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Annual Report G25 Annual Report Tourism New Zealand 2015/2016 Miles Holden 2.28 1,300 pieces of news generated by million one documentary featuring Chinese actor Shawn Dou followers on Facebook 33.3 million visits to newzealand.com 2.8 million referrals to tourism businesses from 71 bids 100% newzealand.com supported through the ownership of Conference Assistance Programme Qualmark (estimated value: $96.2 million) 81% staff engaged as per Employee Engagement Survey 3.3 550 international media outlets million hosted by Tourism New Zealand total visitor numbers in 286 visits Miles Holden 32,635 $308 travel modules completed million equivalent advertising value of print, online, and broadcast in Tourism New Zealand media 1,577 100% Pure New Zealand Specialists $50 million worth of incentive $10.3 billion travel secured with contributed to the New Zealand economy by Amway China international visitors 142 incentive conference bids supported $4,000 61 average holiday spend major trade events per person attended by Tourism New Zealand Julian Apse Contents 2. Tourism New Zealand — Who We Are 4. Chair and Chief Executive Report 10. Governance 12. Board Members 16. Core Leadership Team 18. Strategic Priorities and Outcomes 28. Statement of Performance 45. Equal Employment Opportunities 49. Financial Statements 54. Notes to the Financial Statements 80. Independent Auditor’s Report 1 London Seoul Beijing Tokyo Shanghai Guangzhou Mumbai Bangkok Singapore Jakarta Sydney Tourism New Zealand — Who We Are Tourism New Zealand is the organisation responsible for promoting New Zealand to the world and encouraging international visitors to this amazing country. Tourism New Zealand was established in 1991 as a Crown Entity by the New Zealand Tourism Board Act, and since then its staff has worked tirelessly to create award winning campaigns marketing New Zealand as an international visitor destination. Tourism has a major impact on New Zealand’s economy and Tourism New Zealand has an instrumental role in spurring its growth. It is the only government-funded organisation in New Zealand with the mandate and resources to develop and implement a strategy for tourism and promote ‘Destination New Zealand’ to potential visitors. 2 Tourism New Zealand has 15 offices, two in Los Angeles New Zealand, and around 160 full-time staff Auckland São Paulo Wellington Tourism New Zealand launched the ‘100% Pure New Zealand’ campaign in 1999. Over the past 16 years it has adapted and evolved promotions to communicate the unique experiences, such as our Māori culture, diverse environment, and Kiwi cuisine (not to mention our international award winning coffee), available to people who visit New Zealand under this ‘umbrella campaign’. A key part of Tourism New Zealand’s successful campaign strategy has been partnerships with influential travel sellers, airlines, high profile celebrities, and opinion leaders, engaging with New Zealand tourism operators, providing relevant and up-to-date information for visitors, and ensuring the quality of New Zealand’s tourism product and experience. In addition to its day-to-day operations, Tourism New Zealand owns and operates the quality assurance organisation Qualmark New Zealand, and oversees 80 i-SITE visitor information centres around New Zealand. Tourism New Zealand has 15 offices (two in New Zealand) and around 160 full-time staff members. 3 Chair and Chief Executive Report Kerry Prendergast Kevin Bowler Tourism New Zealand Chair Tourism New Zealand Chief Executive On behalf of the Board and Leadership team, we are expanded its geographic focus to new and emerging pleased to present Tourism New Zealand’s Annual markets (India, Indonesia, and Brazil) and its segment Report for the past financial year ending June 2016 — focus to concentrate resources on high net worth and what a year it has been! visitors, special interest visitors, and business events delegates. This expansion of activity has been achieved During 2015/16 Tourism New Zealand has broken as a result of additional funding provided over the records across the board for international inbound course of the past three years. tourism to New Zealand including exceptional numbers of visitors, levels of expenditure, referrals to travel The number of international visitors New Zealand partners and industry, and visits to its digital media attracts has grown rapidly, however arrival patterns sites. The results squarely reflect achievement of the remain highly seasonal with holiday arrivals in summer organisation’s over-arching mission ‘to increase the months being typically more than double the level value of international tourism to New Zealand’. of winter months. This peak period puts pressure on physical capacity, labour, publicly owned assets For the year ended 30 June 2016 total