2013-2016 Strategic Priorities

Grow a portfolio of markets that drives current opportunities and creates future market positions

Drive Optimise preference for delivery visiting New capability 2014-16 Zealand Strategic Priorities

Focus Partner widely marketing to activate activity on conversion and clearly defined extend higher value marketing reach visitors Funding boost

• Additional government funding of approximately $30m a year for next four years. • FY13 budget of $84m rising to $113m in FY14. • New funding targeted at four areas: – international business events – emerging markets – high-value premium travel – up-scaling of specific activity in core markets

Market Priorities

Priority 1 Core Markets: Australia, China and the USA

Priority Emerging Priority 2 Core Markets: Markets: UK, Germany and Japan India, Indonesia, Latin America

Priority 3 Markets: South East Asia, Rest of Europe, France, Korea, Canada

Current Status

India • Expanded team from mid 2013

Indonesia • Office opened 2013

Latin America • Office opened December 2013

Latin America - Update Snap-shot: Markets Top source markets of holiday arrivals

International Visitor Holiday Arrivals Top 20 Markets 500,000 450,000 400,000 350,000

300,000

250,000 Arrivals 200,000 Others 150,000 Brazil 23rd Argentina 35th 100,000 Chile 36th 50,000 Mexico 37th 0

Source: Statistics New Zealand; International Travel and Migration Latin America Performance

Visitors Growth % Holiday Growth % Stay days Brazil 10,752 3% 6,080 6% 321,504 Chile 5,936 19% 2,512 14% 212,944 Argentina 4,800 -16% 2,768 -11% 192,576 Mexico 3,568 10% 2,384 10% 89,488 Overall 3% 4% • Source: Statistics New Zealand 12 months to Feb 2014 Current Situation BRAZIL: • Presidential Election (Oct-Nov) • FIFA World Cup (June-July) ARGENTINA: • 2014 Official exchange rate has devalued sharply CHILE: • Bachelet - President for the second time from March MEXICO: • Economic strength but internal issues • Upper classes in metro regions avid travelers

Common issues & opportunities • Air capacity & linkages • Travel agents & tour operators still play a very important role – knowledge hungry • Lack of knowledge & confidence in selling NZ • Looking for new destinations – premium, experiences and family trips • Changing distribution channel – OTA Growth • Student/education/working holidays important • Visas to Australia – high dual travel component • Heavy social media users

Trade - Overview FY14 • Roadshow - Kangaroo Tours (Brazil and Chile) • Partnerships campaigns – Designer Tours , Queensberry, Primetour • Trade Shows – ILTM Americas (Oct 13); WTM Latin America (April 23-25); Virtuoso Regional Meetings Brazil, Chile, Argentina & Mexico; Travelweek Sao Paulo (May 6-9) • Hosting – Mexico vs New Zealand • Webinars & frontline training • Trenz • Language tools – maps, modules PR – Overview FY14

IMP Viajar Pelo Mundo Brazil December, 2013 By Danielle Mota Print circ: 55,000 Print AVE: $467,366 Online UVPM: 400,000 Online AVE: $19,319 PR – Overview FY14

IMP Folha de S. Paulo Brazil December 05, 2013 By Vanessa Bárbara Print circ: 291,856 Print AVE: $144,916 Online UVPM: 21,100,000 Online AVE: $43,592 Marcomms - Overview FY 14 Brazil – SEM – Display (Facebook, Google GDN, Youtube) – Online Partnerships (Trip Advisor, Decolar.com) – JV with Auckland Airport - Print advertising Chile – SEM Mexico – SEM – PR added value - Print advertising Argentina – SEM Just about to begin Latin America – Marcomms examples

SEM - Brazil Latin America – Marcomms examples

Google GDN Latin America – Marcomms examples

Facebook Domain Ads Latin America – Marcomms examples

Youtube – 1.2m views Latin America – Marcomms examples

Decolar.com Latin America – Marcomms examples

Print Latin America - FY15 Priorities TRADE • Training • Famils • Road Shows (Partnerships) • Market presence - Trade Shows & industry events

PR • Focus on premium & youth • Develop broadcast opportunities in Brazil • FIFA Under 20 World Cup

Marcomms - Planning FY15

• Social Media investment (posts in Portuguese/Spanish and customised to countries’ main targets) • Hobbit leverage campaign • Partnerships with most viewed tourism websites in Brazil, e.g. Tripadvisor • Trade & airline partnerships • Continued development of newzealand.com • Emerging Considerer Monitor Segment Prioritisation Matrix (Brazil) Market Young adventurers Explorers Premium FY15 18-29 years 30-49 years 50+, Fly business Class, seeking Segmentation Education important to this A Class - Couples & Families, luxury accommodation and segment. Free spirits, they Seeking new and fresh, With experiences want to discover the world and better stability at work and meet new people before having money condition, they want to serious commitments in life, see the world. They are such as job and children. Very informed, well-educated and active, they are keen to go on want to do different activities extreme activities during the during their stay, from day and party at night. adventure experiences to Social media important visiting a vineyard.

