New Zealand Tourism Market Outlook TOTAL EXP FORECAST TO GROW 65% OVER 7 YEARS

FACT BOOK

TABLE OF CONTENTS FORECASTS... 1 OVERARCHING STRATEGY & OBJECTIVES... 10 PERFORMANCE YED MARCH 2017... 15 WEST COAST TOURISM TOTAL EXPENITURE...21 DISTRICT PERFORMANCE BREAKDOWN... 26 1. WEST COAST... 28 2. WESTLAND... 39 3. GREY DISTRICT... 50 4. BULLER DISTRICT... 66 INTERNATIONAL EXPENDITURE... 81 DOMESTIC EXPENDITURE... 102 BACKPACKERS MARKET... 120 AIR B&B... 130 DOMESTIC VISITOR PROFILES... 141

MARKET SHARES... 146 ACCOMMODATION... 156 ARRIVALS... 172 TRANSPORT & MOVEMENT... 186 EMPLOYMENT GDP... 206 EVENTS... 216 TARGET MARKETS... 218 MAXIMISING FROM CHINESE VISITORS...230 GATEWAY REGIONS... 240 CYCLING/MOUNTAIN BIKE NZ... 243 MARKET RESEARCH WEST COAST WILDERNESS TRAIL... 247 ECONOMIC IMPACT OF WEST COAST WILDERNESS TRAIL... 269 SOCIAL FISHING... 284

FORECASTS 1

New Zealand Tourism Market Outlook TOTAL EXP FORECAST TO GROW 65% OVER 7 YEARS 2

MINISTRY OF BUSINESS, INNOVATION & EMPLOYMENT New Zealand Tourism Forecasts 2016-2022 Avg Spend up 7.5% Spend per day up 1.9% Total Visitor Days up 5.4% Length of stay up.3% Visitors up 5.4% Holiday Visitors up 66% 3

International tourism forecast - Total Visitor Arrivals (MBIE) 4

International tourism forecast - Avg length of stay (MBIE) 5

International tourism forecast - Total Visitor Spend (MBIE) China up 360% 6

TranzAlpine Forecast from 2017 2025 Westbound TranzAlpine Eastbound TranzAlpine Chch to AHP Chch to GM GM to Chch AHP to Chch 60,000 50,000 Capacity constraint 50,000 45,000 40,000 40,000 35,000 30,000 30,000 25,000 20,000 20,000 15,000 10,000 10,000 5,000-1 2 3 4 5 6 7 8 9 10-1 2 3 4 5 6 7 8 9 10 Compound Growth 2012-2016: GM 2%, AHP 5.2% Share change 2012-2016: AHP grew from 21% to 35% Compound Growth 2017-2025: GM 1.5%, AHP 7.3% Share change 2017-2025: AHP grows from 35% to 45% Compound Growth 2012-2016: GM 3.75%, AHP 16.2% Share change 2012-2016: AHP grew from 15% to 22% Compound Growth 2017-2025: GM 1.5%, AHP 2.6% Share change 2017-2025: AHP grows from 22% to 43% 7 Source: TranzAlpine 2016

DISTRICT FORECAST 2016-2021 Visitors District 2016 2021 % Increase Share Westland 522 635 21% 60 55% Grey 200 289 44% 23-26% Buller 147 210 43% 17-19% Visitor: Total visitor numbers exceed 1m by 2018 and reach 1.2m by 2021 Nights Stay District 2016 2021 % Increase Share Westland 1096 1716 56% 60-54% Grey 420 781 85% 23-26% Buller 310 567 82% 17-20% Nights: Grow from 1.9 nights to 2.6 by 2021 creating capacity issues in all districts in the peak December April period Tourism Expenditure District 2016 2021 % Increase Share Westland 305 475 55.7% 64 58% Grey 106 199 87% 23-25% Buller 59 136 130% 13-17% Expenditure: Total expenditure reaches $810m by 2021 and exceeds $1billion by 2024 8

DISTRICT FORECAST 2016-2021 Employment FTE District 2016 2021 % Increase Share Westland 1130 1297 14% 57-51% Grey 644 836 29% 30-33% Buller 244 399 63% 13-16% Employment: To year end March 2015 tourism was 14% of total West Coast employees equal with agriculture, forest and fishing. By March 2017 it had increased to 15.7% and expected to exceed 20% by 2025. Car/Campervan Movements District 2016 2021 % Increase Westland 30 526 22% Grey 158 240 65% Buller 128 173 35% Movements: The growth of visitors to Hokitika Gorge, Punakaiki, Lake Brunner & Oparara Arches impacts on car movements North. GDP Contribution District 2016 2021 % Increase Share Westland 59 90 52% 63-57% Grey 20 36 80% 21-23% Buller 14 31 121% 16-20% GDP: To March 2016 tourism represented 5.6% of total GDP and had risen to 6.9% March 2017 and is expected to exceed 10% by 2021. 9

Overarching Strategy & Objectives for the West Coast 10

OVERARCHING STRATEGY Satellite Icons for all Major icons/attractions Walking Tracks and Cycle Trails Regional Events/ Tactical Promotions 11

2017 2021 Objectives Summary Increase Visitor arrivals from 870,000 to 1.1 million (increase by 230,000 visitors) 1. Increase tourism expenditure from $470m to $810m (increase of $340m) 2. Increase visitor nights by increasing average length of stay from 2.0 to 2.7 (increase by 0.7) 3. Increase GDP contribution from $95m to $157m (increase by $62m) 4. Increase tourism employment from (increase of 516 jobs) Enablers DOC is a Key enabler of the Icon Development programme. Growth forecasts are dependent on the icons being developed on schedule Funding to develop and achieve the goals will be dependent on funds being made available by all relevant parties. 12

Visitors per Icon or Cycle ways/track Forecast Visitor Growth by Icon 2016 2021 Buller Grey Westland Oparara Arches 20,000 66,837 P Punakaiki Pancake Rocks & Blow Holes 448,000 566,329 P P Lake Brunner 25,000 72,021 P Hokitika Gorge 40,000 76,252 P Glaciers Franz Josef & Fox Glacier 700,000 830,400 P Haast Te Wáhi Pounamu World Heritage Area 100,000 161,051 P Lake Brunner Cycle Track - 1,574 P Paparoa Track - 7,813 P P Heaphy Track 7,700 10,014 P Old Ghost Road 10,000 11,593 P W. Coast Wilderness Trail 8,000 20,736 P P TOTAL Visitors to Icons 1,358,700 1,824,620 5 5 4 Owner of the Asset underwrites the cost of repairs, maintenance and additional capital for upgrades 13

STRATEGY RATIONALE Each icon will be developed as a sub-brand of the new West Coast brand, creating an immediate and instantly recognisable link with the region. Each main icon will also have 5 or 6 satellite activities and attractions that further communicate the strengths of the area. This icon selection will help change the tourist flow - see before and after maps BEFORE AFTER Up to 2016 84.5% of visitors only went to these two icons. Limiting overnight stays. By 2021 76.5% of visitors only go to original icons as disbursement begins and encourages overnight stays. 14

PERFORMANCE YEAR ENDING MARCH 2017 15

SUMMARY The TWC strategy and marketing plan was included in the MBIE sponsored growth study action plan. The contributions from central government agencies for the development or feasibility work on the strategy will enable TWC to continue making a positive contribution to the economic growth of the West Coast. The tourism strategy will be a major enabler for a change in social and cultural behaviour as the economy moves from a commodity focus to a service /added value economy, driven by the demands of 1.4m visitors verses a population of only 33,000. This change will not be without its challenges but will be a catalyst for the rise of bespoke businesses, new activities and greater marketing awareness. Any strategic or marketing plan has to be able to tell a story. The story enables visitors and locals to understand the vision so they can share and enjoy the experience. Business failures are in part due to a lack of branding not having the depth of story or essence to deliver on strategy. Failure to invest in telling the story and having consistency of message in the first few years of new products and services will ultimately determine outcomes. Tourism New Zealand forecast to 2022 indicates growth in visitors (up 5.4%) and expenditure (up 7.5%) and a marginal increase in 0.3%). In order for the west coast to achieve expenditure levels and GDP it must take market share from other regions notable Queenstown, Wanaka, Nelson and Tasman. Untamed Natural Wilderness reinforcing that the Coast can offer a unique and outstanding visitor experience. The message and story will be consistent, enabling community groups and promotional groups to grasp the opportunities such messages will bring. The understanding and therefore success comes from having a brand or banner that all Coasters can relate to irrespective of their location on the Coast and can be used in any business situation not just tourism. 16

