Sector Profiles 2011 Manawatu Region

Tourism & Visitor

Tourism plays a significant role in the Manawatu region economy even though the region has not generally been perceived as a tourist destination. The region’s greatest strength is in domestic tourism and it accounts for an above average share of domestic day trips and overnight trips by New Zealand residents.

Providing you with a better understanding of the different components of the Manawatu region economy and the contribution each sector makes to the demographic and economic growth of the region.

Contents

Executive Summary 3

Estimating the Economic Contribution of the Tourism and Visitor Sector to the Manawatu Region 5

Definitions and Data Sources 7

An Emerging Destination 9

The Country Road - Manawatu 11

Domestic Tourism 15

Te Manawa/Rugby Museum 24

International Visitors 25

New Zealand Wind Energy Conference Palmerston North 29th – 31 March 2010 28

Conventions 29

Retail 33

Events 37

Broad Groupings for Visitors to the Manawatu 39

Square Affair 2011 44

Student City 45 Tourism & Visitor Tourism Commercial Accommodation 47

Private Accommodation 49

Conclusion 51 Manawatu Region Manawatu Sector Profile

1 2 Sector Profile Manawatu Region Tourism & Visitor Images courtesy of Destination Manawatu ofDestination andLauraImages courtesy Photography Ridley Executive Summary

Workforce It is estimated that 4.7% of the workforce in the Manawatu region were employed in tourism related jobs in February 2010, accounting for 2,900 jobs and earnings of $82 million (salaries, wages and self-employed incomes in the year to March 2009). Estimates for the contribution of the sector to the regional economy, based on the tourism satellite account, suggest it had a direct economic contribution of $168 million in 2010 and an indirect economic contribution of $229 million, giving a total estimated economic contribution of $397 million.

Visitors Palmerston North is a major destination for domestic visitors, with 1.1 million day visitors in the year to December 2010 (4.0% of the national total) and close to 0.4 million overnight visits (2.5% of the national total). In 2010 30% of overnight visits to Palmerston North (121,000 visits) were for leisure, recreation and holidays, 18% (70,000 visits)) were for business or professional reasons and 50% (200,000) were for visits to friends and relatives.1

The number of overnight trips to the city compares very favourably with other centres recognised as significant tourism destinations. For example the 399,000 overnight visits to Palmerston North was only slightly below the 410,000 overnight visits to Dunedin and 453,000 visits to Tauranga, and higher than overnight visits to destinations such as Napier, New Plymouth, Hastings and Queenstown.

The share of international visitor numbers to the region is lower than the national average but they still contribute a significant proportion of total visitor numbers in the region, with an estimated 90,000 international visitors staying in commercial and private accommodation (for example with friends and family) in the region during 2010. International cardholder spending through the Paymark network for the year to June 2011 accounted for $5.7 million of retail spending in Palmerston North, also around 1% of total retail expenditure on the network.

Tourism Opportunities The Manawatu region is not currently renowned for its dominance of tourism opportunities that attract significant numbers of international visitors. The presence of the NZ Rugby Museum, however, is a key strength for attracting rugby visitors to the region. Super 15 rugby games and international rugby tests all bring international visitors to New Zealand and the museum is a key attraction for these visitors.

Tourists can easily access Wellington, the Hawkes Bay, Taranaki and the Central North Island ski fields from a central base in the region. This “gateway” concept is a strength that is being further developed to enable leveraging of commissionable tourism opportunities located in neighbouring regions. Palmerston North offers a strong retail sector that services a wide region, drawing a high number of visitors from the Tourism & Visitor Tourism surrounding Manawatu-Wanganui region and from Wellington, Taranaki and the Hawkes Bay. Manawatu Region Manawatu Sector Profile

1 Tourism Strategy Group, Ministry of Tourism 3 Events Events are important for bringing visitors to the region. The region has great infrastructure for hosting national and international sports events and has a well recognised strength in hosting conventions and conferences. These build on the region’s central location in New Zealand and key transport hubs. Also important is the growing strength in cultural diversity within the Palmerston North community and the depth and breadth of activities and events associated with this segment.

Education It is also important to recognise the influence of the education sector in attracting visitors to the region. This includes Massey University, UCOL Polytechnic, International Pacific College and ETC Learning Centre. Short-term international students visiting the city for language study and professional development are counted as tourists and usually stay much longer in the region than other international visitors. Long-term students are often visited by family and friends and a proportion of international students settle in the region. Domestic extramural students at Massey University are often required to travel to the city for block courses, some of which are timed during the semester breaks when student accommodation is available for visiting students.

Medical and Health Providers Events are important MidCentral Health and other medical and health providers play an important role for bringing visitors to in bringing domestic visitors to the city, the region. The region particularly through the cancer treatment has great infrastructure and support services offered in Palmerston for hosting national North. As an example, economic impact and international sports assessments prepared recently for Ozanam House (accommodation for patients, and the events and has a well families of patients receiving radiotherapy recognised strength in treatment for cancer at Palmerston North hosting conventions Hospital) suggest it accounts for approximately and conferences. 28,000 visitor nights a year and an approximate net regional economic impact of $1.5 million.

Councils Role The importance of tourism in the economic strength of the Manawatu region influences the type and quantity of services which need to be provided by the two Councils which make up the region (Palmerston North City and Manawatu District). They include water/waste water, solid waste, recycling, roading, parking and amenities such as public toilets, and parks and recreational areas. Additional visitors to the region increase demand for these services so an understanding of visitors to the City and expected increases in visitor numbers are required for Councils to adequately plan for these services. Tourism & Visitor Tourism

The Councils play a role in the marketing of the region to visitors and in encouraging more businesses and people to consider the region to be a desirable location to work and invest. Enhancements to infrastructure in the region, and the development of attractions which make the Manawatu a more desirable place to visit, also make the Manawatu a more desirable place to live. Manawatu Region Manawatu Sector Profile

4 Estimating the Economic Contribution of the Tourism and Visitor Sector to the Manawatu Region

Measuring the size of the tourism sector is challenging because it does not fit the standard industrial classification used to record employment and economic activity in sectors like manufacturing, agriculture and retailing, which are classified according to the goods and services they produce. Instead the tourism sector is defined by the characteristics of tourists and their consumption of tourism products and services. A “tourism satellite account” is the economic approach used to estimate from above the use of tourism related goods and services across a broad range of industry sectors. The estimates used in this profile are based on “tourism satellite accounts” prepared by Statistics New Zealand.

It is estimated that 4.7% of the workforce in the Manawatu region was employed in tourism related jobs in February 2010, accounting for 2,900 jobs. Estimates based on the tourism satellite account suggest that total earnings in the tourism sector were $82 million (salaries, wages and self-employed incomes) in the year to March 2009, 3.2% of total earnings in the region. The earnings share of the sector is lower than its share of total jobs due to the prevalence of part-time employment in the retail, accommodation and food services sectors. It is estimated that 4.7% Estimates for the contribution of the sector to of the workforce in the regional economic activity or gross domestic Manawatu region was product (GDP), based on the tourism satellite employed in tourism account, suggest it had a direct economic related jobs in February contribution of $168 million in 2010 and 2010, accounting for an indirect economic contribution of $229 million, giving a total estimated economic 2,900 jobs. Estimates contribution of $397 million. suggest that total earnings in the tourism Economic Multipliers sector were $82 million in While the direct economic impact from the the year to March 2009, tourism sector in the Manawatu region is 3.2% of total earnings in significant, with an estimated direct GDP contribution of $168 million, the economic the region. impact is even greater when the additional flow-on impacts of increased spending in the local economy are taken into account (indirect GDP contribution). Economic impact analysis traces the flow of money from tourism spending, firstly to tourism businesses and then to: Tourism & Visitor Tourism

• other businesses which are supplying goods and services to tourist businesses • households, which earn income by working in tourism businesses or supporting industries, and • government, through taxes and charges on tourists, businesses and households. Estimating economic impacts is done using multipliers, the tools economists use for measuring the downstream, or flow-on, effects of an initial change to a particular industry. Multipliers generally estimate the direct, indirect, and induced effects of Region Manawatu one additional unit of final demand for a particular industry’s output on the entire economy.

The direct effects are the production changes associated with the immediate effect from a change in tourism expenditure. For example, an increase in the number of tourists staying overnight in hotels in the region will result in increased revenue for Sector Profile the hotel sector. The increased hotel revenue and the resulting increase in hotel payments for wages, taxes and purchases of supplies and services, are the direct effects of the increased tourist spending at the hotels. 5 The indirect effects are the production changes which result from various rounds of re-spending of the increased hotel revenue in other sectors supplying products and services to the hotel industry. For example, changes in revenue and the number of jobs in the linen supply industry represent the indirect effects of an increase in tourism expenditure at hotels. Businesses supplying products and services to the linen supply industry represent a further round of impacts from the initial increase in tourist numbers.

Induced effects are the changes in economic activity in the region which results from increased household spending of income earned directly or indirectly due to the increase in tourist spending. For example, an increase in the number of hotel guests will result in an increase in incomes for hotel employees and also for employees in linen supply companies. This results in increased spending in the region on housing, food, transport and a range of other household goods and services. These increased purchases also result in increased revenue and jobs in the wider regional economy. The degree of the secondary economic impact depends on the extent to which households purchase local products or services or purchase goods or services produced outside the region. Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

6 Definitions and Data Sources

Definitions Tourism The activity of persons travelling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business or any other purpose. (United Nations definition) Tourist Anyone who spends at least one night away from home, no matter what the purpose. Visitor A broader category than ‘tourist’, includes tourists and same-day visitors. Day Trip A day trip is defined as a trip made within one day, outside the area in which the traveller usually lives or works day to day, involving travel of at least 40km one way from home, or travel by aeroplane or ferry service.

Data is collected by telephone survey on day trips made within the last seven days. Each day trip is presented with a Main Destination. The “Main Destination” reported is the furthest location visited from the origin of the trip. For example, a person who visited Kapiti for an hour or more on the way to Wellington would be recorded as having one Tourism is the activity of “Day Trip” to Wellington. persons travelling to and Overnight Trip staying in places outside An overnight trip is defined as a trip made in their usual environment New Zealand, but outside the area in which for not more than one the respondent usually lives or works day-to- consecutive year for day, which involves a minimum of one night leisure, business or any away from home. other purpose. Data is collected on trips from which the respondent has returned in the last four weeks, which were less than 12 months long. Each overnight trip is presented with a Main Destination.

The Main Destination reported is either a) where the most nights were spent on the trip or b) the furthest overnight location from the origin of the trip. For example, an Aucklander who stayed a night in the Ruapehu area on the way to Hawke’s Bay for Tourism & Visitor Tourism five nights would be recorded as having one overnight trip to Hawke’s Bay. Manawatu Region The Manawatu region covers the area of Palmerston North City Council and Manawatu District Council. In June 2010 the region had an estimated population of 111,000 people, a workforce of 55,620 people and a land area of 2,960 km2. Manawatu Regional Tourist Organisation (RTO) Region Manawatu Region Manawatu The Manawatu RTO region covers the area of Palmerston North City Council, Manawatu District Council, Rangitikei District Council and Tararua District Council. In June 2010 the region had an estimated population of 143,600 people, a workforce of 67,320 people and a land area of 8,503 km2. In the year to December 2010 the Manawatu region accounted for 86% of guest nights in commercial accommodation in the Manawatu RTO region, 83% of Manawatu RTO employment and 77% of the Sector Profile population of the Manawatu RTO region.

