01 Executive Summary Lake Wanaka Tourism - mission, vision and values Goals (2022 Targets) - key metrics 5

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2 01 Executive Summary 3 02 Lake Wanaka Tourism - mission, vision and values 4 - structure, funding and core competencies 4 03 Goals (2022 Targets) - key metrics 5 04 Key Tourism Statistics - progress towards 10 year goals 6 04 Key Strategies - and supporting tactics 7 05 Appendices - SOAR Analysis: strategic advantages, challenges and opportunities 9 - Visitor Profile Overview 10 - Visitor Numbers (in Commercial Accommodation) 11 - Visitor Numbers (total through QRIOUS) 13 - Visitor Spend Year Goals: 2021/22 targets 15 - International Arrival Trends 15 - NZ Tourism Industry Goals, Priorities and Forecasts 16 Review Process Each year the Lake Wanaka Tourism board and staff completes a deep dive review of this Strategic Plan to test its relevancy, and to identify short term (12 month) priorities the General Manager and staff will build into the Annual Business Plan for the upcoming financial year.

3 In 2012 aspirational 10 year goals were set to galvanise and focus the Wanaka region s visitor industry, targeting a massive step change in the visitor economy and its contribution to our community. Good progress is being made, especially in the past 24 months where the Wanaka region has gained significant market share with visitor spend growth rates the highest in New Zealand and visitor growth rates well ahead of overall NZ performance. Guest nights are tracking ahead of 10-year goal targets for 2016/17 and guest arrivals exceeded the final 2021/22 target in YE June Stay length is marginally down on target but trending up. YE April 2017 visitor spend increased 18% to contribute $494 million (or $1.36 million per day) to our economic wellbeing, creating the majority of jobs and providing our community with a level of infrastructure and amenity that wouldn t otherwise be supported by a population of approximately 10,000 residents. The visitor market is buoyant with strong growth forecast - especially from China, Australia and USA and knowledge of our visitors continues to improve with new data sets - like MRTE and QRIOUS - offering better insights and understanding. Technological advances enable more efficient targeting of potential visitors at all stages of the traveller journey as they dream, plan, book, experience and share their travel to and around New Zealand and the Wanaka region. Strong visitor growth is presenting some challenges, with infrastructure (carparks and toilets) under pressure, and supply constraints evident with commercial accommodation occupancy exceeding 70% for 7 months of the 2016/17 period. Continuing to offer a high-quality visitor experience and managing the impact of visitors is critical for continued public goodwill, and to ensure future growth is sustainable and respectful of our community and our environment. The Wanaka region is well poised to take advantage of these trends but needs to ensure core marketing activity is tightly targeted to build on long-term strategic advantages and capitalise on opportunities to achieve our target of 1,045,000 guest nights by Growing awareness and preference for travel to the Wanaka region goes to the heart of the work that Lake Wanaka Tourism undertakes. LWT s mission, on behalf to our 460+ members, is to promote our spectacular region to the world, to inspire people who share our values to visit, stay and share their experience. Marketing activity will focus on improving business viability by spreading visitor demand to shoulder seasons, targeting value over volume and increasing stay length, which will create better job opportunities, optimise capacity use and encourage investment. This plan outlines the core strategies that guide our long-term activity. In brief, these are: A clear, compelling and differentiated brand identity is the cornerstone strategy to ensure success. Leveraging marketing activity through joint ventures, key partner channels and leading technology platforms to significantly enhance the reach of the Wanaka region message and building awareness of its four-season appeal. Targeting a balanced portfolio of markets to enable the Wanaka region to attract a mix of travellers to appeal to different seasons, segments and sectors. Lifting the profile of events, C&I and weddings will provide compelling reasons to visit, particularly in the shoulder season. LWT will also proactively advocate to local and national organisations responsible for destination management (eg: QLDC, DOC, NZTA, LINZ and TIA) on issues that affect the quality of the visitor experience and visitor satisfaction. (eg: Responsible Camping, water quality, etc) We encourage all members to actively work with us in promoting the Wanaka region. Together we can achieve greater success.

