International Managers Presentation FINAL.PPT - Sydney

Carmel BeattieGroup Manager, International MarketsTourism NSW

Tourism NSW Head OfficeCarmel Beattie Group Manager, International MarketsIan CameronManager, International OperationsNicole BradenTrade Services SpecialistMichelle LamAssistant, International Markets

Tourism NSW Head OfficeHelen MarinicLidia MarcelinoNadine WilsonTracey TaibeMarketing Coordinator,North Asia and UK / EuropeMarketing Coordinator,The Americas and JapanMarketing Coordinator,South Asia and New ZealandMarketing Coordinator

Tourism NSW Overseas OfficesOverseas OfficeNew ZealandThe AmericasUK / EuropeSouth AsiaNorth AsiaJapanRegional DirectorKate StrangeIrene MorganKate YoungSiew Hoon TanOton WuTad TeramotoKyoko Kanehira -elect

International Overview• YE Jun 08, NSW received over 2.8 millioninternational overnight visitors• Visitors spent 56.9 million nights in the state• Average length of stay in NSW, 20.3 nights• International overnight visitors spent 5.6 billion inNSW

Tourism NSW Resources• Tourism NSW Head Office contact detailsPhone: 02 9931 1111Level 2, 55 Harrington Street, The Rocks, NSW, 2000• TNSW Corporate Website-International Market Profiles-Business tools-Promotional opportunities-International Prospectushttp://corporate.tourism.nsw.gov.au/

• Focus on NSW16 -24 March 2009Upcoming Opportunities• ATE 2009 Melbourne12 – 20 June 2009• Industry Familiarisations

United Kingdom / EuropeNovember 2008

United Kingdom

General Market Overview - UK– UK is Australia’s most important international market interms of Total Inbound Economic Value(YE Mar 08 A$m 3. 507.7)– 2nd largest international source market for visitors –YE June 2008 - 686,200 Arrivals (-6% compared to 2007)Forecast is UK arrivals will be 2% for 2008(source Tourism Forecast Report, Tourism Forecasting Committee August 2008)

General Market Overview - UK– One in every 88 UK residents visit Australia every year– On average UK visitors spend AUD$5,455 on their trip toAustralia– On average, British visitors spend 33 nights in Australia– 55% of UK visitors are repeat visitors

General Market Overview - UK– 25,832 Working Holiday visas were granted to Britishcitizens in the period July 07 to March 08, up by 7%relative to the same period of the previous year– Airline capacity set to increase in next 12 months – Etihadand Cathay increasing fights, Emirates and Qantasintroducing A380’s

General Market Overview - UK– Distribution system in the UK continues to be shaped bymergers and consolidation. Most recent being theacquisition of Travelmood by TUI Travel, which willbecome part of the same division as Austravel andThomson for the Australia and New Zealand markets– Credit crunch impacting consumer confidence which isreflected in visitor arrivals

General Market Overview - Ireland– 65,249 visitors to Australia YE Jun 08 up 11% on 07– Working holiday makers from Ireland up 24.2%– UK operators with shops in Ireland are producing volumeof passengers e.g. Trailfinders and Austravel– Introduction of direct flights from Dublin to Australia withEtihad Airways has had a positive impact

Where are we at ?– Largest source market for international visitors to NSW– 394,000 YE June 2008 14% of all international visitors– 2nd largest source market for international visitor nights6,673,000 year ending Jun 2008 11.7 % of all internationalvisitor nights

Where are we at ?– Average length of stay in NSW 16.9 nights– UK overnight visitors spent $687 million in NSW– Average spend per person in New South Wales $1673– NSW received 63.2% of visitors and 33.5% of nights by UKtravellers

New Trends– Boutique tours and accommodation – small groups,personalized experience– Luxury travel – Number of new Luxury operators startingAustralia programs e.g. Cox and Kings and existingAustralia operators staring luxury programs e.g. FlightCentre, Gold Medal Travel

New Trends– Green travel – Growing interest from consumers in GreenTravel. Operators are increasingly looking forenvironmentally friendly product and identifying this withintheir programs– Over 60’s age group increasing from UK important for selfdrivemarket

Appeal of region– Self-drive particularly important

Europe

General Overview - Europe• With the exception of Italy, Switzerland and Austriaall European markets have seen an increase invisitor arrivals for the YE 30 June 2008• France and Ireland have seen the greatest increasewith 11% and 9% increases respectively

