Wellington Regional Economic and Employment Summit

John Barrett

Chairman NZ Māori Tourism CouncilDirector Tourism New ZealandManaging Director Kapiti Nature Lodge

Wednesday 8 April 2009

PANUI• What people are saying about the tourism

sector

• A SME in the tourism sector

• The Māori tourism sector

• A national tourism perspective

• An international perspective

BNZ Confidence Survey(March 09)

• Tourism – pretty grim. Visitor numbers decreasing and confidence low

• Tourism – April numbers better than for year 08/09, think this may be because of the NZ$, and expect this to be an aberration going forward

• Inbound tourism – heavily seasonal, 08/09 summer down 15%, long haul visitors not committing, outlook for 09/10 not pretty, some markets down by 30%

• Tourism – slightly down, more reliance on domestic tourism

• Tough and challenging in tourism but long term expecting a strong recovery

• Tourism – bad

International Visitor Arrivals - Global

International Tourist Arrivals

5.46.3 6.8

5.4

17.8

-1.3-2.5 -2.8

1.1

4.05.23.4

-5

0

5

10

15

20

World Europe Asia and thePacific

Americas Africa Middle East

vari

atio

n ov

er p

revi

ous

year

(%)

Jan-JuneJuly-Dec.

Source: UNWTO

International Visitor Arrivals – Global

Monthly evolution of worldwide international tourist arrivals

-15

-10

-5

0

5

10

15

20

2005 2006 2007 2008* 2009

% c

hang

e ov

er s

ame

mon

th p

revi

ous

year

length?depth?

Source: UNWTO

-2%

0%

2%

4%

6%

8%

J an07

Feb07

Mar07

Apr07

May07

J un07

J ul07

Aug07

Sep07

Oct07

Nov07

Dec07

J an08

Feb08

Mar08

Apr08

May08

J un08

J ul08

Aug08

Sep08

Oct08

Nov08

Dec08

J an09

International Visitors

Commercial Guest Nights

Year Ended

NZ Trips Abroad

Inbound, Outbound, Domestic and Accommodation Nights Rolling Annual Growth Rates - Year Ended Jan07-Jan09

Source: Ministry of Tourism

Kapiti Island Alive & Kapiti Nature Lodge

• Good growth 08/09

• Settled weather

• Winter traditionally slow for us

• Nimble

• Control costs

• 50/50 international/domestic

• Previous marketing efforts paying off

Distribution of Māori Tourism

• 92 – Tai Tokerau – Northland• 50 – Arawa – Rotorua/Taupo• 44 – Te Waipounamu – South Island• 26 – Takitimu – Hastings/Napier • 20 – Te Upoko – Wellington• 20 – Tamaki Makaurau - Auckland• 12 – Tauranga Moana - Tauranga• 19 – Tairawhiti – East Coast• 14 – Taranaki• 14 – Whanganui• 14 – Te Tau Ihu – Nelson/Marlborough• 11 – Tainui - Waikato

Māori in Tourism

• 37% - Guided Tours• 15% - Accommodation• 15% - Arts & Crafts• 12% - Attractions• 11% - Retail• 7% - Eating out• 5% - Transport• 5% - Concerts & Hangi• 1% - Marae Stays

NZ Māori Tourism Sector• Collaboration-joint international marketing

• Joint training programs

• Best practice adoption

• Company operational review

• Develop great collaborative and strategic relationships

• Staff training

CRITICAL CHALLENGES resulting from tourism downturn

• Maintaining margin/yield/profit

• Maintaining continuity of employment

• Minimizing effects of seasonality

• Diversification

• Tourism industry specific training and education.

• The quality promise and delivery

Kapiti Island Alive & Kapiti Nature Lodge

• Review of daily operations

• Budgets and targets

• Slight increase in promotional/marketing budget

• Focus on niches where they are working

• Maintain international in market activity

• More focus on domestic marketing 2010

Some final comments

• Significant variation in predictions for tourism sector, BUT, generally agree tough times ahead

• Some of the larger national tourism operators feeling the tough conditions already

• TNZ Predict 10% decrease in visitor numbers overall

More final comments• There are some positives

• We have a positive Minister of Tourism

• We believe Govt sees merit in a positive & buoyant tourism sector

• Once the world’s economies return to something like a more normal position, tourism should be one of our lead economic drivers again