AA builds on domestic tourism knowledge base

28 November 2013

AA builds on domestic tourism knowledge base

Home-grown visitors are the lifeblood of New Zealand’s travel industry, but little is done to co-ordinate domestic tourism growth.

Instead, AA Tourism Chief Executive Moira Penman says hundreds of millions of dollars are pouring out of New Zealand’s airport departure gates to other countries.

“Inbound visitors are vital to the New Zealand economy. We have an amazing place and of course we want the world to see it,” she says.

“However, there is very little co-ordinated activity encouraging Kiwis to see more of their own country.”

“We know that Kiwis travel around, but we don’t know a lot about what they do, where they go or where they are from and what they spend. Our industry is poorly measured so we’ve got big gaps in our knowledge.

“Having that information will be incredibly useful for the industry to provide clarity and help set direction in terms of planning and growth.

But, Ms Penman says this can’t happen in a vacuum.

“We need comprehensive, robust information to assist us, so alongside The Fresh Information Co. we’re putting our money where our mouth is.

“Together we’ve developed a monthly monitor of domestic tourism activity in New Zealand which will be a definitive source of information for understanding who is travelling around the country, why and what they do.

“We’re only four months into the programme, but the insights are already very valuable. This value will grow considerably over time as we identify patterns in the data that will help us better understand the domestic visitor market.”

Ms Penman says the opportunity exists to maximise domestic tourism while working to combat the lure of nearby international destinations.

“In 2012 nearly 900,000 Kiwis left New Zealand for short term holidays spending about $2 billion doing so.”

Ms Penman says while the value of domestic tourism has grown slightly over the last three years, a more co-ordinated approach could speed it up.

“We have a lot of showcase and if we can do it better we could encourage more Kiwis to consider staying closer to home with their holidays, particularly on the shoulders of the seasons. This is about doing more with what we’ve got and doing it in a way that resonates with Kiwis.

“Accommodation providers and operators throughout the industry tell us that they wouldn’t be viable without their domestic visitors. In fact, 60% of all tourism activity in New Zealand is domestic and this is worth billions of dollars every year.”

In the year ending March 2013, domestic travel accounted for $14.165 billion. Of that, more than $10 billion was generated by household rather than business, which includes visiting friends and relatives, spending on accommodation, attractions, food and beverage, fuel, rental cars, retail, events and flights.

“This is why the AA worked closely with the Tourism Industry Association (TIA) this year to assist with developing a tourism growth framework for New Zealand.

The TIA launched Tourism 2025 on October 1, a framework that includes initiatives the industry needs to implement in order to encourage further growth.

Ms Penman says the information that flows from the on-going monthly survey will create one version of the domestic tourism truth.

“This information can assist tourism operators, New Zealand regional tourism organisations, industry bodies, local authorities and the government to more fully understand what is happening and then co-ordinate to both better meet demand and become more innovative in their approach.”

· Over the last four months there have been 21 million domestic visitor nights. This has resulted in $2.8 billion in spending.

· About 10 million visitor nights were focused on friends and family.

· Aucklanders travel the most generating more visitor nights than it received. In the four months to the end of October there were 3.4 million inbound visitor nights and 5.3 million outbound.

· School holidays and Labour weekend in October led to a 40% increase in tourism activity over September.

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