annual report 2013 · 2017. 10. 31. · table of contents 1 board of directors and secretariat 2...

ANNUAL REPORT 2013

TABLE OF CONTENTS

1 Board of Directors and Secretariat

2 Tourism Export Council Board Strategy Groups

3 President’s Report

5 Chief Executive’s Report - The Year in Review

6 Annual Accounts Financial Statements (for year ended 31 March 2013)

Including:

7 Auditor’s Report

8 Statement of Financial Performance

9 Statement of Movement in Equity

10 Statement of Financial Position

IBC Ten Reasons For Using an Inbound Tour Operator

TECNZ was Founded in 1971

Full Member Tour Operators 44

Allied Supplier Member 202 as at 31 March 2013

OUR MISSION:

To support and represent our members for the purpose of facilitating business partnerships in the tourism export sector.

2012/2013 TOURISM EXPORT COUNCIL BOARD

PRESIDENT Martin HorganManaging DirectorSouthern World NZ CHRISTCHURCH

VICE PRESIDENTGeoff YeeManaging DirectorGSN PacificAUCKLAND

VICE PRESIDENTSteve ShearerDirector International SalesScenic Hotel Group AUCKLAND

REPRESENTING FULL TOUR OPERATOR MEMBERSMartin Horgan (President)Managing DirectorSouthern World NZCHRISTCHURCH

Stephen EcclestoneSenior Contract Manager NZGTA TravelAUCKLAND

Rainer Heidtke Managing DirectorC & E Tours CHRISTCHURCH

Anna BlackGeneral ManagerGeneral Travel NZAUCKLAND

Lisa LiManaging DirectorChina Travel ServiceAUCKLAND

Adele MarsdenDirectorNew Zealand Educational ToursTAURANGA

Dominic ChengDirectorWinchester TravelAUCKLAND

Geoff YeeManaging DirectorGSN PacificAUCKLAND

REPRESENTING ALLIED MEMBER SUPPLIERSVance BoydManaging DirectorKiwi DiscoveryQUEENSTOWN

Steve ShearerDirector of International SalesScenic Hotels GroupAUCKLAND

Michelle CaldwellCentral North Island Regional Manager Huka Falls Jet, AgrodomeNgai Tahu Tourism, Rainbow SpringsROTORUA

CO-OPTED BOARD MEMBERSJenny SimpsonInternational Marketing & Tourism Development ManagerAir New ZealandAUCKLAND

Stephen MarshallChair – Young TECAOT New Zealand AUCKLAND

LIFE MEMBERSKeith JohnstonAUCKLAND

Blair SheehyAUCKLAND

Russell WhiteAUCKLAND

Michael WiedemannAUCKLAND

Peter LowryWELLINGTON

Back left to right: Stephen Eccleston, Anna Black, Rainer Heidtke, Adele Marsden,

Stephen Marshall, Geoff Yee, Vance BoydFront left to right: Michelle Caldwell,

Steve Shearer, Lesley Immink (CEO), Martin Horgan (President), Jenny Simpson,

Lisa Li, Dominic Cheng

1TECNZ ANNUAL REPORT 2013

Tourism Export Council Strategy GroupsStrategy Group 1 Strategy Group 2 Strategy Group 3 Strategy Group 4 Strategy Group 5

Marketing & Communications

Business Development Membership Industry Standards

& Productivity

Advocacy & Relationship Management

Dominic Cheng Martin Horgan Michelle Caldwell Anna Black Martin Horgan

Steve Shearer Jenny Simpson Adele Marsden Stephen Ecclestone Geoff Yee

Vance Boyd Lisa Li

AUDITORGrant ThorntonChartered Accountants

PO Box 10712WELLINGTONPhone: 04 474 8500Fax: 04 474 8509

SOLICITORA R (Andy) Marshall, LLB (HONS)Gault Mitchell and Co.

