tnz strategic update – trenz media helping grow the new zealand economy through international...
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TNZ Strategic Update – TRENZ mediaHelping grow the New Zealand economy through international visitors
May 2012
Agenda
• Importance of international visitors
• Current performance
• FY13 Business Plan
• Global focus
• Marketing approach
• Partnerships – trade, aviation, RTOs, operators
• Events
• Quality
• Conclusion - opportunities
International Tourism is a key Export Earner for New Zealand
International tourism expenditure
$9.7BFull-time jobs
179,800GST earnings
$1.71BContribution to GDP
8.6%
Overall international visitor arrivals rising
Top ten markets
Visitor numbers
Total (000s)
Trend (YOY)
Australia 1,168 +5.1%
UK 222 +1.0%
USA 184 -3.1%
China 160 +23.7%
Japan 65 -23.8%
Germany 63 -1.3%
Korea 53 -19.2%
Canada 49 0.0%Singapor
e 39 +28.8%
Malaysia 38 +72.9%
Total 2,618 +4.4Source: International Visitor Arrivals YE Mar 2012
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,00020
00
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Arr
ival
s
Arrivals - All Markets
But, total stay days have been flat since 2008
0
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
YE Mar 00
YE Mar 01
YE Mar 02
YE Mar 03
YE Mar 04
YE Mar 05
YE Mar 06
YE Mar 07
YE Mar 08
YE Mar 09
YE Mar 10
YE Mar 11
YE Mar 12
Tota
l Sta
y D
ays
Total Stay Days - All MarketsBy Purpose of Visit
Total
Holiday
VFR
Other
By country, its a much more interesting picture Top5: Au, UK, Ger, US, Fr
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
YE Mar 00
YE Mar 01
YE Mar 02
YE Mar 03
YE Mar 04
YE Mar 05
YE Mar 06
YE Mar 07
YE Mar 08
YE Mar 09
YE Mar 10
YE Mar 11
YE Mar 12
Tota
l Sta
y Da
ys
Total Stay Days - HolidayTop 10 Markets
Australia
UK
Germany
US
France
Canada
China
Netherlands
Japan
Korea
Three Year Strategy – FY13 focus
1. Prioritise markets and sectors for growth
2. Focus marketing on preference and conversion
3. Work with partners to
• Strengthen and grow travel trade sellers
• Expand inbound air capacity
• Increase marketing reach & effectiveness
4. Leverage events
Prioritise Markets and SectorsA tight focus is vital
A Portfolio Approach to Market Prioritisation
Australia ChinaUSA
UK Germany
JapanSEACanadaFrance
ScandinaviaIndiaHong KongTaiwanKorea
Eastern EuropeSouth AmericaRemainder of Western Europe
Prioritising Sectors that Span Geographies
• Specialist segments:
• Youth travel (pan Europe, plus US, Au)
• Cruise (USA, Au)
• Business Events (Asia, USA)
• Top interest areas:
• Travel styles: premium, honeymoon
• Sectors: guided hiking, skiing, cycling
FY13 Marketing ApproachHighly targeted, integrated, and more inspiration
• Segment and target active considerers with both inspirational creative and a call to action.
• Keep the ‘100% Pure You’ strategy, but drop ‘you’ from the end-line.
• Use highly targeted digital media for most paid media investments.
• Grow social media scale and engagement.
• Use PR to broaden channels – and deliver credible on-brand messaging.
• Leverage major events in marcomms and PR streams.
• Use newzealand.com to inspire, inform, and aid conversion.
• Drive traffic to third party sites to accelerate conversion.
Improving conversion on newzealand.com
Netreferrals
18% up
Activities &
Tours 29% up
Partnerships
Partnerships with overseas travel trade, airlines, NZ operators & RTOs expected to exceed $25M in additional funding FY12.
Partnerships are becoming more important
• Why so important?
• Partnerships are bringing $25M extra power to TNZ’s marketing in FY12.
• They improve advertising performance.
• They provide improved optics on campaign ROIs.
• And they provide access to marketing assets (e.g. high value customer databases).
• Aviation
• To protect, as well as grow, long haul connections to New Zealand.
• Travel Trade
• To strengthen and grow the capability to sell destination New Zealand.
Committed to an 18 month rolling events calendar sample of the shows/events
• MATTA
• ILTM
• NATAS
• CIBTM (Business)
• JATA
• SATTE
• TTAF
• Luxperience
• ILTM
• Vankantierberurs
• ITB
• IMEX Frankfurt/Vegas (Business)
• ITE (Business)
• Virtuoso
• WYSTC
• Top Resa
• PURE Life
• WTM
Leverage Events
The Hobbit films represent a massive opportunity to elevate promotion of New Zealand
‘100% Pure’ meets ‘the Hobbit’
• Creative territory: New Zealand – where fantasy is reality – 100% Pure.
• Blends Hobbit themes with the visitor experience.
• New creative platform expected Q1 FY13
QualityQuality remains the key to growing passionate advocates
TNZ has an important role in quality
• i-SITEs
• A revitalised board, more aligned to i-SITE owners, developing a new strategy.
• Qualmark
• A new team working more closely than ever on providing a quality framework for the industry, with each sector.
• China ADS Programme
• Focus on fair treatment of Chinese group visitors tightening up control of service delivery.
• Market intelligence and feedback
• Improved market information – particularly from newer markets.
Conclusion – new opportunities
• Asia - in particular China - is a fast emerging opportunity.
• The Hobbit will help us elevate New Zealand’s message.
• Increased attention to yield across the board – particularly in business, special interest areas, and China – will help protect value.
• New and reinvigorated partnerships will drive more promotion of New Zealand and sustain air supply routes.
• Closer collaboration with Education NZ, Immigration NZ and other NZ Inc will ensure a stronger overall New Zealand message off-shore.