the campaign. 13

17 CCT will also supplement this activity with some additional media and trade support that will align with the key messages CIAL and TNZ are promoting in the Australian market over this campaign and travel period. Other Markets CCT has placed focus on attending the most significant offshore events that align to the market strategy as well as hosting a high number of famils to the region. It is clear from trade feedback that while sentiment and bookings continue to track in a positive direction there is still significant work to be done to convince international travel trade about the viability of Christchurch accommodating their guests. Key messages within this mix of activity are to target high spending visitors in shoulder and off-peak periods to grow value and seasonality. The mix of markets where CCT participate in trade training events is influenced by their alignment with direct flight access to Christchurch as well as underlying growth opportunities. Activities: Active participation in CIAL or TNZ led campaign activity in the Australian market as well as a dollar contribution to the Canterbury Short Breaks component of the campaign. Supplement CIAL and TNZ activity with additional media and PR activity in the Australian market including media monitoring. Attend trade events and sales calls in the Australian market on a quarterly basis. Support broader TNZ trade and media famils from all key markets that travel through the region. Attend travel trade events in the following markets: India, Indonesia, Thailand, Singapore, North America, South America, Japan and South Korea. Lead the Canterbury representation at TRENZ 2017 to ensure the region has a substantial presence and operators are supported with their attendance. Undertake a series of activity with Auckland-based inbound tour operators (ITO) that will include sales calls, a Canterbury event, support for ITO famils to ensure Canterbury inclusion and specific CCT led famils Grow Canterbury s share of the domestic visitors through a strong domestic marketing strategy The domestic market accounted for 56% of guest nights in commercial accommodation in the 2015 calendar year for Canterbury. This indicates the importance and reliance that the industry has on this market. The domestic market can assist with flattening the seasonality curve by generating visitor spending during shoulder and off peak seasons. This market also has a heightened level of regional dispersal as they are more likely to get into the smaller, more remote and less developed tourism areas of the region. By having a strong domestic tourism market the region will be far better equipped to withstand fluctuations in international markets. The 2016/17 strategy for this market is a combination of campaign, media and web activity that focuses on two key messages standalone messaging about the city under the proposition of Pockets of Awesome and broader special interest messaging about the wider region. Airline partnership with above-the-line campaign is crucial as domestic travel is often thought of in a transactional manner with airline prices as the gatekeeper. The motivations for why New Zealanders travel is focused on events (leisure and business), a specific activity (e.g. to ski, to cycle, to walk), Visiting Friends and Relatives (VFR) or a family/friend event. Therefore another facet to the CCT domestic strategy is to leverage events and activities with strong calls to action and time-bound offers alongside airline partners. CCT research over the 2015/16 summer indicated that the VFR component of international visitors to Christchurch was exceptionally strong with 45% of domestic visitors and 23% of international visitors surveyed staying in private homes. This makes the role of Christchurch locals and industry front-of-house staff increasingly important in playing the role of shaping visitors experiences. 14