7 Data Sources Tourism Strategy Group In 16 August 2010 a new Tourism Strategy Group (TSG) was established within the Ministry of Economic Development. The Tourism Strategy Group replaces the previous Ministry of Tourism and is responsible for advising the Minister of Tourism on all issues affecting the portfolio. The Tourism Strategy Group’s Research Team undertakes a range of tasks, including: • Managing the Core Tourism Data Set - International Visitor Survey, Domestic Travel Survey, International Visitor Arrivals, Commercial Accommodation Monitor, Tourism Satellite Account and Forecasts. • Developing and managing data collections in partnership with industry, such as the Conventions Activity Survey. • Undertaking research of importance to the sector. • Conducting analysis of tourism and other data covering a wide range of topic areas. • Undertaking communications of research outputs, including the research website, publications, analysis papers and a range of face-to-face communications. Statistics New Zealand Statistics New Zealand is a government department and New Zealand’s national statistical office. It publishes a wide range of economic data, including the monthly The Manawatu region Commercial Accommodation Monitor, covers the area of quarterly Retail Trade Survey, annual Business Palmerston North City Demography statistics, annual Linked Employer-Employee Earnings Data (LEED) and Council and Manawatu monthly International Travel and Migration District Council. In June data. 2010 the region had an APR Consultants estimated population of 111,000 people, a Destination Manawatu commissions APR workforce of 55,620 Consultants to undertake a series of monthly surveys to determine the numbers of visitors people and a land area 2 and visitor nights stayed in the Manawatu. of 2,960 km . The private household surveys are based on random samples of households in the Manawatu area. The survey does not include day visitors to the Manawatu area. The survey excludes those who stayed in holiday homes and baches in the region. COVEC Tourism & Visitor Tourism

The Convention Research Programme (CRP) was established in 2009 through a partnership between Conventions and Incentives New Zealand (CINZ), the Tourism Strategy Group, MED (previously Ministry of Tourism) and ten Convention Bureaux New Zealand. The following 10 convention bureaux are participating in the Convention Research Programme - Auckland, Rotorua, Taupo, Hawke’s Bay, Manawatu, Wellington, Nelson, Canterbury, Queenstown and Dunedin.

The Convention Activity Survey is conducted by COVEC and monitors and benchmarks

Manawatu Region Manawatu the performance of more than 100 professional conferencing and meeting venues in New Zealand. The survey is the ‘supply-side’ component of the Convention Research Programme. Sector Profile

8 the general holiday orleisure category. in the region,attractions of visitor with an increasing nights recorded proportion in in the growthfactor in visitor nights in the region may beincreased interest in visitor Data from theprivate homesmonitor (APR Consultants) suggestsanincreasing Wildlife Centre. Manawatu region include Tui Bruce and the Mount inMangatainoka Headquarters Pohangina ofthe andOroua river valleys. closeto attractions theboundary Other along theRuahineand Tararua roads rangesthrough andthebackcountry the Rugby thesaleyards Museum, inFeilding, Manfeild Park, development windfarm withintheregion,new attractions buildingonexisting resources suchasthenational However, more recently there hasbeenafocus onstrengthening anddeveloping river are within one to two examples hours drive of activities from the region. Wellington, fields, theHawkes theRuapehuski Bay winetrail andthe Wanganui domestic andinternational visitors. Keyvisitor destinations suchas Te Papa in A keystrength oftheManawatu region hasbeenitscentral positionasabasefor An Emerging Destination

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9 Sector Profile Manawatu Region Tourism & Visitor The Country Road We are working cooperatively with Feilding Promotion, our communities and regional neighbours to develop a suite of interesting scenic loops that link to our major centres. To date Destination Manawatu has published and widely distributed (from Auckland to Nelson) three guide maps – The Country Road, Gardens of The Country Road and Cycling The Country Road. There is a Facebook page, and also a dedicated website – www.thecountryroad.co.nz – which features the touring routes, various maps, attractions, activities, and blog posts from locals living on The Country Road. The Country Road Market features produce, value added and locally produced products, made or sourced from within 100km of Palmerston North City. Another key event associated with The Country Road brand is The Country Road Manawatu Cycle Classic, which is a 160km ride starting and finishing in Palmerston North City, and going through Pohangina Valley, Apiti, Kimbolton and Cheltenham.

Product Development Where there are gaps and opportunities along The Country Road touring routes, Destination Manawatu is mentoring local businesses and supporting key projects. To date Destination Manawatu has worked closely with Apiti Tavern, The Cheltenham Hotel and the Apiti community to get Main Road South sealed. Themed seasonal newsletters for locals and travellers include; The Little Traveller (a child’s guide to Palmerston North City and Manawatu), The Cultural Explorer and The Backpacker. A partnership was struck with The Tribune to feature the monthly events calendar (information sourced from the official regional events calendar – www.manawatunz.co.nz/events) in the “Enjoy” pullout publication. Each week “What’s On This Weekend” A5 sized flyers are distributed to Palmerston North City CBD cafes and visitor attractions, and also to locations in Feilding.

Visitor Information We operate a world-class i-SITE visitor information centre in The Square, Palmerston North City and are continuing to work with Manawatu District Council and others to develop a major i-SITE presence in Sanson. Our i-SITE centres will promote a range of quality operators, touring options and services and actively work with local operators to develop products, packages and brochure materials that supports the Touring Route, The Country Road or special interest themes. Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

10 The Country Road - Manawatu

The Country Road is not a specific road, but a journey, an experience and an attitude. Travelling The Country Road will lead you to meet our people, see our secret places, discover hidden treasures and experience what life is like in our part of New Zealand. It is about the value of the host’s experience being equal to that of the visitor. Interesting people taking time to meet interesting people.

It takes people on a journey off State Highway 1 through rural New Zealand to meet friendly locals and to visit interesting attractions. We have worked hard with community groups across the District to explain that our vision for tourism is not one of large coach loads of people crisscrossing our country roads leaving only financial rewards behind. Rather it is about developing The Country Road – an a marketing platform that attracts a steady exciting project working stream of visitors to “getting lost” and in the with our local community process “finding themselves” in our region – on bicycles and motorbikes, in campervans to open up our and in cars. These are chance meetings world-class countryside to between visitors and our local community both locals and visitors... that are interesting, at times quirky, sincere, a journey, an experience and that have the propensity to lead to and an attitude...lead you lifelong memories. It is as much about the people as it is about the place. At the core of to meet our people, see the brand is the proposition that the value of our secret places, discover the visitor experience is equal to the value of

hidden treasures and & Visitor Tourism the host experience. experience what life A brochure/map featuring 150 scenic is like in our part of highlights of four routes on The Country Road New Zealand. is now in its fourth reprint (over 50,000 copies distributed already), and is currently being distributed to i-SITEs from Taupo to Picton. It has proved particularly interesting to local residents too, many of whom have never gone for a drive to Apiti, Kimbolton or up the Pohanigina Valley. The Country Road is inspiring them to invite their friends Region Manawatu and relatives to experience it also.

The Country Road map/brochure was developed in partnership with the local communities, who decided what they wanted, and didn’t want, featured. The consultation process was extensive – no fewer than 12 community meetings in Apiti, Kimbolton and Pohangina. Sector Profile

11 Developing the Strategy Destination Manawatu’s core strategy in developing leisure tourism is to encourage independent travellers to turn off SH1 at either Mangaweka or Vinegar Hill and travel through Feilding or down the stunning Pohangina Valley and then on via Palmerston North and Shannon before rejoining the state highway near Levin. The touring loops of The Country Road are fundamental to this strategy. However, The Country Road can be a much broader concept to symbolise all that is good about our people and our place.

Since the printing of the main map and guide Destination Manawatu has also published The Gardens of The Country Road and Cycling the Country Road. New publications will include Pubs and Hosted Accommodation on The Country Road, Hunters and Collectors on The Country Road and The Country Road Calendar.

We have established, as part of our work on The Country Road that many of the small operators and businesses need help in shaping their operations to maximise their benefits from the visitor/tourism sector and to cope with the needs and demands of on-line activity. Simple steps like claiming a business’s “space” on Google Maps, getting started on a simple website, having a presence on Facebook or Twitter are daunting for many yet their potential customers use these platforms to find out what’s available. Travellers increasingly use review sites on the internet to validate and select their itineraries. Few operators understand how these sites (e.g. Trip Advisor) work yet they are critically important to a business’s prospect of developing future business. So much of this is now free or inexpensive but operators need a “guide”. We have been helping with a series of seminars We work directly with in our offices in Palmerston North and at the community on a Council in Feilding but there is much more to daily basis to keep the do. In addition, shaping a business to be well positioned for its target markets and writing an communication lines effective operational and marketing plan are open, gather content critical steps that many small operators need for brochures, magazine help with. and radio programmes, We work directly with the community on a and to assist in helping daily basis to keep the communication lines develop operators open, gather content for brochures, magazine business, marketing and and radio programmes, and to assist in helping on-line plans. develop operators business, marketing and on-line plans. Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

12 wh a o r T Mataiaponga g e u n n R a iv a a Manui ngi R t a u 416 M 751 ti k ei S t m Cairnmuir r e a m er r e a r Cottage v Kawhatau Base Wharemata S t v e i R i Lower Rangitane R u to Auckland h Langholm Hotel Kawhatau Ruahine McKinnon Hut a M a pa M 861 1471 m a nga p i5 Mangaweka Mangaweka a n u Adventure a Kawhataug Valley a Horse Treks g Power Scheme a p t n Day Walksa a 776 e a M 538 Good as Goldie Museum 629 S h t m w H ik ur Mangaweka Gallery Mangaweka a a n & Homestay Campground K gi m Kawhatau a M S t m e Mangaweka Oliver’s Art a Mangamahu 444 tr Mangaweka ng S International a 717 Otairi S tr e a m Airport Cafe w tar a m Mangaweka h a Mangaweka ta a Adventure Company r a Upper ai a e The Logs Cottage r P K tr i k o H a u w S i Kawhatau u taw a e Manuka r Purity Hut S tr e a m r Mairenui Rural Retreat a o Pouwhakaura Homestead & Villa n P e 710 g n 637 Mt Huia B & B/ a i ki h Weka Walks 1051 tm ar ir i S t o M R i v m r e S ak m a n er W air e u m g P a H a k ar er e a e a 278 r t S r t Ruahine i S Tiriraukawa M r e R a i 485 Ohingaiti m v Kelly Knight Hut W 421 e Poukiore T S a h u h r n a a S t o r tr r i p e e a m e t i h Karewarewa a Hut g a u m a n Lake n Skylark Lodge M Lake g Backpackers Ngaruru ar Rangitira Ian McKean Namunamu u Golf Club Otamakapua Te Parapara Road Pinetum S Maungamahue tr e a Mangaonoho m 650 Michael POHANGINANgaruru VALLEY ROUTE Rataiti Bourke’s 1661 324 Orangipongo Wetlandsa m Rangiwahia Hut Lake Ruapuna Park e - Travellershi need to be aware of local Kaikarangi Hinau Junk & Disorderly tr UnsealedM a ng Roaa hdow S tr e a m Maungarataiti & Museum S weather and other conditions before using this road Takapurau Lake Rangiwahia Rangiwahia Mangahuia Maungaratanui Waipuru 469 Historical a Track & Hut Pemberton a ng 1583 Vinegar Corner M a Pemberton Hut M a r t o n g ar n Hill a C 384 Rangitikei r e e River Lodge v e 274 C outts C k Marton R i r e e k Rangatira P Block M a n g oi r a S tr e a m aki Apiti S Hunterville hik Golf Course Iron Gates Hut tr 476 ur 1372 e a Livingstone a Pakihikura a m 831 u o S t Alice Nash r Vinegar Hill Domain/ r e Peep-o-Day Mangarimu O a Heritage Lodge, Putai Ngahere m Point O Oroua River & 448 Bruce Park Scenic Reserve Rathmoy m r t Pakihikura ou Iron Gates Gorge S a R iv er a m Maranoa 454 tr e Garden Peep-o-Day S Farmstay Apiti Tavern a M a ng 620 & Museum u 347 k a pi 703 Silverhope a Art Classes pi r at the Historic Table Flat Glencone a a S Rewa School L Mountain Lodge t k i 1568 r e w m a e a m Mageo s t e S Woodcraft Apiti Deerford oTrack/ne C k Sixtus Lodge M t r r & Arboretum Tunupo o RewaM a ng atu t e Makiekie & 308 u a Short Knights P S m Table Flat/Limestone Creek tr C Reserve & Glow-worm Caves e o n a m H Table Flat Trekking e Clay Art Gallery m or C r e e Toka 593 opi k Rata r Rewa Church a to Biv e e S tr e Tutaenui v r am 1519 i Stormy Point t R Lookout Piazza Verde S Umutoi m Makoura H u i a Lodge tew Parklee e ai e Bullriding tr S t k S r e a m Hut i Sabbath Health i 1298 Porewa 54 Cross Hills u t 419 Food Shop n Utuwai i Gardens & Cafe a 1405 W ai ta a m a r g pu S tr e a P Whaingapuna te 523 a n Waitapu i 558 m in Fern Flat iw a g a K e n Waituna Heritage Park tr a 280 S Hut h R 370 Rhododendron Gardens Londons o West Ford i r i P Friars 566 k p Apiti/Kimbolton Boulderi r i Glencolyn e PLodge Little Wool Co. Gardens Lookout Piripi Hut a m e r e r S t Kimbolton C Woodlands Gardens Bartletts Ford 1135 W ai tu n a Atahua Angus & Historic Huts Mid Pohangina Hut Dunolly Beef Farm ) Kimbolton AK Ranch l Marton Lodge Farmstay a K Hut Woodland o o RUAHINE Grange n Takapari Takapari r C Springvalee Gardens R ( w Road u a eHansens Rakautahi 466 a m a S t Tokorangi ha v Cafe & Bar 476 Kahikatea Walk r e a m 1258 ng a 252 i e Pilgrims Rest Tea Rooms S tr e a i & Old Ruahine Deer Park m R kKomako Crofton k e Konewa Hut Beaconsfield e i MCottage B & B FOREST Stanway e a r k k a w ak Nikau C a a w a Retreat M a Spring Grove Komako Church S t Kiwitea Farm Park Hut m u T e o E Poupouatua k Hut Cheltenham Hotel r e Mt Richards a Greatford v O i Totora Reserve o Kakariki u PARK h 703 e m e t B 1141 S m a Tree Tops Bed & Breakfast S i Halcombe e u Cheltenham t n r r e t ta Cheltenham e u S General Store 359 Behive Creek a Umutaoroa T Opawe Track m The First Manawatu & Takeaways Pohangina Walk Fern Walk 118 District Airfield E Country Villa O h 1035 Cheltenham Rest Area i ne Maharahara a t a Peak Track G e Branch Road pu Bulls m t Walkway S N a i m D t Makino Almadale a 343 u n r e w d e r i e a s A t r Pohangina Community a Mount Lees Reserve K t m S S School Reserve Pohangina R Hut Sports Ground Almadale C Hiamoe Farmstay Pohangina r 1095 O o Scenic Reserve r e t n Bed & Breakfast Lutrells White Pine a Ruaroa Maewa i Gardens & Museum e e m k e Pohanginav Awahou k Maharahara Ohakea n a a i Wetlands r o North M a a R Songbird Gardens h No.1 Line o Mt Biggs 152 g Tiro Roa & Cottage Menzies Ford n Lookout Track Hut a Gardens R