PO Box 645WELLINGTONPhone: 04 472 5074Fax: 04 471 0835Email: [email protected]

BANKANZWELLINGTON

What is the Tourism Export Council of New Zealand?For more than forty years, Inbound Tour Operators Council of New Zealand (ITOC) has represented the interests of inbound tourism in New Zealand. In 2012, ITOC rebranded as the Tourism Export Council of New Zealand to reflect the position of tourism as a key New Zealand export industry.

The Tourism Export Council of New Zealand is a trade association. Its membership includes inbound tour operators (Full Members) and attraction, activity, accommodation, transport suppliers and tourism services (Allied Members). Today, it’s Full and Allied Members collectively handle most of New Zealand’s holiday visitor arrivals.

The Tourism Export Council of New Zealand plays a vital and supportive role in the expansion of the New Zealand tourism industry. It’s relationships with both product suppliers in New Zealand and off shore wholesalers are absolutely key to the nation’s continued growth as a visitor destination.

SecretariatCHIEF EXECUTIVELesley Immink

ACCOUNTANTChris McGeown

VISION:

To achieve sustainable growth in export earnings and delivery of quality tourism experiences

MISSON:

To support and represent our members for the purpose of facilitating business partnerships in the tourism export sector

ADDRESSLevel 3, Tourism and Travel House79 Boulcott Street, PO Box 1888 DX SX 10033WELLINGTON

Phone: 04 495 0810Fax: 04 499 0786Email: [email protected]: www.tourismexportcouncil.org.nz

2 TECNZ ANNUAL REPORT 2013

PRESIDENT’S REPORTM

AR

TIN

H

OR

GA

N

I am pleased to present the Tourism Export Council of New Zealand’s 2013 annual report.

Last year I used the word ‘tumultuous’ to describe the previous 12 months of inbound tourism trading. RWC hadn’t been good for all of us, the US economy was suffering, we were all tired of hearing the GFC acronym, some markets were proving to be earthquake shy, and the high NZD was putting real pressure on our client’s ability to competitively sell New Zealand. The only really good news we had to hold onto was that we had the Web Ellis in the trophy cabinet.

Twelve months later, I think we’re out of the ICU and can upgrade ‘tumultuous’ to ‘recuperating’. Total short term visitor arrivals YTD 30 June 2013 are on par with the year before, which isn’t bad considering the boost of arrivals previous year attributed to RWC. What is also promising is that over the last 12 months we’ve seen a return to growth from key markets such as Japan (11.8%), Germany (3.3%) and the US (3.6%). China as predicted continues to rocket ahead with a staggering 26.9% increase in arrivals, now our 2nd largest market.

That said, we’re still not where we want to be. The difference this year though is that we’re now on the right track, many operators have reported better than expected results, we’re seeing improvement and growth and there is a genuine sense of optimism amongst members.

The Government’s new investment in tourism is a huge vote of confidence for the sector and greatly welcomed. To take full advantage of this additional funding the industry needs to be cohesive and vigilantly working towards the same objectives. TECNZ will continue its work in this area.

TECNZ welcomes and support’s TIA’s current strategy work to create a ‘National Tourism Plan’ that will create a platform that will enable all tourism sectors and

stakeholders, large and small to move forward as a single industry with consistent goals and ambitions. TECNZ have enjoyed the opportunity to express the views of our membership throughout this process and look forward to the papers release in the months to come.

Tourism Export Council membership continues to grow with both new inbound and supplier members. This is a strong indicator that the industry and our members now more than ever, recognise the value in wholesale distribution.

Twelve months on with the new brand and name change, it is heartening to see how well the industry has responded to the change and direction of the association. Lesley Immink has been a strong ambassador for the association and has guided the organisation forward in a number of areas cementing the Tourism Export Council as a significant and valued private sector organisation in the industry. The Tourism Export Council must remain relevant, add value and be responsive to our members’ needs – I’m very confident we’re achieving this. The Board thanks Lesley for her contribution over the past twelve months.

We have again held elections for the board and it’s excellent to see strong interest from our members who are prepared to commit valuable time to the Tourism Export Council Executive. This year we farewell and thank Lisa Li of China Travel Services for her contribution and welcome back Stu Neels from ATS Pacific.