18 Activities: Under the Pockets of Awesome message continue with Christchurch focused marketing activity to North Island and local Christchurch audiences. This will include media placement activity, airline partnership and regular and relevant direct communications. Drive conversion via promotion of Short Walks special interest theme alongside a key airline and regional partners. Support additional Canterbury-wide special interest messages of cycling and Food & Wine through web content and media activity. Facilitate and manage a pre-summer industry frontline event to educate Christchurch frontline staff about the changes in the city. Undertake a series of events to upskill key frontline industry taxi drivers, Uber drivers and Airbnb hosts. Domestic media activity is centered predominantly on Auckland and Wellington to be integrated with campaigns and wider tourism messages Improve online engagement with intending travellers The CCT website christchurchnz.com is the most significant asset CCT has to position the region as a visitor destination and is the call-to-action for all marketing activity. This is done with clear and consistent messaging about what the city and region has to offer. The website has two main areas of focus. Firstly is content, this is the key differentiator between the CCT site and other travel sites. The CCT site needs to have relevant, up-to-date and unique content about the region. In order to continually drive online engagement, increasing the quality of this content will continue to be the focus for the 2016/17 year. The second area of focus is the TNZ operator database. CCT s website currently uses a feed from the TNZ operator database to populate all of the operator listings that appear on the site. While this process is automated it is costly to ensure the feed runs smoothly and time consuming to ensure that the operators are well represented in their listings. During 2016/17 a project will be carried out to ensure that the current system of representing operators on the site is the most efficient. Comparing January April 2016 to the same period in 2015 there was a 58% growth in mobile usage on the site. During this period mobile (both mobile and tablet) accounted for 55% of all visitation to the site up from 47%. The 2012 site refresh made the site responsive however there is still work to be done to ensure the site is fully optimised for mobile. This includes the representation of operator listings in mobile. During the 2012 refresh, some decisions about design were made based on the then current state of the city for example the font was created as a means to show a destination in transition. The homepage design is also a reflection of the time it was created. Both of these aspects will be assessed and updated in the 2016/17 year. There is a lot of other digital content about Christchurch on key travel websites that needs to be continually monitored and updated examples being TNZ s website newzealand.com, airline websites and key Online Travel Agent (OTA) websites such as TripAdvisor. It is CCT s role to ensure there is annual correspondence with these sites to ensure they are adequately representing the city and region Using Social Media as a more primary influencer CCT has had much success working in the social media space and aims to continue this with a more active content development calendar that is dedicated to producing and disseminating creative and engaging content. This will be focused on imagery (both static and video) and harnessing the power of content creating communities whether they be visitors or locals. 15

19 The domestic market is our key focus for consumer marketing activity in FY2016/17. Social media projects will be aligned to key messages to create talkability within this market on a level that has more personal engagement. This could involve increasing work with social influencers, paid activity in social and content creation. The primary channels are likely to be Instagram and Facebook. CCT will work through how the additional channels of Snapchat and Steller can play a role as these platforms continue to grow with a visitor audience. As this activity is online it will have some extensions into the Australian market. During the year a plan will be developed and sources of funding investigated for a more extensive social media presence in Australia. Activities: Create relevant, unique and compelling content to positively influence travel decisions. This covers both consumer led content development as well as imagery for the online image library and additional content for trade, media and conference and incentive markets. Core functionality work to ensure that at a minimum the operator database continues to perform and represent operators within the site. Functionality work to ensure that christchurchnz.com is optimised for the mobile platform. Design project to refresh the site font, homepage and key landing pages. Heightened use of social communities to tell our stories with a specific focus on imagery. This includes investment into paid social activity. Work alongside operators to regularly update operator listings and ensure the region is well represented on the CCT and TNZ websites. This will involve operator training. Make enhancements so that the site remains a useful resource across key markets, specifically any unique additions to the Chinese language site. Continue to monitor and recommend updates to external organisation travel sites Other marketing activities CCT undertake a range of core marketing activities such as research and collateral development. All of these activities assist with the work across the spectrum of consumer, trade, media and online. Activities: Research to understand the experience of international visitors within the city and the perceptions of the domestic travel market. Collateral development which includes updating and reprinting of existing collateral and some development of new collateral. This is used across trade, media, conference and incentive, and consumer requirements Specific collateral development of the Christchurch and Canterbury Official Visitors Guide. While the guide is self-funding, additional budget is used for boosting the distribution around New Zealand in key locations 3.3. Key Performance Targets and Measures 2015/16 2 KPI 2016/17 KPI Trade No. of famils hosted Events No. of offshore trade events attended (incl. TRENZ) No. of CCT-lead events (domestic and offshore) 4 4 No. of China ready operators in the region No. of trade met face-to-face 1,700 1,700 Online 2 Note: The actual results for the 2015/16 KPIs are indicative and will be confirmed at year end 16