4 Mission Statement Vision Statement Through innovative marketing and storytelling, the Wanaka region will be recognised as a leading NZ destination, delivering an outstanding visitor experience. Values Lake Wanaka Tourism will provide leadership and support for its members and act as an advocate for our place, our people and our visitors, to uphold the core values that connect our community and visitors: Structure & Funding Lake Wanaka Tourism is a Regional Tourism Organisation formed in 1993 to market the Wanaka region to domestic and international visitors. The Wanaka region is bounded by Haast Pass in the north and the Crown Range saddle to the south and includes the towns of Wanaka, Albert Town, Lake Hawea, Makarora, Cardrona and Luggate. Members of Lake Wanaka Tourism pay a tourism levy through commercial or accommodation rates to Queenstown Lakes District Council. This funding is collected on LWT s behalf and remitted quarterly. Subscription membership is also available to eligible businesses who wish to access membership benefits. As an incorporated society, Lake Wanaka Tourism is governed by an elected Board of Directors, who meet monthly to ensure that organisation goals and objectives are being delivered on by LWT staff. Lake Wanaka Tourism represents all members in the Wanaka region and where possible acts to develop member capabilities. Core Competencies Lake Wanaka Tourism aims to live up to the following competencies: Maintain a fresh, unique and appealing brand Recognised for innovative marketing and storytelling Nimble and responsive to opportunities Ability to test, learn and quickly adapt in a rapidly changing market. Innovative and embracing of online and new technologies Supported by an invested and committed team Fast follower behind Tourism NZ s lead to capitalise on opportunities

5 In 2012 new 10 year goals were set to serve as aspirational targets to drive our visitor economy forward. Through a thorough consultation process, 89% of members supported these goals and 85% supported the increase in resources required to reach for these goals. 10 Year Goals in Detail Guest Night Target generated from arrivals and stay length, The gap between the Guest Night trend line and forecast shows the magnitude of the step change targeted, with increased stay length vital to reach these targets. As the Wanaka region moves towards these goals, it is inevitable that visitor numbers will fluctuate from year to year as we transition through economic cycles, raise awareness in new/emerging markets, drive sufficient volume/value and experience supply constraints. Arrivals 1 3% growth per year From 299,000 baseline to 372,000 in 2021/22. 24% total x Stay Length 1 2% growth per year From 2.29 baseline to 2.81 in 2021/22%. 23% total. Progress Towards 10 Year Goals Guest Night, Arrival, & Stay Length performance Guest Nights 1 5% growth per year From 680,000 baseline to 1,045,000 in 2021/22. 54% total. Delivering increased spend Spend 2 35% growth by 2021/22 Notes: 10 year goals measured through 1: Commercial Accommodation Monitor (CAM) and 2: Monthly Regional Tourism estimates (MRTE). Target figures exclude visitors staying in non-commercial accommodation (eg: private/holiday houses). Growth based on market forecast and historical performance (5 & 10 year averages). See detailed figures in 06 Appendices. Note: 2016/17 CAM performance figures include July-March (actual) and April-June (forecast).

6 Progress Towards 10 Year Goals 2016/17 Performance Summary All key indicators experienced year on year growth when comparing 2016/17 to 2015/16. Guest nights and arrivals continue to exceed 10-year goal targets in 2016/17 with only stay length slightly down. Nights Arrivals Stay Length +4.9% +1.9% +2.8% Target 818,241 Actual 820,702 +2,461 NZ comparison +3.2% Target 326,727 Actual 382, ,658 NZ comparison +4.1% Target 2.50 Actual NZ comparison -0.8% Progress Towards Improving Business Viability Spend increased by a factor of 9.2 times over volume Winter and spring arrivals grew at a greater rate than summer Stay length increased in summer 7.9% & winter 3.9% Value Over Volume Spend v Arrivals +17.6% +1.9% Spread Visitor Demand (Arrivals) Winter Spring +5.8% +8.5% Summer Autumn -5.7% +-.-% Spend +17.6% Actual $488 million #1 RTO for % growth NZ comparison +5% Stay Length +2.8% Data: YE March 2017 Commercial Accommodation Monitor (CAM) & Monthly Regional Tourism Estimates (MRTE) Note: Autumn arrivals figures not yet available. See page 11 for more details.