General Overview - Europe• Increase in arrivals can be attributed in part to WYDas represented in the increase in arrivals for July 08• Germany largest source market for Australia in termsof visitor arrivals and average spend per person fromContinental Europe

General Overview - Europe• 8% increase in arrivals from Germany, 15-29 yearolds fastest growing segment in German market,working holiday makers increased by 6%• Average spend per person for German visitors$5889 +4%• France has seen greatest increase in workingholiday makers from Continental Europe +29%• Air Austral will commence direct flights from Paris inApril 2009

General Overview - Europe• European markets are high in regional dispersal over40% of nights spent in regional Australia.Netherlands is ranked number 1 with 51% of allnights spent in regional Australia• Average spend per person is significantly higher thanaverage for all inbound markets. Out of all inboundmarkets to Australia Switzerland is ranked 2nd withan average spend per person A$ 7,120

Where are we at?• European markets combined represent 14 % ofinbound market to NSW• Of all international overnight visitors to NSW, Italianvisitors (74.7%) had the highest percentage of firsttime visitors to Australia followed by the French(73.1%)

New Trends– France and Germany increase in youth market, both ofthese markets disperse regionally– Honeymoon market key for France and Italy - ProductManagers are looking for value offers specifically targetedat honeymooners e.g. Groom pays bride goes free– Increase in luxury focus in France, Italy, Switzerland– Self-drive touring remains popular for these markets

Appeal of Region– Self-drive particularly important

International Marketing Opportunities - UK/Europe– UK/Europe Mission 22nd Feb – 5th Mar 2009– New Product Mission – Europe – 30 Mar - 1 Apr 2009Applications closed for 2009 (annual event)– Corroboree Europe 09 – May 2009, Mega Famil followedby workshops on Hamilton Island: Applications forworkshop close 26th Nov, opportunities available withfamils

International Marketing Opportunities - UK/Europe– Trade Famils (still to come this financial year)– Italy Wholesaler Famil -Mar– Corroboree UK/Europe Famils –May (1 x German, 2 x combinedUK/Europe)– Media Famils -UK PR agency McCluskeyInternational, GermanyNewsplus– Bi-Monthly Product Newsletters (sent to UK/Europe Product Mgrs)– Aussie specialist Program – Newsletters, Travel Club as at 30th July5289 full qualified Aussie specialists and 2170 NSW Specialists inEurope

International Marketing Opportunities - UK/EuropeNote:For help planning Online Sales Call Manual forUK/Ireland www.destinationaustralia.uk.com(Europe version coming soon)

South AsiaSingapore, Malaysia and India

General Market Overview - Singapore• Politically stable and efficient Government• Revised GDP Forecast of 3 %• High awareness and affinity to Australia ( nearest westerndestination)• Key Target Segments:-Primary: Singles, DINKS (Aged 25- 35) & Family withyoung children-Secondary: School Excursions , Incentives

Where are we at? - Singapore• Year End Dec 07: 263 000 visitors• (6th largest source market for Australia)• NSW Market Share: 32.3%• 2nd Highest Average Spend Per Night ( afterMalaysia)• High Repeat Visitation: 77.1 %• Dynamic aviation – LCCs around the region

Where are we at? - SingaporeMarket Challenges :• New Reasons to visit Sydney City• Drive greater awareness of beyond Sydney cityattractions• Create urgency to book & travel Now

New Trends / Opportunities -Singapore• Source of Information to Decide on Where to Go *:• (Mastercard H2 2008 Survey)• Travel Agents: 56.6%• Internet: 44.1 %• Advertising / Travel Guides / Agents’ Brochures: 39%• Travel fairs: 37%• Online research is very high ( 77% of household hasbroadband penetration)• LCC has created new travel segments of younger travellers

New Trends / Opportunities -Singapore• FIT segment is increasing• (Group Travel is seasonal. May, June & Year endSchool holidays)• School Education Groups: Govt’s focus on “ BeyondClassroom “ learning• Beyond Sydney city Icons: longer length of stay

New Trends / Opportunities -Singapore• Expatriates Market potential – Eg 200 000 Indianexpatriates• Travel is a Lifestyle for Singaporeans( 4.1 million departure by air in 2007)• More retirees traveling• Increased Preference for Customised itinerary.