BRAND DEVELOPMENT AND EXECUTION STRATEGY Values and Personality: Unique, rugged, wild, natural, untamed Reasons to Believe: This region of ours is a land of which we can be justifiably proud. No other region in NZ has such a concentrated wealth and diversity of Brand Essence: untamed natural scenic beauty Benefit: Sense of being and feeling of freedom, pioneering & being as one with nature Exploring & reliving how to enjoy nature feeling liberated from suburbia Challenging nature & experiencing how it was for the past pioneers & fortune hunters Discriminator: Experience an unforgettable journey from glaciers, along rugged coastlines, wild rivers and lakes, past natural rock formations to pristine beaches on the most scenic roads and cycle ways Insight: People who want to experience the scale, rugged and wild reality of what nature offers and how past pioneers and adventurers have attempted to tame it Winner of Best Practice Contribution to Local Economic Development - LGNZ Excellence Awards July 2017 Finalist in the Industry Alignment Award - New Zealand Tourism Industry Association Awards - September 2017 17 Competitive Environment: Primary: Queenstown, Wanaka, Canterbury, Fiordland Secondary Bay of Islands, Tasman, Taupo, Kaikoura Third Tier Other NZ, Pacific Islands, Australia Target Market: International adventurers that want to experience 100% Pure NZ. Walkers, hikers & bikers that want to experience the wilderness and nature at its best. Make coasters proud to live and work here. City Kiwis that want to experience how original and real NZ was the good old days

MARCH YEAR END IN REVIEW March 2016: A tourism fact book for operators was created for the period 2010/ 16. It identifies all tourism statistics in NZ, on the coast by district and industry. The fact book is updated every quarter and available on the West Coast website. May 2016: ulture and motivational shift within Tourism West Coast. Research acceptance was 91% (the highest Kevin Stratful has ever seen for any new brand) the new branding was tested in all languages to ensure consistency of translation. A brand guidelines book ensures consistency of logo and tagline delivery. June 2016: The West Coast Tourism Strategy was completed. It identifies the issues and created the action plan for growth and change. The strategy was approved by TNZ as being consistent with their own strategy. MBIE Growth Study Governance Group adopted the strategy August 2016 and it was included in the growth study report released September 2016. June 2016: TWC identified 6 promotional groups in line with the six icons to execute on the strategy reducing the number from 21. This had the effect of eliminating waste in the marketing spend and created more focus and consistency across branding and execution of strategy June 2016: First use of the logo for promotional purpose. It was used in moving billboards, domestic and international marketing and all Tourism West Coast literature. It has since been adopted by Buller District Council, West Coast Regional Council, more recently Development West Coast and Glacier Country. June 2016: Merchandising launched including T shirts, bags and insect repellent July 2016: The branding was introduced to all domestic and international tour operators with enthusiastic results. September/November 2016: The Visitor Guide layout was changed to incorporate the new branding and icon strategy for the West Coast. For the first time ever Tourism West Coast ran out of the 80,000 Visitor Guides printed within 6 months. January 2017: f the marketing plan has been included in the Growth Study documentation and is also available on the West Coast website. February 2017: The Impact of Tourism on districts from 2017-2025 was completed and circulated to operators, the six promotional groups, and presentations made to each council and the mayors and chairs group. All costs to date have been paid from the WCED managers budget. There was no other funding made available for the changes. 18

PERFORMANCE REPORT WEST COAST YEAR END MARCH 2017 Action 2016 Actual 2017 Budget 2017 Actual Actual Year Budget Expenditure $469m $512m $522m +11.3% +2% Visitors 861.4 920.90 993.7 +15.4% +7.9% Night Stay 1828.7 2118.2 2054.2 +12.3% -3.1% GDP $95m $108m $115m +21.1% +6.4% *Market Share 5.1 5.2 5.5 +0.4% +0.3% ASB Ranking 15 11 9 +6 +2 MBIE Ranking 14 9 1 +13 +8 Employment FTE 2018 2078 2104 +86 +26 *1% Movement in South Island Market Share = $90m Expenditure and $18.9m GDP 19 Source: MBIE

TARGET YEAR END MARCH 2018 Target Increase *Expenditure $598.1m 14.5% Visitors 1020.3 5.9% Night Stay 2324.3 13.1% GDP $129m 9.1% Market Share 6.3% 0.8% ASB Ranking 7 +2 MBIE Rank 1 0 Employment FTE 2138 +34 * As of June 2017 expenditure is $540m and run rate to date is +15% 20

West Coast Tourism TOTAL EXPENDITURE 21

April 2015 to April 2017 22

Total Spend on the West Coast (MBIE) Westland - $340m Grey District - $115m Buller - $67m 2011: $367m 2013: $348m 2015: $418m 2017: $522m 2012: $333m23 2014: $370m 2016: $438m

District Performance 2011-2016 Domestic Expenditure International Expenditure Total Expenditure 2011-16 6yr 3yr 2011-16 6yr 3yr 2011-16 6yr 3yr Buller 36-0.3% -5.0% 23-0.9% 4.1% 59-0.5% -2.1% Grey 67 1.0% 0.2% 40 0.7% 6.6% 107 0.9% 2.2% Westland 98-0.9% -2.3% 207 2.0% 12.4% 305 1.3% 8.5% West Coast 201 0.1% -1.9% 270 1.5% 10.6% 471 0.9% 4.9% 24

Performance of West Coast 2016-2017 to date South Island Tourism Expenditure +9.2% West Coast Tourism Expenditure +13.1% West Coast Tourism Share Up 0.4% 5.1% to 5.5% West Coast Tourism Expenditure Up $61m Increase expenditure from Market share growth $36m Market share gains are critical in order to increase bed nights and offset any declines in NZ tourism performance 59% of our expenditure growth has come from Market share gains Note: 1% Market Share of South Island Tourism Expenditure =$90.4m 25

DISTRICT PERFORMANCE BREAKDOWN 26

West Coast 27

DISTRICT PERFORMANCE REPORT YEAR END MARCH 2017 Action Westland % increase Grey % increase Buller % increase Expenditure $340m +11.4% $115m +9.5% $67m +17.5% Visitors 594.5 +13.8% 212.6-0.7% 186.6 +26.9% Nights Stay 1240.6 +13.2% 423.1-0.6% 392.3 +26.5% GDP $71.4m +15.1% $24.1m +9% $19.3m +22.4% *Employment 1186 +4.9% 662 +2.7% 256 +4.9% Market Share 65.1-0.6% 21.8-0.7% 13.1 +1.1% (West Coast Total) *Incomplete Data Best Estimate 28 Source MBIE

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Total Visitor Arrivals West Coast Districts (StatisticsNZ) 1200 1000 800 Axis Title 600 400 200 0 2011 2012 2013 2014 2015 2016 Buller 927 816 803 992 889 147 Grey 1021 968 104 30 973 906 200 Westland 307 287 312 384 390 522

Domestic VS International District Spend April 2016 March 2017 (MBIE) 250 200 150 100 50 0 2012 2013 2014 2015 2016 2017 Buller International 17 16 19 20 23 28 Buller Domestic 49 49 39 36 36 39 Grey International 26 25 30 34 40 46 Grey Domestic 72 65 72 69 67 69 Westland International 105 113 3142 168 207 238 Westland Domestic 84 83 95 100 98 102

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Australia Visitor Spend April 16 March 2017 (MBIE) 60 50 40 30 20 10 0 2012 2013 2014 2015 2016 2017 Buller 5 5 5 4 4 5 Grey 10 9 8 8 9 9 Westland 32 31 32 34 32 40 41 West Coast 47 47 45 44 53 55

Visits from all international Origins 35 Source: Regional economic Activity Report

Visitor nights from all international origins 36 Source: Regional economic Activity Report

180,000 Monthly Occupancy vs Capacity District & Total 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 W/C Monthly Capacity W/C occupancy Westland Capacity Westland occupancy Grey Capacity Grey occupancy Buller Capacity Buller occupancy 37

Monthly Occupancy vs Capacity Districts 100000 80000 60000 40000 20000 0 Westland Capacity Westland occupancy Grey Capacity 38 Grey occupancy Buller Capacity Buller occupancy

Westland 39

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Origin: Total Destination: WESTLAND - Tourism Expenditure MBIE $100m $90m $80m $70m $60m $50m $40m $30m $20m $10m $0m Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products Retail sales - other 2011 2012 2013 2014 2015 2016 2017 41

