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New Zealand Campaign Q&A

2005 New Zealand Campaign Q&A for Media Kit

POSITIVELY WELLINGTON TOURISM
2005 NEW ZEALAND CAMPAIGN

Q&A FOR MEDIA KIT


A. The value of Domestic Tourism

1. How many nights do domestic and international visitors spend in Wellington annually?

In 2004, international visitors stayed in Wellington a total of 4.3 million nights whilst domestic visitors spent 3.3 million nights in the city in 2003. However, between 2001 and 2004 international visitor nights have increased 85.5% whilst between 2001 and 2003 domestic visitor nights increased 6.6%.

Table 1. Domestic and International Visitor Nights to Wellington 2001 - 2004
Visitor Nights / 2001 / 2002 / 2003 / 2004 / Growth 2001-2003
International / 2,059,490 / 2,632,504 / 3,820,190 / 4,310,518 / 85.5%
Domestic / 3,077,928 / - / 3,280,532 / - / 6.6%

Source – Domestic Travel Survey and International Visitor Survey

Notes:
The 2003 Domestic figures are the most recent – taken from the Domestic Travel Survey.
Domestic travel data for 2002 has not been included as it does not use a consistent methodology and is therefore not reliable.
The International figures are taken from the International Visitor Survey.
Domestic travel data for 2004 will be available within the next two months.

2. How does Wellington’s international and domestic visitor nights split compare to other visitor destinations?

Domestic tourism is still the core of the New Zealand tourism industry, however urban destinations such as Wellington have a higher proportion of domestic visitors than resort destinations such as Queenstown and Rotorua.

Successful domestic marketing campaigns, a growing events calendar and high profile events such as the World Premiere of Lord of the Rings have seen Wellington grow its share of the domestic market.

Table 2. Domestic and International Visitor Nights to Wellington, Auckland, Christchurch, Queenstown and Rotorua 2001 - 2004

2001 Int. / Dom. / 2002 Int. / Dom. / 2003 Int. / Dom. / 2004 Int. / Dom.
WGN 2,059,490 / 3,077,928 / 2,632,504 / 3,820,190 / 3,280,532 / 4,310,518
AKL 10,652,361 / 6,527,585 / 12,931,068 / 18,438,805 / 6,209,827 / 16,854,675
CHC 3,837,804 / 4,957,627 / 4,524,065 / 6,505,439 / 4,622,369 / 6,695,190
ZQN 2,114,936 / 1,053,431 / 2,242,675 / 2,077,516 / 1,172,963 / 2,312,635
ROT 1,130,373 / 1,837,752 / 1,357,899 / 1,376,718 / 1,670,022 / 1,312,156

Notes:
The 2003 Domestic figures are the most recent – taken from the Domestic Travel Survey.
Domestic travel data for 2002 has not been included as it does not use a consistent methodology and is therefore not reliable.
The International figures are taken from the International Visitor Survey.
Domestic travel data for 2004 will be available within the next two months.

Source – Domestic Travel Survey

Source - International Visitor Survey

3. What is domestic tourism worth to the Wellington’s economy?

In simple expenditure terms, in December 2003, domestic tourism to Wellington was valued at $434.7 million. This was an increase of 36% since December 2001.

Table 3. Domestic Visitor Expenditure in Wellington 2001 - 2003

YE Mar 01 / YE Jun 01 / YE Sep 01 / YE Dec 01
$299,610,632 / $301,292,388 / $307,714,363 / $319,336,521

YE Mar 03 / YE Jun 03 / YE Sep 03 / YE Dec 03 / change YE Dec 01 – 03
$420,081,072 / $414,100,151 / $418,722,492 / $434,717,372 / 36.13%

Source: Domestic Tourism Survey

Note:
The only information we can draw upon to answer this question is expenditure data. The Tourism Satellite Accounts reports on the value of tourism to the national economy at a much more comprehensive level (direct and indirect contribution, employment etc) but that information is not available at a regional level.

4. Is there any data on what individual events that have a predominant domestic component contribute to the local economy?

We know that events like the Sevens contribute around $8 million to the local economy.

5. With average Wellington hotel occupancy estimated to be at 70%, is this considered healthy?

Wellington’s average hotel occupancy is one of the highest in New Zealand. As a result there has been significant investment into new hotels and refurbishing existing hotels.

Table 4. Average Occupancy Rates for Wellington Hotels YE Dec 2002 – 2004

YE Dec 2002 / YE Dec 2003 / YE Dec 2004
Average Occupancy 69.37% / 71.24% / 71.98%

B. The Competitive Environment

1. Who is the campaign targeting?

The urban short holiday market. Sydney and Melbourne are now Wellington’s greatest competition in this sector due to reduced trans-Tasman airfare. We want to ensure that Wellington is in the same choice basket as these destinations amongst our target audience who are primarily;
active and innovative in their outlook
households with moderate to high disposable income levels
well educated
family orientated
high personal Internet users.