ConsumersWhat Singaporeans are looking for:• Accessible nature, including farmstays ( family inparticular), fruit-picking• Soft adventure: nature• Willing to explore on self drive• Niche segments experiences: food & wine, golfing,shop, snow play and ski• Cozy accommodation: cottages, bed and breakfast

What Singaporeans are looking for:Travel Agents• Multi accessible regional experiences as valueproposition• Family Friendly Experiences ( with learningopportunities)• Thematic Driven Experiences ( Eg Major festival,floral events, celebrity driven tours)• Fly / Drive packages

International Marketing Opportunities -Singapore• PR & Media Opportunities – Interested in what’s NEW• Major Consumer Travel Shows – Feb/ March & Aug /September• Great Australian Journeys – in conjunction with TourismAustralia• A380 Opportunities with Qantas Airways – 1st half 2009• Sydney & Surrounds Opportunities – in conjunction with Keyagents• Strategic Partnerships with banks

Malaysia

General Market Overview - Malaysia• Short term political instability• Revised 2008 GDP Forecast of 5.8%• High awareness and affinity to Australia ( nearestwestern destination)

General Market Overview - MalaysiaKey Target Segments• Primary: Singles, DINKS (Aged 25- 35) & Family travelers• Secondary: IncentivesTarget Markets• Primary: Kuala Lumpur & Klang Valley• Secondary: Penang, Johor, East Malaysia• Population: 26 million ( Malay: 50.4%, Chinese: 23.7%)

Where are we at? - Malaysia• Total Visitors year ended 2007: 159 500• ( 1st 8 months of 2008: 8% growth)• NSW market share: 25.6%• 60.5% on a repeat visitation• 2nd highest per visitor spend in NSW: A$ 4053• Twin cities options are popular

Challenges:Where are we at? - Malaysia• LCC Aviation – drives the destination• Minimal operators visits and engagement

New Trends / Opportunities - Malaysia• Air Asia & Air Asia X have created new travelsegments• -Free Seats & Low Cost Strategy)• -Daily to Gold Coast, x 5 to Perth , x 4 to Melbourne)• Australia is most preferred western destination• ** MasterCard Index of Travel Survey 2nd Half 2008

New Trends / Opportunities - MalaysiaNiche Market:• Growing Middle Class Muslim Travelers• Incentives• Secondary markets: Penang / East Malaysia• Strong affinity with Australia

What Malaysians look for -MalaysiaProfile of Malaysian Consumers• Price/ Value Conscious• Increasingly late bookings (2 weeks)• Internet savvy, but still reliant on print media and travel agents.• 79%** rely on agents as key sources of information• 42%** rely on travel promotions/fairs as key sources of info in planning trip• 69% Increase in Length of Stay (from 14.5N to 24.5N)What experiences they look for• Sightseeting Pasees that present value• Family friendly experiences• Muslims friendly accommodation and Halal restaurants within walkingdistance

What Malaysians look for -MalaysiaWhat experiences they look for:• Sightseeting Passes that present value• Family friendly experiences• Muslim friendly accommodation and Halalrestaurants within walking distance

International Marketing Opportunities -Malaysia• PR & Media Visits – especially Malay celebrities• Consumer Shows – in Feb• Source of Info:• Travel Agents: 57.2% / Internet: 42.8%• Travel Fairs & promotions: 30.1%• Great Australian Journeys Campaign• Self Drive campaign to the regions• Via consumer, trade and media engagement• Travel Agents Famils

India

General Market Overview - India• 2nd most populous country with 1.09 Billion• Young Population: > 50% are less than age 25• Dynamic Consumption Trends – From Savings to Spending• Key Segments: Upscale family, Honeymooners, Incentive/Corporates• Primary: Mumbai & Delhi• Secondary: Bangalore, Hyderabad, Chennai, Pune,Ahmedabad, Kolkata

• Key Agents:General Market Overview - India• Tier 1: 3 key Agents with branches all over India• Others: Tier 2 agents & family own business• ITOs: Key ITOS that are India focused and with local IndianRepresentatives• Relationship is VERY important

