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Annual Report Tourism New Zealand | 2017/2018 Tourism New Zealand Annual Report | 2017/2018 Highlights

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Annual Report Tourism New Zealand | 2017/2018 Tourism New Zealand Annual Report | 2017/2018 Highlights G25 Kia ora, Welcome. Annual Report Tourism New Zealand | 2017/2018 Tourism New Zealand Annual Report | 2017/2018 Highlights Highlights % of Kiwis agree or strongly agree . that international tourism is shoulder season holiday arrival growth good for New Zealand ‘Mood of the Nation’ survey, March . % BILLION International visitor spend with an average of million active visits to newzealand.com million followers on Facebook spent per holiday arrival. .% increase in regional spend : Leading to .m return on investment . million in markets on value generated from international referrals to tourism businesses partnership campaigns media about New Zealand % Pure New Zealand Specialists . bids to bring conferences to With a further New Zealand supported MILLION through TNZ’s Conference Assistance Programme with , Arrivals into New Zealand registered in the an estimated value of % Pure agents attended . MILLION New Zealand % Pure New Zealand of which were holiday arrivals .m Specialist Programme Specialist Programme famil 2 3 Tourism New Zealand Annual Report | 2017/2018 Tourism New Zealand Annual Report | 2017/2018 Contents 2017/2018 at a glance ........................................................6 Chair and Chief Executive report ..................................... 6-8 Performance overview ...................................................... 9 Who we are and what we do ............................................ 10 Our offices ................................................................. 10-11 Our markets ............................................................... 10-11 The power of collaboration: Amway China 2018 ................... 15 The 2017/2018 year ......................................................... 16 FY18 activities: measures, targets and results ................ 20-33 Regional spotlight: Northland ..................................... 34-35 Awards ..................................................................... 36-37 Meet the Team .............................................................. 40 The Board ................................................................. 40-41 Our Executive Team .................................................... 42-43 Our Whānau ..............................................................44-45 Governance .................................................................. 46 Equal Employment Opportunities.................................48-49 Financials ...................................................................... 52 Financial statements .................................................. 54-57 Statement of accounting policies ................................. 58-77 Five year financial summary for parent.......................... 78-79 Independent auditor’s report ....................................... 80-81 4 5 Tourism New Zealand Annual Report | 2017/2018 2017/2018 at a glance 2017/2018 at a glance Chair and Chief Executive report engagement and destination management are now common topics of conversation. As a destination marketing organisation we have evolved our approach to play an increasing role in supporting sustainable growth in the sector. On behalf of Tourism This work has focussed on regional and seasonal dispersal. Encouraging visitors to travel in our shoulder seasons (September-November, New Zealand’s Board and March-May) has a flow-on effect of increased visitor investment, greater employment stability and more consistent income streams for Leadership team, we are New Zealand tourism operators, as well as taking pressure off hotspots in the peak season. Promoting less-visited regions ensures the pleased to present Tourism economic benefits from the visitor economy are felt across New Zealand, not just in main centres (gateways). New Zealand’s Annual Kerry Prendergast, Stephen England-Hall, Despite seasonal and regional dispersal being a Tourism New Zealand Chair Tourism New Zealand Chief Executive challenge felt by destination marketers globally, we set ambitious strategic targets for FY18 across Report for the financial regional dispersal, shoulder season versus peak travel, referrals, and high-value visitors. As a result, all marketing spend was invested year ending 30 June 2018. in promoting shoulder season travel and the theme of our FY18 100% Pure New Zealand Tourism has seen amazing growth over the last few campaign, ‘Where one journey leads to another’, encouraged visitors to include Kerry Prendergast, Tourism New Zealand Chair years, and our work has contributed significantly to regional travel into their itineraries and to travel during shoulder seasons. Stephen England-Hall, Tourism