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Tnz-Annual-Report-2014-2015.Pdf G25 Annual Report Tourism New Zealand 2014/2015 Miles Holden 24.4 million $10.3 billion injected into the nation’s visits to newzealand.com – up 34 per cent economy by international visitors 25,936 online travel modules completed 23 international events won – valued at over $27 million Record year for International Media Programme with 22,000 stories generated about 1,240 New Zealand as a trade reps hosted in destination NZ on familiarisation trips 2.99 million visitor arrivals – up 7.4 per cent* Visitor spend up 28 per cent * This figure was reported incorrectly in the print version of this document and has been amended for the digital version. Miles Holden Chinese reality show ‘Dad, Where are we 150 going?’ results in Hobbit fans hosted on Fan Fellowship $178 million Competition in coverage value $25.9 million of incentive travel to New Zealand secured 48 major trade events attended by TNZ 58 conference bids supported through the Conference Assistance Programme 1,023 fully qualified NZ specialists Julian Apse Contents 2. Tourism New Zealand – Who We Are 4. Chair and Chief Executive Report 10. Governance 12. Board Members 13. Core Leadership Team 14. Strategic Priorities and Outcomes 24. Statement of Performance 40. Equal Employment Opportunities 43. Financial Statements 48. Notes to the Financial Statements 74. Independent Auditor’s Report 1 London Seoul Tokyo Guangzhou Shanghai Mumbai Bangkok Singapore Jakarta Sydney Tourism New Zealand – Who We Are Tourism New Zealand is a Crown agency governed by the Crown Entities Act 2004. We were established by the New Zealand Tourism Board Act 1991, to market our country as an international visitor destination for the long-term benefit of New Zealand. We aim to improve tourism’s contribution to economic growth by growing the value of visitors to New Zealand. Our statutory functions under the CEA Act include: ▪ Develop, implement and promote strategies for tourism. ▪ Advise the Government and the New Zealand tourism industry on matters relating to the development, implementation and promotion of those strategies. 2 Tourism New Zealand has fifteen Los Angeles offices, two in New Zealand, and approximately 157 full time staff Auckland São Paulo Wellington As New Zealand’s National Tourism Organisation, we are the only entity within our country with the mandate and resources to promote ‘destination New Zealand’ to potential visitors. Our work has been carried out under the umbrella of the ‘100% Pure New Zealand’ campaign for over 15 years. The campaign was conceived in 1999 and has evolved over the years to communicate the unique experiences available to people who visit New Zealand. While advertising and promotion activity is where we focus many of our resources, our marketing also extends to partnering with international travel sellers and airlines, engaging with New Zealand tourism operators, providing information for visitors, and providing assurance of the quality of New Zealand’s tourism product and experience. Tourism New Zealand is governed by a Board of Directors, which delegates day-to-day management of the organisation to the Chief Executive. Tourism New Zealand has 13 offshore offices, two in New Zealand, and 157 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, it gives us million visits, up 34 per cent year-on-year. Our digital great pleasure to present Tourism New Zealand’s Annual marketing activity has also delivered 5.4 million referrals Report for the financial year ending June 2015. that industry and international travel sellers can convert into bookings, a 64 per cent year-on-year increase. Executive summary Our international media programme hosted some 450 It has been an absolutely stunning year — one that ended media outlets, achieving around $490 million in equivalent on a high of 28 per cent growth in visitor spend; 7.4 per advertising value while our trade team hosted more than cent growth in total arrivals and 10.4 per cent growth in 1,000 international travel trade over the year. All in all, it holiday arrivals. As a result, the industry is well on track has been a significant and successful 12 months. to surpass the international targets for growth set out in the Tourism 2025 industry strategy. The past summer was Partnership work across major activities our busiest yet with some regions experiencing significant capacity constraints at the peak of the high season. Tourism New Zealand delivers its activity from 15 offices internationally and they target specific sectors and markets Tourism New Zealand has developed, and now launched, that offer the greatest potential for growth in visitor value. a new 100% Pure New Zealand campaign. The new edition However, it is by working in partnership that we are able to of the