20 Conversion - operator listings viewed per month 25,000 25,000 Reach total visits/sessions 410, ,000 Engagement - average session duration 3:00 Engagement - average session duration (desktop) - 3:35 Engagement - average session duration (mobile) - 1:58 Conversion - operator listings viewed per month 2,000 2,500 Reach total visits/sessions 9,280 12,000 Engagement - average session duration 3:06 - Engagement - average session duration (desktop) - 4:15 Weekly Facebook Engagement (engaged users) - TBC Media Famils Australian media 6 15 Domestic media Other (TNZ international media programme files) Engagement with Media Newsletter 30% 30% (as measured by % that open the newsletter) Local Communications Local and NZ Database 18,000 24,000 Engagement with Consumer Newsletters (as measured by % that open the newsletter) 35% 30% 17

21 4. CONVENTION BUREAU 4.1. Situation Analysis Business events is a collective term referring to association, corporate and government meetings, conferences, trade exhibitions and incentive travel reward programmes. The event may be as small as a dozen people working in an offsite location through to a large scientific convention up to 1500 delegates from multiple countries with large exhibition, gala dinners and offsite events. The role of the Christchurch and Canterbury Convention Bureau is to market Christchurch and Canterbury as a premier destination for business events and conference destination. Our mandate is to grow our share of business events and increase the value from these, particularly in off peak and shoulder seasons. The Bureau leads a cluster of 67 local businesses that have a common goal to focus on growing the business events, conference and incentive sector of the local and regional economy. Our primary goal is to develop strong domestic and international conference demand for Christchurch and Canterbury. Hosting international conferences in Christchurch raises the profile of the city locally and internationally. Our thought leaders and the tertiary or research institutions they work for receive recognition as international leaders in their fields and successful conference hosting enhances their professional reputations internationally. Hosting an International conference also provides professional development and education opportunities for our own community and gives our city the opportunity to develop new global relationships National situation The New Zealand Government made business events a key part of its growth plan for the economy and continues to focus on growing New Zealand s reputation as a knowledge economy. The Government invested $35 million into Tourism New Zealand, spread across four years, to market New Zealand as a desirable destination for business events. Business events produces the highest yield of any sector of the tourism industry. The higher than average spend business events delegates bring to our region makes it an important contributor to the Christchurch and Canterbury economy. Conference and business events also bring crucial shoulder and off-peak season business into venues, retail and hospitality. Business events fits into the National Tourism 2025 framework under the Target for Value and Productivity for Profit sections of the strategy and is referenced in the Christchurch Visitor Strategy. The goal of targeting the right visitors at the right time is aimed at attracting high spending visitors in shoulder and off-peak periods to grow value and improve seasonal visitor flows Christchurch and Canterbury The table below illustrates how substantially the conference sector in Christchurch diminished in the postearthquake environment, and the rate at which our national share of conferencing has recovered since

22 Number of Bureau Business Partners The Christchurch conference sector market share has recovered from its absolute low at 2% of total delegate days across New Zealand in 2011 to a 9% share in the past three years. 30% 25% 20% 15% 10% 5% Christchurch market share of all New Zealand multi day conferences 0% YE Dec 2010 YE Dec 2011 YE Dec 2012 YE Dec 2013 YE Dec 2014 YE Sep 2015 The fact that our percentage share has remained static for the past three consecutive years illustrates that the market hit its new ceiling in 2013/14 based on limited conference venue infrastructure. No new venues opened for conferencing in 2015/16. Without a large central city conference venue with multiple breakout areas and significant exhibition space, we are unlikely to see further growth but expect to hold our market share at 9% or 10%. Christchurch and Canterbury alternates between third and fourth in our national competitor set behind Auckland and Wellington (and alongside Hamilton/Waikato) 3. The 2015/16 priorities for the Bureau were to continue our successful New Zealand domestic business attraction strategy and begin the process of building awareness of the Christchurch and Canterbury conference and incentive products with the Australian conference market. The Bureau continues to focus on building strong industry relationships with our conference venues and suppliers through our Bureau Business Partner programme Gold Silver Bronze Total 3 Source: Ministry Business, Innovation and Employment (MBIE) Convention Activity Survey YE September