& Nursery a M S

p Raumai Reserve t a Dannevirke Pohangina Valley Estate m E r Sanson Hitchmans Ross a Rangeview B & B p Corner Water Raumai N Trough a 296 Awahou 1053 I w T a T South o i a Parewanui The Waterford k H m m Lookout Colyton e Kowhai Park Cafe & Bar a S a a 3 w A t k e Feilding a r i r a e Makirikiri t e a m a n W h ar S tr m to Hawkes Bay S 131 Colyton er o a U i Aorangi i S a Timona Park Clocks tr h 224 g e a m Kiritaki ow Kitchener Park R O ak Waitohi n r M u a Tahoraiti a k e Taonui r e h Timber Bay Estate t a Wharite R Manfeild Park Taonui o k i i

v P S e 920 237 t r Tai Katoa m Awahuri 54 Maharahara Oringi Hiwinui Fusion Cafe Hiwinui Country Estate The Herb Farm Maharahara Te Arakura Te Apiti Windfarm 316 Carnarvon to Wellington Lookout West Bunnythorpe 266 Rongotea Kauwhata 416 Ashhurst Waiaruhe Tourism & Visitor Tourism 102 Q - Kayaks M a Greenhaugh n Mangarawa Kopane Gardens aw Ashhurst Domain/ & Nursery a Cafe Domian tu r m Ashhurst Inn G a r o e 256 e e rge r r v e t Newbury v 278 i iv S 3 i R R Papatawa R Manawatu Gorge Glen Oroua a i u PALMERSTON Bush Walk (A) 3 tu u n Whakarongo a O o o Milson u t a Brookfields t 432 Woodville w o r T a 324 a p NORTH Golf Course w n e O 13 Roslyn na M a Kairanga M a Kumeroa Takaro Terrace End Manawatu Gorge 468 Oroua Downs Bush Walk (B) Hopelands O Cloverlea ta Taikorea Hokowhitu w A h w a West End Aokautere o 333 a Awapuni Manawatu p i T S Golf Course k t o m Tarakamuku o Longburn 281 t p 423 a 544 Ruawhata i r k a 473 Mangawhata Karere Wind Farm o Massey University Lookout S Ngawapurua t Turitea Campus Lookout 407 S r 56 tm e Tiakitahuna a North Range Road 352 m 46 to Wellington 57 to Wellington T 508 629 u Ballance Region Manawatu Bainesse r i t Turitea e

a r M a e S k i v Utiku Mangatainoka ai r R t Rangiotu 373 r o

m E Kohinui Linton K 249 W a e a k 222 i M a Waewaepa h v t S r oa S t m C i a t u 281 R k r e t R to Masterton o a u e to Tautarua m 760 t r r a a u a Opiki a Mangahao 203 a 427 w e G u w Upper Turitea walk r m E a a u G SOURCE: Destination Manawatu Sector Profile

13 14 Sector Profile Manawatu Region Tourism & Visitor Images courtesy of Destination Manawatu ofDestination andLauraImages courtesy Photography Ridley Domestic Tourism

Domestic tourism generated more than half of the $12.3 billion of total New Zealand tourism GDP in 2005, emphasising its importance to the New Zealand economy. The main focus in recent years has been on the fast growing international visitor market, leading to the risk of overlooking the importance of domestic tourism. The central position of the Manawatu region means that domestic tourism generates a much greater share of tourism GDP in the region compared with most other regions.

Palmerston North’s position as a significant destination for domestic day visits and overnight visitors has been confirmed by new Tourism Strategy Group (Ministry of Economic Development) data for domestic tourism. There were over 1.1 million domestic day visits to Palmerston North during 2010 and 399,000 overnight visits, resulting in over 1.1 million visitor nights in the city.

In 2010 Palmerston North accounted for 4.0% of total domestic day visits in New Zealand, 2.5% of all overnight visits by domestic visitors and 2.4% of national domestic visitor nights. The statistics suggest there are an average of 3,100 day visitors to the City every day and 3,085 overnight visitors in the City every day (compared with an estimated city population of 81,300 people as at 30 June 2010).

Recreation Tourism Domestic visitors to Palmerston North who are visiting friends and families contribute a higher proportion of visitors to the city compared with the national average. However, there are also significant numbers of visitors for leisure, recreation and holidays. In 2010 Palmerston North In 2010 there were: accounted for 4.0% of • 233,000 domestic day trips for leisure, total domestic day visits recreation or holidays in New Zealand, 2.5% (2.3% of the national total). of all overnight visits by • 121,000 domestic overnight trips (1.8% domestic visitors and of the national total). 2.4% of national domestic • 478,000 domestic visitor nights (2.1% of visitor nights. the national total).

Domestic overnight visitors staying in the city for leisure, recreation or holidays stayed for an average of 4 nights (compared with the national average of 3.5 nights)

The concentration of retailing, convention and meeting room facilities, sports facilities, business and health service and tertiary education providers in the City resulted in Palmerston North accounting for 71% of day visits in the Manawatu RTO Tourism & Visitor Tourism during 2010. The City has a lower share of overnight visitors (56% share) and visitor nights (39%), but this is influenced by the high proportion of domestic visitors who stay with friends and family. Palmerston North has a 57% share of the Manawatu RTO population. Manawatu Region Manawatu Sector Profile

15 Domestic Visits By Local Authority 2010 1,200 1,125 1,050 9,75 9,00 825 750 675 600 525 450

Number of Visits (000s) Number of 375 300 225 150 75 0 Hastings District New Plymouth District Palmerston North City

Day Visit Overnight Visit Total

Source: Tourism Strategy Group, Ministry of Economic Development

Number of Domestic Visits to Manawatu RTO & Palmerston North City (Year ended December 2010) Palmerston North Palmerston North Trip Type Manawatu RTO City % share of City Manawatu RTO

Total 2,295,734 1,532,812 67%

Day Visit 1,589,689 1,133,944 71%

Overnight Visit 706,036 398,868 56%

Total Nights 2,899,037 1,125,856 39%

Average Nights per Visit 4.1 2.8

Source: Tourism Strategy Group, Ministry of Economic Development

Percentage Share of New Zealand Totals DOMESTIC Visits during 2010

Trip Type Manawatu RTO Palmerston North City

Total 5.2% 3.5%

Day Visit 5.6% 4.0%

Overnight Visit 4.4% 2.5%

Visitor Nights 6.1% 2.4% Tourism & Visitor Tourism Source: Tourism Strategy Group, Ministry of Economic Development

Direct comparison with the Destination Manawatu Private Accommodation Monitor is not possible because the data is collected for the Manawatu region. Some commercial accommodation visitor data is available by local authority, but the data on the origin of visitors in commercial accommodation is only available for the wider Manawatu RTO region. Manawatu Region Manawatu Sector Profile

16 Domestic Overnight Visitors to the Manawatu Region, 2010

Visitors Visitor Nights

Private Homes 335,599 1,063,588

Commercial Accommodation *2 229,261 406,616

Total 564,860 1,470,204

Source: APR Consultants and Statistics New Zealand

It should be noted that the data records the total number of visits to the region rather than the number of people who visited the region so does not suggest 565,000 New Zealanders visited the Manawatu region during the year. It is likely many people visited the region more than once during the year, especially business travellers and visitors coming to see family and friends. The BNZ Marketview cardholder data, however, does confirm there are significant numbers of domestic visitors to Palmerston North and the Manawatu region. In the year to June 2010 55,106 BNZ customers who live outside Palmerston North used their EFTPOS or credit card in the City and 58,651 cardholders from outside the region made purchases at retailers in the Manawatu region.

Data on the origin of domestic overnight visitors is no longer available from the commercial accommodation survey but is collected for the Private Homes Monitor by APR Consultants for Destination Manawatu. The data for small regions is subject to high sample error rates but nevertheless gives a good picture of where domestic visitors are coming from. The Manawatu region data above excludes some visitors who did not stay in private homes or in commercial accommodation. Visitor nights in other accommodation includes visitors staying in student hostels, those who stayed in holiday homes and baches and those who were billeted in community facilities such as schools, marae or church halls, for example.

Visitors from regions within two to three hours drive of the Manawatu (Taranaki, Wanganui, Wellington, Wairarapa and Hawkes Bay) accounted for 54% of total visitors staying in private homes during the year to December 2010. Wellington region visitors alone accounted for a 29% share of overnight visitors. The share of visitor nights for those regions within 2 – 3 hours drive from the region is lower. Wellington accounted for 23% and the wider region accounted for 45% of visitor nights. This smaller share reflects shorter overnight stays by the visitors who live closer to the Manawatu.

