From: OECD Tourism Trends and Policies 2014 Access the complete publication at: http://dx.doi.org/10.1787/tour-2014-en New Zealand Please cite this chapter as: OECD (2014), New Zealand, in OECD Tourism Trends and Policies 2014, OECD Publishing. http://dx.doi.org/10.1787/tour-2014-30-en
This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the OECD or of the governments of its member countries or those of the European Union. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
New Zealand Tourism in the economy Tourism plays a significant role in the New Zealand economy, directly contributing NZD 7.3 billion, or 3.7% of GDP, and indirectly contributing an additional NZD 9.8 billion, or 5.0%. Tourism is also a major export earner, second only to dairy. In the year ended March 2013, international tourism expenditure increased 2.2%, to NZD 9.8 billion, and contributed 15.2% to New Zealand s total exports of goods and services. Domestic tourism expenditure increased 2.4%, to NZD 14.2 billion. Tourism directly employs 5.7% of the workforce and generates NZD 1.3 billion in goods and services tax (GST) revenue. International tourist arrivals totalled 2.6 million in the year ended June 2013. Australia is the largest source market, accounting for 44.9% of international visitors and 29.5% of expenditure. In September 2012, China overtook the United Kingdom to become New Zealand s second largest source, recording a 38% increase in visitor numbers and a 37% increase in expenditure over the previous year. The tourism sector is set to recover from its current slowdown due to the continuing strength of Australia and a growing Chinese market. Tourism organisation and governance In 2012, four government ministries were merged to form the Ministry of Business, Innovation and Employment (Figure 1). The new ministry, positioned at the heart of the government s economic plans, will drive the government s business growth agenda by implementing integrated policies to build a more competitive and internationally focused economy. This structural change is facilitating and encouraging stronger co-operation between tourism and immigration within the new ministry. The Tourism Policy unit provides advice to the government on how it can create the right environment for enhanced productivity and growth in the tourism sector, and maximise the sector s contribution to the New Zealand economy. Three other units link to tourism: the Sector Performance unit collects, analyses and publishes tourism data; the Institutions and System Performance unit monitors the Crown entity, Tourism New Zealand; and the Research, Evaluation and Analysis unit evaluates the effectiveness of government initiatives that impact on tourism. Tourism New Zealand is a Crown entity that has responsibility for promoting New Zealand overseas as a tourism destination. The major tool used to do this is the 100% Pure New Zealand marketing campaign, which has evolved over the past decade to make New Zealand one of the world s most well-respected tourism brands. An extension of this the award-winning 100% Middle-earth, 100% Pure New Zealand campaign will underpin Tourism New Zealand s marketing strategy of converting international attention on New Zealand from starring in The Hobbit trilogy into travel. 252
Figure 1. New Zealand: Organisational chart of tourism bodies Minister of Tourism Ministry of Business, Innovation and Employment Tourism New Zealand I-site network Local Government Strategy and Governance Group Science, Skills and Innovation Group Qualmark Industry Research, Evaluation and Analysis Branch Tourism, Sectors, Regions and Cities Branch Institutions and System Performance Branch Tourism Major Events Institutional Performance Sector Performance Source: OECD, adapted from the Ministry of Business, Innovation and Employment, 2014. There are 29 Regional Tourism Organisations (RTOs), owned and operated by New Zealand s local and regional governments and supported by the tourism industry. RTOs market New Zealand s regional destinations. Tourism budget The total tourism funding allocation for fiscal year 2013/14 is NZD 129.05 million, an increase of NZD 23.40 million over 2012/13. This allocation includes NZD 7.20 million for policy advice and research to promote a high-value and sustainable tourism sector, and NZD 113.40 million for the promotion of New Zealand as a visitor destination in key overseas markets. As a part of the government s Internationally Focused Growth Package in the 2013/14 budget, tourism received an additional NZD 158 million of funding over four years. Tourism New Zealand is charged with positioning New Zealand as a high-value destination to drive growth from emerging markets, such as India, Indonesia and Latin America; from the business and incentives segment; from the very high-spending traveller segment; and from New Zealand s current key source markets. Tourism-related policies and programmes Tourism Growth Partnership As part of the Internationally Focused Growth Package, a new Tourism Growth Partnership has been created to help drive some of the strategic changes required to overcome constraints to growth and to lift the value that international tourism delivers to New Zealand. 253