I look forward to catching up with you all at Conference 2013 in the Wairarapa.

Martin Horgan - President


It has been a busy year working with members and my thanks goes to everyone for your regular communication and support. Key areas of work the Board has been working on include the Department of Conservation ‘guiding’ concessions with inbound operators , promotion of the name change and value of tourism as an export industry, the China market review, zero rating of GST on inbound tour operator facilitation fees and strengthening industry relationships. Most of these areas are covered in the Chairman’s Report.

NAME CHANGEBuilding on from the name change and rebranding of ITOC to the Tourism Export Council (TEC) last year, we have seen improvement with a higher level of awareness from key agencies and the industry about what the Tourism Export Council does and the role we have in the wider industry. We’ll continue to be active with this and broaden the education base further afield in the upcoming year.

MEMBERSHIPMembership at March 2013 shows 44 Full inbound tour operator members, an increase of 7.3% (3 new members) compared to the previous year and 202 Allied supplier members, an increase of 2.5% (5 new members ) over the previous year. There is a diminishing attrition rate so we are pleased we see good improvement in this area. Thank you to members for your on-going support and we hope you will have a stronger financial result in the next financial year.

FINANCEThis year annual membership fees remained the same for Full Inbound Tour Operators at $2565+GST and similarly for Allied members ($700+GST). The Full member fee also includes the annual Qualmark licence fee and membership to TIA. The entrance/application fee for all new members is $100+GST.

Subscription income increased 8.4% ($19,448) from $229,214 to $248,562 in the 2012/2013 year. Good

financial management with reduced operational expenses saw the Association produce a surplus of $35,952. Total income for the year was up $294,535 (19.2%) and total expenditure down $3,514 (1.3%) on the previous year. Net assets now stand at $208,004 with the Association being in the best financial position in its history.

MARKETING AND PUBLIC RELATIONSTEC communications continue on a regular basis with email newsletters and more emphasis was placed on our website as a membership tool linking it with social media channels. Members are encouraged to visit the www.tourismexportcouncil.org.nz website to:

• Post their own member updates which then get pushed through to Facebook announcements for those members who have ‘liked us’

• Post ‘positions vacant’• Provide a “meet the member” profile on the

home page

The annual Tourism Export Council Inbound Travel Directory remained the primary printed collateral for the organisation. The trade manual has a distribution of 8000 with the majority in offshore agents/wholesalers/TNZ/NZTE offices. The Directory provides an additional benefit for members and we encourage you to utilize this opportunity as it is considered a significant reference tool for Trade. There is an e-book and PDF version of the Directory available on the website.

New brochures were produced with the brand and name change and distributed to members, government agencies, parliamentarians and tourism education providers.

Annual Conference

The Tourism Export Council Conference was held on the West Coast at Shantytown in 20-23 August 2012 with 190 attendees including 34 local West Coast tour operators.

Destination Wairarapa was successful with their bid for the 2013 Conference. The event will be held at the Copthorne Solway in Masterton from 21-23 August. The local industry looks forward to welcoming and hosting delegates.

YOUNG TEC – young Tourism Export CouncilYoung TEC is a free networking organisation for TEC staff members under the age of 36 years and had an excellent uptake of membership in the first twelve months with 130 members registered. A volunteer executive committee and regional co-ordinators in Auckland, Rotorua, Wellington, Top of the South and Queenstown have been appointed with the constitution and election process confirmed.

LES

LEY

IMM

INK

CHIEF EXECUTIVES REPORT – THE YEAR IN REVIEW


A series of ‘After 5’ and breakfast networking sessions around the country have been held during the past year and an annual Young TEC conference day will be added to the tourism calendar. In 2014, a career “national development programme” with mentors will be established.

Member ForumsOur members always value getting together to discuss issues, network and socialise. Full members have several forums during the year and our December member update and Christmas Networking Function is a firm fixture on the industry calendar. Last December was a great success with 230 members and guests attending the event at the Crowne Plaza Hotel, Auckland.