Where are we at?• 95,200 arrivals (year ended Dec 07)• 26% increase in the 1st 8 months• NSW Market Share: 55.1%• 64.1% are 1st time visitors• Small base, Good Yield , double digit growth• TFC Forecast:2010: 159 0002015: 349 0002017: 440 000

New Trends / Opportunities - India• Favourable Perception & Desirability: Friendly,aspirational and with connections of Cricket &Bollywood• No language barrier: Fluent in English andcomfortable with international travel• Air transport liberalisation -more Indian airlines andmore foreign carriers adding new services orincreasing frequencies

New Trends / Opportunities - India• Travel Liberalisation: Since early 1990s• Sydney: Iconic Status and High Consideration forMust Visit• Increased In Appeal of Australia as Family,Honeymoon. MICE & Education Destination• Increasingly affluent middle class

Profile of ConsumersWhat Indians look for?• Behaviours: ‘Cash rich/time poor‘, Bragging rights,Demand improved quality on their trips. Travelmoves up the list of household spending priorities• Multi-state itinerary: Sydney, Gold Coast/Cairnsand Melbourne

What Indians look for?• Booking pattern: Short lead time for booking, preplannedall inclusive itinerary, predominantly bookthrough travel agents• All inclusive sightseeing with time for shopping• Loves: Icons, Cricket, Shopping, Nightlife (Music,Dance, Pubs), Younger generation love softadventure• Meals: Vegetarian vs Non Vegetarian• Peak Season : May, Dec, Nov, Apr, Mar

International Opportunities - India• Aussie Specialist Famils• Media Trips – Advocacy• Romance Campaign• Qantas Airways Partnership Campaign• Note: Three pronged approach of engaging ITOs, Agents,Consumers ( via PR & Consumer Promotions)

North AsiaChina, Hong Kong andKoreaNovember 2008

General Overview - China• Anticipated that China will be least affected by thecurrent economic turmoil; China’s 2009 GDP isexpected to remain strong, hitting 8%• From September onwards, it is anticipated thatoutbound travel will recover

General Overview - China• Though Australia has been enjoying double-digitgrowth in the inbound travel from China since thegranting of the Approved Destination Status in 1999,fierce competition is still expected from the US,Europe and South East Asia• With the improved Cross-Strait relationship betweenChina and Taiwan, Australia is facing yet anotherfierce competition in the Asia Pacific Region fromTaiwan

GIT marketGeneral Overview - China• Over 44% of Chinese travelers travel to Australiaand NSW in group packages• GIT travel pattern is still a hit in the secondary citiesand provinces and the key factor on group packageselection is price• More themed and luxurious GIT products are gainingincreased popularity in the market, like food andwine, spa and golf and self drive

General Overview - ChinaFIT marketFIT or Experience Seeker Travel, as it is officiallycalled in China, is gaining more popularity amongChinese people, especially in the Eastern cities, likeShanghai and Guangzhou

Where are we at? -China• In the year ended June 2008, NSW received over73% of all Chinese visitors traveling in Australia• Sydney was the most visited region by Chinesetravelers, followed by Illawarra, The Hunter and NewEngland North West

New Trends - China• Experience Seeker Travel• Themed Group packages, like family fun, nature,sailing trips, self drive trips, etc• Luxurious or indulgence tours, like food and wine,golf and spa, self drive, etc

International Marketing Opportunities - China– Media and Trade Famils– Aussie Specialist and Premier Aussie Specialist Famils– Activities organized under the Tourism Australia Pavilion– Australian Travel Mission to China– China International Travel Mart– Large-scale Promotions in the market FY 2008/2009– China UnionPay Sydney Shopping Reality Show– Qantas GIT and FIT Promotion– Self Drive Campaign in Southern China

Hong Kong

General Overview – Hong Kong• Outbound leisure traffic has been hit by high inflationrate and a bear market projection• However, high end travel segment has experiencedlittle impact• Tourism Organisations are now pushing furtherdevelopment and growth of the FIT market in HK

GIT marketGeneral Overview – Hong Kong• Traditional group packages to Australia are graduallylosing appeal• Among HK travelers who travel to Australia in yearending June 2008, only 5.7% was in group tourtravel• Hence, GIT agents are selling and pushing high-endcruise and themed tours to conventional destinations