The Bay of Plenty is at the edge of the 2 – 3 hour drive zone from the region but accounts for a higher than expected share of visitors to the region. It only accounts for 6% of New Zealand’s population but accounted for 10% of visitors to the region and 12% of visitor nights. Major improvements to State Highway 1 mean that Taupo is now only three hours drive from Palmerston North so parts of the Bay of Plenty are now within the wider two to three hour drive zone. Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

2 This includes international visitors. In 2010 international visitors accounted for 10% of visitor nights in commercial accommodation in the Manawatu RTO region. 17 Domestic Visitor Nights by Origin (Staying with Family and Friends in the Manawatu Region) Year ended December 2010 Otago Nelson/Marlborough 2% 3% Northland Canterbury Bay of Plenty 3% 6% 12%

Taranaki 6%

Wanganui 3% Auckland 18%

Wellington Waikato 23% 11%

Wairarapa Hawkes Bay Poverty Bay 4% 7% 2%

Domestic Visitors by Origin (Staying with Family and Friends in the Manawatu Region) Year ended December 2010 Otago 1% Nelson/Marlborough 2% Canterbury 4% Bay of Plenty Northland 2% 9%

Taranaki 7% Auckland Wanganui 15% 4%

Waikato 10%

Wellington 29% Poverty Bay 2% Hawkes Bay 9% Wairarapa 5%

Source: APR Consultants

Palmerston North Share of National Domestic Day Visits and Overnight Visits (Year to December 2010) 6.0%

4.8% Tourism & Visitor Tourism

3.6%

2.4% Percentage of Visits Percentage

1.2% Manawatu Region Manawatu

0.0% Total Leisure, Recreation Visiting Friends Business Education and Holidays and Relatives and Professional

Day Trips Overnight Trips Sector Profile Source: Tourism Strategy Group, Ministry of Economic Development

18 The region’s central position in New Zealand, and the significant population within two to three hours drive from the region, seems to be a significant factor in the region’s high share of visits to friends and relatives. In 2010 Palmerston North City alone accounted for 5.2% of national domestic day trips to visit friends and relatives and 3.2% of overnight trips to visit friends and relatives. The City is also a significant base for business and professional visitors (4.8% of day trips and 2.7% of overnight trips.)

A Tourism Strategy Group summary table, with annual data for domestic overnight visitors to key centres, shows visitor nights to Palmerston North during the year to December 2010 compare very favourably with recognised holiday destinations.

Domestic Travel Survey - Overnight Trips to Key Places in NZ Year Ended Dec 10 % share of total Key Places Number of overnight trips overnight trips

Total 15,872,307 100%

Auckland 1,698,966 11%

Wellington 1,184,918 7%

Christchurch 1,020,379 6%

Hamilton 662,302 4%

Rotorua 536,532 3%

Taupo 528,312 3%

Tauranga 453,126 3% & Visitor Tourism

Dunedin 409,833 3%

Palmerston North 398,868 3%

Napier 364,940 2%

Queenstown 290,588 2%

New Plymouth 287,084 2% Manawatu Region Manawatu Hastings 278,719 2%

Source: Tourism Strategy Group, Ministry of Economic Development Sector Profile

19 Domestic Travel Patterns in New Zealand Results drawn from the 2009 Domestic Tourism Research project3 survey of New Zealand residents show: Day Trips • half of all adults take at least one day trip each month to visit friends or family • half of all adults take at least one day trip each month to go shopping • day trips for other purposes are less common overall, although one in three adults travels at least once a month to attend an event held by family/friends, and • one in three adults takes at least one day trip each month simply for a break away from home.

New Zealand Residents Average Number of Day Trips Per Month Per Person by Trip Type

Simply to take a break away from home 1.2

To see or do something speci c 1.6

To go shopping 2.8

To visit friends and family 2.4

Trip Type Trip To attend another event 0.5

To attend an event held by family/friends 0.7 Tourism & Visitor Tourism

For study or education 0.8

For business or work 2.5

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Number of Trips per month A day trip was de ned as “any trip which involved travel of at least 40 kilometres one way from home or travel by plane or ferry service and didn’t involve staying away from home overnight”. Trips which were part of a normal routine (e.g. commuting for work) were speci cally excluded.

Source: Angus & Associates / The Knowledge Warehouse / Tourism Resource Consultants Manawatu Region Manawatu Sector Profile

3 Domestic Tourism Market Segmentation, April 2010, Angus & Associates / The Knowledge Warehouse / 20 Tourism Resource Consultants. Overnight Trips • almost half of all adults take at least one short break in New Zealand each year • just one-quarter of adults take a longer holiday (of 6 nights or more) • a similar proportion take at least one international holiday each year.

When frequency of trips is taken into account, it becomes apparent that the average New Zealander takes a substantial number of day trips in any given four week period, most often for the purpose of shopping (an average 2.8 trips every 4 weeks), business (2.5 trips), to visit friends/family (2.4 trips) or just to simply take a break away from home (1.2 trips).

Domestic overnight trips are relatively less frequent, with the average New Zealander taking just 0.7 trips for business each year, 1.0 trips to attend an event held by family/ friends, 1.9 trips for a short break or holiday (5 days or less) and 0.6 trips for a longer holiday (more than five days). The bulk of this more discretionary leisure travel takes the form of short breaks (defined as 5 nights or less). The much higher frequency of short overnight trips of five days or less is favourable to a central location like the Manawatu, which is accessible in six hours by road from Auckland and significantly less from most areas of the North Island. The Domestic Travel Survey records that in 2010, 90% of domestic overnight trips involved travel by car, 16% travel by air and 4% by scheduled coach services.

New Zealand Residents Average Number of Overnight Trips Per Year Per Person by Trip Type

For a break or holiday 0.6 (more than 5 nights)

For a break or holiday (5 nights or less) 1.9

Only to attend an event held by family/friends 1.0 Trip Type Trip

Only for study/education 0.1

Only for business purposes 0.7

0.0 0.5 1.0 1.5 2.0

Number of Trips per year

Source: Angus & Associates / The Knowledge Warehouse / Tourism Resource Consultants

International trips are less common still, with the average New Zealander taking 0.4 international trips for leisure purposes per annum (or one trip every 2.5 years). Tourism & Visitor Tourism

New Zealand Residents Average International Trips Per Year Per Person by Trip Type

For a break or holiday 0.4

Only to attend an event held by family/friends 0.1 Manawatu Region Manawatu Trip Type Trip

Only for study/education 0

Only for business purposes 0.1 Sector Profile

0.0 0.1 0.2 0.3 0.4 0.5 Number of Trips per Year 21 Source: Angus & Associates / The Knowledge Warehouse / Tourism Resource Consultants Palmerston North Connected City Monthly Air Movements - Passenger Services

Auckland

Hamilton

PALMERSTON NORTH

Wellington

Passenger Movements Freight Movements

Christchurch Tourism & Visitor Tourism

Dunedin Invercargill Manawatu Region Manawatu

SOURCE: Destination Manawatu Sector Profile

22 BAY OF Gysers & Cultral Experiences PLENTY Palmerston North - Connected City Rotorua Hub to North Island Tourism. WAIKATO

Natural Hot Springs Taupo Taupo Bungy LAKE TAUPO KING COUNTRY Natural Hot Springs

New Plymouth

NATIONAL ANGES PARK A R Whakapapa Forgotten Highway Ski Feild Manganui Ski Feild OHAKUNE KIAMANAW TARANAKI (Ski Party Central) Turoa Ski Feild River Rafting NAPIER Surf Highway (Art Deco City) Bridge to Taihape Nowhere Mokai Gravity HAWKES Canon River Kayaking BAY Adventures Hastings

Wanganui RANGITIKEI

ANGES

E R

AHIN U R

PALMERSTON NORTH

MANAWATU

ANGES TARARUA A R

Native ARU Mt Bruce Bird Sanctuary Wildlife Centre AR T & Visitor Tourism

MARLBOUROUGH KAPITI SOUNDS ISLAND KAPITI COAST KEY

WAIRARAPA SKI FIELD

TROUT Wellington Martinborough VINEYARD Manawatu Region Manawatu

BUNGY & Natural EXTREMES Cook Straight Ferry Seal Colony Crossing

SOURCE: Destination Manawatu Sector Profile

23 Te Manawa Experience

Te Manawa is the region’s cultural centre where art, heritage and science themes dominate. Exhibitions explore the past; seek to inform today and pose questions about tomorrow.

The fascination of art, history and science come alive, through a multitude of interactive exhibitions. Te Manawa collection objects are presented sharing stories of the past not seen elsewhere, and inviting us to think about our future.

Stories about the people of the Manawatu are told with pride.

Galleries include: • Te Awa – The River – an interactive exhibition about the Manawatū River, • Kids TM – a unique house and garden designed for children under 8 years of age, • Manawatū Journeys – focuses on migration and explores key stories in the development of Manawatū, • Te Taiwhanga of Te Rangi Whenua (Te Rangi Whenua Gallery) shares the stories of iwi groups in the Manawatū, Rangitīkei and Horowhenua regions. Located 326 Main Street Palmerston North 06 355 5000 [email protected] Opening Hours 10am-5pm daily including weekends and public holidays (except Christmas Day, Boxing Day, New Year’s Day and Good Friday) Free admission

New Zealand Rugby Museum

The Museum has undergone an extensive redevelopment and is now housed at Te Manawa it is one of New Zealand’s most important cultural attractions. It is much more than static displays of memorabilia and historic information. It is a place where you can experience rugby culture, connect with the heroes, be physically challenged by the interactive exhibits, and gain a sense of just how compelling this much loved game is.

The museum houses one of the best collections of all things rugby, including: • Rugby heroes and legends through the decades • History and folklore Tourism & Visitor Tourism • The stories of how rugby has shaped New Zealand as a nation • New Zealand rugby’s Rare XV

Interactive activities for a rigorous workout in the “Have a Go” area include kicking, tackling and pushing activities. Hours of Opening 10am - 5pm Manawatu Region Manawatu 7 days a week Tour and Rugby Groups by arrangement. Admission Adults - $12.50

Sector Profile Children - $5

24 International Visitors

International tourism accounts for a smaller share of tourism in the Manawatu region compared with the average for New Zealand but it is still a significant contributor to economic activity in the region. Much of the data is only available for the wider Manawatu RTO region but the data is relevant to the Manawatu region, which accounts for a significant share of economic activity and tourism in the Manawatu RTO region.

In 2009 the Manawatu RTO region accounted for: • 1.0% of international day visits • 0.9% of international overnight visits • 1.6% of international visitor nights International tourists contribute just over 12% of overnight visits in the Manawatu RTO region but contribute 30% of total visitor nights in the region. There is an average stay of 7.6 nights for international visitors compared with an average overnight stay of 2.2 nights for domestic visitors. The average stay for international visitors in the Manawatu RTO region was the longest for any of the RTO regions and significantly higher than the national average of 4.1 nights (International Visitor Survey).

Estimated expenditure by international visitors to the region was $54 million, 13% of total visitor spending in the region and 0.9% of total international visitor spending in New International tourists Zealand. contribute just over 12% of overnight visits in the Data from the APR Consultants Private Manawatu RTO region Home Monitor for the Manawatu region also suggests that visitors staying in private but contribute 30% of accommodation are likely to stay longer than total visitor nights in other visitors to the region. International the region. There is visitors in private accommodation in the an average stay of 7.6 Manawatu region stayed for an average of 8.5 nights during 2010 while domestic visitors nights for international stayed for an average of 3.1 nights. Longer visitors compared with an average stays for international visitors were average overnight stay of recorded for visitors from the UK while the 2.2 nights for average stay of 7.6 nights for visitors from domestic visitors. Australia was below the average for all international visitors. The sample for visitors from other countries was too small to provide a reliable indicator of average nights stayed.

In 2010, 51% of international visitors staying in private accommodation in the Manawatu region were from Australia. This is very similar to national data for short- Tourism & Visitor Tourism term visitor arrivals to New Zealand which indicated the primary purpose for visits was to visit friends and family. Visitors from Australia accounted for 53% of total visitor arrivals in this category. International visitor arrivals data (staying for less than 12 months) for the year to December 2010 records that 48% of visitors were primarily coming for a holiday, 31% were visiting friends and relatives, 10% were here for business, 2% for a conference or convention and 2% for education (‘other’ and ‘not stated’ were 6%). The proportion of visiting friends and relatives visitors has increased, which is likely to reflect increased migration of New Zealanders to Manawatu Region Manawatu Australia. Sector Profile

25 Purpose of Short-term Visitor Arrivals to New Zealand

70%

60%

50%

40%

30%

20% Percentage of Total Visitor Nights Visitor Total of Percentage

10%

0% 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Year Ended December

Holiday Visit Friends/Relatives Business

Source: Statistics New Zealand

International Visitor Survey data for the Manawatu RTO region shows that a higher proportion of international visitors to the region were here to visit friends and relatives (44%) and a lower proportion (40%) were here for a holiday (compared with the national proportions of 31% and 48% respectively). These proportions change more significantly for visitor nights in the region compared with the national averages, due to the long average stay in the region for international visitors.