TOURISM SPEND IN WESTLAND 400 350 300 Spend $Millions 250 200 150 100 50 0 2012 2013 2014 2015 2016 2017 International Domestic Total 42

40 Domestic Spend By Product Westland (MBIE) Grouped by Product 35 30 25 $ Spend Millions 20 15 10 5 0 Food & Beverage services Other Passenger Transport Other Tourism Products Retail Sales - Other Accommodation Cultural, recreation & Gambling 43 2012 2013 2014 2015 2016 2017 Retail Sales - Alcohol, Food & Bev Retail Sales - Fuel & Other Automotive

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Origin: International Destination: Westland - Tourism Expenditure MBIE 80 70 60 50 40 30 20 10 0 Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products Retail sales - other 2011 2012 2013 2014 2015 2016 2017 45

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WESTLAND OCCUPANCY VS CAPACITY QUARTERLY MARCH 2015 MARCH 2017 120000 100000 80000 60000 40000 20000 0 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Capicity 96658 85380 89880 96007 95852 86130 90060 94178 93713 Occ 52966 17106 25089 49674 47 60356 18390 24792 53260 57389

$400m Westland Spend from Oct 2012 Oct 2016 $350m $300m $250m $200m $150m $100m $50m $0m 2012 2013 2014 2015 2016 2017 Series1 $189m $196m $237m $268m $304m $340m 48

October 2016 2025 Visitor Numbers & Visitor Nights 700 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 International 348.4 367.2 387 407.9 432.4 458.4 485.9 515 545.9 578.7 Domestic 234.5 241.1 247.8 254.7 262.4 270.3 278.4 286.7 295.3 304.1 49

Grey District 50

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Origin: Total Destination: Grey District - Tourism Expenditure MBIE $35m $30m $25m $20m $15m $10m $5m $0m Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products Retail sales - other 2012 $13m $3m $8m $15m $5m $12m $22m $20m 2013 $12m $3m $7m $13m $5m $12m $21m $18m 2014 $14m $3m $8m $18m $5m $12m $23m $19m 2015 $14m $3m $9m $17m $5m $13m $24m $19m 2016 $14m $3m $10m $16m $5m $14m $26m $19m 2017 $15m $3m $11m $16m $6m $14m $30m $20m 52

Grey District Tourism Expenditure to October 2016 35 30 25 20 15 10 5 0 Retail Sales: Fuel Accommodation Food & Beverage serving services Retail Sales: Alcohol,food & Beverage 12 22 13 8 12 13 21 12 7 12 14 23 14 8 12 15 24 14 9 13 16 26 14 10 14 17 30 15 11 14 53 Source: MBIE (Data download RTE)

TOTAL SPEND GREY DISTRICT OCTOBER 2016 Total Spend 140 120 100 80 60 40 20 0 2012 2013 2014 2015 2016 2017 54 Source: MBIE (Data download RTE)

Market Share Westland +28.3% - Increase Share to 64.2% West Coast Share Buller +13.6% - Increase Share to 14.5% West Coast Share West Coast +11% - Increase Share to 5.9% South Island Share Grey +8.5% - Decrease Share to 21.3% West Coast Share Accommodation Cultural F&B services Other Passenger Transport Other Tourism Product Alcohol, F&B Fuel Other Sales 55

250 Total Tourism Spend Grey District 200 150 100 Total 50 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total Spend 90 90 102 103 106.9 115 142.2 156.1 174.7 199.3 Domestic 72 65 72 69 66.9 46 77.9 82.6 87.1 90.6 International 18 25 30 34 40 69 64.3 73.5 87.6 108.7 56 Source: MBIE/TWC forecast

GDP Margin Change Growth Driven by % Mix Change in 2020 Grey District 30 25 Fuel 20 GDP 15 10 Mix Change 5 0 2014 2015 2016 2017 2018 2019 2020 2021 GDP 20.4 20.8 20.9 21.1 21.9 22.4 22.6 22.9 Fuel 22 24 26 26 24 23 22 21 Accommodation 14 15 17 18 20 21 23 24 Retail Sales 17 16 18 20 21 23 24 24 Food & Bev 7 8 10 12 13 15 17 20 57 Source: MBIE/TWC forecast

20 18 16 Domestic Spend By Product Grey District(MBIE) Grouped by Product 14 $ Spend Millions 12 10 8 6 4 2 0 Food & Beverage services Other Passenger Transport Other Tourism Products Retail Sales - Other Accommodation Cultural, recreation & Gambling Retail Sales - Alcohol, Food & Bev Retail Sales - Fuel & Other Automotive 2012 5 15 4 18 9 2 10 11 2013 5 10 4 16 9 2 11 11 2014 5 13 4 15 8 2 10 10 2015 5 16 4 16 9 2 11 11 58 2016 5 13 3 15 8 2 11 10 2017 5 13 3 16 9 2 11 11

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TOURISM SPEND IN GREY District 120 100 Spend $Millions 80 60 40 20 0 2012 2013 2014 2015 2016 2017 International 26 25 30 34 40 46 Domestic 72 65 72 60 69 67 69 Total 98 90 102 103 107 46

Monthly Occupancy vs Capacity QUARTERLY MARCH 2015 MARCH 2017 Grey District 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016 30/06/2016 30/09/2016 31/12/2016 31/03/2017 Monthly Capacity 4,369 4,083 4,089 4,366 4,361 4,051 4057.7 4296.4 4337.9 Occupancy 2,123 1,239 1,472 2,065 2,268 1,331 1548.8 2115.1 2300.4 61

Origin: International Destination: Grey District - Tourism Expenditure MBIE 25 20 15 10 5 0 Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products Retail sales - other 2012 4 1 3 3 1 1 10 1 2013 4 1 3 2 1 1 11 1 2014 5 1 3 3 2 2 12 2 2015 5 1 4 3 2 2 14 2 2016 6 1 5 3 2 3 16 3 2017 7 1 6 3 2 4 20 4 62

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October 2016 2025 Visitor Numbers & Visitor Nights International 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00-1 2 3 4 5 6 7 8 9 10 Grey Visitor number Grey Visitor nights 64

140000 October 2016 2025 Visitor Numbers & Visitor Nights Domestic 120000 100000 80000 60000 40000 20000 0 1 2 3 4 65 5 6 7 8 9 10 Grey Visitor numbers Grey Vistor nights

Buller District 66

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Origin: Total Destination: BULLER - Tourism Expenditure MBIE $25m $20m $15m $10m $5m $0m Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products Retail sales - other 2012 $15m $1m $7m $5m $2m $8m $22m $4m 2013 $14m $1m $7m $12m $2m $8m $17m $5m 2014 $14m $2m $7m $3m $2m $9m $18m $5m 2015 $13m $2m $7m $3m $2m $9m $16m $5m 2016 $14m $2m $8m $1m $2m $10m $17m $5m 2017 $16m $2m $8m $3m $2m $11m $20m $6m 68

TOURISM SPEND IN BULLER 80 70 60 Spend $Millions 50 40 30 20 10 0 2012 2013 2014 2015 2016 2017 International 17 16 19 20 23 29 Domestic 49 49 39 69 36 36 39 Total 66 65 58 56 59 68

16 Domestic Spend By Product Buller(MBIE) Grouped by Product 14 12 $ Spend Millions 10 8 6 4 2 0 Food & Beverage services Other Passenger Transport Other Tourism Products Retail Sales - Other Accommodation Cultural, recreation & Gambling Retail Sales - Alcohol, Food & Bev Retail Sales - Fuel & Other Automotive 2012 5 4 1 3 12 1 7 15 2013 4 11 1 4 10 1 7 11 2014 4 2 1 3 9 1 8 10 2015 4 2 1 3 9 1 7 8 2016 4 1 1 3 70 9 1 8 8 2017 4 2 1 4 9 1 8 10

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Origin: International Destination: BULLER - Tourism Expenditure MBIE 12 10 8 6 4 2 0 Accommodation services Cultural, recreation, and gambling services Food and beverage serving services Other passenger transport Other tourism products Retail sales - alcohol, food, and beverages Retail sales - fuel and other automotive products 2012 4 0 2 1 0 1 7 1 2013 4 0 2 1 0 1 6 1 2014 4 0 3 1 0 1 8 1 2015 4 1 3 1 1 2 8 1 2016 5 1 3 0 1 2 9 2 2017 7 1 4 1 1 3 10 2 Retail sales - other 72