FIT marketGeneral Overview – Hong Kong• FIT travel pattern is mature and generally acceptedby high percentage of population• Tourism Australia and other major STOs are pushingthe further growth and development of FIT marketand encourage agents to develop high-end FITproducts, including self drive

Where are we at? – Hong Kong• In the year ended June 2008, NSW received over60% of all HK visitors traveling in Australia, up by1.5% compared to Year End June 2007• Sydney was the most visited region by HK travelers,followed by Mid North Coast, The Hunter andIllawarra Region

New Trends – Hong Kong• FIT travel, from youth and family market segments• FIT travel focused on events, like Mardi Gras, RoyalEaster Show and New Year’s Eve Fireworks• High-end FIT travel, including themed activities, likenature, spa, golf and self drive• High-end GIT package, including themed tours likeindulgence in food, wine and luxury resorts• Unique attractions and experiences in the Regions

International Marketing Opportunities –HongKong• Media and Trade Famils• Aussie Specialist Famils• Activities organized by Tourism Australia in themarket• Large-scale Promotion in market– Qantas Self Drive Promotion

Korea

General Overview - Korea• Outbound travel numbers have decreased since May2008 due to increased fuel surcharge, weakenedKorean currency, sluggish economic situation andhigh inflation, shrunken consumption sentiment• This market situation has affected long-hauldestinations severely

General Overview - Korea• With a shrinking Oceania market (Australia and NewZealand), some bigger agents have combined theOceania Department with the USA Department• Singles market, with a strong buying power isgrowing gradually and many agents are developingmore FIT products targeting at singles market

General Overview - KoreaGIT market• Since the beginning of the Tourism Australia GITPromotion, major agents like Hana, Mode and Lottecould maintain the sales levels of previous yearsamidst the worsening market situation• With the speculation of decreasing fuel surcharge, itis expected that airfare cost from November onwardswill be decreased, stimulating consumer sentimentfor overseas travel

General Overview - KoreaFIT market• FIT market is growing gradually• FIT products with a combination of 3 cities, Sydney,Brisbane and Melbourne are most popular• Based on recently introduced new NSW attractions,some FIT agents are trying to develop newproducts/itineraries in the market

General Overview - KoreaHoneymoon market• The number of honeymooners coming to Australia hasincreased around 38% in 2007– Due to successful honeymoon promotion campaign by Korean tradeindustry, Tourism Australia and other STOs• It is expected that the honeymoon demand to Sydney in thecoming months will maintain last year's level or experience anincrease– 3rd honeymoon promotion campaign from August to December 2008• The current number of FIT honeymooners to SYD is growingsteadily

Where are we at? - Korea• In the year ended June 2008, NSW received179,300 Korean visitors• These visitors account for over 80% of all Koreantravelers traveling in Australia• Sydney was the most visited region by Koreantravelers, followed by Mid North Coast, The Hunterand South Coast

• FIT Travel• Singles travel marketNew Trends - Korea• Themed Group packages, like family fun, nature,romantic honeymoon escapes, etc• Mono-state or mono-city FIT and GIT products• Luxurious or indulgence tours, like food and wine,golf and spa, self drive, etc

International Marketing Opportunities - Korea• Media and Trade Famils• Aussie Specialist Famils• Korea Travel Mission organized by TourismAustralia• Large-scale Promotions in market• Korea GIT Recovery Campaign in conjunction withTourism Australia

The Americas – Market OverviewsNovember 2008

General Market Overview• August 2008 US arrivals YTD +1% 312, 200• August 2008 Canada arrivals +13% 81, 200• Third largest market for visitors to NSW• Second largest market for visitor expenditure

Where are we at?• Election, economic turmoil, Iraq War, low consumerconfidence• Targeting 10M “Teflon Travelers” or “ExperienceSeekers”• Climate for growth – increase in air capacity & newdistribution partners

Where are we at?• Seeking compelling experiences for time poortravellers• Sydney & Australia still as popular as ever –conversion is the challenge

New Trends• Consumers - seeking unique, life alteringexperiences• Want to “give back”• Travel industry – increase in consolidation andpreferred partnerships

New Trends• Online Australia travel research increasing–approx 50% of arrivals• Online Australia bookings slowly increasing-approx 10% of arrivals• Trip Advisor is currently number one research site forAustralia