The contestable fund will co-invest in demand-led, commercially driven projects that will best contribute to one or both of the following objectives: Boost innovation in the tourism value chain so as to ensure New Zealand gains more from international visitor spend. Lift the productivity of the tourism sector. Enhancing travel facilitation for Chinese visitors China is New Zealand s second largest and fastest growing visitor market. A high proportion of Chinese visitors travel as a part of a dual-destination group tour, visiting Australia first, followed by New Zealand. This prevailing distribution channel is constraining both the quality of the experience for Chinese visitors and New Zealand businesses ability to derive value from the market. In response to this, an Expert Advisory Group (EAG) of private and public sector representatives was formed in July 2012 to undertake a 100-day China Market Review. The EAG was tasked with reviewing New Zealand s approach to the China visitor market and recommending future actions to ensure New Zealand can capture greater value from, and respond proactively to, the opportunities and challenges of this market. As China is New Zealand s leading market requiring visas, among the EAG s recommendations was the need to streamline visa processes and improve travel facilitation for high-value, low-risk Chinese visitors. In April 2013, Immigration New Zealand responded by extending the length of the multiple-entry visitor visas routinely granted to independent Chinese travellers from 12 months to 24 months. A new bilingual China section on the Immigration New Zealand website was also launched to make it easier for Chinese visitors to lodge a visa application. Rebuilding Christchurch The rebuilding of Christchurch following the 2011 earthquakes is one of the New Zealand government s four key priorities. The cost of the rebuild is estimated at NZD 40 billion, with the Prime Minister Rt Hon John Key calling it the largest and most complex in New Zealand s history. The rebuild of the city is led by the Canterbury Earthquake Recovery Authority and will include a new convention centre and associated hotel and hospitality precinct, as well as sporting and arts facilities. Given the role that Christchurch plays as a gateway to the wider South Island, the impact of the earthquakes on the wider regional economy has been significant. The government has supported tourism recovery activity through a Canterbury Tourism Partnership with the Christchurch City Council and Christchurch International Airport. Notwithstanding the rebuild work underway, Christchurch has sufficient tourism, hospitality and recreations product in place to underpin its ability to welcome visitors. Indeed, the unique opportunity for visitors to witness the rebuild activity has been acknowledged by the travel publisher Lonely Planet in its must-see destinations in 2013. Investing in major events The New Zealand government recognises that investing in major events generates a wide range of direct and indirect, immediate and long-term benefits, including tourism revenue, new business opportunities, achievement in sports and arts, stronger local and national pride, and the development of infrastructure and amenities (Box 1). 254
Box 1. New Zealand Major Events Development Fund From the government s perspective, a major event: Generates significant economic, social and cultural benefits for New Zealand. Attracts international participants and spectators. Has a national profile outside the region in which it is being held. Generates significant international media coverage in markets of interest. To support the government s major events strategy, a Major Events Development Fund (MEDF) has been established. The fund enables the government to invest as an integral partner alongside the events sector, to support New Zealand s growing reputation as an attractive destination for major events of global significance. New Zealand International Convention Centre In May 2013, the government announced the signing of a Heads of Agreement with SkyCity to build a NZD 402 million international-standard convention centre in Auckland, with construction due to start in 2014. Scheduled to open in 2017, the New Zealand International Convention Centre will have a 3 500-delegate capacity and is expected to bring significant economic benefits, including 1 000 jobs during construction and 800 jobs once it is built. Visitor Sector Emergency Advisory Group The Visitor Sector Response Group, which was set up to ensure the welfare of visitors who were affected by the February 2011 Canterbury earthquake, has since evolved into the Visitor Sector Emergency Advisory Group. The group, which comprises representatives from tourism industry bodies and government agencies active in the visitor sector, will plan its response to future emergencies that impact on international visitors to New Zealand. It will be activated when incidents occur or threats emerge that could impact on the visitor sector, such as events that affect the welfare and disrupt the travel plans of overseas visitors and attract significant inaccurate media coverage that could damage New Zealand s reputation as a destination. Members of the group will make use of their international networks to disseminate accurate and timely information offshore. They will work to mobilise the sector s resources to assist with national and local responses during emergencies. Safety regulations in adventure tourism New Zealand has a strong reputation for developing new and successful adventure activity products, such as commercial jet boating, bungy jumping and zorbing (plastic sphere globe riding). To ensure that New Zealand s reputation as an attractive, high-quality tourism destination is maintained and adventure activity participants are protected, the government has passed legislation the Health and Safety in Employment (Adventure Activities) Regulations 2011. The Regulations require all operators providing activities that are designed to deliberately expose participants to a risk of serious harm, to undergo a safety audit by a recognised auditor, and to be registered. These new requirements will give foreign visitors and New Zealanders confidence that appropriate steps have been taken to keep them safe. 255