Interests include Geothermal Interests include Geothermal, pools, beaches, scenic scenic drives/cruises, beaches, drives/cruises/train rides. Also whale/dolphin & wildlife an interest in viewing. Hiking and cycling Skiing/Snowboarding and special interests. mountain biking. Social media important Core/Brand message 100% Pure New Zealand. A stunningly beautiful place whose embracing people, captivating experiences and fascinating stories await you

Key triggers for NZ holiday Sense of excitement, Have fun & enjoy yourself, Safe Have fun & enjoy yourself, Safe purchase Landscapes and scenery, destination, Landscapes and destination, Landscapes and Unique Experiences, scenery, Unique Experiences, scenery, Unique Experiences, Friendly local people, Relax & Friendly local people, Relax & Friendly local people, Relax & Rejuvenate Rejuvenate Rejuvenate Opportunities

• Participation in Road Shows and Trade Shows • Signal willingness to participate in famil and media programs – tell your RTO if Latin ready • Providing content and images for PR assists and website • News that is Latin ready – e.g. Spanish, Portuguese speaking guides or hosts • Product Information for the Trade • Use newzealand.com • Communicate interest in the market – Karem & Amalina at Trenz • Stay in touch

Market Environment: Indonesia • World Bank expect Indonesia’s GDP to growth 5.4%. • Visitors arrivals from Indonesia have grown in the past year with visitor numbers tracking over 13,600 (YE February 2014) – +11%. • Indonesia is a strongly seasonal market whereby the peak visitation to New Zealand is over the Ramadhan, school holiday period and Christmas / New Year period. • Lack of air capacity. The only direct air services that link Indonesia to New Zealand is the Air New Zealand seasonal service running June – October from Bali (Denpasar) to Auckland. SQ/NZ partnership will see increased capacity on Singapore – New Zealand service but still need seat allocation on Jakarta - Singapore • There is a strong NZ Inc. (MFAT, NZTE, NZED, INZ) presence in Jakarta.

Our strategy: Target strong growth in visitors by increasing investment in trade, PR, campaign and airline partnerships with a core focus on Jakarta

How will we get there?

Implement PR Invest in aviation Implement a social Implement brand strategy including partnerships media strategy campaign activity IMP and in market PR activity

Key focus areas: Family Active Boomers Incentive New Team

Christian Sidharta – Country Mardiana Budi – PR Manager Manager

Aristo Kristandyo – Devi Sari – Marketing Communications Trade and Business Events Manager Executive Current performance • Total arrivals YE Feb 2014: 13,600 (+11%)

Indonesia Holiday Arrivals to New Zealand 2011 - 2014 4000

3500

3000 2500 2000

1500 1000 500

0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011 2012 2013 2014 Research – “Indonesia Emerging considerers”

• There are approximately 8.3 million Emerging Considerers of New Zealand

• 40% are aware of The Hobbit Trilogy and of those, 23% know it was filmed in NZ

• Too expensive to fly to NZ is the number one barrier

• ECs see NZ as strong on landscapes and scenery – but association levels are far behind those seen in established markets.

• Relative to competitors, NZ has one clear strength to leverage – outdoor & adventure activities – there is a strong need to raise awareness of NZ’s core proposition in a positively differentiated way to it’s competitors

SEE: www.tourismnewzealand.com for the full research presentation Market Segments

• Families (35-49 yrs) • Active Boomers (50+ yrs) • Incentives FY2014 - Highlights

• SSEA Mega famil • 100% Pure New Zealand Specialist – 10 first agents • Travel agents workshop • In-house travel agent training • Consumer show – ASTINDO Travel fair 21 – 23 Mar. 1243 visitors to New Zealand booth Brand Campaign

• Increase the Brand Awareness of Destination New Zealand

Newspaper Ad in Kompas (Nov’13-Jan’14) Advertorial Magazine in Tempo Magazine (Jan- March’14)

Combining Advertorial in Combining Newspaper Advertorial in Kompas (Nov’13-Jan’14) Media Indonesia (Nov’13-Jan’14)

Advertorial Magazine in Tamasya Magazine (Jan- March’14)

• newzealand.com/id records in average of 1,000 visits per day but since the ad placements in various magazine and newspaper the number of visits have increased up to 15,000 hits a day Tactical Campaign

• Partnership/Tactical Ads. (1-2 times/month) with sales theme (joint ads with 3rd party, e.g. travel agents or airlines partners). • Jakarta focussed. • Call to action to Indonesia version of newzealand.com