Visitors from Australia contributed 47% of international visitor nights in private homes in the Manawatu region in 2010, (and 51% of international visitors) while the UK contributed 20%. The UK share of visitor nights is higher than the UK’s 17% share of total visitors due to the longer average nights stayed by visitors from the UK.

International visitor nights in the region declined during 2006 and 2007 but have increased strongly over the last three years, more than doubling over that period. International flights to Palmerston North did not end until March 2008, but passenger numbers declined significantly over the two years before all flights finally ceased. Visitor arrivals at Palmerston North airport peaked in the March 2006 quarter and had declined by 11% by March 2007, while visitor arrivals through Wellington airport increased over the same period in response to increasing competition there from new airlines. Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

26 International Visitors by Origin (Staying with Family and Friends in the Manawatu Region) Year ended December 2010 Other Asia 4% Other Overseas 3% Singapore/Malaysia/Hong Kong 1% Taiwan/South Korea1% Japan 3%

Other Europe 7%

Germany 3% Australia 51%

United Kingdom 16%

Canada 4% USA 7%

Source: APR Consultants

Annual International Visitor Nights in Private Accommodation in the Manawatu Region 500

450

400

350

300

250

200 Visitor Nights (000s) Nights Visitor 150

100

50

0 2006 2007 2008 2009 2010 2011 Year Ended

Source: APR Consultants Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

27 New Zealand Wind Energy Conference Palmerston North 29th – 31st March 2010

The New Zealand Wind Energy Association’s Wind Energy Conference and Exhibition is the annual event for New Zealand’s wind energy industry. It is organised by the industry, for the industry. It is the only event where all industry participants gather in one place to share their experience and expertise in wind energy.

The 2010 conference had over 280 delegates with 35 companies involved as sponsors or exhibitors. This was a great result when Had over 280 delegates compared to 2009 conference in Wellington which had about 280 delegates and over 30 attend with 35 companies involved as sponsors or exhibitors. companies involved as sponsors or exhibitors. The conference hadn’t been out of Wellington for a number of years and was held there again A great result when in 2011. compared to 2009 conference in Wellington Members of Manawatu Chamber of Commerce which had about 280 and conference delegates visited the Tararua Wind Farm where they were able to take the delegates and over 30 lift to the top of a turbine and see the inside companies involved as workings and take in the view of Palmerston sponsors or exhibitors. North City and Manawatu. Tourism & Visitor Tourism Nigel Parry, Communications Manager for the New Zealand Wind Energy Association says Destination Manawatu were very helpful and supportive. The conference centre met our requirements and Destination Manawatu also put us in contact with a local venue for the industry dinner.

NZWEA looked at venues around New Zealand and one of the attractions of Palmerston North was the ability to keep Manawatu Region Manawatu everything under one roof while staging such a major conference and exhibition. Of course, the other attraction for us is that Palmerston North plays a significant role in New Zealand’s wind industry, with several wind farms nearby including NZ’s biggest. Sector Profile The Council also helped with placing the giant turbine blade by the venue as part of the event.

28 Conventions

Destination Manawatu – The Road to 2015 Palmerston North is located at the centre of 1 million people within a 2-hour drive. It is easily accessed by air from all major New Zealand centres. It has a mature and well structured conventions and meetings industry for conferences of up to 600 delegates. The region has excellent corporate retreat and meeting support services.

The Convention Activity Survey is the main source of data on conventions in the Manawatu region and is based on a survey of venues that regularly host meetings, incentive activities, conferences, exhibitions and special occasions involving more than 10 people. Events such as internal business meetings and university events hosted within university facilities are excluded from the survey. Major improvements to the survey mean the data from the September 2009 quarter is not comparable with earlier Conventions are quarters. important to the region Conventions are important to the region because the average because the average daily expenditure daily expenditure by by convention delegates is significantly higher than for other visitors to the region. convention delegates is Conventions also play an important role in significantly higher than bringing domestic and international visitors for other visitors to into the region, who may not have normally the region. chosen to travel here for a holiday, and are an important source of income for the commercial accommodation sector in the region.

In the year to December 2010 there were 1,733 events recorded in the survey for the Manawatu region, accounting for 5% of national events. There were 146,556 delegates at these events in the region and a total of 201,702 delegate days, again 5% of the national data. The Manawatu region was the fifth largest for delegate days in 2010. Auckland accounted for 37% of delegate days, Wellington 22%, Canterbury 13% and Rotorua 7%.

Image courtesy of Laura Ridley Photography Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

29 Convention Delegate Days Year Ended December 2010 1600

1400

1200

1000

800

600 Delegate Days (000s) Days Delegate

400

200

0

Rotorua Taupo Nelson Auckland Hawke's Bay Manawatu Wellington CanterburyQueenstown Dunedin

Multi Day Single Day

Source: COVEC

A major area of strength for the region is in trade show and exhibition activity. In 2010, 70,816 delegate days were recorded in this category; 19% of total delegate days nationally and 35% of total delegate days in the region. In contrast, trade shows and exhibitions accounted for just 10% of national delegate days. Examples of trade shows and exhibitions in the Manawatu region in the last 12 months include the Central North Island Field Days, the New Zealand Beef Expo and the Foodstuffs Expo. All of these events reflect the linkages between sectors which are of importance to the region (for example, agriculture and logistics) and the region’s central position in New Zealand.

Delegates attending events in the Manawatu region during 2010 were nearly all from Delegates attending New Zealand, with just 1,921 delegate days events in the Manawatu recorded for visitors from overseas compared region during 2010 were with 199,781 days for domestic visitors. There nearly all from New were 793 delegate days for Australian visitors Zealand, with just 1,921 and 1,128 delegate days for visitors from other countries. delegate days recorded for visitors from overseas Delegate days for events in the region show compared with 199,781 a similar share of corporate, government and private function delegate days compared days for domestic with the national data, although the region visitors. There were had a higher proportion of delegate days for 793 delegate days for association events (7% of the national total). Tourism & Visitor Tourism Australian visitors and

The region had a greater proportion of national 1,128 delegate days multi-day event delegates and delegate days (8% and 7% respectively) and a lower ...from other countries proportion of single day events (4%). Delegate Expenditure A COVEC convention delegate survey4 covering the year to June 2010 collected data

Manawatu Region Manawatu from multi-day convention delegates in New Zealand. It identified that domestic delegates generated an average of 3.3 visitor nights (2.8 nights in the host region and 0.6 nights in other regions), while international delegates spent an average of 8.4 nights in New Zealand (5.1 nights in the host region and 3.4 nights in other regions).

Multi-day convention delegates spent a total of $395 million in the New Zealand

Sector Profile economy, including GST. Domestic delegates accounted for $202 million (51%) of this total, local delegates $81 million (20%) and international visitors $112 million (28%).

30 4 COVEC Convention Delegate Survey, Year ending June 2010. The Manawatu region had 46,288 delegates at multi-day conventions in the region in the year to June 2010; 6.6% of the national total. Based on the national delegate expenditure estimates, this suggests multi-day delegate convention expenditure in the region was $21.2 million. The survey identified that 9% of national delegate spending included tourism spending in other regions (not in the region where the convention was held) but it is difficult to identify how much of this spending occurred in the Manawatu region.

On average each international delegate spent a total of $4,079 in New Zealand, compared with $1,419 for domestic delegates and $725 for local delegates.

Average Spend in NZ by multi-day convention delegates ($NZ, including GST) Origin of Delegates

Local Domestic International

Delegate Spend in Host Region $725.08 $1,210.73 $2,482.30

Registration fees $670.00 $661.75 $920.63

Accommodation - $250.26 $608.54

Food & beverage $17.44 $115.10 $307.79

Retail purchases $4.53 $88.72 $316.62

Entertainment & activities $2.47 $45.15 $172.88

Ground transport $28.62 $47.31 $135.13

Other spend $2.02 $2.44 $20.71

Other spend by Delegates $0.00 $208.40 $1,596.72

Tourism spend in other regions - $74.61 $893.89

Domestic airfares - $133.79 $191.52

International airfares - - $511.30

Total Delegate Spend $725.08 $1,419.13 $4,079.01

Local delegates – local residents attending the convention and other New Zealand convention attendees who already live in the Manawatu region.

Domestic delegates – New Zealand delegates who stay overnight in commercial or private accommodation in the region.

Source: Convention Activity Survey and Convention Delegate Survey

International convention delegates spent an average of $424 per night in New Zealand (excluding international airfares), compared with $117 by all international visitors in the year ending June 2010 (based on data collected for the International

Visitor Survey). & Visitor Tourism

Domestic convention delegates also spent an average of $424 per night, compared with $118 by all domestic travellers in the year ending June 2010 (based on data collected for the Domestic Travel Survey).

The COVEC report estimated that the $395 million of expenditure by multi-day convention delegates on all goods and services in New Zealand contributed around $398 million to national GDP in the year ending June 2010. This comprised a direct impact of $157 million and an indirect/induced impact of $241 million. Region Manawatu

The main components of this expenditure were: • $127 million spending by delegates on goods & services in host regions, including $78 million by domestic visitors and $43 million by international

visitors. Sector Profile • $35 million of tourism expenditure by delegates in other regions before or after the event, including $11 million by domestic visitors and $25 million by international visitors. 31 • $194 million on registration fees, most of which would have been spent in the host region by the event organiser to deliver the event. • $24 million on domestic airfares, and $14 million on international airfares that accrue to New Zealand

Total Spend in NZ by multi-day convention delegates DURING YEar to june 2010 ($NZm, including GST) Origin of Delegates Local Domestic International Total Share

Delegate Spend in Host Region $80.65 $172.34 $68.32 $321.31 81%

Registration fees $74.52 $94.20 $25.34 $194.06 49%

Accommodation - $35.62 $16.75 $52.37 13%

Food & beverage $1.94 $16.38 $8.47 $26.80 7%

Retail purchases $0.50 $12.63 $8.71 $21.85 6%

Entertainment & activities $0.27 $6.43 $4.76 $11.46 3%

Ground transport $3.18 $6.73 $3.72 $13.64 3%

Other spend $0.23 $0.35 $0.57 $1.14 0%

Other spend by Delegates $0.00 $29.66 $43.95 $73.61 19%

Tourism spend in other regions - $10.62 $24.60 $35.22 9%

Domestic airfares - $19.04 $5.27 $24.32 6%

International airfares - - $14.07 $14.07 4%

Total Delegate Spend $80.65 $202.01 $112.27 $394.92 100%

Share 20% 51% 28% 100%

Source: Convention Activity Survey and Convention Delegate Survey

Conferences and conventions (and other business events) are an important source of shoulder and off–season demand for the commercial accommodation sector. This demand is important because it improves profitability in the commercial accommodation sector by improving occupancy rates during periods when guest nights are normally lower than average. These kinds of events also generate high expenditure and often include add–on leisure travel.

There are five main market segments in the business events industry:

Association hosted events – this market covers a wide range of event types and categories: medical meetings, scientific, other academic, trade organisations, professional bodies and social groupings. They provide the largest share of business for convention centres.

Tourism & Visitor Tourism Exhibitions – covering both trade and public events. Stand-alone exhibitions are

often developed and owned by entrepreneurial exhibition organisers, a small number of which are global companies. Exhibitions also form an important component of many association conferences, and provide a revenue source and commercial boost to the event.

Corporate meetings – tend to be smaller than association conferences. The meetings can take many forms: annual corporate conferences, retreats, training seminars, AGMs and product launches. The strength of this sector tends to reflect the strength Manawatu Region Manawatu of the economy.

Corporate incentive travel – these are used to reward top clients, distributors and/or staff and can range from very small groups or couples to many thousands of people at one time. This segment often combines a one to two day meeting with leisure

Sector Profile activities.

Government meetings – these meetings are often held on a regional rotation, such as APEC, or in response to a political, economic or humanitarian crisis.