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October 2016 2025 Visitor Numbers & Visitor Nights International 250,000.00 200,000.00 150,000.00 100,000.00 50,000.00-1 2 3 4 5 6 7 8 9 10 Buller Visitor numbers 74 Buller Visitor nights

October 2016 2025 Visitor Numbers & Visitor Nights Domestic 120000 100000 80000 60000 40000 20000 0 1 2 3 4 5 6 7 8 9 10 Buller Visitor numbers 75 Buller Visitor nights

$60,000,000 October 2016 2025 Spend $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 $0 1 2 3 4 5 6 7 8 9 10 Buller International $23,000,000 $29,000,000 $30,566,000 $32,216,564 $34,149,557.84 $36,198,531.31 $38,370,443.19 $40,672,669.78 $43,113,029.97 $45,699,811.77 Buller Domestic $36,000,000 $39,000,000 $40,092,000 $41,214,576 $42,451,013.28 $43,724,543.68 $45,036,279.99 $46,387,368.39 $47,778,989.44 $49,212,359.12 76 Buller International Buller Domestic

Monthly Occupancy vs Capacity QUARTERLY MARCH 2015 MARCH 2017 Buller District 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 31/03/2015 30/06/2015 30/09/2015 31/12/2015 31/03/2016 31/03/2016 30/06/2016 30/09/2016 31/12/2016 Monthly Capacity 41,571 39,480 39,840 41,757 41,509 39,930 39,900 41261 40982 occupancy 16,418 4,674 6,223 14,764 18,273 5,946 7,293 18076 19508 77

Buller Spend from Oct 2012 Oct 2016 $80m $70m $60m $50m $40m $30m $20m $10m $0m 2012 2013 2014 2015 2016 2017 $65m $65m $58m $56m $59m $68m 78

GDP Margin Change Growth Driven by Domestic Mix Change in 2020 Buller District % 30 25 GDP 20 15 10 Retail Food & Bev 5 0 2014 2015 2016 2017 2018 2019 2020 2021 GDP 25 24.9 24.6 24.5 24.3 24 23.9 23.7 Fuel 18 16 17 19 20 22 24 25 Accommodation 14 13 14 14 16 19 21 24 Retail 9 9 10 10 12 13 16 18 Food & Bev 7 7 8 8 10 13 16 19 79 Source: MBIE/TWC forecast

Car & Campervan Movements Buller District 900 800 700 600 500 400 300 200 100 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Movements 99 114 128 143 160 173 206 222 243 273 Nights Stay 310 358 401 449 501 543 616 645 760 854 80 Source: NZTA/TWC forecast

International EXPENDITURE 81

Total NZ & West Coast International Spend April 16 March 17 2017 311 11230 2016 265 10368 2015 216 8500 2014 184 7079 2013 155 6719 2012 152 6941 0 2000 4000 6000 8000 10000 12000 14000 New Zealand 82 West Coast

International Spend increase/decrease % on the West Coast by Product 2016/17 (MBIE) 6.7% 29% 23% 20% -17.9% 31% -4% 25% 83

60 International Visitor Spend - West Coast (MBIE) 50 Spend - $millions 40 30 20 10 0 2012 2013 2014 2015 2016 2017 China 5.72 15.16 19.51 28.24 31.65 44 Germany 8.14 11.17 20.11 23.67 24.49 39 UK 21.97 19.12 23.84 31.6 32.44 37 USA 13.42 14.4 20.97 24.87 27.96 47 Rest of Asia 11 13 13 18 22.00 27 Australia 42.08 44.63 42.64 42.29 47.55 55 84

International Visitor Spend [Europe Combined] - West Coast (MBIE) 140 120 Spend - $millions 100 80 60 40 20 0 2012 2013 2014 2015 2016 2017 China 8 15 18 30 40.00 44 Europe Combined 55 57 92 97 89.48 121 Australia 46 45 45 44 52.00 55 85

International Spend on the West Coast (MBIE) April 16 March 17 Westland - $238m Grey - $46m Buller - $27m 86 2016 = $265m 2017 = $311m

International Spend increase/decrease % on the West Coast by Product 2016/17 (MBIE) Westland - $49 Grey - $6m Buller - $4m 87 Westland - $68m Grey - $20m Buller - $10m

International Spend increase/decrease % on the West Coast by Product 2016/17(MBIE) Westland - $46m Grey - $7m Buller - $7m 88 Westland - $17m Grey - $4m Buller - $2m

International Spend increase/decrease % on the West Coast by Product 2016/17(MBIE) Westland - $21m Grey - $1m Buller - $1m 89 Westland - $28m Grey - $3m Buller - $1m

Australia Spend on the West Coast (MBIE) Westland - $41m Grey - $9m Buller -$5m 2013 - $47m 2014 - $46m 2015 - $44m 2016 - $52m 90 2017 - $55m

China Spend on the West Coast (MBIE) Westland - $37m Grey - $6m Buller - $1m 2013 - $15m 2014 - $18m 2015 - $30m 2016 - $40m 91 2017 - $44m

USA spend on the West Coast (MBIE) Westland - $36m Grey - $7m Buller - $4m 2013 - $15m 2014 - $23m 2015 - $26m 2016 - $38m 92 2017 - $47m

Germany spend on the West Coast (MBIE) Westland - $26m Grey - $7m Buller - $6m 2013 - $13m 2014 - $23m 2015 - $25m 2016 - $28m 93 2017 - $39m

UK spend on the West Coast (MBIE) Westland - $29m Grey - $5m Buller - $3m 2013 - $21m 2014 - $25m 2015 - $34m 2016 - $32m 94 2017 - $37m

Rest Of Europe spend on the West Coast (MBIE) Westland - $32m Grey - $7m Buller - $5m 2013 - $23m 2014 - $30m 2015 - $33m 2016 - $37m 95 2017 - $44m

INTERNATIONAL SUMMARY for West Coast Regional Tourism Indicators MBIE Regional Tourism Estimates MBIE Data Retrieved: 2017-09-18 96

INTERNATIONAL SPEND ON THE WEST COAST BY PRODUCT Westland - $68m Grey - $20m Buller - $10m Westland - $46m Grey - $7m Buller - $7m 97

INTERNATIONAL SPEND ON THE WEST COAST BY PRODUCT Westland - $49m Grey - $6m Buller - $4m Westland - $28m Grey - $3m Buller - $1m 98

INTERNATIONAL SPEND ON THE WEST COAST BY PRODUCT Westland - $17m Grey - $4m Buller - $2m Westland - $21m Grey - $1m Buller - $1m 99

INTERNATIONAL SPEND ON THE WEST COAST BY PRODUCT Westland - $6m Grey - $4m Buller - $3m Westland - $2m Grey - $2m Buller - $1m 100

International Spend By Product West Coast (MBIE) 70 60 50 $ Spend Millions 40 30 20 10 0 2012 2013 2014 2015 2016 2017 Accommodation 29 29 36 42 50 59 Food & Beverage services 27 26 33 37 49 23 Retail Sales - Other 15 16 18 23 28 32 Other Transport 17 20 22 29 30 12 Retail Sales - alcohol, food & bev 5 5 6 8 11 23 Cultural, recreation & Gambling 14 15 17 22 23 5 Other Tourism Products 2 3 6 6 8 14 101

DOMESTIC EXPENDITURE 102

Total Domestic Spend on the West Coast Westland - $102m Grey - $69m Buller - $39 103 2014 - $193 2015 - $214m 2016 - $203m 2017 - $211m

Total NZ & West Coast Domestic Spend April 16 March 17 2017 211 15057 2016 203 14653 2015 214 13700 2014 193 12978 2013 203 12501 2012 201 12135 0 2000 4000 6000 8000 10000 12000 14000 16000 18000 New Zealand 104 West Coast

Domestic Spend increase/decrease % on the West Coast by Product 2016/17 (MBIE) -4% 11.8% 3% 0% 0% 5% 11% 14% 105

DOMESTIC SPEND ON THE WEST COAST BY PRODUCT Westland - $33m Grey - $13m Buller - $2m Westland - $17m Grey - $11m Buller - $10m 106

DOMESTIC SPEND ON THE WEST COAST BY PRODUCT Westland - $17m Grey - $9m Buller - $9m Westland - $11m Grey - $11m Buller - $8m 107

