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TOURISM NEW ZEALAND ANNUAL REPORT 2007–2008 ‘Youngest Country’

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TOURISM NEW ZEALAND ANNUAL REPORT 2007–2008 ‘Youngest Country’ G25 TOURISM NEW ZEALAND ANNUAL REPORT 2007–2008 ‘Youngest Country’ New Zealand is ‘The Youngest Country on Earth’, the last habitable land mass to be settled by human kind. This is the basis of Tourism New Zealand’s refreshed international marketing campaign which launched in August 2007. www.tourismnewzealand.com G25 CONTENTS 2007–2008 Chairman’s Report 02 Statement of Service Performance 12 Chief Executive’s Overview 12 Marketing of New Zealand as a Visitor Destination: 13 Report 04 Campaign 14 About Tourism Channel 23 New Zealand 07 Capability 26 Management Management Statements 28 at Tourism Financials 31 New Zealand 08 Statement of Responsibility 31 Statement of Financial Performance 32 Governance Statement of Financial Position 33 at Tourism Statement of Changes in Equity 33 New Zealand 09 Statement of Cash Flows 34 Board Members 11 Notes to the Financial Statements 35 Note 1 Statement of accounting policies 35 Note 2 Crown Revenue 38 Note 3 Other Revenue 38 Note 4 Foreign Exchange Gains 38 Note 5 Other Expenses 38 Note 6 Foreign exchange losses 40 Note 7 Total Expenditure of Parent 40 Note 8 Subsidiary Companies 40 Note 9 Associate Company 42 Note 10 Cash 42 Note 11 Receivables 43 Note 12 Derivative financial instruments 44 Note 13 Property plant and equipment 44 Note 14 Accommodation bonds 46 Note 15 Creditors and other payables 46 Note 16 Employee entitlements 46 Note 17 Provisions 46 Note 18 Reconciliation of surplus (deficit) to net cash from operating activities 47 Note 19 Contingent liabilities and contingent assets 47 Note 20 Income tax 48 Note 21 Management of risk 48 Note 22 Significant accounting judgements, estimates and assumptions 48 Note 23 Capital management 48 Note 24 Categories of financial assets and liabilities 49 Note 25 Capital commitments 49 Note 26 Operating commitments 49 Note 27 Related party transactions 50 Note 28 Financial instrument risks 52 Note 29 Remuneration of employees 52 Note 30 Remuneration of directors of parent 53 Note 31 Explanation of transition to NZ IFRS 54 Five-Year Financial Summary of Parent 57 Audit Report 58 Presented to the House of Representatives pursuant to Section 150 of the Crown of Entities Act 2004. CHAIRMAN’S REPORT GREG MUIR 2 TOURISM NEW ZEALAND ANNUAL REPORT 2007–2008 Japan. Better air links between Canada city billboards. This is alongside more and New Zealand helped promote traditional screens like cinema and growth in visitor numbers. GREG MUIR CHAIRMAN television advertising. TOURISM NEW ZEALAND New Zealand’s biggest market for arrivals, However, Tourism New Zealand’s work Australia, continued to grow and will be extends beyond its campaign work. There the backbone of the industry for the is a continued focus on taking consumer coming year. awareness of New Zealand as a holiday destination and turning that interest into India remains a relatively small market holidays booked, tickets bought and for New Zealand, providing only 23,328 activities and accommodation paid for. visitors in the year to June 2008. However, they are visitors who tend to visit during Overseas, that work starts when Tourism the quieter months of April, May and June, New Zealand works with key trade making them valuable to the tourism partners to develop and improve the industry here. holiday and travel itineraries on offer. By training product development managers Tourism New Zealand and front line staff, Tourism New Zealand This is my first annual report since taking Tourism New Zealand’s response to these can influence those in the driving seat over as Chairman of Tourism New Zealand changing market dynamics has been to selling New Zealand offshore. and I am looking forward to playing a review spending in all its major markets By working with subsidiary partners, part in the development of one of and to refocus its efforts and budgets on Qualmark and i-SITE New Zealand, New Zealand’s biggest industries. those regions where it feels it is likely to Tourism New Zealand also strives to stimulate growth. The past year has provided another set improve the quality of visitors’ time here. of milestones for Tourism New Zealand. Despite more difficult conditions, During the year, the number of Qualmark However, tough global economic New Zealand international visitor arrivals licence-holders increased to over 2,100. In conditions and factors like increased from our key markets increased slightly May, the Qualmark environmental competition from other destinations in the 2007/2008 financial year and accreditation programme was launched to mean that Tourism New Zealand and overall visitor expenditure was up 4.7% the industry and media at the TRENZ the tourism industry were faced with compared to the previous year. conference in Rotorua. a far more challenging environment. Tourism New Zealand also continued Thank You Global Factors to innovate to