Emphasis on off-peak domestic travel vital for tourism

Media Release: 3 May 2017

Emphasis on off-peak domestic travel vital for tourism growth

It’s clear Kiwis like to travel. In 2016 New Zealand residents made 2.6 million short-term trips overseas – double the number made in 2000.

However, this is less than a tenth the volume of overnight trips Kiwis make within New Zealand – 28 million in 2016 resulting in 80 million nights away from home.

And while our 3.5 million inbound visitors in 2016 are most often the focus of commentary about the tourism industry, with all their spending – $14.5 billion in the 12 months to March last year – Kiwis travelling around Aotearoa spent about 40% more during the same period, $20.2 billion.

Competitive airfares, new tourism attractions and activities, and big budget cinematic creations have all contributed to the growing success of New Zealand’s tourism industry. This all helps to put the Kiwi tourism industry at the top of the economic food chain in this country – now surpassing the value of dairy exports.

The Automobile Association and Auckland-based company Fresh Information run a joint research programme, the AA Traveller Monitor, which includes a comprehensive and ongoing survey of AA Members, which attracts nearly 40,000 responses every year.

AA Travel and Tourism General Manager Grant Lilly says information gathered from AA Members provides a depth of insight into the behaviours of domestic travellers not provided by other sources.

“The information we gather through the AA Traveller Monitor enables better understanding of domestic travel and how we can best assist the tourism industry to develop in order to reach its goal of $41 billion revenue by 2025,” Mr Lilly says.

“Domestic travel provides the tourism industry’s foundation, but it doesn’t get as much attention because it’s not bringing in export dollars. However, what it does do is contribute hugely to the viability and bottom line of all businesses involved in hospitality, accommodation and leisure activities along with all the employment opportunities it provides.

“In short, domestic travel is extremely important to New Zealand’s economy.”

About 46% of all domestic overnight trips are made to visit friends or family, while a further 35% are generated by holidaymakers. However, Mr Lilly says people still spend money in the places they visit, even if they’re staying in someone’s home.

“Given that we’re good travellers anyway, with about six or seven domestic trips a year for each of us on average, the challenge is to find ways to get people more engaged with what is available to them when they’re on the road.”

Mr Lilly says part of the solution is to encourage Kiwis to head out during the three seasons it’s not summer.

“We’re always going to take advantage of the long hot days of summer through Christmas when many of us are off work anyway. However, that’s when it’s busiest with our offshore visitors as well. During the off-peak periods, it can be quite a different experience, especially if you’re visiting a place you’ve never been before.”

Mr Lilly says the AA Traveller Monitor shows significant seasonal variation of visitor nights in all the holiday hotspots. For example, the Coromandel Peninsula hosts nearly 10 times more domestic visitor nights in January than in August. In January, Central Otago hosts nearly 12 times more visitor nights than in August, the region’s quietest month.

“Significant variability between the busiest and quietest months is true for most regions, although Wellington is the least impacted by the phenomenon, likely because of a higher share of business-related travel throughout the year.

“This shows if you plan a little exploring of New Zealand outside the peak season, you’re rubbing shoulders with fewer people and you can often access better accommodation choices at better prices, and enjoy the experience in a more relaxed environment.”

The AA Traveller Monitor survey also asks people how likely – or unlikely – they would be to recommend a destination as a place to visit. Fiordland, Queenstown, Lake Wanaka, the Coromandel Peninsula, Nelson and Kaikoura top the table.

Auckland doesn’t fare well in the overall table, but when just holidaymakers are considered it jumps into the middle of the pack alongside Wellington.

What we’ve learned:

· Most domestic travel undertaken is close to home, within about a three hour drive, which makes Auckland a huge contributor to the economies of Northland, Waikato, the Coromandel Peninsula and the Bay of Plenty. However, Auckland is also the largest domestic origin market for Queenstown. About 30% of its domestic tourism market from the City of Sails.
· Domestic travel contributes $18.1 billion to the tourism industry – 40% more than inbound tourists
· Kiwis spent 80 million nights away from home in 2016
· 46% of all overnight trips are for the purpose of visiting friends or family
· Nearly 60% of all domestic visitor nights are in the warmer spring and summer months
· People from the Manawatu-Whanganui region travel overnight the most – 26.75 nights away a year, compared with 21.22 on average across all regions

AA Traveller has helped Kiwis see the best of New Zealand for more than 100 years. It publishes and distributes more than three million guides and maps every year, and provides travellers with a wealth of information to inspire and assist them in planning travel and to make bookings at more than 1800 properties on aatraveller.co.nz or at any AA Centre.

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