2. Positively Wellington Tourism’s campaign style has been successful in the past, why change?

Previous campaigns have been successful however, as with any product, the competitive environment changes. As a destination, Wellington is increasingly competing with Sydney and Melbourne for the weekend urban short holiday market and research shows it was time to launch a refreshed campaign.

3. Has the number of New Zealanders travelling offshore increased and what is this attributed to?

Between December 2001 and December 2004, there has been an increase of almost 35%. Growth accelerated between December 2003 and December 2004 with a 26% year on year increase. Latest figures to May 2005 show the trend continuing.

Growth is attributed to attractive pricing of travel packages and the strength of the New Zealand dollar against significant currencies such as the Australian and US dollars.


Source – Tourism Leading Indicators Monitor

% Growth between YE Dec 2001 - YE Dec 2004 is 34.6%

% Growth between YE Dec 2003 - YE Dec 2004 is 26.1%


Table 5. Outbound travel by New Zealanders for the month and year ended December 2004.


Source – Tourism Leading Indicators Monitor


Table 6. Outbound travel by New Zealanders for the month and year ended May 2005.


Source – Tourism Leading Indicators Monitor


C. The Campaign

1. Why market Wellington domestically?

Positively Wellington Tourism and its funding partners believe that the domestic market is the core of the New Zealand tourism industry – the bread and butter - and has seen the pay off for making a long-term investment in the domestic market.

Positively Wellington Tourism was the first Regional Tourism Organisation (RTO) to develop a significant domestic marketing campaign, launching the ‘Send Yourself to Wellington’ campaign in 1995, and, along with Air New Zealand, Te Papa and Wellington hotels, has made a significant investment in domestic marketing ever since.

In 1995, Wellington had no domestic marketing strategy, average weekend hotel occupancy rates were 30% to 40% and consumer perceptions of Wellington were ’dull, grey and boring’. Now, Wellington is considered to be a market leader in destinational domestic marketing. Wellington’s hotel industry is one of the strongest performing with average weekend occupancy rates of 70% and consumer perceptions have dramatically improved.

Underpinning successful marketing campaigns have been long-term partnerships with Wellington City Council, Air New Zealand, Wellington hotels and Te Papa.

2. What does the 2005 New Zealand campaign involve?

Launching 10 July 2005, Positively Wellington Tourism and its partners will unveil a new domestic marketing campaign targeting the weekend urban short holiday market.

The 2005 campaign takes a different approach to that taken previously. Previous campaigns have been successful however, as with any product, the competitive environment changes. As a destination, Wellington is increasingly competing with Sydney and Melbourne for the weekend urban short holiday market.

The 2005 campaign is more emotive that anything Positively Wellington Tourism has done before and is designed to ensure our target market forms a long-term bond with Wellington. The brand marketing will be supported by a comprehensive tactical campaign that will ensure increased interest in Wellington will be converted to bookings.

The 2005 campaign is partnered with Air New Zealand, Te Papa and a number of Wellington hotels. Key components of the campaign are national television advertising, online marketing, event direct mail, event specific marketing and telephone and on line sales.

3. What is the investment Positively Wellington Tourism has made into this campaign?

The total campaign spend is almost $2 million, with 40 percent of this funded by partners.

4. What is the strategy behind the campaign?

EMBED PowerPoint.Slide.8

The strategy behind the campaign relies on a strong brand presence in the form of a 45” television commercial (TVC). The brand TVC has been created to appeal to hearts and minds and portray a range of experiences that represent the Wellington Wellingtonians know and love.

The brand presence will be supported by the messages ‘fly with Air New Zealand’ and ‘stay in one of our inner city hotels’. The airline and hotel messages, or call to action, have been separated from the 45” brand TVC to ensure the emotional message can have the maximum effect. The 15” call to action TVC profiles the campaign partners and will mostly run within the same ad break as the brand TVC.

The brand presence is further supported by specific reasons to come. Three 15” TVCs will profile Te Papa exhibitions during the first twelve months.

An Event Mailer profiling other reasons to come to the capital for an urban short holiday will be distributed in Auckland, Christchurch and Central North Island.

The call to action on all activity is to call 0800 Weekend or check out WellingtonNZ.com to book your trip now.

5. When will the television campaign air?

The new brand TVC will launch 10 July 2005 and run for a two-week flight followed by a second two-week flight in August then three two-week flights over the March – June period in 2006.