Inbound and Operator of the Year AwardsTourism Export Council Full Member Inbound Tour Operators nominate Allied supplier members for the award and Allied members nominate Inbound Tour Operators. The Board assesses nominees based on a points system and choose three finalists. These finalists are then assessed by Full and Allied members respectively and they vote for the winner.

Congratulations go to Scenic Hotel Group on being elected by Full members as the Tourism Export Council Allied ‘Operator of the Year’ for 2012. Other finalists were Real Journeys and Te Puia.

The winner of the ‘Inbound Tour Operator of the Year 2012’ voted by Allied members was Pacific Destinationz with finalists AOT New Zealand and Winchester Travel. Congratulations to all the finalists and winners!

TRENZOver 130 Tourism Export Council Members exhibited at TRENZ in April 2013 in Queenstown. It is great to see approximately 50% of exhibitors are Tourism Export Council members. Nine Full Members were also present as Buyers.

STANDARDS & PERFORMANCE

GOODS & SERVICES TAX (GST): Over the past year, this item remained the single most important issue for Full members. Tourism as an export sector is excluded from the zero-rating of facilitation fees whereas other sectors like Information Technology, Finance, Engineering and Manufacturing are eligible to claim these fees.

TEC considers it unfair that inbound tour operators that are owned offshore can still zero rate the facilitation fee on their New Zealand packages making it difficult for locally owned companies to compete. GST at 15% further highlights the price differential between New Zealand based inbound tour operators and their overseas counterparts, drastically reducing long term competitiveness and viability.

An Economic Impact Report of Inbound Tourism Contribution to the New Zealand Economy was facilitated by Covec late last year. The qualitative and quantitative data demonstrates the impact the current GST laws have on inbound operators. The Board has engaged the services of a professional lobbyist (Mark Unsworth of Saunders Unsworth) to assist in this area and we will work closely with TIA over the next few months to re-present our case to IRD and government. The Report also adds weight to our discussions with NZTE (NZ Trade & Enterprise) re giving more support to inbound tour operators with accessing export marketing grants.

DoC National Guiding ConcessionThe Tourism Export Council and the Department of Conservation (DOC) guiding concession allows Tourism Export Council inbound tour operators to accompany clients during stops of up to one hour at public conservation areas for short walks, view points and photo opportunities.

The concession came into effect April 1 2012 and the first year has acted as a trial to identify anomalies and allow members to cost fees into future itineraries. The success of the agreement will be dependent on DOC’s level of compliance and ability to identify and prosecute non compliant inbound operators. The DOC-TECNZ Guiding Concession has the potential for the Tourism Export Council to recruit more Full members as there are significant financial and operational advantages for inbound operators to be working with us and DOC.

QualmarkAll Full Member Inbound Tour Operators must be Qualmark accredited under the Inbound Tour Operators endorsed criteria. Since committing to Qualmark as a compulsory

part of our full membership criteria, TEC believes overall standards have improved and the benefits have been seen by both members and the wider industry alike.

We have an exclusive ‘Tourism Export Council Inbound Tour Operators’ endorsement and inbound tour operators wishing to work with Tourism New Zealand offshore must either have our endorsement (be a member) or the option of a ‘visitor services’ category.

To conclude I’d like to extend my thanks to Tourism Export Council President Martin Horgan and other Board members for their support and I look forward to the coming year.

Lesley ImminkChief Executive


TOURISM EXPORT COUNCIL OF NEW ZEALAND INCORPORATED

INDEX page

Independent Audit Report 7

Statement of Financial Performance 8

Statement of Movements in Equity 9

Statement of Financial Position 10

Notes to the Accounts 11-12


TOURISM EXPORT COUNCIL OF NEW ZEALAND INCORPORATED STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31ST MARCH 2013

INCOME Subscriptions Received 248,562 229,214Entrance Fees 2,300 1,883

Conference Conference Income 104,366 108,741Conference Expenses (76,635) (109,729)Conference Surplus 27,731 (988)

Symposium Symposium Income 16,652 16,689Symposium Expenses (14,516) (13,629) 2,135 3,059