23 The Bureau services and the Tourism New Zealand Conference Assistance Programme (CAP) are promoted widely to leading Canterbury academic and medical professionals in the following target sectors: Earth science Health science Technology/building technology Education/IT Agriculture business/science To ensure that our competitive conference capability is communicated effectively the Bureau has produced a new 90 second video for Christchurch and Canterbury. The video focuses on our current venues, city, regional attractions and our areas of international excellence in earth science, health science, building technology, IT and agriculture. The christchurchconventions.com website underwent a brand and content refresh in 2015/16. The new content includes venue floor plans and videos to make sourcing information on our venues easier for the end user. The Bureau develops all conference bid material and delegate marketing for domestic and international bids. The cost of developing international conference bid material including design, printing and bespoke delegate marketing collateral is funded by Tourism New Zealand. The cost of domestic conference bid production remains with the Bureau Market segments Business events fall into four target segments for Christchurch: Domestic meetings This business segment is currently our largest segment. Domestic meetings includes association and corporate meetings which can range from delegates and typically includes other activities such as team building, sightseeing and tourism experiences like golf, sailing or food and wine tours, which increase visitor spend. Australia Australia is our largest overall visitor market and prior to 2011 Christchurch had over 40% share of all Australian conference business coming to New Zealand. The NZ conference sector focus on Australia has grown in the intervening years. Other convention centres and conference hotels in other NZ cities have been active in the Australian market for the last few years while Christchurch has not been able to offer the venues to bring the Australian market back. The Christchurch aspiration over time should be to not only regain but increase our market share of this lucrative Australian business. The work to recover this market began in 2015/16 and needs to step up as we get closer to being able to offer a new Convention Centre proposition. International The international business event market comprises corporate meetings, international association meetings and incentive travel from across the globe. International conferences attract high spending delegates and have the potential to deliver wider benefits through knowledge exchange and business networking. International conference delegates will stay in New Zealand longer and spend considerably more money undertaking pre and post travelling than the domestic conference market. Incentive travel Incentives are a reward for superior performance against specified business targets, and have long been recognised as a powerful tool for helping organisations achieve key business objectives. Incentive groups generally number , although some international groups have more than 2000 participants. Partners and spouses are often included, which increases visitor numbers. 20

24 It is important that we work with Tourism New Zealand to ensure Canterbury is included in key familiarisation programmes to educate international incentive buyers on the incentive products available in the region Strategic Priorities Position Christchurch and Canterbury as a business events destination to drive economic value to the region Maintain our emphasis on capturing domestic conference business for the city and region Build relationships with key industry partners in New Zealand and Australia e.g. Conventions and Incentives New Zealand (CINZ), New Zealand Convention Bureaux (NZCB), Tourism Industry Association (TIA) and TNZ Educate our stakeholders in Christchurch and Canterbury about the value of conference and business events to the city and wider region Maintain an accurate database of corporates, conference organisers and associations who have the potential to bring conference business to Christchurch Continue our industry communications strategy that clearly communicates our region s unique selling points Build a comprehensive business events image library for use in international bid documents, the Australian and domestic market, and for our website Continue the development of the christchurchconventions.com website into an effective online planning and information tool Leverage off the current Christchurch and Canterbury social media platforms to push Convention Bureau information and news to a wider audience Maintain a small conference assistance fund to overcome objections to conferencing in Christchurch such as the cost of transport from the city to the outlying conference venues Increase the level of business events activity for Christchurch and Canterbury from the New Zealand and Australian markets Undertake twice yearly in market visits to business events buyers in New Zealand, and one to Australia Maintain a profile for the city and region by hosting business events media in Christchurch and Canterbury Build on our Australian tradeshow activity from the 2015/16 year Coordinate the Canterbury regional stands for the MEETINGS and Convene South tradeshows Grow sector and Business Partner engagement on christchurchconventions.com Maintain strong relationships with TNZ Business Events, CINZ and Air New Zealand and continue to leverage off the reach that these organisations provide in both the Australian and international markets Seek opportunities to bid for conferences from the Australian and New Zealand association, corporate and incentive markets aided by established relationships with professional conference organisers and event managers Develop appropriate marketing collateral for the Bureau that portrays our conference sector and venues positively and articulates our unique selling features and points of difference Produce quarterly industry communication to Professional Conference Organisers (PCOs), CINZ and business events media Remain in regular contact with the preferred operator of the Christchurch Convention and Exhibition Centre to ensure that the Bureau is kept up to date with progress and can participate in joint marketing opportunities Maintain relationships with personnel involved in developing future hotel infrastructure 21