Supporting the brand advertising, regional television flights of the Air NZ/Hotels 15” call to action TVCs will run in the Auckland and Christchurch regions in August and over the March – June period in 2006. The 15” TVCs will mostly run in the same ad break as the brand TVC

Further supporting the brand TVC, the Te Papa 15” TVC will run nationally to support key exhibitions.

The entire campaign is a comprehensive year-round marketing programme.

6. How will Positively Wellington Tourism convert interest in the campaign to visitor nights?

The call to action is an integral component of the campaign as this is where interest is turned into bookings. Bookings can be made by the Customer Service Centre, the Wellington i-SITE Visitor Centre or online at WellingtonNZ.com.

WellingtonNZ.com averages 112,000 unique visitors per month and Neilson//NetRatings rank it as one of the top five most popular travel websites in New Zealand. WellingtonNZ.com provides appropriate and up to date information as well as an on-line booking facility.

7. Who are the campaign partners?

Transport: Air New Zealand
Accommodation: Bay Plaza, Bolton Hotel, CityLife Wellington, Copthorne Hotel Wellington, Duxton Hotel Wellington, Hotel Ibis Wellington, Hotel Wellington, InterContinental Wellington, James Cook Hotel Grand Chancellor, Just Hotel, Kingsgate Hotel Oriental Bay, Mercure Hotel Wellington, Mercure Hotel Willis Street, Museum Hotel - Hotel de Wheels, Novotel Capital Wellington, Quest on Johnston, Quest on the Terrace, West Plaza.
Product: Te Papa

8. What is unique about this campaign?

This is the first time Positively Wellington Tourism has run television advertising nationally
This is the first time Positively Wellington Tourism has split the brand and tactical components of the advertising
Positively Wellington Tourism is currently the only RTO with a real time on-line booking facility. Visitors who prefer not to book online are able to speak directly to the visitor centre or the customer service centre to make bookings.

9. Why advertise nationally, including running the ads in Wellington?

The 45” TVC forms the cornerstone of the New Zealand campaign. Wellingtonian’s will see their domestic marketing activity for the first time, re-inspiring them to spend time in their own city, instilling pride and encouraging them to invite their friends and relatives (VFR) to spend time in Wellington.

10. How long will the campaign run for?

The campaign is expected to run for two years.

11. Who is your agency?

Clemenger BBDO in Wellington.

12. Who wrote the music in the TVC?

Music by Wellington artist Rhian Sheehan. ( HYPERLINK "http://www.rhiansheehan.com" www.rhiansheehan.com)

13. What research have you based your campaign on?

Qualitative Research commissioned by Positively Wellington Tourism in February 2005 led us to isolate four core tasks for the 2005 New Zealand campaign. This research built on five years of both qualitative and quantitative research.

Redefine Wellington in the minds of consumers

“Your initial thoughts of Wellington are of formality, the Government and suits. But then when you tell us about some of this other stuff, you start to think there is a more bohemian feel to Wellington which I find more attractive.” [Male, 30’s, Christchurch]

“Cuba St is a different world to Lambton Quay. It is really attractive to you but it’s not in your initial image of Wellington. For me I think of the Suits and Parliament. I’d be more inclined to go there if I thought about the image of funky Wellington.” [Female, 40’s Christchurch]

Promote a diverse range of unique experiences

“I’m attracted to a city with wide [or different experiences]. I get bored just going to the beach” [male, 50’s, Napier]

“The first things that come to mind when I think of Wellington is the Cable Car, Te Papa, and Oriental Parade. To be honest, I don’t think of a lot else.” [Female, 40’s Auckland]

Greater promotion of smaller events/attractions, along with bigger events

“I usually find out about some of the smaller events after they have finished when someone is talking about it.” [Male, 50’s Napier]
“I find that if you are not in the know in Wellington you don’t know what is going on. I’ve been in Wellington when there has been some good things going on and haven’t known it until after I’m home.” [Female, 20’s Christchurch]

Overcome accommodation perceptions

“We are going to Wellington in a few days and still haven’t been able to find accommodation. We’ve tried so many places and they are all booked out. I have absolutely no idea what is going on.” [Female, 50’s Wanganui]

“It is always a nightmare finding good accommodation in Wellington where you don’t have to either settle for somewhere nasty or expensive.” [Male, 40’s Hamilton]

14. How will Positively Wellington Tourism measure the success of the campaign?

Positively Wellington Tourism has three key targets for the 2005/2006 financial year:

5% growth in annual average domestic visitation
3% growth in weekend occupancy rates of partner hotels
3% growth in the VFR market.

ENDS

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