DOMESTIC SPEND ON THE WEST COAST BY PRODUCT Westland - $16m Grey - $4m Buller - $4m Westland - $11m Grey - $5m Buller - $4m 108

DOMESTIC SPEND ON THE WEST COAST BY PRODUCT Westland - $7m Grey - $2m Buller - $1m Westland - $3m Grey - $3m Buller - $1m 109

60 Domestic Spend By Product West Coast (MBIE) Grouped by Product 50 $ Spend Millions 40 30 20 10 0 Accommodation Retail Sales -fuel etc Food & Beverage services Retail Sales - Other Other Transport Retail Sales - alcohol, food & bev Cultural, recreation & Gambling 2012 35 39 18 25 42 25 8 8 2013 32 34 17 23 46 24 9 8 2014 33 32 16 23 42 24 10 8 2015 33 29 17 23 46 24 9 8 2016 33 34 20 23 49 29 9 7 2017 34 38 21 23 47 29 10 8 110 Other Tourism Products

Domestic Spend By Product West Coast (MBIE) Grouped by Year 60 50 $ Spend Millions 40 30 20 10 0 2012 2013 2014 2015 2016 2017 Accommodation 35 32 33 33 33 34 Retail Sales -fuel etc 39 34 32 29 34 38 Food & Beverage services 18 17 16 17 20 21 Retail Sales - Other 25 23 23 23 23 23 Other Transport 42 46 42 46 49 47 Retail Sales - alcohol, food & bev 25 24 24 24 29 29 Cultural, recreation & Gambling 8 9 10 9 9 10 Other Tourism Products 8 8 111 8 8 7 8

Domestic Visitor Spend West Coast (Incl. Canterbury & West Coast) - MBIE Spend $M 70 60 50 40 30 20 10 Auckland Bay of Plenty Canterbury Gisborne Hawke's Bay Manawatu-Whanganui Marlborough Nelson Northland Otago Southland Taranaki Tasman Waikato Wellington West Coast 0 2012 2013 2014 2015 2016 2017 112

Domestic Visitor Spend West Coast (Excl. Canterbury & West Coast) - MBIE 30 Spend $M 25 20 15 10 5 Auckland Bay of Plenty Gisborne Hawke's Bay Manawatu-Whanganui Marlborough Nelson Northland Otago Southland Taranaki Tasman Waikato Wellington 0 2012 2013 2014 2015 2016 2017 113

DOMESTIC SUMMARY for West Coast Regional Tourism Indicators MBIE Regional Tourism Estimates MBIE Data Retrieved: 2016-06-10 114

Domestic Top 4 regions W/C Spend Breakdown (MBIE) 20 15 10 5 0 Accommo dation 2016 2017 Cultural, Recreation & Gambling 2016 2017 Food & Beverage Services 2016 2017 Other Passenger 2016 2017 Other Tourism Products 2016 2017 Retail Sales- Alcohol & Food 2016 Otago 2 2 1 1 1 1 4 5 0.4736 0.4467 1 1 3 3 1 1 Auckland 3 4 1 1 2 2 9 11 0.3347 0.251 2 2 2 3 1 1 Wellington 2 2 1 1 1 1 4 3 0.1907 0.176 1 1 1 2 1 1 Canterbury 12 13 3 3 7 7 12 8 2 2 9 8 13 13 7 7 2017 Retail Sales - Fuel & Other 2016 20117 Retail Sales - Other 2016 2017 115

Aucklanders Top 5 Domestic Destinations (MBIE) 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 2017 Wellington 19.6 22.13 22.26 22.33 21.76 42 Waikato 18.71 17.93 18 17.53 17.66 54.6 Canterbury 13.72 13.12 13.53 14.02 15.05 42 Bay of Plenty 10.54 10.16 9.84 10.09 10.84 33.7 Otago 10.4 10.35 11.11 10.79 10.15 17.9 116

Cantabrians Top 5 Domestic Destinations (MBIE) 90 80 70 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 2017 Canterbury 27.8 27.03 27.72 28.51 28.63 73.5 Auckland 26.86 26.61 26.36 26.51 26.55 30.5 Wellington 11.18 12.21 12.04 12.07 12.55 13.1 Otago 12.69 13.19 13.13 12.6 11.97 19.2 Marlborough 3.4 3.2 3.06 2.99 2.98 42.2 Waikato 3.07 2.86 2.96 2.93 3.3 83.1 117

Wellingtonians Top 5 Domestic Destinations (MBIE) 120 100 80 60 40 20 0 2011 2012 2013 2014 2015 2017 Auckland 31.8 31.54 31.32 32.5 32.53 35.5 Wellington 24.36 23.57 23.3 22.72 22.09 26.2 Manawatu-Whanganui 8.69 9.01 9.17 9.62 10.47 17.6 Canterbury 8.63 8.14 8.96 9.08 8.52 16.5 Waikato 6.61 6.63 6.42 6.35 6.4 95.9 Otago 4.4 4.64 5.09 118 4.65 4.57 78.3

Otagoites Top 5 Domestic Destinations (MBIE) 100 90 80 70 60 50 40 30 20 10 0 2011 2012 2013 2014 2015 2017 Otago 40.37 39.83 38.95 40.39 36.43 31.6 Auckland 17.4 18.53 19.06 19.14 21.21 34.7 Canterbury 18.99 17.68 18.23 17.54 17.65 30.5 Wellington 7.26 8.04 8.21 8.11 9.29 94.3 Southland 7.25 7.18 7.37 6.85 6.31 15.5 Waikato 1.66 1.53 1.45 1.43 1.68 71.4 119

BACKPACKERS MARKET UK & GERMANY 120

UK & GERMANY BACKPACKERS 121 Source: TNZ

122 Source: TNZ

123 Source: TNZ

124 Source: TNZ

125 Source: TNZ

126 Source: TNZ

127 Source: TNZ

128 Source: TNZ

129 Source: TNZ

AirBnB 130

131 Source: TNZ

Wellington 132 Source: AirDNZ

West Coast Airbnb information 250 200 150 Greymouth 0 shared rooms 22 private - $90 14 entire homes 100 50 Westport 2 shared - $29 14 private - $91 17 entire homes - $143 0 # of Air BnB Average Cost 133 Source: Airbnb

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Grey District 138

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Domestic Visitor Profiles 141

Target Destinations Selected Target Markets for West Coast Domestic Market: Canterbury 38.9% Nelson/Tasman 11.1% Auckland 9.7% South Canterbury 4.8% Dunedin 4.3% Wellington 3.7% Central Otago 1.6% 142 source: DGiT (Domestic Growth Insight Tool) website

Who is interested in the West Coast 143 Source: DGiT (Domestic Growth Insight Tool) website

What do they want 144 source: DGiT (Domestic Growth Insight Tool) website

How do we reach them? 145 source: DGiT (Domestic Growth Insight Tool) website

MARKET SHARES 146

2017 522 Total Visitor Spend & NZ Market Share % (MBIE) (2%) (33.9%) 8909 417.95 (1.91%) (34.47%) 26288 2016 2015 417.9 (1.88%) 8039.4 (34.94%) 7523.35 23454.12 21824.06 2014 370.26 (1.82%) (34.00%) 6882.22 340.52 (1.83%) (32.71%) 19691.78 2013 2012 333.94 (1.97%) 6339.91 5946.91 (34.41%) 18645.74 18176.40 0.00 5000.00 10000.00 15000.00 20000.00 25000.00 30000.00 147 West Coast Sth Island NZ

Total International Visitor Spend & NZ Market Share (MBIE) 2017 311 (2.44%) (38.38%) Total Domestic Spend South Island 4327 11230.00 2016 2015 2014 2013 226.62 211.01 176.45 150.44 (2.51%) (2.50%) (2.24%) (2.11%) (38.33%) 2421.7 2701.49 3173.7 (36.20%) (33.69%) (37.89%) 3551.13 7047.80 6688.58 8375.93 9251.55 2012 138.8 (2.65%) 2206.42 (38.36%) 6548.09 0.00 2000.00 4000.00 6000.00 8000.00 10000.00 12000.00 148 West Coast Sth Island NZ Total

Total Domestic Visitor Spend & NZ Market Share (MBIE) 2017 2016 2015 2014 2013 211 (1.34%) 191.33 206.89 193.81 190.08 (1.53%) (1.53%) (1.58%) (1.67%) (31.60%) (32.34%) (33.06%) (32.76%) 4180.73 3918.21 4580 4488.27 4349.65 (32.16%) Total Domestic Spend South Island 15057.00 14202.57 13448.13 12643.98 11957.16 2012 195.14 (1.60%) (32.25%) 3740.49 11628.31 0.00 2000.00 4000.00 6000.00 8000.00 10000.00 12000.00 14000.00 16000.00 149 West Coast Sth Island NZ Total