25 Leverage the capability and reach of the Tourism New Zealand Business Events unit to grow our international conference market share Partner with the Tourism New Zealand business events unit to identify potential international conferences with relevant local experts who assist in the bid process Maintain the current partnership arrangement with Tourism New Zealand whereby the Bureau prepares all international bid documents and delegate marketing material for our city and region Keep the wider global Tourism New Zealand business events unit well informed on Christchurch and Canterbury and keep them supplied with current imagery, video, written content and information Communicate to our potential conference champions the benefits of hosting their conference in their home city and institution Develop relationships with our thought leaders in the targeted industry sectors and support them to bring international conferences to the city and region Launch a conference advocates programme in 2016/17 to celebrate our international bid winners Communicate our region s areas of international expertise in: earth science, health science, international education, agriculture business and science, information technology and building technology Align Bureau activity with the national Tourism 2025 framework and the Christchurch Visitor Strategy by targeting for value and growing the knowledge economy across the region Provide leadership for the region s business events industry Drive the business events brand image for the city and region Continue to advocate for accurate measurement of insights and data specific to the business events sector so that we can confidently inform stakeholders of the true value of the business events sector to our city and region Encourage conference venues and professional conference organisers to submit and collect data for the Ministry of Business, Innovation and Employment s (MBIE) Convention Activity Survey (CAS) and the annual Conference Delegate Survey (CDS) Advocate on the need for the continued development of the business events industry to key stakeholders in Government, Christchurch City Council, Canterbury Earthquake Recovery Authority and Canterbury Development Corporation Continue to advocate for a clear timeline and project build dates for the Christchurch Convention and Exhibition Centre Facilitate quarterly Bureau networking events and newsletters to keep our sector engaged with the Bureau and aligned with our sales and marketing strategies Partner with CINZ to roll out an emerging talent programme to give local young professionals the stepping stones they need to build their professional network and assist in their career progression Partner with external stakeholders such as Service IQ to communicate the importance of delivering consistently high levels of service as part of our brand promise /17 Activity Coordinate and attend New Zealand tradeshows and exhibitions Convene South 2016 and MEETINGS 2017 Organise and host two concurrent famils for New Zealand and Australian conference buyers who will be attending the Convene South event Organise and host one pre-meetings Australian conference buyers famil Undertake North Island in-market visits in Auckland and Wellington Undertake Australian in-market visits and attend relevant Australian business events tradeshows Organise four Bureau industry networking events Publication of quarterly electronic newsletter Target business events media for any opportunities to host in the city and region 22