New Zealand’s Chief Executive this, with New Zealand continuing to be one of the During the year we saw an increase in spend in the regions compared to the gateways (+13.2% world’s preferred destinations. During FY18 Tourism versus +9.9% – a +3.4% differential) and for the year to June 2018 an estimated additional $471m New Zealand began work to position and refresh our had been contributed to our regions. While it brand to ensure we keep ahead of global tourism was encouraging to see gains in regional dispersal, we did not hit our target to grow trends and continue our success sustainably. shoulder season arrivals faster than peak arrivals. Driving shoulder season arrivals has been the focus of the Government and industry for many years and shifting consumer preferences continues to be challenging, particularly as high-value travellers tend to travel when a destination is perceived to be at its best. Total arrivals for FY18 As a nation, New Zealand welcomed 3.79m In FY18 we continued our successful approach visitors (+3.8% on FY17). This figure is expected of investing in a portfolio of markets and this to continue to grow steadily over the coming was reinforced with some of our priority one core years, reaching 5.1m visitors annually by 3.79 million markets showing impressive growth, offsetting 2024. We know some regions need support % significant reductions in other markets, notably: to accommodate this growth. Pressure on 3.8 Australia, which saw air connectivity changes, infrastructure remains the top concern for the UK, which returned to more realistic arrival New Zealanders regarding international figures after the boom of last year’s British & tourism, alongside accommodation shortages, Irish Lions Rugby Tour, and Japan, which saw a environmental damage, freedom camping, rise in domestic tourism. The variations in some Total regional spend traffic congestion and road safety. Tourism New Zealand has a pivotal role in seeking markets highlighted the importance of a balanced solutions to these challenges and during portfolio and for Tourism New Zealand to not $471 million FY18 we worked closely with a range of become overly dependent upon one source % agencies and industry to support this. market. We work across a range of established 13.2 and emerging markets to ensure fluctuations The visitor economy conversation is changing are managed well and new markets are grown – sustainability, social license, community and explored. 6 7 Tourism New Zealand Annual Report | 2017/2018 2017/2018 at a glance Chair and Chief Executive report Performance Overview Of course, to be truly productive, inclusive and sustainable we must consider the visitor OUTCOMES FY18 It’s pleasing to see that our emerging economy as more than just arrival numbers and spend. To this end, Tourism New Zealand Visitor Spend markets have grown exponentially in recent has evolved our approach to look more closely 9% ($11.1b) at the ‘voice of the visitor’, monitoring visitors’ (Grow international visitor spend) years, in particular Argentina, Brazil, and experience and satisfaction, and those of the Philippines. Together with markets such New Zealanders. Again, this is something that the organisation will be increasingly focussed Socially inclusive growth on in FY19. 13.2% ($471m) as India, whose visitors tend to travel in (Grow regional spend) Future proofing the industry was a key our shoulder seasons have the potential to component of our work in FY18. We worked collaboratively with several organisations Productivity growth bolster arrival numbers and spend beyond and companies on initiatives to help ensure 5.6% ($1.4m) New Zealand is destination ready for tourism (Grow shoulder holiday arrivals) the seasonality profile. growth, that the growth is sustainable (economically, socially, and environmentally), and that our efforts improve experiences Social License (Mood of the Nation) for visitors and Kiwis alike. Tourism should 96% enrich New Zealand and it is vital that (Kiwis agree tourism is good for NZ) It’s pleasing to see that our emerging markets host. Business events also support our strategy New Zealanders value the role of tourism have grown exponentially in recent years, in to grow shoulder visitation with many of these in their local communities. particular Argentina (+45.9% on FY17), Brazil events being held in spring or autumn. In FY18 Visitor experience (VX) (+35.7% on FY17), and the Philippines (+34.4%). Tourism New Zealand supported 86 bids to host Our continued investment in Qualmark 94% Together with markets such as India, whose international conferences in New Zealand and New Zealand and the i-SITE visitor information (Exceeds expectation) visitors tend to travel in our shoulder seasons secured $124.9m worth of business. Our incentive network provides on-the-ground feedback have the potential to bolster arrival numbers from visitors and locals.
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