% of Market Share 8 7 6 5 4 3 5.61 6.29 6.21 5.21 5.37 5.37 4.85 West Coast Market Share % of South Island TOTAL Spend (MBIE) 6.53 6.64 5.55 4.63 4.75 5.19 6.38 TOTAL INTERNATIONAL DOMESTIC 4.26 5.9 7.2 4.6 2 1 0 150 2012 2013 2014 2015 2016 2017

12 West Coast Market Share % of South Island Accommodation Spend (MBIE) TOTAL INTERNATIONAL DOMESTIC 10.2 % of Market Share $$ 10 8 6 4 8.54 8.01 8.19 8.36 9.23 8.7 8.33 7.81 7.54 8.06 8.44 8.04 8.6 9.47 7.75 9.2 8 2 0 151 2012 2013 2014 2015 2016 2017

Total Domestic Market Share - % 2012 2013 2014 2015 2016 2017 Ak 21.96 21.65 21.74 22.11 22.60 23.50 WGTN 10.98 10.87 10.55 10.52 10.61 8.70 Cant 12.91 13.32 13.68 13.36 12.97 8.20 Waikato 11.57 11.70 11.71 11.80 11.97 7.00 Otago 10.31 10.78 10.97 10.70 10.77 3.00 BOP 7.30 7.20 7.37 7.65 7.76 4.00 Manawatu 5.30 5.08 5.06 5.09 5.06 3.00 HB 2.97 3.01 2.96 2.87 2.82 2.00 Northland 4.84 4.87 4.84 5.00 5.02 5.20 Nelson 1.56 1.43 1.38 1.34 1.37 1.50 Southland 2.64 2.70 2.63 2.55 2.38 1.90 Taranaki 1.98 1.94 1.83 1.79 1.79 1.70 Marl 1.81 1.70 1.70 1.63 1.55 1.50 W/C 1.67 1.58 1.53 1.53 1.34 1.40 Tasman 1.22 1.21 1.15 1.20 1.19 1.10 Gisborne 0.88 0.86 0.83 0.80 0.72 0.84 % Market Share 152 UP DOWN STATIC

Losing Share in Domestic Growing International(Qrious) 153

Monthly Regional Tourism Estimates Regional Summary 2017 (MBIE) Top 5 Regions Month to Month March 2017 Bottom 5 Regions Month to Month March 2017 154

Monthly Regional Tourism Estimates Regional Summary 2017 (MBIE) Top 10 Regions Year end March 2017 155

ACCOMMODATION 156

Number of visitors, by main type of accommodation used NZ 2015 (MBIE) 157

100 Total Accommodation Spend West Coast (MBIE) 90 80 70 60 50 40 30 20 10 0 2012 2013 2014 2015 2016 2017 Total 62.46 61.84 69.74 77.8 87.41 95 Domestic 34.83 32.84 33.74 35.8 36.41 35 Int. 27.63 29 36 42 51 60 March 2017 Total: Westland - $63m Grey - $16 Buller - $16 March 2017 International: Westland - $46m Grey - $7 158 Buller - $7 March 2017 Domestic: Westland - $17m Grey - $9m Buller - $9m

International Accommodation Spend West Coast (MBIE) 12 10 8 6 4 2 0 2012 2013 2014 2015 2016 2017 Australia 9.6444 8 8.5073 8 9 10 China 2 3 4 6 10 5 Germany 1 2.0415 4 4 4 8 UK 5.9257 4.277 5 6 5 6 USA 3.3173 3 4.4398 6 7 9 Rest of Asia 3 3.2883 3 4 5 10 Rest of Europe 4 4.2917 6 6 7 11 Australia trend 9.6444 8 8.5073 8 9 11 China Trend 2 3 4159 6 10 7

Sth Isl. Domestic Accommodation Spend West Coast (MBIE) 16 14 12 10 8 6 4 2 0 2012 2013 2014 2015 2016 2017 Marlb. 1 1 1 1 1 1 Nelson 2 1.0299 0.9029 1.09 1 1 Otago 3 2.1373 3 2.4255 2 2 Sthland 1 1 1 1 1 1 Tasman 2 2 2 2 2 2 W/C 3 3 3 3 3 2 Cant. 14 12 13 13 13 13 160

Domestic Accommodation Spend West Coast Incl. Canterbury (MBIE) 12 10 8 6 4 2 0 2012 2013 2014 2015 2016 2017 Auckland 3.5249 3.1198 4 4 4 4 Manu/whanganui 0.6586 0.701 0.5565 0.7441 1 1 Otago 3 2.1373 3 2.4255 2 2 Sthland 0.644 0.6381 0.6119 0.7752 1 1 Tasman 2 2 2 2 2 2 Well. 2.5985 2.6197 2.942 2.9357 2 2 Cant. 14 12 13 13 13 13 Marlb. 0.7817 0.7784 0.7002 0.7197 1 1 Nelson 2 1.0299 0.9029 1.09 1 1 Waikato 1.2274 1.2481 0.9279 1.0896 1 2 161

Accommodation Capacity - West Coast Accommodation Establishments - West Coast 355000 West Coast 315 West Coast 350000 310 345000 305 340000 300 Monthly Capacity 335000 330000 325000 320000 Actual Numbers 295 290 285 280 275 315000 270 310000 YE March 2012 YE March 2013 YE March 2014 YE March 2015 YE March 2016 YE March 2017 West Coast 352408 350300 345402 341310 334924 326120 162 265 YE March 2012 YE March 2013 YE March 2014 YE March 2015 YE March 2016 YE March 2017 West Coast 308 312 306 302 292 282 Commercial Accommodation Monitor - Statistics New Zealand - Data Retrieved: 2017-30-04

Change in guest nights of commercial accommodation by region and type, year ended January 2016 - (MBIE) Canterbury has seen the most growth in guest nights over the past year largely due to repaired and rebuilt hotel accommodation coming back online. Queenstown has also seen a surge in tourist accommodation stays over the January 2016 year, with more than half of that growth in hotel guest nights. 163

Number of commercial accommodation establishments by region & type (MBIE) For commercial accommodation, hotels made up approximately 35.5 per cent of all guest nights in New Zealand in the January 2016 year. In smaller cities and regions, motels make up a major part of tourist accommodation. 164

Capacity ( stay nights ) of commercial accommodation by region & type (MBIE) Guest capacity, defined by stay nights (or number of nights for rooms available to be occupied), is a useful measure of accommodation supply. Stay nights by region has a similar shape to the number of guest nights, but as there are generally low occupancy rates of holiday parks, there are much higher stay nights for this form of accommodation 165

Visitors by accommodation type for international visitors (36 months ended 2016-09-30) 166 Source: International Visitor Survey - MBIE Data Retrieved: 2016-12-22

Monthly Occupancy vs Capacity West Coast 200,000 180,000 160,000 140,000 Axis Title 120,000 100,000 80,000 Monthly Capacity occupancy 60,000 40,000 20,000 0 167

West Coast Length of Stay (Qrious) 168

West Coast - Guest Nights (Qrious) 169

120 100 80 % 60 40 20 Backpacker Market Length of Stay NZ total Grouped by Country 181-365 91-180 61-90 43-60 29-42 22-28 15-21 8-14 4-7 2-3 1 0 Avg. W/C NIghts China US AU UK Korean Germany France Japan 170

Holidayhouses.co.nz properties, March 2016 (MBIE) Private non-commercial accommodation, such as holiday home rentals, has become increasingly more popular as an alternative to staying in commercial accommodation. Though it remains a relatively small part of the accommodation sector, non-commercial accommodation helps to alleviate demand pressure when commercial providers are close to capacity. This area of the accommodation market is not covered by official tourism statistics. The International Visitor Survey (IVS) shows that private rentals were used as the main form of accommodation by approximately 4.6 per cent of all international visitors in 2015. The relatively small amount suggests that, at the moment, private non-commercial accommodation may be more popular among domestic tourists. However, internationally recognised booking systems, such as Airbnb, are becoming more popular and are changing the trends in how people holiday. Therefore, the percentage of international tourists using private rental accommodation appears likely to increase. According to Airbnb, the number of listings in NZ has doubled to more than 15,000 over the last year. Hosts rent out rooms or houses for an average of 26 to 27 nights per year, evenly split between entire houses and single rooms 171