26 Host information events at tertiary institutions to educate academics about the Tourism New Zealand Conference Assistance Programme and Bureau services, for international and domestic conference bids Launch a Conference Advocates Programme in partnership with Tourism New Zealand to encourage new Christchurch conference bid champions Assist in bringing the CINZ Emerging Talent programme to Christchurch for young industry personnel 4.4. Key Performance Targets and Measures Targets 2015/ /17 Achieve target levels of new Bureau Business Partners and renewed partners Produce international bids, city bids and large single venue business Achieve a bid conversion rate for Bureau bids and TNZ CAP bids 25% 25% Participate in New Zealand business events trade shows 2 2 Undertake North Island in-market calls with key PCOs and event managers 2 2 Attend Australian Business events tradeshows 4 3 Undertake Australian in-market calls with PCOs and Associations 1 1 Hosted group famil activity and individual conference buyers for specific business 4 5 Deliver Host it at Home event at University of Canterbury or Lincoln University - 1 Deliver launch event for Christchurch conference advocates programme - 1 Hold CINZ emerging talent events in Christchurch - 2 Convention Bureau Business Partner networking events 4 4 Convention Bureau electronic newsletters to industry database 4 4 Achieve specified percentage of New Zealand market share in the MBIE Convention Activity Survey 10% 10% Maintain a minimum venue participation % in the MBIE Convention Activity Survey 80% 80% Undertake business events image library update Assumes an announcement of a definitive timeline for the delivery of the Christchurch Convention and Exhibition Centre by the start of FY 2016/17 23

27 5. CHRISTCHURCH i-site VISITOR CENTRE 5.1. Situation Analysis The Botanic Gardens location for our Christchurch i-site Visitor Centre (i-site) continues to operate well as the major visitor hub in Christchurch drawing in local, domestic and international visitors. With inbound market growth to New Zealand currently exceeding 10% per annum our visitor throughput has grown by 18% this year, boosted by more visitors and the augmentation of our sales presence by adding an additional point of sale with a satellite i-site based in the Re:Start Mall over the peak summer period. By financial year end June 2016 we expect to report an annual visitor increase of at least 11% taking volume up to 253,000 visitors, up 120% from the 112,000 achieved in June 2012 being the first full year after the 2011 earthquake events /17 Operating Environment The following factors will influence change in our operating environment and financial outcomes in 2016/17: A. It is expected that we will be ready to commence operations in the new permanent i-site in the Arts Centre from mid-august B. The ability to offer a complete visitor experience through the presence of a Department of Conservation (DOC) consultant on site and a closer relationship with Ngai Tahu which will enable us to better articulate the story of our city, Otautahi C. Sales revenue and visitor numbers are expected to lift by a further 12% across the full financial year D. Due to a considerable increase in space available at the Arts Centre, we project at least a 185% increase for souvenir item retail sales (value $100,000 compared to $35,000 in 2015/16). Likewise, luggage storage revenue will also increase due to having a dedicated space (value $7,000 compared to $3,500 for 2015/16). The retail focus will be on presenting a greater proportion of quality New Zealand made products and incorporating a Christchurch and Canterbury story in the retail offering E. Ongoing improvement of North American and European markets resulting from new air capacity and continuing growth in visitors from Asia will be the main drivers of growth 5.3. Strategic Priorities Establish a new permanent i-site in the Christchurch Arts Centre The current temporary accommodation in the Botanic Gardens has been stretched to capacity. The new site will provide: A greatly improved visitor experience Effective space utilisation to allow for easy flow Marketing reach and service offering through: Increasing space for wall and floor advertising At least double the retail sales offering Ability to provide greater space for luggage storage Promoting the location and services of the i-site to the Christchurch public, local tourism sector and visitors to the city Ability to promote environmental (DOC) and cultural (Ngai Tahu) aspects of the city and region A free Wi-Fi service to encourage travelers to visit the i-site and stay longer in our premises 24

