DESTINATION ROTORUA FIRST QUARTER UPDATE

1. DESTINATION ROTORUA FIRST QUARTER UPDATE

4. TOTAL NEW ZEALAND INTERNATIONAL ARRIVALS TREND IVA – Statistics NZ

5. CHANGES IN INTERNATIONAL ARRIVALS 2010 – 2011 YEAR END IVA – Statistics NZ

6. CHANGES IN INTERNATIONAL ARRIVALS 2010 – 2011 YEAR END Spend per Arrival – Ministry of Economic Development

7. INTERNATIONAL VISITOR ARRIVALS TO ROTORUA YE DEC 2010 Ministry of Economic Development

8. NEW ZEALAND INBOUND FORECASTS TO 2016 Ministry of Economic Development

9. DOMESTIC VISITOR ARRIVALS TO ROTORUA YE DEC 2010 Ministry of Economic Development

10. VISITOR ARRIVALS TO ROTORUA YE DEC 2010 Ministry of Economic Development

11. ROTORUA TOURISM COMMITTEE BRUCE THOMASEN – DEPUTY CHAIRMAN • SUMMARY AND FEEDBACK FROM THE INDUSTRY WORKSHOP…. • What do you consider the key strategic issues facing Rotorua industry? • What do you see are the key actions to improving our international performance? • What do you consider the key actions to growing our domestic performance?

18. OUR STRATEGIC PRIORITIES ARE … 1. Aggressively target and grow the Asian visitor market – specifically China; 2. Grow and increase Rotorua’s share of the Australian visitor arrivals to New Zealand – especially off peak; 3. Increase the average room nights and spend to at least equal the national average for both international and domestic visitors to Rotorua; 4. Increase Auckland visitor market by 5% - 50,000 visitor nights; 5. Take a leadership position in online marketing and travel search; 6. Create value and work in partnership with Rotorua region operators; 7. Increase ease of access to Rotorua as a visitor destination.

19. WE AIM TO ACHIEVE THESE BY … 1. Becoming the most innovative and desirable visitor destination in New Zealand 2. Growth – Faster than the market average for visitor Numbers, Stay & Spend 3. Focused on Key Markets and Visitor Segments 4. Investment Growth - By Iwi, Industry and Infrastructure owners 5. Employment - A significant employer of higher value jobs 6. Education - Centre of excellence for the tourism industry

20. INTERNATIONAL MARKETING • ACTIVITY THAT HAS ACHIEVED SOME GREAT OUTCOMES FOR THE DESTINATION…. • Chinese Markets Strategy • Australian Consumer Shows and Famils • Cruise Ships and working with Tourism Bay of Plenty

21. ROTORUA MUST BE ON THE CUTTING EDGE OF DEVELOPING THE NEW CHINA MARKET • This is not about ADS China business • It is about understanding the changing expectations the new Chinese visitor • There is a clear focus on increasing both nights stayed and dollars spend not volume. • DRM must take a lead in guiding Tourism New Zealand and their Chinese influencer Famil programme • Our appointment of a dedicated Chinese market specialist is the first amongst RTO’s, but it wont be the last • This focus will be about developing new relationships with direct influencers in the distribution chain.

22. 3 + 2 LOVE ROTORUA AUCKLAND CHINESE FIT & VFR CAMPAIGN - FEBRUARY 2012 • Launched on Valentines Day • Great support from Rotorua industry • Encouraging New Zealand’s 200,000 plus Chinese Community to fall in love with Rotorua • Pre-launch targeted key influencers in from across the Auckland Chinese business and social community • Competition is a combination of leading Chinese media including television, radio, newspapers and magazines. • Also includes social media and online

23. LUXURY FAMILY

24. ROMANCE ADVENTURE

25. JUMPING JOEY - OUR MAN IN OZ • Strong AUD $ making long haul attractive • Very competitive environment at present • South East Asia, Europe and USA hot • New Zealand is losing market share • Cruise heavily competing against flights AUSTRALIAN MARKET The top destination for Australians remains New Zealand (97,300), followed by Indonesia which has grown 16.1 per cent to 76,300. Next is the USA, up 7.8 per cent with 64,200 outbound visitors. Thailand travel has grown 21.6 per cent in the same year to 46,800 with China in fifth place, up 11.6 per cent to 31,500. Other top ten destinations for Australians include Fiji, India, Singapore, the United Kingdom and Hong Kong, with every one showing year-on-year growth.

26. FAMILS (ex. SYDNEY) TRADE & CONSUMER SHOWS

27. THE GROWTH AND GROWTH OF THE INBOUNDCRUISE MARKET • Rotorua and Tauranga have a good working relationship in terms of Cruise. • The majority of product is pre-sold , but this is varying with the changing demographic. • North Americans tend to be pre- booked and higher numbers, whereas Australians will be varied. • Increased consideration is on price and time of return to port. • Improvements planned for welcoming of passengers and upgraded i-SITE capacity

28. FACTS ON CRUISE • Mass market cruise is growing faster than other travel and according to market reports there is no limit to industry growth. • Next season Tauranga will see arrival of cruise ships with capacity to carry 3,500+ passengers. • Average turnover in the in the Port based i-SITE has increased 320% in a season. • Australia has surpassed North America as the main source of passengers to NZ in recent years.

29. INTERNATIONAL MARKETING • AREAS WE ACCEPT WE NEED TO IMPROVE AND DO BETTER…. • Working smarter with industry on market • development plans and activity that can be • budgeted and reported on quarterly. • Take better leadership and communication • with Tourism New Zealand and others • such as airlines that directly influence • inbound market flow and development.

30. http://www.youtube.com/watch?v=B7JtKXeNMLI&feature=player_embeddedhttp://www.youtube.com/watch?v=B7JtKXeNMLI&feature=player_embedded

31. INTERNATIONAL MARKETING • UPCOMING ACTIVITY ON THE ROAD AHEAD… • Maintain a market development focus in line with strategy in Australia and China. • Develop, consult and have in place by July a traditional markets industry plan. • Work on an options to better represent and deliver outcomes across key product • segments such as youth/backpacker, mountain biking, luxury and Maori.