sixteen-year-old campaign is a departure from the deliver to the level we do. It also aligns our work with the Middle-earth theme of the past three years that has been Tourism 2025 strategic framework. exceptionally successful in connecting New Zealand with Middle-earth. The new campaign has two main features – Over the past year an additional $23.2 million was invested firstly the message focuses on the abundant and diverse alongside our marketing activity through joint venture activities that are available for visitors in New Zealand and campaigns and other mutually agreed activity. We signed how easy it is to get from one activity to another. a second Memorandum of Understanding (MOU) with The tagline ‘Every day a different journey’ brings this Air New Zealand, jointly indicating a desire to invest $20 message to life. The second main feature is a new design million a year together, a three-year MOU with Auckland system that introduces a new typeface and 100% Pure International Airport for joint marketing in India and a new New Zealand logo design, carved from native timber, using two-year MOU with New Zealand Winegrowers Association. traditional Māori techniques. The new design system is We also delivered our second year of activity under two, distinctive and uniquely New Zealand. three-year MOUs, one with Singapore Airlines and the other with China Southern Airlines. Over the past year, significant progress has been made across the organisation’s digital platforms, that saw more Successful partnerships do not come any better than the traffic to newzealand.com than ever before, with 24.4 collaboration shown between Tourism New Zealand and 4 Julian Apse Air New Zealand in our work to leverage the country’s connection to Middle-earth. It was our final year of the Hobbit movie trilogy and we saved the best for last. We jointly hosted 150 of the world’s biggest Hobbit fans on the journey of a lifetime to New Zealand in November. Then we built a full-sized Hobbit hole and garden in a hotel room at Claridge’s in London as a key attraction for international media covering the world-wide première of the final film. The resulting media coverage from these two activities was some $35 million, generated from the 40 media outlets that journeyed with the Hobbit Fan Fellowship and the 100 media that chose our Hobbit room as the backdrop to their broadcasts during the première. We also worked in partnerships with NZ Inc agencies and the country’s network of Regional Tourism Organisations (RTOs) to leverage major events hosted here. The ICC Cricket World Cup created a unique opportunity to promote New Zealand as a visitor destination to an estimated cumulative one billion people who watched the event, particularly those in India, the UK and Australia, generating $4.3 million estimated advertising value. Hard on its heels came the FIFA U-20 Football World Cup providing a useful entry into the Latin American market. In both instances, Tourism New Zealand worked closely with the RTOs to deliver a diverse programme of activities and an exceptional media hosting programme, generating $2.1 million equivalent advertising value. Tier one markets: Australia, China and USA A key strategic outcome for the organisation is to grow a portfolio of markets that drives current opportunities and creates future market positions. Our tier one markets have all delivered exceptional growth over the past year. Whilst Australia is undoubtedly a mature travel market for New Zealand, we achieved a 4.0 per cent increase in total arrivals, and holiday arrivals up 3.3 per cent. We continued and extended the use of the highly successful joint venture ‘touring’ campaigns, teaming up with key operators and RTOs the length of the country to encourage visitors to explore the regions and thereby distribute their time and spending more widely. As part of our annual Australian ski marketing activity we took the ‘selfie’ phenomenon to a whole new level with the #NZDronie campaign where visitors were able to share a unique eight-second video captured by the drone. The #NZDronie hit the slopes for the 2014 ski season and was promoted across Australia. It was so successful that we brought it back for the 2015 ski season. We hosted more than 220 travel agents for six days and were chosen as host of the Qantas Holidays and Viva! Holidays Global Achievers Event, bringing a further 100 of Australia’s top selling travel agents to the country. Tourism New Zealand’s goal in China is to grow the higher-value Free Independent Traveller (FIT) sector. Average length of holiday stay has moved from 7.6 days to 8.1 and we have achieved 41 per cent growth in the number of general visitor visas being issued, representing the more independent, longer staying, higher value traveller segment.
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