28 Development of new revenue streams Ensure Business Partners value the i-site relationship and recognise the value of having premium retail access to visitors in the city Encourage a greater contribution from the high value/high volume operators through creative advertising opportunities Mitigate the risk to the business of both local and international travellers booking online by creating higher levels of confidence that the i-site is a preferred place to access information and booking services due to the knowledge of consultants and quality advice Recruitment, Training and Retention of Staff Optimise staff numbers and hours of work requirements around the expanded business opportunity of the larger Arts Centre premises Review the balance of part time and full time staff in order to reduce the total number of staff recruited with a goal of reducing the time and costs associated with recruiting and training a large number of part time staff Continual improvement of systems and processes Continue to gain efficiencies and cost savings, in particular relating to staff rostering and stock control Commence a review of future reservations systems to replace the current VIBs platform 5.4. Basis of Christchurch i-site Business Growth Projections The following sales revenue growth progression steps are estimated for the 2016/17 financial year: Forecast Gross Period Turnover growth on prior year July - November % December March % April June % Note In peak summer season months (January March) we expect to have 7 counters operating These assumptions are based on: New Zealand tourism growth of 9% in the summer 2016/17 Operation from the larger Arts Centre i-site location commencing from mid-august 2016 Marginal improvement in the number of holiday visitors including Christchurch in their New Zealand itinerary 5.5. Key Performance Targets and Measures Based on Botanic Gardens July - August 2016 and Arts Centre September June 2017 Targets 2014/ / /17 Variance Gross turnover (excl. GST) $3,544,451 $3,967,719 $4,466,088 12% Average spend $77 $75 $76 1% No. of pax committing 20% 21% 21% nil Total visitors to i-site 228, , ,300 10% Visitor satisfaction rating % 5 Based on forecasted figures to end June

29 Number of Business Partners 5.6. Business Partner Programme There has been a healthy increase in tourism and hospitality businesses signing up to the Business Partner programme in 2015/16. For the greater Canterbury region, new products include boutique accommodation in Hanmer/Cheviot, dolphin swimming, walking tracks and hostel accommodation in Akaroa. Many more out of region products have shown an interest in having representation in the Christchurch i- SITE and this season new operators from Greymouth, Wanaka and Auckland have joined the programme. The opportunity to host more out of region will increase as we move into the new i-site in the Arts Centre. Challenges for 2015/16 have included some reluctance by small businesses to pay for brochure space given their minimal marketing budgets and it has also been evident that some of our larger operators have become more constrained in respect to their marketing spend. There has been no abatement in the ongoing trend of visitors booking directly with operators online even after picking up brochures in our i-site. This means we need to continually reinforce the benefits of membership for both new and existing members to ensure that they understand the value of the i-site as an information point not just a booking service Brochure and General Business Partners The following graph shows the ongoing growth in the Business Partner programme year on year since 2013: YTD Target for Brochure Plus General Total Activity: Actively pursue new opportunities to grow Business Partners with the opening of the Arts Centre i- SITE Keep the cost of Brochure Plus and General categories at the 2015/16 rate Produce a comprehensive business partnership prospectus to clearly articulate the value of their partnership with CCT New Business Partners will continue to be signed on for the second half of the 2015/16 financial year however every endeavour will be made to take them through until the end of the 2016/17 financial year. This will avoid the added administration time and costs of renewing their membership so early in the business relationship The base line commission charge for the Christchurch i-site will remain at 12.5% Continue to grow the General Business Partner category for tourism businesses Target iconic products which mutually benefit the operator and i-site sales 26

30 5.7. Key Performance Targets and Measures Business Partner Revenue Targets 2015/ /17 Targets Number Revenue Number Revenue Brochure Plus partnership 367 $152, $165,000 General Partnership 66 $12, $14,820 Convention Bureau partnership 61 $111, $117,324 Total 494 $277, $297,144 6 As at 29 February We don t expect a material increase before the end of the financial year. 27

