NO GAIN WITHOUT PAIN

While Kaikoura’s pain has been well documented, there’s no denying New Zealand’s tourism industry has generally been experiencing a major growth spurt. This month we reveal the stories behind New Zealand’s tourism boom.

While Kaikoura’s pain has been well documented, there’s no denying New Zealand’s tourism industry has generally been experiencing a major growth spurt. NZBusiness reviews its performance and highlights some shining stars.

THE MAGNITUDE 7.8 earthquake that rocked the Kaikoura region just after midnight on November 14 came at a time when New Zealand’s tourism industry was on a major roll.

Fortunately, at the time of writing, there’s no evidence to suggest that the boom times are about to go away.

Figures from independent industry body Tourism Industry Aotearoa (TIA) reveal just how well the sector’s been performing. Its 2016 Tourism 2025 Scorecard (www.tourism2025.org.nz/ making-it-happen/tourism-2025-scorecard-2016) tracks progress across a range of measures, including expenditure, visitor experience, connectivity, productivity and seasonality. The numbers are impressive whichever way they’re diced and sliced.

Total visitor expenditure grew 12.2 percent over 2015, with 7.4 percent growth in domestic tourism (the best rate in a decade) and 19.6 percent growth in international visitor expenditure (a record).

The drivers of growth include better international air connectivity, particularly from China.

The rising middle classes in key markets in Asia and South America, combined with improved economic conditions in our traditional European and North American markets, are all supporting growth, says Chris Roberts, chief executive of TIA. “There is no doubt that the New Zealand tourism offering is very appealing to travellers around the world.”

In an industry that’s dishing up a wealth of positive statistics there are two other figures that can’t be ignored either. More than 86 percent of tourism businesses are SMEs, many with fewer than five staff, and tourism directly or indirectly supports 13.2 percent of the total number of people employed in New Zealand.

If you’re not impacted by the Kaikoura quakes, then these are indeed boom times for tourism businesses. Roberts says many are taking on extra staff to meet demand, and improving their productivity. “Many are also now able to reinvest back in their businesses to improve quality and enhance the visitor experience.”

He’s excited about the recent trend towards growth in the shoulder seasons, helped by Tourism New Zealand focusing its international marketing efforts on attracting people here outside the traditional peak season. There’s also been success in encouraging people to visit more regions. “Boosting the productivity of tourism businesses around the country is a priority.”

TIA has launched an innovative new online tool, DGiT (Domestic Growth Insight Tool), to support operators to grow their domestic tourism market. Domestic tourism is still the lifeblood of many tourism SMEs.

Of course, with growth comes associated challenges. While helping tourism businesses in Kaikoura and the wider region to recover is of prime importance – there are other general issues impacting on the sector too.

Ensuring New Zealand has the infrastructure to cope with growing visitor numbers, including accommodation, transport, water and sewage facilities, roading and car parking, is one such issue.

“The Government has introduced the $12m Regional Mid-Sized Tourism Facilities Fund but much more is needed to support smaller communities and ensure visitors enjoy high quality experiences,” says Roberts. “TIA is leading an infrastructure project on behalf of the tourism industry to identify infrastructure priorities.” (https://tia.org.nz/advocacy/tia-projects/ infrastructure-and-investment/)

Roberts’ advice for industry newcomers is to get the basics right. “That’s high-class product, staff that go the extra mile, and a sound business plan.

“Work with your local Regional Tourism Organisation to identify opportunities, and collaborate with other businesses to offer attractive packages that appeal to visitors.”

CHRISTCHURCH’S TOURISM REVIVAL

If Christchurch’s example is anything to go by, Kaikoura tourism businesses could have a hard road ahead. But on the scale of things, it should bounce back much faster.

Although the Christchurch tourism landscape changed after the 2011 earthquake, literally and figuratively, six years later the feeling amongst business owners is largely positive.

Vic Allen, CEO of Christchurch & Canterbury Tourism (CCT) acknowledges that the lack of accommodation impacted heavily on Christchurch’s role in the South Island road trip market. Potential tourists, especially Australians, shied away from the devastation.

But today, while visitor numbers to Christchurch still fall short of pre-quake levels, the total dollar spend in the city exceeds it – representing some $2 billion per annum, with a further $1 billion spent in the surrounding region.

The increased spend is partly the result of direct China Southern flights bringing higher spending Chinese tourists. Many Australian tourists, on the other hand, fly direct to Queenstown – often preferring to spend their entire holiday in the Southern Lakes district.

Having the ruins of the iconic Christchurch cathedral portrayed as a representation of New Zealand’s earthquakes on Australian media doesn’t exactly help the situation either, says Allen.

But the tourists who do come like what they see. A CCT survey last year revealed an 81 percent ‘satisfied’ or ‘very satisfied’ rating for the Christchurch tourist experience.

Old favourites such as punting on the Avon, the Botanic Gardens and Antarctic Centre still have pulling power, and many tourists come because they’re fascinated to see an entire central city rebuilt, says Allen.

New attractions such as the Christchurch Adventure Park in the Port Hills are also tipped to improve overall tourist numbers. The biggest, highest mountain-bike park and zipline in Australasia will be a major drawcard.

Black Cat Cruises, based out of Akaroa, are also proving popular. “Most visitors didn’t know there were dolphins around Akaroa before they set up,” says Allen.

Quality retail precincts in the Christchurch CBD are finally coming on stream, and Worcester Boulevard, with its, cafes, museums, and ‘Old Christchurch’ ambience, is fast becoming a tourist hub.

Allen believes the past six years in Canterbury prove that tourism businesses must constantly adapt their product to suit changing markets. “For example, the Japanese, the Koreans, and now the Chinese, all have specific requirements.

“Asia is moving closer to New Zealand all the time. It’s now more important than ever to adapt to the changing cultural needs of our visitors.”