Other Income 7,250 7,000Interest Received 6,558 6,891 13,808 13,891

294,535 247,060 EXPENDITURE ACC Levies 666 -AGM/Annual Report 1,820 1,830Audit 4,300 3,200Computer Expenses 1,034 4,270Depreciation 2,033 3,918Doubtful Debts - -President’s Allowance 12,000 12,000Insurance 2,291 1,000Internet / Website 1,714 1,828Marketing & PR 5,309 4,125Bank charges & Interest Paid 609 731Legal Fees 195 3,737Members Forum (net) 2,660 -Subscriptions 27,286 22,235Postage & Telephone 3,577 3,238Printing & Stationery 2,097 2,764Rent-Power-Cleaning 7,197 11,013Qualmark Subscriptions 26,647 25,192Rebranding & Young TEC 1,876 12,275Salaries 102,537 100,273Special Projects - Covec 15,000 -Tourism House Expenses 13,614 14,981Travelling & Meeting Expenses 17,224 25,929TRENZ 4,884 5,547

Total Expenses 256,571 260,085

Net Surplus / (Deficit) for Year before tax 37,964 (13,025)

Less Income Tax Expense 2,012 1,146

Net Surplus / (Deficit) for Year after tax 35,952 (14,171)

The accompanying notes form part of these financial statements.

2013 2012


TOURISM EXPORT COUNCIL OF NEW ZEALAND INCORPORATED STATEMENT OF MOVEMENT IN EQUITY AS AT 31ST MARCH 2013

2013 2012MOVEMENTS IN EQUITY

Total recognised Revenues 294,535 247,060Total recognised Expenses 258,584 261,231Surplus / (Deficit) for Year 35,952 (14,171)

Balance at Beginning of year 172,052 186,223

TOTAL EQUITY 208,004 172,052




TOURISM EXPORT COUNCIL OF NEW ZEALAND INCORPORATED STATEMENT OF FINANCIAL POSITION AS AT 31ST MARCH 2012 MOVEMENTS IN EQUITY

Notes 2013 2012

CURRENT ASSETS

Bank Current Account 27,017 12,774Bank Call Accounts 12,230 69,433Bank Term Deposits 142,310 70,000Accounts Receivable 11,695 4,804Accrued Income 925 1,112Prepayments 23,549 21,825

179,948 217,724CURRENT LIABILITIES

Accounts Payable 2,317 2,456Provision for Doubtful Debts - -Accruals 6,894 9,691GST Payable 1,685 (1,245)Taxation Payable 833 (88)

TOTAL LIABILITIES 11,730 10,814

WORKING CAPITAL 205,993 169,134

NON CURRENT ASSETS

FIXED ASSETS 2 2,009 2,918

NET ASSETS 208,004 172,052

EQUITY 208,004 172,052

FOR AND ON BEHALF OF THE COUNCIL

…………………………………………………………. Chief Executive Date: 20 June 2013


1 STATEMENT OF ACCOUNTING POLICIES

REPORTING ENTITY The Tourism Export Council of New Zealand Incorporated is registered under the Incorporated Societies Act 1908.

The Association qualifies for differential reporting as it is not publicly accountable and it is not large as defined by the Framework for Differential Reporting. The Association has applied all the differential reporting exemptions available to it. The financial statements have been prepared in accordance with generally accepted accounting practice.

MEASUREMENT BASE The measurement base adopted is that of historical cost. Accrual accounting is used to recognise revenues and

expenses when they occur.

SPECIFIC ACCOUNTING POLICIES The following specific accounting policies which materially affect the measurement of financial performance and

financial position have been applied:

Revenue Income is recognised when invoiced and upon receipt.

Depreciation Depreciation is calculated on straight line basis at rates that will write off the cost of assets over their estimated

useful life, which are as follows:

Fixtures & Fittings 5 years Leasehold Improvements 6 years Office Equipment 3 years

Financial Instruments (Cash and Short term deposits) The Entity uses non-derivative financial instruments as part of its normal operations. These financial instruments

include: bank accounts, term deposits and debtors. The entity does not use derivative financial instruments. All financial instruments are recognised in the Statement of Financial Position at their fair value.