31 6. CRUISE SECTOR 6.1. Situation Analysis Global Cruise Trends and Forecasts The cruise sector remains on a growth trajectory, with year on year growth of 4.1% expected in the 2015/16 season to 23.0 million passengers globally. 7 Australia s sustained strength as a source market gives cruise lines the confidence to deploy larger ships into this region. China s well-documented cruise potential is another significant influencing factor in the increased size of ships being deployed to Australasia New Zealand forecast 2016/17 Cruise offers a significant opportunity for visitor growth and sits alongside improved air connectivity as a driver of tourism growth within the Tourism 2025 framework. The cruise sector has grown five-fold in the last ten years to become the equivalent of New Zealand s third largest country of holiday arrivals, behind Australia and China. 8 Looking beyond 2017, New Zealand prospects continue to look good. Australia s growth as a source market over the last 12 years has been significant, to the point of breaking North America s stronghold for the title of the highest proportion of cruisers in the world. New Zealand s growth will be heavily influenced by the capacity growth from Australia. With more cruise ships being deployed to China, New Zealand has a good chance of attracting new business when those ships look to go elsewhere during China s winter. Congestion in Sydney and the western Pacific Islands means there is a strong possibility that cruise lines will look to New Zealand to ease some of that pressure if adequate port infrastructure can be provided. The New Zealand cruise industry grew again in the 2015/16 season with a 33% increase in passenger numbers, 25% increase in value added and 24% increase in employment supported. New Zealand also welcomed five new ships making their maiden voyage to New Zealand. 9 The Explorer of the Seas, sister ship to Voyager of the Seas (3,500 passengers and 1,200 crew) will make 10 voyages to New Zealand but will not include Canterbury. The much hyped Ovation of the Seas (3,905 passengers and 1,500 crew) will make its debut in New Zealand as the largest ship ever to visit New Zealand in December 2016, and Princess Cruises will deploy its largest ship in New Zealand, The Emerald Princess which carries over 3,000 passengers and 1,500 crew Canterbury The Cruise New Zealand Economic Impact report for the 2014/15 season indicated that the Canterbury economy earned $49.5 million from cruise and provided over 1,000 jobs during the season. This figure could rise in future cruise seasons if the extra-large vessels can get a cruise berth in Lyttelton. 7 Source: Cruise New Zealand Economic Impact Economic Assessment Report Source: Cruise Lines International Association Australasia, Source: Cruise New Zealand Economic Impact Economic Assessment Report

32 If the status quo situation prevails of no large cruise ships having access to Lyttelton we expect to see a decline in port calls for Akaroa as the larger cruise ships cannot easily disembark using the tender process in Akaroa Harbour. The Ovation and Emerald class ships which are expected in New Zealand from the 2016/17 summer will be prevented from visiting Canterbury due to the logistical challenges of tendering. As a result our region will miss out on the economic benefit afforded to other cities and regions where port infrastructure can accommodate these extra-large vessels Situation Akaroa Akaroa has been the default cruise port for the past five cruise seasons and has coped admirably in the face of substantial logistical and community challenges. CCT has worked closely with the Akaroa community to ensure that the arrival of a high volume of cruise ships and passengers has been managed successfully and the Akaroa community feels supported when these large volumes of visitors arrive. CCT continues to provide infrastructure support to Akaroa District Promotions (ADP) and the Akaroa community. A free shuttle is funded to disperse cruise passengers throughout the Akaroa town to alleviate congestion on Akaroa s fragile infrastructure. Payment for extra staff wages on cruise days is paid to ADP to ensure the cruise passengers are provided a warm welcome on arrival. Number of cruise passengers into Akaroa Cruise Ship Visits to Akaroa 160, , , ,000 80,000 60,000 40,000 20, Booked Actual Situation Lyttelton Lyttelton Port remains closed to large cruise ships. The Lyttelton Port Company (LPC) has advised that the estimated $35 million cost to build a new wharf specifically for cruise ships cannot be recovered by forecast revenue. However it is understood that LPC is in discussions with Christchurch City Council on this matter, and CCT is continuing to work with the Cruise industry on the assumption that a new cruise wharf will be available in due course. The lack of a scheduled large ship cruise berth has meant that ships such as the Voyager, Ovation of the Seas and Emerald Princess which carry between 3,500 5,000 passengers continue to bypass the province entirely with a visitor loss that currently exceeds 35,000 pax per year. The net result of this situation is that the city and region misses out on this large volume day visitor market. 29