IMP • To date 8 IMP files with EAV: NZ$677,260 • Focused on New Zealand events IMP • DestinAsian Indonesia - Joe Taslim • Harper’s Bazaar trip to New Zealand, photo shooting for Fashionable Life and travel experiences including New Zealand must-tries, including cave exploring, abseiling, kayaking etc. Mesty Ariotedjo

FY 2015 – Key Focuses • Agent Famils • Kiwi Link SEA (Indonesia Frontline Training Jakarta / Surabaya • Trade training • Trade partnerships • Consumer travel fair • Brand campaign • Special Interest PR / IMP All Industries in Indonesia

• Connect with our new team! • PR – Content generation • Product info – Market segment alignment

India - Update New Team

Naomi Lobo – PR Manager Neha Bhola – Country Manager Joined in August 2013 Joined in Oct 2013

Darshana Tripathi – Nisha D’souza – Market Development Manager Marketing Communications Joined in 2008 Manager-Joined in Oct 2013 Current Performance

International Visitor Arrivals February 2014: • Year End Total: 31,424 (+5.2%) • Year End (Holiday): 14,656 (-2.7%) • Average Length of Stay (Holiday): 12.7 days

Year Ended February - Visitor Arrivals 2012 2013 2014 28,684 29,872 31,424

Factors: • Air capacity constraints/seat allocations for NZ • Airfare costs • Rupee devaluation • Increased destination competition Market Segments

Young Adventurers 20-39 years Honeymoon, Couples. Cricket World Cup represents strong opportunity

Families 30 – 50 years Key barrier to NZ is not knowing enough about NZ as a destination. Soft adventure & outdoor activities represent opportunity for this segment

Incentives Corporate Companies purchasing long haul destinations for international incentive programmes 100 % Pure Brand Campaign: phase 1 (Nov – Dec 2013)

- 1st branding campaign in India launched from 4th Nov – 31st Dec 2013 - Mix of print publications ( & magazines) & digital platforms covering genres like lifestyle, travel, business/financial & news publications - Overall the campaign delivered 131,387 visits; 25,368 active visits & 2,159 referrals on www.newzealand.com/in

TRADE PARTNERSHIPS

• Classroom trainings to equip the front desk & sales staff with destination information/enhancement of knowledge. Trade Partners • 100% Pure Specialist Program using the Trade Website • Trade Newsletter • Incentivising to build engagement – Tactical promotions

• Classroom trainings to equip the front desk & sales staff with destination information/enhancement of knowledge. • 100% Pure Specialist Program using the Trade Website • Trade Newsletter • Incentivising to build engagement – Tactical promotions Key Travel Advocates • Joint Marketing campaigns targeting consumers through print &/or digital media platforms as well as on-ground events. • PR & Market communication support • Relationship Manager Access • Famil Invites Trade Partners: Business Events

WINS (June ‘13- March’14) • No. of Groups: 10 • No. of Pax: 1096 • Est Value: NZD 4,396,670 • Key Cities: Auckland, Rotorua, Queenstown, Franz Josef, Christchurch.

Joint Marketing Campaigns

Joint Venture Campaign with SQ

Joint Venture Campaigns with MH PR: Media Visits

IMP Files (Total 12 media) Cricket Media Tour (5 media) Lonely Planet Telegraph Times Life Mid-day Sunday Economic Times Asian Age & India Today Travel Plus Times Café Mirror The Week

Awaiting coverage Headlines Today (Hobbit – Book Of Forbes Life New Zealand) Hindu Elle National Geographic India Robb Report*

IMP Coverage Lonely Planet Magazine -Cricket Press Trip coverage IMP Coverage

Mumbai Mirror

Deccan Chronicle and Telegraph Newspaper Asian Age Newspaper IMP Coverage

India Today Travel Plus Magazine Highlights for FY 14:

• Kiwi Link India- Extended to 4 key cities • Participation at Consumer and Trade Roadshows- 4(BE) / 3(Leisure) • Joint Marketing Campaigns with Trade Partners and Airlines • Trade Trainings for over 1100 trade colleagues • 100% Pure Brand Campaign • Hosted 5 Trade Famils • IMP: Hosted 12 journalist FY 14/15 Priorities

Continue to concentrate on:

Invest in Trade Own Brand aviation Business Events Partnerships Campaigns partnerships to build capacity

Opportunity

2015 Cricket World Cup INZ Visa Priority Programme

• Immigration New Zealand & Tourism New Zealand to launch Visa Priority Programme for Key Travel Advocates .

• The Pilot run will be launched for Business Events followed by Leisure in Phase 2

• The Visa Priority programme will give the Travel Advocates the following benefits: • Faster turn around • Dedicated point of contact • Limited documentation requirements • Applications via 1 VAC/1 Area Office

How Can You Get Involved?

• Participate at Kiwi Link India

• Product Updates / Content : Channel this through NZ Trade / PR