international (ranging from toilet facilities to national parks) and visitor arrivals rose 10.6% to 3.3 million while holiday suppresses the return on capital invested in the arrivals increased by 16.1%. Overall visitor spend industry over the full year. increased by a very pleasing 18% to $10.3 billion. Accordingly, over the past year Tourism New Zealand With these results achieved, the tourism industry has begun to shape the timing of demand to grow off- is well on track to surpass the aspirational goal of peak travel periods faster than the growth achieved $40.1 billion in total tourism revenue, set out in the in peak/summer months. Among other initiatives, industry’s Tourism 2025 growth framework. Tourism New Zealand shifted the majority of its marketing effort to promote travel during the shoulder Meanwhile, Tourism New Zealand’s customer-facing seasons, autumn and spring — to fantastic effect. website newzealand.com attracted 33 million visits and generated 2.9 million referrals to travel partners While international holiday arrivals remained strongest and industry — a huge 35% improvement on 2014/15, over summer 2015/16, combined spring months while the number of social media followers rose to (September-November 2015) grew by 17.1% from the 2.28 million. same period in 2015, and autumn months (March-May 2016) saw a further increase of 19.6% on the previous Tourism New Zealand continues to play a pivotal role year. Year on year, combined shoulder period growth in driving demand for international inbound travel in holiday arrivals was 18.4%, compared to summer to New Zealand. The organisation has successfully growth of 15.1% (December 2015-February 2016). 4 These encouraging results have led to a decision to focus virtually all of Tourism New Zealand’s efforts on promoting off-peak travel periods in 2016/17. While land-based price and availability advantages will support further shoulder season growth, there will be challenges to achieving this goal given airlines continue offering additional summer capacity. Tourism New Zealand will be working with our airline partners throughout 2016/17 to find solutions around this issue. 100% Pure New Zealand Tourism New Zealand continued to challenge itself to create new and exciting ways of promoting New Zealand to the world in 2015/16. The award winning 100% Middle-earth campaign gave New Zealand renewed exposure around the world and pushed visitor numbers to new records. In July 2015 Tourism New Zealand followed up this success with the launch of a new, refreshed 100% Pure New Zealand campaign using the theme ‘Every day a different journey’ and a new design system including a new typography called ‘Pure Pakati’ with an increased emphasis on our unique Māori culture. The 2015/16 campaign specifically targeted the barriers to travel and brought to life the notion that ‘everything in New Zealand is close and that a diverse range of experiences are all within easy reach’. In-market research undertaken showed that ‘motivation to visit’ New Zealand as a result of seeing the campaign beat the benchmark in all markets and broke the previous record for motivation achieved by the 100% Middle-earth creative work. Strategic commercial partnerships, including those with Facebook and Google, Air New Zealand, United and American Airlines, Auckland and Christchurch International Airports, and luxury travel agency consortia Virtuoso, to name but a few, have netted mutual benefits and extended the reach of the campaign around the world. Tourism New Zealand has also continued its successful approach of partnering with influential celebrities to promote New Zealand to different audience groups. The organisation started the 2016/17 financial year with new advertising featuring Hollywood director and famed explorer James Cameron including a series of short videos, a number of still images, and spoken content that tells the story of his love of New Zealand and his encouragement for people to be curious and explore our country. The collaboration with James Cameron completed a significant year of work with influencers: supermodel Megan Gale helped promote cycling holidays to the Australia market, and actors Huang Lei from China, Sidharth Malhotra in India and Joe Taslim from Indonesia all became valued ambassadors for New Zealand adding their skills and reach to the 100% Pure New Zealand campaign in respective markets. Driving digital partnerships Also in 2015/16 Tourism New Zealand unveiled a new approach to paid social media with video content made specifically for Facebook and in collaboration with Facebook’s creative team. The Kombi Diaries built on the ‘Everyday a different journey’ message through a series of five sequential films, followed the Julian Apse 5 DunedinNZ journey of two American tourists as
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