find new ways to boost visitor numbers. I would like to thank the Tourism Minister Since the last annual report the world’s Damien O’Connor, Tourism New Zealand’s economic situation has changed In August 2007, Tourism New Zealand Chief Executive George Hickton and the fundamentally, something which will unveiled a refreshed 100% Pure dedicated team at Tourism New Zealand undoubtedly affect the tourism industry. As New Zealand campaign to the for the work and energy they put into easy access to cheap credit is reduced and industry and to the public focusing promoting New Zealand. I would also like concern over financial security increases, on New Zealand as the ‘Youngest to thank our partners in Government, at spending on discretionary activities, such Country on Earth’. both national and local levels, and as travel, will inevitably be impacted. The campaign was launched after a the tourism industry for the support they The recent economic upheaval came thorough review of the 100% Pure provide in ongoing funding, project on top of a year of fuel price rises, which New Zealand campaign. support, media hosting and with the many had forced up the cost of airline tickets other events that arise during the year. The decision was made that the 100% and added, or increased, surcharges on Pure New Zealand brand continued to I would particularly like to thank many flights. prove its worth in international markets and outgoing director Kathy Guy and Chairman Airlines are also looking more closely at the remains a single, strong international brand Wally Stone and acknowledge their viability of routes, with a number of that positions New Zealand well overseas. contributions to the Tourism New Zealand longhaul airlines reducing their flight However, behind the campaign a great deal board. Wally has been Chairman since schedules to New Zealand. more work was done to change the 1999 and his efforts mean I am inheriting Seat and route cut backs inevitably reduce strategic direction of how Tourism a vibrant, world-class tourism organisation. New Zealand reaches potential visitors. the options for potential visitors to get to On that note, I am pleased to be able to New Zealand and force airline ticket prices Tourism New Zealand has shifted its focus present Tourism New Zealand’s annual up; both factors make New Zealand a less to reaching people through the screens report for 2007/08.2007/08. competitive destination in many markets. they use in everyday life. This means more While visitor numbers from the UK, USA, work developing Tourism New Zealand’s Japan and Korea had started to show the trade and consumer websites. impact of the above factors, others Campaign and promotion work takes in markets had been holding up well. the internet, blog sites, social networking During 2008, China became sites. Advertisements have shown on New Zealand’s fourth-largest market screens in tube stations, railway stations, GregGreg MuirMuir for international visitors, overtaking office entryways, shopping centres and Chairman, Tourism New Zealand TOURISM NEW ZEALAND ANNUAL REPORT 2007–2008 3 CHIEF EXECUTIVE’S REPORT GEORGE HICKTON New Zealand’s Giant Rugby Ball venue is officially opened in the heart of Paris. Highlights 2007/2008 This work is all underpinned by Tourism New Zealand’s strategy to find more There is no doubt that last year was a channels and more ways to tell potential year of change, achievements and GEORGE HICKTON visitors about the experience they can challenges for Tourism New Zealand. CHIEF EXECUTIVE have when they get here. TOURISM NEW ZEALAND In one year, we launched the refreshed We continue to look for innovative ways global campaign, led a project to install a to promote our fantastic scenery and our giant inflatable rugby ball under the Eiffel people, but also to tell the stories that Tower in Paris, took a slice of link the two. New Zealand life to Japan and helped the As part of that strategy, Tourism world find out more about our culture and New Zealand has moved to become country by hosting and promoting events a producer of content, rather than just in New Zealand like Matariki and World a buyer of advertising space. Environment Day. Being a producer allows us to tailor All that was aside from the work the content to the screens people are using organisation does every day promoting all the time to gather and share New Zealand as a holiday destination. information – whether it be the internet, That work resulted in hosting hundreds of television or cinema screens, electronic international media, thousands of training billboards, i-Pods, large outdoor screens or the inside of a giant rugby ball. sessions given to overseas travel sellers and product managers and millions of However, recent events have also served visits to our websites. as reminder that the New Zealand’s 4 TOURISM NEW ZEALAND ANNUAL REPORT 2007–2008 multi-billion dollar tourism industry The campaign captures the youth of the Throughout both of these major offshore cannot be taken for granted.
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