Appeal of Region - South Coast• Nature, wildlife, seaside, relaxation, meet the locals• Self drive – enjoyable journey from Sydney toMelbourne• Unique export ready places to stay• Icons for North America – Sea Cliff Bridge& PebblyBeach• US #2 source market at 12% Canada # 5 at 5.1%

Appeal of Region – Lightning Ridge• True Outback Adventure – bragging rights• Authentic Australian experience• Opals, mining, history, pioneers & remote lifestyle• Icons for North America - Opals & home of blackopal• Outback NSW US#2 source market at 12.6%Canada #7 at 6.0%

Appeal of Region - The Hunter• Wine Country – cellar doors, vineyards, gourmetcuisine & wineries• Export ready, unique & high quality accommodation• National parks, wildlife and beaches

Appeal of Region - The Hunter• Easy access from Sydney• Icons for North America – Hunter Valley & NelsonBay/Dolphin Cruises• US #3 source market at 12.5% Canada #5 at 5.0%

Appeal of Region - Mid North Coast• Easy access from Sydney and offer wide range ofexperiences• Nature, beaches, wildlife, national parks• Export ready, value for money accommodation onthe beach

Appeal of Region - Mid North Coast• Self drive – stopover between Sydney and Brisbane• Icons for North America – surfers on beach andcoastline• US #3 source market 9.2% Canada 6.1%

International Marketing OpportunitiesSouth Coast• Group series and coach touring market – mid week• Self Drive – great Australian journeys• Niche markets – family, education, WHV/Youth,religious, honeymoon• STDW/ATDW, Media, ITOs, ATE, NPW, OZtalk,packaging, niche markets

International Marketing OpportunitiesLightning Ridge• Australia the Movie – revitalized interest in OutbackAustralia• Established four wheel drive operators seeking newdestinations• Accessibility allows for 2-3 night extension packagesfor visitors to Sydney

International Marketing Opportunities LightningRidge• Offer truly unique experiences like Outback CookingSchool, opal mining etc• Target repeat visitors to Australia – approx 40% ofarrivals• STDW/ATDW, Media, ITOs, ATE & tour packaging

International Marketing OpportunitiesThe Hunter• Wine Country the Australian way• Expand beyond the wine country to national parksand coastline• Expand events like Jazz in the Vines & Long Lunchto international markets

International Marketing OpportunitiesThe Hunter• Cruise Industry – Port of Newcastle & super yachts• Target niche markets – luxury, honeymoon, gourmet,equestrian, family, gay & lesbian• Media, ITOs, ATE, NPW, OZtalk, 4 WD operators,group series & coach tours

International Marketing OpportunitiesMid North Coast• Group series and coach tour operators – midweek• Self drive – great Australian journeys• Target WHV/Youth, family, gay & lesbian and repeatvisitors to Australia• Canada – extended stay Snowbirds market• STDW/ATDW, ATE, ITOs, media, Countrylink,leverage SYD/BNE route

JapanNovember 2008

General Market Overview - Japan• Shift to short haul destination and Japan domestic.• Aviation changes• Declining of total capacity (25% down)• Increase JQ share ( 42%)• Concentration on Narita, Tokyo (85%)

Where are we at? - Japan• Australia market is the No. 1 preferred destination forJapanese visitors• Lost business opportunity due to less internationaland domestic capacity & frequency.• Educational market still No. 1 destination• Developing and promoting events & SIT / high endproducts

New Trends - Japan• Prefer to experience unique products• Prefer to experience culture heritage• Booming Univ. student just before graduation inMarch travelling the Jan/Mar period• Cruise (Japanese passenger boat) and charterflights from off line ports to popular destinations• Michelin affect – Restaurant (Red book) andTraveling (Green book)

Appeal of Region - Japan• Snowy Mountains – Walking, Wildflowers• South Coast – Students market (home/farm stay &English study), Eco Tour• Lightning Ridge – SIT• Byron Bay – Resort• Grafton – SIT, Jacaranda Festival

International Marketing Opportunity• SIT products development• Media exposure• Website Promotion (in Japanese)

New Zealand Market OverviewNovember 2008

General Market Overview• Second largest inbound market into NSW (13.2%)• Arrivals increased slightly to 370,438 (up 0.7% on YE Jun 07)• Year round arrivals with peaks over school holidays, majorevents and Christmas• Average length of stay 9.8 nightsSource : IVS, YE June 2008 (TRA)