ARRIVALS 172

VISITS FROM ALL INTERNATIONAL ORIGINS TO WEST COAST 173

Visitor Nights From All International Origins In West Coast 174

West Coast Arrivals (Qrious) 175

176

International Visitor Nights - West Coast July 2017 177

178

International visitors staying 1 night or more on the West Coast. YTD March 2016. (Source International Visitor Survey/Tourism New Zealand) Country 2015 2016 Difference Australia 105,650 129,469 +23,819 Rest of Europe 66,817 80,916 +14,099 UK 52,758 57,797 +5,039 USA 48,094 47,818-276 Rest of Asia 44,980 44,252-758 China 28,109 46,790 +18,681 Germany 34,256 45,901 +11,645 Other 31,455 32,117 +662 Total 425,692 485,062 +59,370 Europe including Germany & UK combined 184,614 179

% DIFFERENCE 2015 TO 2016 on the West Coast VISITORS VISITOR NIGHTS AUSTRALIA +22.5% +15.98% UK +9.55 +19.95% USA -.6% +7.04% CHINA +66.5% +47% GERMANY +34% +35.4% REST OF EUROPE +21.1% +13.5% REST OF ASIA -1.6% +25% 180

International visitor attendance for national parks (MBIE) Paparoa National Park saw a surge of visitors over the year, increasing 20 per cent to 243,600. 181

Guest Arrivals West Coast (accommodation Monitor cam stats) 1000000 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 2011 2012 2013 2014 2015 2016 Guest Arrivals 182 2016 Sept

Ratio of annual visitor nights to population and visitor count to population, year ended December 2015 (MBIE) Tourism and population Some regions are more affected by tourism than others. The ratio of visitor nights to population is a useful indicator of how tourism may affect the local infrastructure. A high ratio indicates that the relative number of tourists in relation to local residents is high, which means that the population in the region swells considerably during the high tourist season and there is an increased pressure on local infrastructure over that period. Among regions, the West Coast has the highest ratio, followed by Otago, Nelson, and Marlborough 183

190000 Visitor Numbers through Punakaiki Information Centre DOC 185000 180000 Numbers Pax 175000 170000 165000 160000 155000 150000 184 2011 2012 2013 2014 2015

Visitor numbers through Pancake Rocks - DOC 500000 450000 400000 350000 300000 Not Complete Not Complete 250000 200000 150000 100000 50000 0 2010 2011 2012 2013 2014 2015 185

TRANSPORT & MOVEMENT 186

Vehicle use by international visitors to NZ, 2015 (MBIE) Overall, around 40 per cent of visitors used rental cars, while another 27 per cent used their own car (whether bought during their trip or borrowed from friends or family). A fifth of international visitors travelled across New Zealand on tour buses. Just under five per cent of visitors used a rental motorhome. 187

4950000 4500000 4050000 International Visitors NZ Transport (MBIE) Rental car Car or van owned by you / family / friend(s) / company Plane (within NZ) 3600000 3150000 Bus service between towns / cities Tour bus 2700000 2250000 1800000 1350000 900000 450000 Train Other bus service Rental campervan / motor-home Motorcycle Bicycle 0 YEDec 2010 YEDec 2011 YEDec 2012 YEDec 2013 YEDec 2014 YEDec 2015 188

Average number of vehicles per day travelling across NZTA measuring sites by region - South Island (MBIE) 189 One way to identify the areas where tourists traffic volumes make a significant impact is to correlate the change in traffic with the volumes of people visiting over the year. Smaller regional areas with high levels of tourism (such as Kaikoura, Westland, Tasman, Southland and Thames-Coromandel) are highly correlated. In these areas, roads are quite clearly more heavily used during peak tourism season

40000.00 Hokitika Airport Arrivals & Departures -Passengers (Hokitika Airport) 35000.00 30000.00 Pax 25000.00 20000.00 15000.00 10000.00 Tourism Business TOTAL 5000.00 0.00 2010 2011 2012 2013 2014 2015 2016 Year 190

Visitor spend in Other passenger transport in West Coast International & Domestic (MBIE) 60 50 40 $Million 30 20 10 0 2010 2011 2012 2013 2014 2015 International 35.2059 31.4221 30.4895 191 38.1524 42.4268 50.8299 Domestic 21.4241 22.7705 20.6909 20.0183 20.9431 17.6805

Scenic Journeys capacity and demand (MBIE) 192 The TranzAlpine service has many more seats than the other two, growing steadily from the low of 13,800 in June 2015 to a high of 22,800 in March 2016. The higher percentage of international passengers utilising TranzAlpine during the peak season is driven by two main factors. First, there is a higher number of international tourists visiting NZ during these months, Second, the Northern Explorer and Coastal Pacific have no space to cater to the extra demand during these months. Consequently, tourists wishing to take a train may have to settle for using TranzAlpine instead.

300000 TranzAlpine Passenger Movements (Kiwirail) 250000 200000 150000 100000 50000 0 2012 2013 2014 2015 2016 AHP to CHCH CHCH to AHP GM to CHCH 193 CHCH to GM Eastbound Westbound

TranzAlpine Growth Rate 90 80 81.4 Arthurs Pass % 2012 20% 2016 36% 70 60 50 40 30 20 10 55.1 54.4 43.6 40.3 14.1 11.3 59.3 42.2 17.2 67.3 44.8 22.4 52.2 29.2 Growth Rate 2012 2016 Total 147% Arthurs Pass 258% Greymouth 119% Growth Rate East 2012 2016 Arthurs Pass 26% 51% Greymouth 74% 49% 0 2012 2013 2014 2015 2016 TranzAlpine Greymouth Arthurs Pass 194

West Coast Rental Car Hires [Trend] - Comparison Avg (local rental car companies) 2010 2011 2012 2013 2014 2015 195 OUT IN OUT vehicles hired out IN - vehicles returned (from any NZ base)

Planned road infrastructure spending, National Land Transport Programme 2016 2018 (MBIE) Planned road infrastructure spending per capita, National Land Transport Programme 2016 2018 (MBIE) 196

Regional Impacts of the Kaikoura Earthquakes 197 Source: MBIE

The Big Issues Social Licence Infrastructure People and Skills Regional Dispersal Seasonality Funding A Sustainable Tourism Future 198 199

PAX Passenger trends at Christchurch 199 200

AIRLINES CHC continues to grow strongly Emirates daily A380 Qantas daily services to MEL, SYD and BNE Launch of seasonal Cathay Pacific Airlines from Hong Kong China Southern increase to five times per week and daily at peak Seasonal double daily services by Singapore Airlines Additional capacity from Air NZ on PER Increased services to Fiji with FJ and NZ Return of China Airlines TPE/MEL services Significant additional domestic services from Air NZ (AKL/CHC) 200

SOUTH PARTNERSHIP 13 South Island RTOs Flying in Formation Australia South Island Journeys Campaign (SIRTs) There have been three campaigns commencing early 2015, currently under a JV with TNZ for a three year commitment at $1m annually. This matches CIALs highest priority area, and has contributed to healthy growth in holiday arrivals. China SI direct / Seasonal & Regional dispersal Growing direct arrivals from China into SI has significant impact on improved economic outcomes in terms of quality of visitor, length of stay and regional dispersal. Improved capacity year round with wider regional distribution, and seasonal dispersal (low season traffic) the two primary objectives. Alibaba Project rollout payment platform, develop Fliggy and T-Mall trading sites. SE & N Asia SI direct / Dispersal & New Markets Opportunities for a collective approach to developing markets in SE and N Asia are exploited as they arise, with work in Singapore, Taiwan, India, Indonesia and Korea on-going. 201 202

Tourism No1 Export Earner For 15 of past 20 years $M 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Annual Export Earnings (YE Mar) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Tourism Dairy Meat Wood Fruit 202 203

Mood of the Nation 203 204

Mood of the Nation 204 205

Mood of the Nation 205 206

EMPLOYMENT GDP 206

5.0% 4.5% Grey District Performance 4.6% 4.0% 3.5% 3.4% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.4% 0.0% 2005-2010 2010-2015 2013-2015 Buller Decline from 5.2% growth 2005 to 3.7% decline since 2013 which is 8.7% turnaround Grey Employment decline 2013-2015 =179% 207 Buller Employment decline 2013-2015= 451%