32 Retail

Overview The retail sector is an important part of the Manawatu region economy, with a higher share of regional GDP compared with the national average, and is a major contributor to employment and earnings. The sector attracts a significant number of visitors to the region, so is an important component of the tourism sector, and an important source of part-time and holiday employment for tertiary students in the region. Only part of the retail sector was counted when preparing the tourism sector employment and GDP estimates. The retail trade sector is a very important source Jobs of part-time and holiday The retail sector accounted for 9,180 jobs employment for students in the Manawatu region in February 2010, or 16.5% of total jobs in the region. Annual in tertiary education earnings (salaries and wages and self- facilities in the region, employed) were $278.6 million in the year reflecting the important to March 2009, 10.8% of total earnings in inter-linkages which the region. The number of jobs in the sector occur between sectors... increased by 1,440 between February 2000 and February 2010, an increase of 19%, 15 – 24 age group slightly weaker than overall job growth in the accounted for 39% of region (21%). The growth in the region was, employment in the however, stronger than national employment retail sector in the growth in the retail sector, which grew by Manawatu region... 18% between 2000 and 2010.

The retail trade sector is a very important source of part-time and holiday employment for students in tertiary education facilities in the region, reflecting the important inter-linkages which occur between sectors. Data from the 2006 Census shows that the 15 – 24 age group accounted for 39% of employment in the retail sector in the Manawatu region, while this group accounted for 20% of overall employment in the region. Similarly the retail sector accounted for 29% of jobs with between 1 and 15 hours a week.

Image courtesy of Laura Ridley Photography Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

33 retail sector employment Manawatu Region New Zealand Manawatu share of 2000 - 2010 2000 - 2010 Jobs Count by Sector* national change change

ou n t ou n t retail loyee E m p loyee C E m p loyee C employment 2010 # % 2010 # %

Core Retailing

Food Retailing 1,560 110 8% 64,800 10,130 19% 2.41%

Other Store-Based Retailing 2,900 300 12% 104,580 19,020 22% 2.77% Non-Store Retailing and Retail Commission Based 463 412 808% 1,750 -480 -22% 26.46% Buying and/or Selling Accommodation 690 90 15% 31,800 4,110 15% 2.17%

Food and Beverage Services 2,710 520 24% 99,180 22,090 29% 2.73%

Total core 8,323 1,432 21% 302,110 54,870 22% 2.75%

Motor vehicle retailing Motor Vehicle and Motor 580 95 20% 14,640 -840 -5% 3.96% Vehicle Parts Retailing Fuel Retailing 290 -70 -19% 8,870 -3,650 -29% 3.27%

Total motor vehicle 870 25 3% 23,510 -4,490 -16% 3.70%

Total Industry 9,180 1,440 19% 325,630 50,390 18% 2.82% * Note: reclassification of some businesses occurred during the period between 2000 and 2010, affecting the comparison of 2000 and 2010 job counts) within the retail sector

Source: Statistics New Zealand

Earnings The retail sector’s share of total earnings and GDP in the region is smaller than its share of job numbers because of the high proportion of part-time employment in the sector and the young average age of employees. It is still a significant contributor to total earnings, with a 10.8% share in the year to March 2009. The earnings data is based on salaries and wages paid and annual income of the self-employed in the year to March 2009 (the latest year for which data is available). While the growth in the number of jobs in the sector was slightly weaker than overall jobs growth over the period from 2000 to 2010, the gap between earnings growth in the region was even smaller. Retail sector earnings increased by 65.0% between 2000 and 2009 while total earnings growth across all sectors was 65.6%.

National retail sector jobs growth was similar to the jobs growth recorded in the region between 2000 and 2010 (18% and 19% growth respectively) but the region

Tourism & Visitor Tourism has experienced stronger growth in earnings than for the national retail sector.

Manawatu regional earnings increased by 65% between 2000 and 2009 while national earnings increased by 62%. The Manawatu region currently has a 2.54% share of New Zealand’s population but accounts for 3.11% of total earnings in the New Zealand retail sector. This confirmed that the region pulls in a significant level of retail sales from surrounding areas, particularly from the remainder of the Manawatu- Wanganui region. The Manawatu region’s share of national retail earnings increased from 3.04% in 2000 to 3.11% by 2009. Manawatu Region Manawatu Retail Sales The faster growth in earnings in the Manawatu region is also reflected in Statistics New Zealand retail sales estimates for the region. In the year to January 2007 the region had a 2.75% share of national retail sales but this had risen to 3.18% in the 12

Sector Profile months ended December 2011. The region’s share of national retail sales is highest in the motor vehicle sales and fuel sector, reflecting the sale of motor vehicles in Palmerston North to purchasers from the wider Manawatu-Wanganui region. It is estimated the Manawatu region accounts for 4.3% of national motor vehicle and fuel sales (by value). 34 Total retail sales in the region were estimated to be $2,070 million in the year to December 2010, with $1,450 million for “core’ retail sales and $620 million for motor vehicles and fuel.

BNZ cardholder expenditure (debit and credit card) data for the 12 months to June 2010 also confirms the strength of Manawatu region as a significant retail centre in the North Island. The cardholder data for the region was based on the expenditure of 14,426 cardholders who live in the region and 58,651 cardholders from outside the region who made purchases while visiting the region during the year.

Visitor Expenditure Total sales recorded by BNZ merchants whose physical trading location is in the Manawatu region were $151 million during the year to June 2010, with $120 million (80%) coming from Manawatu residents and $31 million (20%) coming from visitors to the Manawatu.

The net balance (the difference between resident’s spending outside the region and non-residents spending in the region) for city retailers was negative in January, due to increased spending by Manawatu residents at holiday destinations, but this followed a high level of spending by visitors to the Manawatu region in December. The annual net retail gain by BNZ merchants based in the region was $8 million over the year to June 2010.

The largest gains in retail sales for the Manawatu region came from the local authorities closest to the region (Tararua, Horowhenua, Rangitikei, Wanganui and Masterton) while the largest losses from purchases by Manawatu region residents outside the region were to the major cities and key holiday destinations (Auckland, Wellington, Christchurch, Taupo and Queenstown-Lakes District).

Areas of strength for merchants in the region were clothing, footwear, recreational goods and furniture and flooring, with between 34 and 25% of retailer revenue coming from consumers who live outside the region.

Expenditure at Manawatu region merchants by cardholders not resident in the Manawatu % share of total turnover Merchant revenue

Department Stores

25% & Visitor Tourism

Furniture & Floor Coverings Retailing 27%

Hardware Retailing 20%

Appliance Retailing 21%

Recreational Goods 25%

Clothing & Softgoods Retailing 34% Manawatu Region Manawatu Footwear 34%

Note: the definition of retailing used in this profile is based on the coverage of the Statistics New Zealand Retail Trade Survey. This covers the Retail Trade and Accommodation, Cafes and Restaurants components of the Australian New Zealand Standard Industrial Classification 2006 (ANZSIC06). Sector Profile

35 36 Sector Profile Manawatu Region Tourism & Visitor Images courtesy ofManawatuImages courtesy Standard, Manawatu, Destination Manawatu Roberston HoldenInternational Speedway and Sport Events

Most regions are active in attracting events to their regions but a key strength for the Manawatu region is its location in the centre of New Zealand. The region is at the hub of major highways to the west and east of the North Island while State Highway 1 also passes through the region. These road connections mean the region is a significant hub for inter-regional bus services, an increasing mode of transport for visitors due to fuel price increases, and reduced fare competition for air services to smaller domestic destinations. The Domestic Travel Survey recorded over 1.2 million domestic trips by scheduled coach services in 2010 compared with 3.5 million trips by aeroplane. Palmerston North Airport is a significant hub for air connections to the South Island.

There has been considerable debate over the extent of the economic benefits which are claimed to occur through the hosting of events which attract visitors from outside the region. Nevertheless, there is acceptance that a range of benefits are likely to occur. The most obvious benefit is the increase in retail spending by visitors to the region but other benefits are also recognised, which are more difficult to measure.

These include:

1. Media Impacts Favourable publicity received by the city during an event can count as a benefit from holding the event. Estimates of the impact of additional media coverage are often based on the cost of advertising dollars saved but calculating these is not straightforward. The region is at the hub 2. Fiscal Impacts of major highways to The narrow revenue base for local the west and east of the authorities in New Zealand means the fiscal impact from an event held in the North Island while State city is likely to be very small. The main Highway 1 also passes impact at the city level is additional through the region. parking revenue generated.

3. Community Development Facilities developed for a sports event will continue to be available for use well after the event has been held, so the costs involved with the development of the sports facility can be spread over a longer-time frame. A key issue will be how often the facility is likely to be used. For example an all weather soccer turf may be able to be used 7 days a week and would reduce the number of days that

local soccer games are cancelled due to poor weather. However, an expansion & Visitor Tourism to the Arena stadium seating may be filled only once or twice a year so the level of community value might be quite low. Skill development is also seen as critical for sport development and is supported by increased levels of national and international competition. Conventions are also a source of continuing education for local residents.

4. Civic Pride Playing host to a special event may contribute positively to the sense of pride in a region. Home hosting opportunities offer additional income for residents as Region Manawatu well as increased social and cross-cultural interactions.

5. Associated Events These include, for example, sports clinics with visiting sport players and other events that are coordinated around the main event. Sector Profile 6. Social Impact Costs These may include increased traffic congestion, crime, litter, noise and property damage and vandalism. 37 7. Long-term Promotional Impacts Publicity created by an event may generate increased awareness of the region and create a favourable image to potential tourists. A convention visitor may decide to visit the region again for a holiday if their visit to the region is favourable.

8. Induced Development Expenditure Conventions held in the region may lead to the development of new hotels, restaurants and cafes and additional shopping facilities, and may also support the expansion or retention of transport services for the region. For example, an increased number of Australasian conferences in the region could be a factor in helping to encourage the re-introduction of trans-Tasman air Palmerston North services to the region. City Council has commissioned two Palmerston North City Council has studies over the last commissioned two studies5,6 over the last twelve years to measure the economic impact twelve years to measure of events held in the City and the development the economic impact of of other forms of new economic activity. In events held in the City addition to these studies, the Reid Associates and the development of report7 commissioned by Destination Manawatu in 2001, which provided an other forms of new assessment of visitors to the Manawatu, was economic activity. used as the basis for development of an Ernst and Young economic impact model for the Manawatu region. The model was originally developed by Ernst and Young for the New Zealand Convention Association. Destination Manawatu and Sport Manawatu have been using the Ernst and Young Indicative Conference Economic Impact Model and the Ernst and Young Indicative Event Economic Impact Model (approved by the Palmerston North and Manawatu District Councils in 2002) and use the analysis produced for their six-monthly reporting to Councils.

The Reid Associates report in 2001 suggested there were seven broad groupings for visitors to the Manawatu:

Broad groupings for visitors to the manawatu

Average daily expenditure Estimated daily expenditure Group Name (2001) (march quarter 2009)

“Conference Consumers” $240 $300

“Business Battlers” $170 $215

“Senior Scarfies” $70 $80 Tourism & Visitor Tourism

“Discount Travellers” $120 $140

“Gala/Game Goers” $120 $140

“Family Catch-Up” $70 $80

“Other” $65 $75 Manawatu Region Manawatu Sector Profile

5 Dr Chris Ryan (1996). A Survey of Seven Events and Economic Impacts in Palmerston North. 6 NZIER (2003). A Working Model of the Palmerston North City Economy: Report to Palmerston North City Council. 38 7 Reid Associates (2001). Tourism in the Manawatu. Broad Groupings for Visitors to the Manawatu

Estimated Daily Likely Direct Expenditure (March Expenditure (2001) Group Name and Characteristics quarter 2009)

Conference Consumers:

These are major corporate groups. They Conference delegates are the $300 are largely male and stay at hotels/motels most significant consumers as part of the conference event. Two thirds with expenditure of around stay for more than one night and around 60 $240 per day. Around 40% percent travel by car. (or $100) will be spent on transport and a further 40% of food and accommodation.

Business Battlers:

Includes business persons passing through Average expenditure of $215 the region and those visiting local firms to business visitors in around complete contracts, or to market products $170 per day. Around 40% and services. They are predominantly male (or $70) will be spent on and around 60% stay in hotels or motels. transport and a further 40% of Nearly 25% stay with friends or relatives. food and accommodation.