7 Summary of Key Strategies Proactively advocate to local and national organisations on issues that affect the quality of the visitor experience and visitor satisfaction Ensure the Wanaka brand is strong, compelling and easily understood. It must be clearly differentiated from competitors and reflect the diversity of four seasons & experiences Lift profile and promotion of events, wedding & C&I as compelling reasons to drive shoulder season visitation Create a comprehensive and innovative online presence to reach the right audience Develop and grow the Wanaka region as a top winter destination Extend the reach of marketing activity by partnering with organisations with a shared target audience Target a balanced portfolio of markets (domestic, traditional & emerging) to create resiliency and drive growth across four seasons and product mix

8 Summary of Strategy and Key Tactics Destination Management Brand Online Partnerships Advocate to QLDC and ORC to position our region for a sustainable tourism future Collaborate with local & national organisations to manage the negative impact of visitors Monitor visitor satisfaction and conduct periodic research to test visitor perceptions Educate our visitors to encourage desirable behaviour Communicate our brand story through innovative storytelling Create & curate compelling content to share Undertake periodic testing to ensure brand relevancy Leverage accessibility and proximity to Queenstown airport Share successes through member EDM s and local media Maintain a leading online presence - web, social, EDM Actively build database for direct communication to consumer, trade & C&I resellers Build digital audience pool of people interested in Wanaka to target tactical marketing activity Ensure robust measurements exist to assess ROI on tactical activity (test, review, report) Maintain role in Southern Lakes Tourism with Destination Queenstown and Fiordland Establish key partnerships with airports (Akld, Chch, Qtn, GC) and airlines (Air NZ, Jet Star) Work with groups to improve collaboration and coordination of activity where beneficial - eg: winter, education, weddings, C&I, Chamber, Cube, tracks, etc Inform our community on the value of tourism Target Markets Grow Winter Events, Weddings & C&I Target domestic market through consumer and media channels. Prioritise Auckland, Christchurch and Otago, and use events to fill off peak periods Target Australian market through consumer, media & trade channels. Prioritise Sydney, Brisbane & Gold Coast, and use events to fill off peak periods Target long-haul international markets through trade (Southern Lakes Tourism, Trenz), media (TNZ media program) and direct intervention where appropriate Promote a strong Ski Wanaka identity to raise awareness to attract NZ and Australian visitors Partner with Cardrona & Treble Cone to amplify reach Create dedicated winter content to showcase the variety and vibrancy of our offering Support initiatives to enhance the visitor experience - eg: Artisan Market / Lightup Wanaka Target June & Sept visitation for shoulder season growth Raise soft snow activities profile to appeal to emerging markets Support a balanced portfolio of events to drive shoulder season visitation, stay length and value Support events that build on our strategic advantages Promote C&I to target off-peak visitation Support destination wedding market where capacity exists in winter, spring, and autumn

9 SOAR Analysis of Wanaka region s advantages, risks and opportunities Marketing activity will build on our strengths, offset our challenges and take advantage of the opportunities. These are our long-term game changers. The rapidly changing landscape of markets and technology requires us to be nimble and responsive to succeed Strategic Advantages Strategic Challenges (Risks) Strategic Opportunities Accessible & inviting spectacular natural environment Four distinct seasons with a great climate Strong sense of place low rise towns with a relaxed vibe in an uncrowded & unspoilt region A fresh and exciting destination, offering a wide variety of quality personalised experiences The two largest ski areas in the Southern Lakes with great terrain mix, reliable snow, along with NZ s only cross-country ski area A recreational sports hub: swim, bike, run, triathlon, multi-sport, snow, rock climbing, mountaineering, kayaking (Hawea wave) An aviation hub: skydive, scenic flights, training, maintenance, helicopters Good location on South Island touring route. Proximity to Queenstown by road, and Milford Sound by air Proximity to Queenstown Airport, connecting to NZ s major cities and Australia Well balanced and diverse visitor mix Owner operators passionate about what they do, where they live, who love to share their way of life Capacity constraints and high price points in peak season affecting visitor experience, satisfaction, and perception of value Community backlash against tourism, given strong growth over past few years Town affordability affecting staffing and worker housing, and impact of AirBnB Environmental degradation pressure on water quality and infrastructure Weather uncertainty, eg: windy summers, poor snow conditions Fragility of road network affecting visitor flows South Island and locally Low awareness in key markets of Auckland & Australia Gaps in product offering - lack of public transportation and top end accommodation (eg: high end lodges) Vulnerable to uncertainty in global economic environment triggering economic downturn in key international markets Raising awareness in Australia, Auckland and Christchurch to stimulate travel Developing marketing activity to drive special interest travel in ski/winter, biking/hiking, food/wine, adventure, and multisport Raising awareness in emerging markets to diversify visitor mix and spread visitor numbers Indonesia, South America, Philippines Developing the education & C&I sectors Introducing new events to complement strategic advantages and drive shoulder season visitation Attracting repeat visitors Development of Wanaka Airport and increased commercial focus with Queenstown Airport s long-term governance agreement with QLDC Attracting investment and increasing capacity into new/existing product to reach 10 year goals, while retaining our strengths/sense of community

