Tourism Export Council New Zealand & Tourism Distribution - - PowerPoint PPT Presentation
Tourism Export Council New Zealand & Tourism Distribution Channels February 2015 Tourism Export Council who are we, what do we do? Founded 1971 Private sector 50 Inbound tour operator members (ITOs) 200 Allied member
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Founded 1971 – Private sector 50 Inbound tour operator members (ITOs) 200 Allied member ‘product suppliers’ Commercially focused – Business 2 Business
Promotes & sells your product outside NZ TECNZ “buys” your product in NZ
TNZ
Promotes New Zealand
RTO’s
Promotes your region in New Zealand and internationally
TIANZ
Shares information Advocacy Business tools
Qualmark
A business assessment system & mark of quality
involved in the ‘tourism export sector’
industry with local, regional & national government
Zealander in appreciating what tourism means to
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Tourism, like agriculture is one of New Zealand’s biggest income earners. Both are export industries because they bring in foreign dollars to New
eats it. A clear pathway of a New Zealand product consumed or purchased by someone overseas. Tourism works slightly differently:
IRD’s definition of ‘export’ is a non resident who purchases products or services from New Zealand. It is important that people understand tourism’s role in bringing in foreign earnings to New Zealand and its contribution to the economy as an export industry .
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*Dairying 2014 had export receipts of $15.9 billion and 23.7% total exports
187,000 indirect FTEs
Source: Statistics NZ 2013 and Tourism Satellite Account – Mar 2014
Country Visitors % Change Avg Length Stay Avg $ (holiday stays) (spend) Australia 1,247,760 2.4% 11.5 days $1900 China 264,864 15.7% 7.6 days $3800 United States 220.052 9.5 % 13.7 days $3900 United Kingdom 194,384 2.8% 28.6 days $3600 Japan 81,136 8.8% 11.4 days $2800 Germany 78,912 13.0% 46.4 days $4900 South Korea 55,388 8.8% 11.0 days $2800 Canada 48,800 1.3% 22.0 days $6300 India 33,292 20.7% 12.5 days n/a Singapore 46,848 10.9% 12.6 days $3200
Source: International Visitor Arrivals (IVA) December 2014
Total: 2,857,400 5.1%
Region Total Guest Nights +/- 2014
6,874,343 +4.0%
3,239,799 +7.0%
2,939,704 +10.0%
2,377,146
5. Rotorua 1,820,445 +4.0% 6. Northland 1,637,179 +5.0%
1,243,796 +4.0%
1,186,640 +9.0%
1,097,354 +9.0%
963,345 +1.0%
947,243 0.0% TOTAL GUEST NIGHTS: 331,772,341 0%
Source: Statistics NZ, Commercial Accommodation Monitor June 2014
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Figure 2 below shows the proportion of Chinese expenditure across the regions, compared with the UK market. The majority of Chinese electronic card spend is spread across Auckland (62 percent), Bay of Plenty (includes Rotorua) (12 percent), and Otago (14 percent), with the remaining 12 percent spread across the other regions.
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Figure 3 shows the growth in Chinese electronic card spending since 2008. The circles on the map represent the overall size of expenditure in the regions and can be seen in context with the overall growth in expenditure.
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Contents Page:
Managing the Business Mix
When each commission level is considered, it may seem that agents receive a large proportion of your takings, eroding your profits. It is important to consider the volume
international business coming from each channel as a percentage of your total business, as well as the benefits of working with the international travel distribution system. Your trade distribution strategy should allow for a business mix which will meet your volume and profit targets. The diagram below shows how a commission structure could work. If the supplier honours pricing as per the distribution system and the supplier receives an equal one third of their business from ITO’s, wholesalers and direct from consumers, the average commission works out at 16.67 per cent.
You receive You pay
ITOs have hundreds of downstream relationships with off-shore travel agents. They will do your international marketing for you. Working with an ITO can bring you:
Do your homework: Work with your RTO who will work with ITOs Visit their website/brochures - check their itineraries ahead of time to determine: Who are their customers? Check their age and if any cultural considerations How long do they spend in your area and what do they do? How many passengers per group or are they FIT/SIT customers?
Know their business before you tell them about your business!
Benefits:
AUCKLAND
61 Dylan Rushbrook Lisa Harris Nicola Squire
ROTORUA
8 Renata West Hariata Ngatai
WELLINGTON
40 Ania Truman Bryn Lloyd Lisa Ashford
CHRISTCHURCH TOTS
13 Julia Panifilo Ryan Abrahamson Loren Heaphy
QUEENSTOWN
41 Anna Kerslake Hannah Murrell
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Attractions/Activities 25% Accommodation 25% RTO’s 12%
17% 10% 25% 25% 12.9% 12.9%
Inbound operator Transport RTO’s Accommodation Attractions & Activities Tourism Services
Tourism 34% Business 32% Diploma Tourism Travel & Hospitality 21% Arts 14% Other 20% Science 2%
2014: Business 53% Tourism 19% Arts 14% Law 11% Science 3%
& travel distribution
if offered as part of their course
37% at Tertiary, 49% while working part or full time
Key comment: people at high school and tertiary, don’t know job options re inbound tourism or what the difference is between travel (outbound) and inbound tourism
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