Senior Scarfies:

Includes mature or extramural students Expenditure patterns are $80 attending university or other training most likely to be similar to courses and attendees at low cost seminars holiday makers or those or national groups where there is a relatively visiting friends and relations. low cost for attendance. Also includes Expenditure is likely to total sporting events with shared accommodation. around $70 per day. A high proportion of those who stay in hotels/motels will stay in unlicensed motels or backpackers

Discount Travellers:

People travelling to or from the Manawatu as Likely expenditure of $120 $140 part of an international connection. These per day. tend to be arrivals by aeroplane who pass onto other regions for holidays.

Gala/Game Goers:

Residents from Manawatu/Wanganui or Likely expenditure of $120 per $140 Wellington who attend an event, show day. They are likely to use the or sporting event at a Palmerston North/ events for a reason to shop in Manawatu venue and remain overnight. the Manawatu.

Family Catch-up:

Includes those coming for events or visiting Likely expenditure of around $80

family and friends. They are likely to stay $70 per day. This group tends & Visitor Tourism

in low cost accommodation or with friends to travel with family members and family. Around 80-90% will arrive by so the expenditure level per car and 6-7% by air. Around a third will stay person is low. one night and a further third two nights. 80% will stay in private homes of family and friends. Also includes those coming for weddings and reunions.

Others: Manawatu Region Manawatu Includes people enroute to other locations, Expenditure patterns are $75 those held over unexpectedly or any other highly variable and are variety of reasons. 40 -50% of the group estimated to be around $65 will stay in private houses and a further per person. 30% in camping grounds or discount accommodation. A high proportion is

travelling with family or friends. Sector Profile

Source: Reid Associates (2001).

39 The estimated average daily expenditure for “conference consumers” is significantly lower than the daily expenditure identified in the COVEC Convention Delegate survey. The expenditure included in the COVEC survey includes airfares and spending by conference visitors in other regions, which do not accrue to the host region. The Convention Delegate survey also includes conference registration fees, and again some of the income from fees will be used to reimburse costs from outside the region, such as travel expenses for speakers and administration costs for conference organisers, who may not be based in the region. The average daily expenditure estimates were updated in 2009.

Sports Events The Manawatu region has become a major centre for national sports events, particularly at a secondary school level. The region’s central position in New Zealand, the availability of a great range of sports facilities in the City, at Manfeild Park and other specialist facilities in the region, the ease of travel to sports venues and a good range of reasonably priced commercial accommodation, are all factors which are contributing to growth in the number of events being hosted in the region.

During 2009 sixteen major sports events were held in the region, which are each estimated to have resulted in an economic impact in the region of more than $100,000. The total combined economic gain just from these sixteen events is estimated to have been a $7.0 million increase in incomes for local residents. An economic impact measure is the method used to estimate of how much growth in regional incomes results as a consequence of the event being held. The “value added” measure we use is much lower than the total increase in business turnover which is created by an event but is a much more realistic estimate of how much of the additional income generated stays The Manawatu region in the region. has become a major While these events are estimated to have centre for national sports increased total business turnover by $14.4 events, particularly at a million during 2009, the economic impact model recognises that many of the goods and secondary school level. services purchased by businesses to generate that $14.4 million increase in turnover were purchased from outside the region, either from other regions of New Zealand or imported from other countries. The $7.0 million economic impact estimate attempts to estimate how much salaries and wages, self-employed incomes and business profits have increased as a result of the events which were held in the region.

It should be noted that the economic impact estimates attempt to only measure Tourism & Visitor Tourism the “tourism” related expenditure by visitors, such as accommodation, food and entertainment, and not the related consumer expenditure which occurs while people are visiting the region. One of the reasons for this is the difficulty in identifying whether visitors have changed the timing of their visit to the region to coincide with the event being held. Both Palmerston North and Feilding are important shopping destinations, with the region’s share of national retail sales significantly higher than its population share.

Manawatu Region Manawatu Local event spending by local residents is not normally included in the economic impact estimates for an event because the spending is not new to the region but transferred from one area of consumer purchases to another. One of the key benefits of the sports events held in the region has been the spread of events during the year. At the end of 2009 the Manawatu region had 1,389 rooms in motels and hotels

Sector Profile and 463 “stay units” (rooms, cabins and sites for tents, caravans and camper vans) in backpackers and holiday parks in the region, limiting the ability for very large events to be hosted without displacing other regular visitors to the region.

40 Major Sports Events (value added figure over $100,000) for 2009

EY Report $ Visitor Nights Event Event Date Venue Brief Description of event (total output) (value added) (approx)

Super Stockcar Team The world’s biggest stockcar teams racing event over two days. Twelve teams, 5 & 6 February Arena Manawatu $2,510,823 $1,229,074 17,792 Championship including one from the UK, and their support crews. Ticket sales were over 18,000. Event consists of racing over Saturday on Sunday, with test days on Thursday and NZ Grand Prix 27 Feb - 1 March Manfeild Friday prior. A number of classes including NZV8, Toyota Racing Series, Suzuki Swift, $538,149 $263,430 4,410 Mini, Production Racing, Formula Ford and others. Teams from all over NZ in a number of age groups and categories (men, women, and NZ Indoor Netball Both PN Indoor 6 - 8 March mixed) compete for their respective national titles. NZ selectors also attend, and NZ $656,728 $321,475 4,630 Nationals Centres age group representative teams are announced at the conclusion of the tournament. 4 and Rotary A two day event with the first being a show and shine display of drift, show and circuit 21 & 22 March Manfeild $413,127 $202,230 5,160 Jamboree racing cars. Day two is a full day of racing. The largest annual secondary schools tournament in NZ. Approx 150 boys and girls NZSS Volleyball teams from high schools around NZ (and generally a minimum of one from Australia) 29 March - 3 April Arena Manawatu $1,980,893 $969,668 13,929 Nationals compete. NZ Age Group trials follow the event and over 150 of the competitors stay for this.

U17 Basketball 32 boys and girls teams representing their regions/associations compete for national National 29 May - 1 June Arena Manawatu titles. Teams must first qualify at regional tournaments before being able to progress $346,775 $169,750 2,455 Championships to the nationals. NI Age Group Event consists of teams and individuals events. Competitors come from all over the 5-10 July Arena Manawatu $684,490 $335,065 4,832 Badminton North Island (and a team from Australia) to compete. 48 teams (24 boys, 24 girls) first qualify regionally, then travel to PN to compete. Draws 28 September - NZSS Basketball Arena Manawatu a large crowd of spectators from around NZ, and finals day on Saturday packs out $1,080,794 $529,060 8,008 3 October Arena 2 with over 1,800 people watching. Teams and individual events over three days in three separate locations around the Levin, Feilding, Manawatu. Surveys show that the overwhelming majority of participants stay in NZSS Cycling 26 - 28 September $588,088 $287,875 4,150 Manfeild Palmerston North and travel to Levin and Feilding each day to compete. Event seen as a breeding ground for elite athletes. 41 Sector Profile Manawatu Region Tourism & Visitor 42 Sector Profile Manawatu Region Tourism & Visitor

Major Sports Events (value added figure over $100,000) for 2009

EY Report $ Visitor Nights Event Event Date Venue Brief Description of event (total output) (value added) (approx)

NI Show Hunter Teams from around the North Island compete in the equestrian discipline of Show 2 - 4 October Tielcy Park $224,439 $109,865 1,682 Champs Hunter at Tielcy Park in Aokautere. A large number of athletes in a variety of age groups and weight classes compete. A Judo Nationals 24 - 26 October Arena Manawatu $751,322 $367,780 5,550 significant contingent of overseas competitors also compete in the event. MG Classic Race National classic car racing event run by the MG Car Club based in Wellington. Event 13 - 15 November $328,829 $160,956 8,800 Meeting included the Formula 5000 class. Approx 1,100 athletes with intellectual disabilities, along with over 400 coaches/ Special Olympics Various Venues 2 - 5 December managers, and additional family members, friends, and others, competed in various $1,497,925 $733,250 10,475 Summer Games around PN venues around the Manawatu in 10 different sports. Sixty teams from around NZ (20 boys, 20 girls, and 20 mixed) qualify regionally early in NZSS Touch 11-13 December Ongley Park $585,728 $286,720 4,196 the year to compete in this national tournament. National event run as a three-round series including the Boxing Day Cemetary Circuit Suzuki Tri-Series 18 & 19 December Manfeild $224,624 $109,956 1,360 event. Total $12,412,734 $6,076,154 97,429

Source: Palmerston North City Council The current spread of major sporting events helps to lift hotel and motel occupancy during the year, adding to the overall profitability of these businesses and supporting their recruitment of additional permanent staff.

It has been suggested that participatory events, events which involve a large number of participants such as Masters Games or other national/international sports tournaments, produce more benefit for the region than to spectator events. Participatory events primarily use existing facilities and do not cost as much to bid for as high profile spectator events. Most of the visitors for such events come to participate rather than to watch, and they frequently bring friends and family. The event often becomes part of an extended holiday in the host country/region. Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

43 Square Affair 2011

Square Affair was a weekend celebration of classic toys and memorabilia from the 1950s that filled the diary from Friday 22nd to Monday 25th of April. The main exhibitions and fairs were held on the 23rd and 24th from 10am to 4pm.

Thirteen venues played host to an eclectic range of exhibitions, events, entertainment and competitions themed around 1950s and all things ‘Retro’. Classic 1950s buses, including London Double Decker buses, made their presence known on the streets of Palmerston North city, providing an easy link around the venues.

The Square Affair Expo Centre at the Convention Centre played host to the New Zealand Meccano Exhibition, plus a dynamic display of Hornby Trains. An event for all ages, it had a wide appeal, from avid collectors and enthusiasts to families who were intrigued by these fine creations. It provided an opportunity to get up close with a massive range of working and static models from trucks and cars to large size fairground rides and even a mechanical ‘Meccanoland’.

A highlight of the weekend for ‘girls’ of all ages, was the beautiful collection of Dolls, Teddy Bears & Dollhouse Miniatures. The ‘Twilight Walk’ - a stroll through a magical setting of beautifully lit Dolls Houses was a highlight.

The Colloseum played host to a colossal display of Wurlitzer’s, Pinball machines, wind-up Gramophones and other memorabilia. Thom Houtman, a very passionate collector, was on hand to take the visitors through the ins and outs of his masterpieces.

Glamorous Fifties Expo - an event for the ‘ladies’ with the elegant Hotel Coachman transformed into a classic department store of the 1950s. Memories came flooding back with high teas, fashion and a fabulous Square Affair was a exhibition of retro dresses and accessories weekend celebration from the Te Manawa historical collection of classic toys and and photos and posters from the Palmerston North City Library Archives. A 50s hair and memorabilia from the fashion parade set the mood beautifully. 1950’s that filled the diary from Friday 22nd to Not to be missed were: The Retro & Collectors Monday 25th of April. The Fair – a treasure trove of miscellaneous Tourism & Visitor Tourism

wonders; a Roaring 50s Show & Shine and the main exhibitions and fairs Holden Nationals at Arena Manawatu; and were held on the 23rd and when it was time to relax, classic big screen 24th from 10am to 4pm. 50s flicks at Downtown Cinemas.

The 50s fashion could be seen on the street with the ‘Preppie girls’ displaying impeccable qualities of neatness and grooming in their

Manawatu Region Manawatu beautifully made polyester dresses, handbag on their arms and wearing delicate gloves. Elvis made a guest appearance along with his ‘ladies’ in their polka dot skirts, net petticoats and knotted neck scarves. And one must mention the hairstyles, with the French pleats and beehives.

The evening saw the 50s revellers out on the town. Glamorously dressed in their Sector Profile finerys, they dined and danced at the Friday evening Retro Dine ‘n Dance at Highflyers. Saturday night saw them transformed into ‘Greasers’ or ‘Rock n Rollers’ in their petticoats, flat shoes, black leather and denim at the Rock n Roll Hop at Arena Manawatu. 44 Student City

Destination Manawatu – The Road to 2015 Palmerston North is home to Massey University – New Zealand’s defining University, the International Pacific College and Universal College of Learning (UCOL). International students are an important component of each organisational mix and add cultural richness to the community.