10 Visitor Profile Overview YE March million total visitors spending $488 million 655,985 overnight* visitors staying 2.64 days average generating 1.7 million nights 709,512 day visitors staying for half day minimum Change from YE March Total Visitors: +13.8% from 1,200,377 - Total Spend: +17.6% from $415 million Change from YE March Overnight Visitors: +8.5% from 604,627 - Stay Length: +5.5% from Guest Nights: +14.6% from 1,489,938 Change from YE March Day Visitors: +19.1% from 595,750 *includes visitors staying in commercial AND noncommercial accommodation Visitor Origin: 65% international / 35% domestic Origin: 54% international / 46% domestic Origin: 76% international / 24% domestic Visitor Spend: 60% international / 40% domestic YE March 2017 data from QRIOUS, and Monthly Regional Tourism Estimates

11 Visitor Numbers Trends (in Commercial Accommodation) arrivals, stay length, nights and occupancy Annual Performance Commercial Accommodation Monitor statistics continue to trend upward over the longer term, and on track to reach our 10-year goal targets. Seasonal Performance Trend by Quarter: 2010/ /17 Provisional results for show annual guest nights and arrivals at record levels and stay length up slightly. Guest nights for each quarter reached record levels, despite arrival numbers for summer being down on the previous years big increase. Further details are in the seasonal graphs to the right. Note, the Commercial Accommodation data outlined is a subset of the total visitor numbers, nights and stay length that QRIOUS data profiles on the following page. Data from Commercial Accommodation Monitor

12 Occupancy Trends Strong visitor growth in 2016/17 drove occupancy levels to record levels across all Commercial Accommodation types, with Backpackers and Holiday Parks providing the biggest gain. The following graphs show occupancy trends by accommodation type from 2014/15 to 2016/17. Total Occupancy trends can be seen for the past 4 years in the graph below, with the biggest gains made in the winter and spring periods. Excluding Holiday Parks (which contribute approximately 50% of available capacity), occupancy levels rose to over 70% for 6 months of the year, with peak month at 84%.

13 Visitor Numbers Trends (total) arrivals, stay length and nights Data from QRIOUS provides the most complete understanding of total visitor numbers to the Wanaka region. The graphs below showing monthly arrivals, nights and stay length trends from February 15 to March 17, along with the average monthly origin figures. For YE March 17, peak day visitor growth increased 51%, 57% and 64% for November, July and June respectively, and peak overnight visitor growth increased 21% and 37% for June and November respectively. Note that Commercial Accommodation statistics are a subset of this data. Arrivals by Month Nights Average Stay Length Average Monthly Arrivals (overnight & day visitors) - Top 5 domestic and Top 7 international markets Average Monthly Nights by origin - Top 5 domestic and Top 7 international markets Average Monthly Stay Length by origin Data from QRIOUS based on anonymised and aggregated cellular data

14 Visitor Spend Total Spend Visitor spend in the Wanaka region increased 17.6% to $488 million for YE March 2017, following a 20% spend increase the year prior. The annual spend trend for is below, along with a breakdown of spend by product and country for YE March Spend Trend by Product Food & Beverage Serving Services Activities Seasonal and Country Spend Trends Since winter 2014, spend each quarter has increased, driven by strong growth in international spend, which is shown on the following graph. Note 2016/17 results in the graphs below currently excludes the autumn quarter. Accommodation Services Retail Sales other Data from Monthly Regional Tourism Estimates YE March 2017