Statistics and economic evaluation The New Zealand government spends around NZD 3.5 million a year on the collection and analysis of tourism data. In October 2011, following a consultative review, a Tourism Domain Plan was approved a five-year change programme to enhance the quality and usefulness of tourism data. The first significant change is intended to strengthen the understanding of tourism at regional level and to provide more accurate and timely information for regional investment and planning purposes. The world s first Regional Tourism Indicators (RTIs), launched in December 2012, combine data from electronic transactions with modern database and analytical technology to measure the change in expenditure of both international and domestic travellers in New Zealand by region and industry. From September 2013, this data collection has included regional tourism estimates in absolute dollars, in addition to the indicators. The monthly RTIs have been received very positively by the industry. An equal priority was to improve the estimates of international visitor spend, which initiated the redesign of the International Visitor Survey (IVS). The redeveloped survey delivers significant improvements in the accuracy of estimates while reducing the cost. Other programme initiatives, including an education, tourism and cruise series, are currently in development. Statistical profile Table 1. New Zealand: Domestic tourism Unit 2008 2009 2010 2011 2012 Total domestic trips.......... Overnight visitors (tourists) Thousand 15 064 16 681 15 872 17 681 16 599 Same-day visitors (excursionists).......... Trips by main purpose of visit Business and professional.......... Holiday, leisure and recreation.......... Nights in all means of accommodation Thousand 44 545 48 197 47 422 51 263 49 753 Hotels and similar establishments.......... Other collective establishments.......... Domestic travel receipts.......... Note: Year-ended December. Source: Ministry of Business, Innovation and Employment, Domestic Travel Survey. 1 2 http://dx.doi.org/10.1787/888932988392 256
Table 2. New Zealand: Inbound tourism Unit 2008 2009 2010 2011 2012 Total international arrivals Thousand 2 459 2 458 2 525 2 601 2 565 Overnight visitors (tourists) Thousand 2 383 2 384 2 449 2 518 2 484 Same-day visitors (excursionists) Thousand 76 74 76 83 81 Top markets Australia Thousand 976 1 083 1 120 1 156 1 156 China Thousand 112 102 123 146 197 United Kingdom Thousand 285 258 234 230 190 United States Thousand 212 198 190 185 178 Japan Thousand 102 78 88 69 72 Nights in all means of accommodation.......... Hotels and similar establishments.......... Other collective establishments.......... Total international receipts.......... International travel receipts Million NZD 7 166 7 337 6 807 7 062 6 658 International passenger transport receipts.......... Note: Year-ended December. Source: Statistics New Zealand, International Travel and Migration and Balance of Payments. 1 2 http://dx.doi.org/10.1787/888932988411 Table 3. New Zealand: Outbound tourism Unit 2008 2009 2010 2011 2012 Total international departures Thousand 1 967 1 918 2 026 2 093 2 169 Overnight visitors (tourists).......... Same-day visitors (excursionists).......... Total international expenditure.......... International travel expenditure Million NZD 4 235 4 034 4 208 4 357 4 585 International passenger transport expenditure.......... Source: Statistics New Zealand, International Travel and Migration and Balance of Payments. 1 2 http://dx.doi.org/10.1787/888932988430 Table 4. New Zealand: Employment in tourism Thousand employees 2008 2009 2010 2011 2012 Total tourism employment (direct) 99 100 105 105 109 Tourism industries.......... Accommodation services for visitors 16 17 17.... Hotels and similar establishments.......... Food and beverage serving industry 1 25 25 23.... Passenger transport 2 9 9 10.... Air passenger transport.......... Railways passenger transport.......... Road passenger transport.......... Water passenger transport.......... Passenger transport supporting services 4 4 4.... Transport equipment rental.......... Travel agencies and other reservation services industry.......... Cultural industry.......... Sports and recreation industry.......... Retail trade of country-specific tourism characteristic goods.......... Other country-specific tourism industries 32 31 31.... Other industries 14 15 21.... Gender breakdown Male (% of total tourism employment).......... Female (% of total tourism employment).......... Note: Full-time equivalent. Includes self-employed. Year-ended March. 1. Restaurants and cafés. 2. Includes road, rail and water transport. Source: Statistics New Zealand, Tourism Satellite Account. 1 2 http://dx.doi.org/10.1787/888932988449 257
Table 5. New Zealand: Internal tourism consumption Million NZD, 2012 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total 1 13 837 9 565 23 402 Consumption products...... Tourism characteristic products...... Accommodation services for visitors 957 1 111 2 068 Food and beverage serving services 1 225 1 651 2 875 Passenger transport services 3 504 3 076 6 580 Air passenger transport services 1 962 2 212 4 174 Railways passenger transport services...... Road passenger transport services...... Water passenger transport services...... Passenger transport supporting services...... Transport equipment rental services...... Travel agencies and other reservation services...... Cultural services...... Sports and recreation services...... Country-specific tourism characteristic goods...... Country-specific tourism characteristic services...... Other consumption products 2 7 323 3 238 10 561 Tourism connected products...... Non-tourism related consumption products...... Non-consumption products...... 1. Includes Goods and Services Tax. 2. Includes education services, fuel and other automotive products, other retail sales and other tourism products. Source: Statistics New Zealand, Tourism Satellite Account. 1 2 http://dx.doi.org/10.1787/888932988468 For more information Ministry of Business, Innovation and Employment Tourism New Zealand Statistics New Zealand www.mbie.govt.nz www.newzealand.com www.stats.govt.nz 258