Investments Investments are valued at cost plus accrued interest. There are two Term Deposits with ANZ with a market value

of $142,310.

Fixed Assets Fixed assets are recorded at historical cost less allowance for accumulated depreciation. Leasehold Improvements relate to a 33% share of the cost of the office fitout for premises leased by the Travel

Agents Association of NZ(TAANZ). Office expenses are shared equally by TAANZ and ITOC

Goods & Services Tax: The financial statements have been prepared on a GST exclusive basis.

Related Party Transactions Office space is shared with Travel Agents Association NZ, overheads are split between the organisations.

CAPITAL COMMITMENTS There are no capital commitments at 31 March 2013 (2012 nil)

CONTINGENT LIABILITIES: There are no contingent liabilities at year end (2012: Nil).

TOURISM EXPORT COUNCIL OF NEW ZEALAND INCORPORATED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2013



CHANGES IN ACCOUNTING POLICIES There have been no changes in accounting policies which have been applied on bases consistent with those used

in previous years.

TAXATION Taxation has been provided on the income earned by the Association on transactions outside of it’s membership.

The Association is not liable for the tax on it’s dealings with members.


2. FIXED ASSETS

2013 2012

Cost Accum Book Depn Cost Accum Book Depn Depn Value Depn Value

$ $ $ $ $ $ $ $

Fixtures & Fittings 8,446 8,446 - (1) 8,446 8,446 - 413Leasehold Improvements 14,759 14,759 - 1,168 14,759 13,591 1,168 2,510Office Equipment 7,454 5,444 2,009 865 6,328 4,579 1,749 998 30,658 28,649 2,009 2,033 29,533 26,616 2,917 3,920

TOURISM EXPORT COUNCIL OF NEW ZEALAND INCORPORATED NOTES TO THE FINANCIAL STATEMENTS (CONT) FOR THE YEAR ENDED 31 MARCH 2013



Franz Josef Glacier. West Coast, South Island, New Zealand

Benefits of belonging to the Tourism Export Council

THANKS TOURISM WEST COAST – TECNZ CONFERENCE 2013

• Marketingopportunitiestopromoteyourproducts&services

• Anassociationthatunderstandsinboundtourism• Qualityandsustainableworldclasspractises• Sharedindustrycommunicationsandintelligence• MembershiptoyoungTourismExportCouncil• Businessnetworkingopportunitieswhichinclude:

Tourism Export Council of New Zealand Annual Conference: InAugusteachyeartheTourismExportCouncilholdsanindustryconference,whichincludesamarketupdatebyTourism New Zealand senior executives and overseasmanagers.

Tourism Export Council of New Zealand Xmas Symposium:

EachDecembertheTourismExportCouncilholdsitsXmasMembersupdateandnetworkingfunctioninAuckland.• Fullmemberforumshostedtwiceduringtheyear• Boardmeetingsarebi-monthlywithtwohostedregionally.

The young Tourism Export Council organisationprovides networking and mentoring opportunitiestoyoungpeople in the tourism industry todevelopindustry knowledge and skills. young TEC isaimedat thoseunder theageof36yearsandthecompanytheyworkforisaTourismExportCouncilofNewZealandmember.

young TECoffers itsmembers regular networking eventswith other youngprofessionalsworking in thetourismindustry,educationalworkshopsandamentoringanddevelopmentprogramprovidingup-to-datetourisminformationandtipstotakeintotheirownworkplace.

youngTECwillhelptocreateahighlyskilledtourismsectorwithoperatorswhoareencouragedtogrowanddevelop,andinvestinthefutureofNewZealandTourism.ItisfreetojoinforemployeesofTourismExportCouncilmembersandcanhelpyoufurtheryourcareerinthetourismindustry.

annual report 2013 · 2017. 10. 31. · table of contents 1 board of directors and secretariat 2...

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