100 West Coast GDP Tourism (MBIE) 90 80 70 $ millions 60 50 40 30 20 10 0 2010 2011 2012 2013 2014 2015 208 Buller Grey Westland West Coast

2000 West Coast Employment in Tourism (MBIE) 1500 People 1000 500 0 2010 2011 2012 2013 2014 2015 209 Buller Grey Westland West Coast

210

8.00% 6.00% Tourism GDP($m) in West Coast Region (Infometrics) 5.80% 6.00% 4.70% 4.00% 3.60% 2.00% 1.50% 0.00% Year 2010 2011 2012 2013 2014 2015-2.00% -4.00% -3.70% -6.00% 211

0.1 Tourism GDP growth in West Coast Region and New Zealand (Infometrics) 0.08 0.06 0.04 0.02 0 2010 2011 2012 2013 2014 2015-0.02-0.04-0.06 212 West Coast Region New Zealand

2,500 Pax Tourism employment in West Coast Region (Infometrics) 2,000 1,500 1,000 500 3.30% 4.70% 3.70% 0-500 2010 2011 2012 2013 2014 2015-0.20% Employees -7.80% -0.70% 213 % Change

Tourism employment relative to other industries (Infometrics) Education and Training 8% Mining 6% Agriculture, Forestry and Fishing 14% Health Care and Social Assistance 11% Tourism 14% Accommodation and Food Services 11% Construction 12% Retail Trade 12% 214 Manufacturing 12% West Coast 2015

Total tourism spending growth in West Coast Region and New Zealand (Infometrics) 215

EVENTS 216

Events on the West Coast Kumara Races (Independent) AgFest (Independent) 400,000 1.2 350,000 1 Thousands 300,000 250,000 200,000 150,000 100,000 50,000 0 Income Expenditure Surplus Axis Title 2015 2016 pax 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Wildfoods Festival (Independent) 2012 2013 2014 2015 2016 217 Pre Party Festival After party 0.8 0.6 0.4 0.2 0 2010 2011 2012 2013 2014 2015 Series 1 Series 2 Series 3

TARGET MARKETS 218

Retail Sales - other Fuel & other automotive products Alcohol & F&B Tourism Product Passenger Transport F&B serving services Cultural, Recreation & Gambling Accommodation Services 219

Active Considerers to NZ from AU (TNZ) Local towns Native Bush Beaches Glow Worms Lakes & Rivers Geothermal Activity Potential First Time Arrivals Australians want to see.and do They are.. Previous Visitors Hot Pools Historic Sites Trains & Boats Markets Short Walks Wildlife Cuisine TOURISM NEW ZEALAND ARE TARGETING ACTIVE CONSIDERERS: Independent Professionals (IP s) aged 25 54 Strategic Role = 65% of arrivals First Time Arrivals aged 25 54 Strategic Role = 47% yet to visit 220 Active Boomers aged 55-74 Strategy = 26% of arrivals

Social Media and the Back Packer Market United States France Australia China Japan Korea Germany UK 221

US Backpacker Market Key Activities Other Accommodation used Transport Used Factors that influenced trip to NZ Purpose of Visit 222

US Backpacker Market cont. Demographics Nights spent in regions West Coast is #5 popular region Avg 1.6 nights Expenditure Length of Stay 223

UK Backpacker Market Key Activities Other Accommodation used Transport Used Factors that influenced trip to NZ 224 Purpose of Visit

UK Backpacker Market Cont. Nights spent in regions Avg -2.8 nights Expenditure Length of Stay 225

Australian Backpacker Market Key Activities Other Accommodation used Transport Used Factors that influenced trip to NZ Purpose of Visit 226

Aus. Backpacker Market cont. Demographics Nights spent in regions West Coast is #4 popular region Avg 2 nights Length of Stay Expenditure 227

Chinese Backpacker Market Key Activities Other Accommodation used Transport Used Factors that influenced trip to NZ Purpose of Visit 228

Chinese Backpacker Market cont. Demographics Nights spent in regions West Coast is #4 popular region Avg 2 nights Length of Stay Expenditure 229

MAXIMISING VALUE FROM THE CHINESE VISITOR MARKET 230

MAXIMISING VALUE FROM THE CHINESE VISITOR MARKET 231

MAXIMISING VALUE FROM CHINA 1. China Visitor Market 2. Visitor spend 3. Consumer behaviour 4. Alibaba 232

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237

238

MAXIMISING VALUE FROM CHINA We are currently not in the world our Chinese customers are. Therefore we aren t maximising value. Alibaba partnership provides the middleware. 239

GATEWAY REGIONS COMPARISON 240

Annual spend grouped by region, country of origin, and product category OTAGO compared to WEST COAST CENTRAL OTAGO & QUEENSTOWN DOMESTIC WEST COAST INTERNATIONAL 241

Annual spend grouped by region, country of origin, and product category NELSON compared to WEST COAST NELSON DOMESTIC WEST COAST INTERNATIONAL 242

Cycling/ Mountain Biking New Zealand 243

244 Source: TNZ

245 Source: TNZ

246 Source: TNZ

Market Research Survey Report for West Coast Wilderness Trail 247

Survey Results The following are the results taken from the survey data collected. The number responses given for each question relates to the number of riders that answered the question. Origin of Riders (250 responses) From the total survey respondents 88% of riders reside in New Zealand and 12% were international visitors. 252 Source: West Coast Wilderness Trail

The Economic Impact of the West Coast Wilderness Trail 269

THE KEY FINDINGS FROM THE INAUGURAL SURVEY OF RIDERS ARE AS FOLLOWS: 270 Source: West Coast Wilderness Trail

THE KEY FINDINGS FROM THE INAUGURAL SURVEY OF RIDERS ARE AS FOLLOWS: 271 Source: West Coast Wilderness Trail

THE KEY FINDINGS FROM THE INAUGURAL SURVEY OF RIDERS ARE AS FOLLOWS: Overall Economic Benefit In terms of economic benefits, the West Coast Wilderness Trail contributes the following to the West Coast economy: $207 spend per visitor per day while on the trail Between $4.4 million and $7.7 million additional spend per annum Between 6,631 and 9,000 additional visitors per year Between 21,819 and 38,340 additional day visits per year 272 Source: West Coast Wilderness Trail

ECONOMIC BENEFIT FROM THE WEST COAST WILDERNESS TRAIL 273 Source: West Coast Wilderness Trail

ECONOMIC BENEFIT FROM THE WEST COAST WILDERNESS TRAIL This information has been used to calculate the following economic impact of the trail to the West Coast economy. Between 6,631 and 9,000 additional visitors per year Between 21,819 and 38,340 additional day visits $207 spend per day per 274 visitor $4.4 - $7.9 million per annum to the regional economy Source: West Coast Wilderness Trail

WEST COAST WILDERNESS TRAIL INSIGHTS SUMMARY 2017 275 Source: West Coast Wilderness Trail

Comparisons - New Zealand Cycle Trails Vs West Coast Wilderness Trail 276 Source: West Coast Wilderness Trail

277 Source: West Coast Wilderness Trail

MARKET RESEARCH THE 2017 WILDERNESS TRAIL SURVEY SNAPSHOT 278 Source: Written questionnaire with 254 cyclists

MARKET RESEARCH THE 2017 WILDERNESS TRAIL SURVEY SNAPSHOT 279 Source: Written questionnaire with 254 cyclists

MARKET RESEARCH THE 2017 WILDERNESS TRAIL SURVEY SNAPSHOT 280 Source: Written questionnaire with 254 cyclists

MARKET RESEARCH THE 2017 WILDERNESS TRAIL SURVEY SNAPSHOT 281 Source: Written questionnaire with 254 cyclists

MARKET RESEARCH THE 2017 WILDERNESS TRAIL SURVEY SNAPSHOT 4. Riding The Trail 282 Source: Written questionnaire with 254 cyclists

MARKET RESEARCH THE 2017 WILDERNESS TRAIL SURVEY SNAPSHOT 283 Source: Written questionnaire with 254 cyclists

SOCIAL FISHING 284 Source: Angler usage of New Zealand lake and river fisheries Results from the 2014/15 National Angling Survey July 2016 July 2016

57,000 fishing days on the Coast Average length of stay is 2.1 Making 27,000 people a year fishing 285

Grey District is the Fishing Capital of the Coast Grey River 13% Lake Brunner 31% Grey District 56% Grey District Lake Brunner Grey River 286