The export education sector has been expanding in New Zealand for many years but came to greater prominence in the late 1990s when there was significant growth in the number of international students coming to New Zealand. Ministry of Education data shows there were 93,505 international fee-paying students studying in New Zealand in 2009. They are a significant source of revenue for New Zealand, with national Balance of Payments and International Investment statistics suggesting the total value of expenditure by all international students studying in New Zealand in the year to 31 March 2010 was $1,367 million.

International students who travel to New Zealand to study for less than 12 months are counted in the tourism data as visitors or tourists, while students who stay for more than a year are counted as long-term or permanent visitors. Data is not available on International students international student visas by destination who travel to New local authority, but national data shows the Zealand to study for majority of international visitors on a student less than 12 months are visa stay for less than 12 months. counted in the tourism Annual migration data shows there were data as visitors or tourists 167,000 international visitors in 2010 who while students who stay stated their primary purpose for visiting New for more than a year are Zealand was for education reasons. Just under 10% (16,500) of these were students counted as long-term or coming for 12 months or more. Nationally permanent visitors. many education visitors do not come on a student visa, with just 22,700 arriving on a student visa in 2010. There are several sources of data on international students in New Zealand but none that is available for the Manawatu region. International Fee-Paying Students

In 2009, 2,378 international fee-paying students were recorded in the wider Manawatu- & Visitor Tourism

Wanganui region. This represents 2.5% of all international fee-paying students in New Zealand. There were 93,505 international fee-paying students in New Zealand in 2009, with 17% of these students enrolled in schools, 11% in polytechnics, 20% in universities and 48% in private providers. Data for the Manawatu-Wanganui region shows a much smaller share of enrolments in private providers, while Auckland accounted for 70% of these enrolments.

The region had a 4.9% share of international fee-paying students enrolled in a Manawatu Region Manawatu university, 3.3% of school students and 3.1% of polytechnic students. Data on student numbers on an equivalent full-time student basis is not available from the regional reports, but would show a higher share for the Manawatu region because a high proportion of students enrolled in private providers are not enrolled for a full year (and the region has a small proportion of international students enrolled in private providers). Sector Profile

45 Distribution of International Fee-Paying Students in the Manawatu-Wanganui Region Manawatu-Wanganui Region New Zealand % of 2009 Number of % of Manawatu- Number of national Students Wanganui Region Students total

Schools 508 21.4% 3.3% 15462

Polytechnics 332 14.0% 3.1% 10565

Universities incl Colleges of 922 38.8% 4.9% 18870 Education

Private providers 616 25.9% 1.4% 44941

Subsidiary Providers - 0.0% 0.0% 3644

Other Tertiary Education - 0.0% 0.0% 23 Providers

Total 2,378 100.0% 2.5% 93,505

Source: Education Counts, Ministry of Education

English Language Providers There were 41,798 international students enrolled in English language schools in New Zealand during the March 2010 year. Income earned from tuition and related fees was $140 million, while a further $36 million revenue was collected for accommodation provided or arranged by the English language schools. Massey University, for Regional data is not available. example, offers a wide range of accessible Other International Students courses that draw on Massey University also offers a wide range the quality teaching of courses that draw on the quality teaching and research expertise and research expertise of academic and professional staff. These include of academic and professional staff: • Professional development courses • Continuing education courses • University preparation courses • International short courses Tourism & Visitor Tourism

Manawatu Region Manawatu Sector Profile

46 Commercial Accommodation

Nearly 407,000 visitor nights were recorded in the Manawatu region in the year to December 2010, with motels accounting for 68% of total visitor nights, hotels accounting for 26%, and backpackers and holiday parks accounting for just 6%. The small share for holiday parks and backpackers in the region differs significantly from the 34% share for holiday parks and backpackers in national visitor nights. The region’s hotel sector also has a lower share of visitor nights in the region, accounting for 26% of total visitor nights while the national hotel sector has a 35% share of national visitor nights.

Guest Nights in Commercial Accommodation for manawatu and New Zealand Visitor % share of total % share of Manawatu Year to Dec 2010 nights visitor nights RTO visitor nights

Manawatu

Hotels 104,608 26% 92%

Motels 276,454 68% 85%

Backpackers and Holiday Parks1 25,554 6% 75%

Total 406,616 100% 86%

1 Combined for confidentiality reasons

New zealand

Hotels 11,234,088 35%

Motels 10,152,417 31%

Backpackers 4,537,927 14%

Holiday Parks 6,322,149 20%

Total 32,246,584 100%

Source: Statistics New Zealand

Average occupancy rates in commercial accommodation in the Manawatu region are slightly higher than the national average, although this mainly reflects the Nearly 407,000 visitor high proportion of visitor nights in motel nights were recorded in accommodation in the region and the low the Manawatu region in proportions of visitor nights in backpacker the year to December and holiday park accommodation, which 2010, with motels both have low occupancy rates. Occupancy rates for motels in the region are the highest accounting for 68% of Tourism & Visitor Tourism of the three sectors and are similar to total visitor nights, hotels national motel occupancy rates. In contrast, accounting for 26%, and occupancy rates for hotels in the region are backpackers and holiday significantly lower than for national hotel occupancy rates. December and January are parks accounting low points in occupancy in the region, while for just 6%. May and June are the two lowest months in the national occupancy data. Manawatu Region Manawatu Sector Profile

47 Monthly Occupancy Rates for Commercial Accommodation 2010 60%

50%

40%

30%

Occupancy (%) Rate 20%

10%

0% Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Month

New Zealand Manawatu Region

Source: Statistics New Zealand

Manawatu Region Commercial Accommodation Annual Capacity, Guest Arrivals and Occupancy Rate 80 800

70 700

60 600

50 500

40 400 Occupancy (%) Number (000s) 30 300

20 200

10 100

0 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Year Ended December

Yearly Capacity Guest Arrivals Occupancy Rate %

Source: Statistics New Zealand

Occupancy rates in commercial accommodation in the region peaked at 46.1% in June 2006 but have declined since then due to an increase in accommodation capacity in the region and a decline in visitor nights. There was a 41% increase in Tourism & Visitor Tourism accommodation capacity in Manawatu District between June 2007 and June 2008, but this has since declined by 4%. Accommodation capacity in Palmerston North has been increasing more gradually, with an 8% rise over the period between June 2008 and December 2010.

Manawatu Region - Commercial Accommodation Annual Average Annual Year ended Capacity Stay Occupancy Manawatu Region Manawatu Establishments Guest December 2010 (“Stay Length Rate (%) Nights Units”) (days)

Hotels 11 164,146 104,608 1.77 43.99

Motels 53 349,271 276,454 1.77 45.55

Sector Profile Backpackers/ 5 168,995 25,554 not available Holiday Parks Total 68 682,412 406,616 1.77 36.56

48 Source: Statistics New Zealand Private Accommodation

The proportion of total visitor nights in private accommodation in the Manawatu region has increased steadily over the last four years, increasing from 69% of total visitor nights in the region in the year to December 2007 to 79% of total visitor nights in the year to December 2010. There has been a steady decline in visitor nights in commercial accommodation over this period and a strong increase in visitor nights in private accommodation. The proportion of visitors The proportion of visitors to the region using to the region using private accommodation is much lower than private accommodation the proportion for visitor nights in private accommodation because the average stay is much lower than in commercial accommodation is much the proportion for shorter than for visitors staying in private visitor nights in private accommodation. In the year to December accommodation 2010, 63% of visitors to the region stayed in because the average private accommodation, with an average stay of 3.8 nights. In contrast the average stay in stay in commercial commercial accommodation was 1.8 nights. accommodation is The average stay for domestic visitors in much shorter than for private accommodation is shorter, averaging visitors staying in private 3.1 nights. International visitors in commercial accommodation in the Manawatu RTO region accommodation. accounted for 10% of visitors nights in 2010 (Manawatu region data is not available) while the private homes monitor for the Manawatu region shows that international visitors account for 13.5% of total visitors in private homes and 30.1% of visitor nights (due to their much longer average stay).

Visitor Nights in Private Accommodation in the Manawatu Region Share of Total Visitor Nights 90%

80%

70%

60%

50%

40% Percentage (%) Percentage 30%

20%

10% Tourism & Visitor Tourism

0% 2006 2007 2008 2009 2010 2011 Year Ended

Source: APR Consultants / Statistics New Zealand Manawatu Region Manawatu Sector Profile

49 50 Sector Profile Manawatu Region Tourism & Visitor Images courtesy of Destination Manawatu ofDestination Images courtesy Conclusions

The Manawatu has not been generally recognised as a significant tourist or visitor destination but a range of surveys show there are significant numbers of domestic and international visitors to the region on an annual basis and that it compares well against other recognised destinations.

The success of the region reflects the level of investment by Councils and the business community in infrastructure which support a wide range of events and activities in the region. It also reflects the region’s central position in New Zealand and its position at the hub of key State Highways and air services network.

Examples of investment in infrastructure which have supported growth in visitor numbers have been the Palmerston North Conventions Centre, indoor sports facilities at Arena Manawatu, Manfeild Park, and Te Manawa Museum of Art, Science and History. Much of this investment has supported growth in visitor numbers during periods which would normally have been low points in commercial accommodation occupancy. It appears this has provided a much more favourable economic return for the region compared with the significant investment which has been made in sports stadiums in other regions.

Investment by the business community, notably the $90 million investment by Kiwi Income Property Trust in the expansion to the Plaza, has added to the strength of retailing in the region. Shopping is now a major The Country Road recreational activity for visitors, and it is an important draw card for visitors across the experience is a more Wellington, Manawatu-Wanganui, Taranaki recent initiative to and Hawkes Bay regions. The trend towards encourage...visitors seven-day a week shopping by many retailers to divert off the State has contributed to this becoming a primary Highways and take in recreational activity for most young people and increasingly important in their “holiday” more of what the region or leisure experience. The region’s success in offers...contributing to hosting conventions, particularly multi-day significant growth in conferences is also reflected by the recent international card holder investment in the Awapuni Function Centre, for example. retail spending through the Paymark network in The education and health sectors also play the region. an important role in bringing domestic and international visitors to the region, again offering support for the commercial accommodation and retail sectors during the usual winter low for the New Zealand tourism sector. Paymark recently noted the region has the smallest difference between seasonal highs and lows in retail spending of any region. Tourism & Visitor Tourism International visitor numbers are still smaller compared with other regions but recent growth in visitor numbers suggest the region is increasingly being recognised for what it has on offer. The Country Road experience is a more recent initiative to encourage domestic and international visitors to divert off the State Highways and take in more of what the region offers. This, along with the significant revamp in the national Rugby Museum is contributing to significant growth in international card holder retail spending through the Paymark network in the region (there was a 14%

increase in international card holder spending in Palmerston North City the three Region Manawatu months to August 2011 compared with the previous year).

The tourism and visitor sector is already a significant contributor to economic activity in the region, accounting for an estimated 2,900 jobs in 2010 and an estimated economic contribution to the regional economy of $397 million. It has been an

important contributor to the strong economic growth the region has experienced Sector Profile over the last decade and is expected to be a significant contributor to economic growth in the future.

51 52 Sector Profile Manawatu Region Tourism & Visitor Images courtesy of Destination Manawatu ofDestination V andRiver Images courtesy alley Lodge

The sector profiles for the Manawatu Region have been developed by the Palmerston North City Council to provide a better understanding of the different components of the Manawatu economy and the contribution each sector makes to the demographic and economic growth of the region. Even within the broad industrial sectors of the Australian and New Zealand Standard Industrial Classification AN( ZSIC) 2006 there can be a diverse range of activities undertaken and it is useful to understand which sectors are growing and are likely to grow in the future and their overall contribution to jobs and incomes in the region. A satellite approach is used for the tourism sector because tourism activity covers a range of different industry classifications.

The profiles are drawn from a range of sources, including theT ourism Strategy Group at the Ministry of Economic Development, Statistics New Zealand, Covec and APR Consultants. Destination Manawatu has provided significant support with the preparation of the profile.

For further information please contact: Peter Crawford | Economic Policy Advisor | Palmerston North City Council | Private Bag 11034 | Palmerston North | [email protected]

Published by: Palmerston North City Council | Private Bag 11034 | Palmerston North | Phone: 06 356 8199 | Fax: 06 355 4115 | www.pncc.govt.nz