General Market Overview• High repeat market for Sydney• Often first timers to regional NSW• NSW has 32% share of all NZ visitors to Australia• Kiwi’s have strong desire to travel overseas

States/Territory Market Share of NZ VisitorsWA 4.3% TAS1.4%SA 3.3%NT 1% ACT 1%NSW 32%NSW has 32% share of NZ visitors toAustraliaRemained steady over past 5 yearsVIC 20%SA and WA have increased marketshare since direct flightsMajority of capacity into East Coastgateways (approx 88%)QLD 36%Source : IVS, YE Dec 2007 (TRA)

NZ Economic downturn in 2008Source : Westpac Bank September 2008 Economic Report

Regional Dispersal of New Zealand VisitorsSource : IVS, YE June 2008 (TRA)

New Zealand Marketing StrategyTourism NSW NZ Marketing Strategy• SYDNEY– Key focus is motivating repeatvisitors through campaigns tohighlight different precincts andmajor events– Concept of ‘Uncovering Sydney’ssecrets’– Raise awareness of majorsporting and cultural events thatwill provide reasons for Kiwi’s toplan frequent trips to Sydney

New Zealand Marketing StrategyTourism NSW NZ Marketing Strategy• REGIONAL NEW SOUTHWALES– Key focus is education andmotivation– Campaigns to promote regionaldestination highlights– Encourage dispersal through SelfDrive routes– Raise awareness of Sydney’sSurrounds to increase length ofstay and yield– Promote Regional FlagshipEvents

New Zealand Market Trends• Airfares very competitive since the launch of PacificBlue, Jetstar and Emirates trans Tasman flights• Wholesalers report overall bookings to Australia aredown and forwards are soft towards end of 2008• Market growth has slowed due to:– Economic ‘rebalancing’– Falling NZ dollar– National election– Falling house prices & rising fuel costs– Declining consumer confidence

New Zealand Market Trends• NZ Wholesalers are predicting a short haul boom in2009 as consumers choose shorter holidays closerto home• Key Wholesalers are GO/Stella, Infinity, Travelplan,Air NZ Holidays• Online bookings continue to increase

Travel AgentAirlineBooked accommodation directlyBooked hire car directlyOnline only agencyNo part of last trip was bookedBooked with other provider directlyCan't sayTour OperatorCruise ship company/ Shipping lineRTA/Government Travel CentreMotoring ClubBooking Channels8.78.95.85.93.13.23.18.41.93.50.81.50.40.144.840.728.728.621.415.010.611.87.7Australia70.3Other Overseas0 10 20 30 40 50 60 70 80Percentage (%)Base: Roy Morgan Single Source Year Ended Jul 2008. Last Trip Australia (n=783) or Last Trip ‘OtherOverseas’(n=663)

Internet Travel Site Usage20%18%16%14%12%10%8%6%4%2%0%airnz.co.nzsmaps.co.nzwises.co.nzgoogle mapshouseoftravel.co.nzmtruapehu.comwotif.comflypacificblue.comflightcentre.co.nzSource : Hitwise, August 2008

Popular regional holiday experiences• Most motivating holiday experiences for NZ visitors:– Add-on modules to Sydney stays (short breaks)– Self Drive routes– Food & wine trails– Beach / coastal culture

Popular regional holiday experiences• Most motivating holiday experiences for NZ visitors:– Indulgence – pamper & spa treatments– Outdoor adventure activities & National Parks– Cooking and wine appreciation classes– Aboriginal heritage

New Zealand marketing opportunities in 2009ACTIVITYTIMINGBrand Tactical campaign - Autumn / Winter in Sydney and NSWFebruary – May 2009OZ Talk New Zealand 2009New Product WorkshopApril 2009Sept 2008RTO Destination RoadshowApril 2009Agent FIT Famil ProgramTrade FamilsInternational Media Visits (IMV)February/March 2009Sydney to Melbourne Coastal Drive Nov 2008Sydney Harbour & Beaches March 2009Sydney Harbour & Beaches May 2009Focus on New South Wales March 2009TVNZ Breakfast Show Nov/Dec 2008NZ Herald – Sydney Mardi Gras March 2009Next Magazine April 2009