NEW ZEALAND

1
NEW ZEALAND

• REGIONAL DIRECTOR NEW ZEALAND
• SONYA BROOKS
• MARKET CO-ORDINATOR AUCKLAND
• VICTORIA PARK
• MARKET CO-ORDINATOR SYDNEY
• SANDY WILKINS

2
CURRENT MARKET SITUATION

• Arrivals from New Zealand into Australia for the
  12 months from 01 July 2001 to 30 June 2002 were
  648,979 a decrease of 5.76 on the previous
  year
• Australia accounted for 52 of all New Zealand
  overseas departures during this time
• NZ is largest single market for Australia in
  visitor arrivals
• NZ is a stable and mature market seeking new
  experiences and reasons to revisit with 90
  repeat visitation
• Average spend is A1270 per person (IVS
  preliminary figures)

3
CURRENT MARKET SITUATION

• NSW had 40.5 of NZ arrivals market into
  Australia (measured via SYD and NTL airport
  arrivals)
• Reasons for Travel 33 holiday, 29 VFR, 25
  business, 13 other
• Average length of stay in NSW is 12 nights
• Note Queensland had 35 of NZ arrivals over same
  time with 60 of these being for holiday /
  vacation opportunity for Northern Rivers to
  access this high proportion holiday market

4
CURRENT MARKET SITUATION

• Predominantly FIT, short break, or Event Based
• The impact of the weaker Kiwi dollar, safety, and
  ease of access of destination all influence New
  Zealanders to travel to NSW.
• Tourism New South Wales Target Markets
• 30-44 years - primary
• 45-60 years - secondary
• Key experiences promoted - city / urban escape,
  Events, Journeys / touring by car

5
AIRLINES

• Freedom Air flies direct from Auckland, Hamilton,
  Christchurch and Dunedin to Coolangatta with 14
  flights per week from 29 October 02
• This represents approx 1950 seats per week from
  NZ into Coolangatta
• Freedom Air pricing is from NZD499 pp return
• Freedom Air is a value based carrier and
  subsidiary of Air New Zealand.
• Air New Zealand, Qantas, and Freedom Air all fly
  NZ to Brisbane with a total of 38 flights per
  week

6
WHOLESALERS

• Wholesalers dominate market - package land
  content with airfares - all require 20-25
  commission
• Wholesalers deal directly with Australian
  suppliers - no inbound operators
• Mergers continue in NZ wholesale / retail and all
  trade are looking to differentiate and build
  brands- becoming focused on market share
• Now 5 mainstream wholesalers for Australia
  Gullivers Holidays, GO Holidays, Escape
  Holidays, Infinity Holidays, TravelPlan Holidays

7
RETAIL AGENTS

• 90 of agents owned/franchised by wholesalers
• Power shift to retail from wholesale from
  marketing perspective
• Retailers also fighting for market share
• Most opportunity for Northern Rivers product is
  with House of Travel who have close relationship
  with Freedom Air

8
KEY TRAVEL GROUPS

9
MARKET STRENGTHS

• Knowledge of Australia is good, awareness high
• High repeat visitation
• NSW is a multiple short break destination
• Independent travellers
• Event Driven

10
MARKET CHALLENGES

• Competitive market - price driven, main
  competitors are other destinations like Gold
  Coast , Fiji and domestic NZ travel
• Main challenge for Northern Rivers is to
  establish awareness of region and experiences.
  Need to differentiate from Gold Coast.
• Wholesaler programs still main drivers of package
  holiday business - tend to be focussed on volume
  destinations
• Product, especially attractions and activities,
  are often booked on arrival

11
OPPORTUNITIES

• Self Drive Market - self drive touring routes-
  Pacific Coast Touring Route has awareness /
  appeal leverage
• Must do lifestyle experiences include
  wine/food, shopping, events
• Support media trade famils
• Attend trade shows - Oz Talk April 2003, ATE
• Independent sales calls

12
KEY POINTS

• New Zealand is not a domestic market but a mature
  short haul international market
• Build relationships - target relevant wholesale /
  retail chains
• Distribute collateral through Stocklink or
  Brochure Direct on a continuous basis - ensure
  collateral suits the market.
• Research the market package with other
  operators bundle experiences

13
PRODUCT NEEDS

• Accommodation- boutique/resort properties, good
  quality, reasonably priced hotels well located
  close to attractions
• Attractions- outdoors, appeal to families or
  couples, and unique to region
• Self drive itineraries
• Lifestyle experiences- food wine, shopping,
  indulgent short breaks
• Specialist activities - golf, gardens,
  spas/retreats, coastal walks, beach, arts
  antiques, local culture