15 10 Year Goals 2022 targets 10 Year Goals Target Figures The table below outlines the guest night, arrival and stay length annual target figures to reach the 10 year goals set in 2012, with progress measured through the Commercial Accommodation Monitor. Year Base Change 2011/ / / / / / / / / / /22 p.a total % Nights , % % growth 6% -1% 4.9% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% 5.1% Arrivals % % growth 6% -5% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% Stay Length % % growth 1% 2.7% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% Note: Nights/Arrivals figures in 000 s Market Analysis - International Visitor Arrivals International Arrivals Over the past 3 years International arrivals into NZ have increased strongly especially from Australia and China. The profile of our visitors has changed significantly. Group to FIT, Western to Eastern Changes in exchange rates typically effect visitor purchasing power. NZ remains exposed to potential shocks, especially from Australia with a large market share. Changing technology influences how people search and plan for their holiday and how they engage while they re travelling in New Zealand Country change Australia 1,221,152 1,273,152 1,364,736 7% China 239, , ,840 28% USA 207, , ,792 12% UK 191, , ,792 7% Germany 74,224 81,152 90,496 12% Japan 73,344 83,392 91,344 10% Korea 52,944 59,184 71,408 21% Canada 48,176 49,440 55,232 12% Singapore 43,168 47,296 51,408 9% India 32,064 40,880 46,512 14% other 567, , ,903 8% Total 2,752,257 2,947,901 3,255,463 10%

16 New Zealand Tourism Industry Goals and Priorities NZ Industry Goals focused on Value, not Volume Since our goals were set, the Tourism Industry Association (TIA) has led the creation of the Tourism 2025 framework to focus what is a fragmented and complex industry around shared aspirational goals to increase international visitor value by 6% per year and 4% per year from domestic visitors. The 2025 Framework is underpinned by 5 key themes increased value, outstanding visitor experience, raising productivity, improving air connectivity and better research insights. At TRENZ 2017, TIA released a Tourism Election Manifesto containing 29 priority actions for the incoming Government, grouped under three themes: A sustainable industry, for New Zealand s tomorrow Invest in infrastructure, for New Zealand s tomorrow Support tourism, for New Zealand s tomorrow. TIA s Tourism 2025 goal is to build an industry that is socially, environmentally and economically sustainable. This can be done with political and policy recognition, backed by a supportive environment for infrastructure investment. Tourism NZ marketing focus Tourism New Zealand s strategy for the next four years (FY18 - FY21) has a greater focus on increasing international tourism in the regions and shoulder seasons, and is supported by three priorities. LWT will proactively work with Tourism NZ to progress our goals. NZ Tourism Forecasts Visitor arrivals to New Zealand are expected to grow 4.8% a year, reaching 4.9 million visitors by 2023 (+39%) from 3.5 million in 2016 and total international spend is expected to reach $15 billion in 2023, up 52% from Strong short-term growth will be driven by a range of factors, including an increase in airline capacity, low travel costs, international events planned in NZ, and destination marketing. Growth is forecast to moderate in the medium to long-term. Growth in visitor numbers is expected to be the main contributor to overall international spend growth, with increasing spend per trip (or visitor) also playing a significant role. Most of this forecasted growth is expected to come from holidaymakers and those visiting friends and relatives. China to overtake Australia as our largest market by spend and reach $4.3 billion annually by Visitor numbers are expected to reach just under one million. China is expected to contribute to 37% of total international visitor growth from 2016 to 2023, and 51% of total visitor spending. though Australia will remain the largest source of visitor arrivals to contribute 1.8 million annual visitors by 2023, up 25% from 1.4 million in 2016, or 3.2% each year. For full details on the NZ Tourism Forecasts, visit Air Connectivity Air connectivity is vital as it turns on the tap of visitor flows. A strong forecast for tourism demand has been met by multiple announcements from airlines adding extra domestic and international capacity and opening up new routes.