Insights on New Zealand Inbound Travel Trends from ITOs - Dec 2021

Slide Note

In December 2021, insights from ITOs revealed various challenges and opportunities in New Zealand's inbound travel industry. Agents expressed confusion and frustration with the government's decisions, impacting recommendations for NZ. While global interest in training and product updates showcases enthusiasm for NZ, uncertainty around travel rules, COVID variants, and border restrictions pose hurdles. Travellers are opting for open destinations over NZ due to uncertainty, and groups are hesitant to commit marketing efforts until there is more border certainty.

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Presentation Transcript

Inbound Travel Inbound Travel Trends Trends Scott Mehrtens Leisure Time Group TECNZ Chairperson

from the TECNZ ITO Survey Oct 2021

ITO Bookings Next 3 Seasons As at 4 Oct 2021 Compared to the same time in 2019 what % of forward bookings do you already have in place for the next 3 years? 68% 63% 38% July -Oct 2022 2022-2023 2023-2024

ITO Bookings Next 3 Seasons Compared to 2019 season what value % are your bookings per source market? As at 4 Oct 2021

from ITOs across a variety of source markets Dec 2021

Insights from ITOs Dec 2021 Agents are confused and increasing frustrated by our Government s decisions Agents are hesitant to recommend or book New Zealand until there is more certainty The rest of the world is busy taking bookings NZ will soon lose face with agents Most source markets are still getting quotes but conversion % is low due to border uncertainty

Insights from ITOs Dec 2021 High interest in training and product updates clearly shows desire and enthusiasm for NZ Well-attended global travel trade shows also shows good sign in level of interest in NZ Some uncertainty around new COVID variant and new rules around travel/red list countries Australia has given agents a timeline to work to NZ has not Agents have more emphasis to sell Australia until this changes

Insights from ITOs Dec 2021 Travellers are going to open destinations and not committing to NZ due to uncertainty Groups are not committing marketing to NZ until there is greater certainty around borders Some hibernated agencies are now open again with quotes coming through for mid-2022 onwards Ongoing & increased restrictions in China may mean their tourists find it difficult to travel overseas

Asia Will open in a much slower pace Singapore - will be the hub for travel keen to travel and have high savings rates China currently no outbound travel status, NZ interest remains high Japan strong demand for package, series, one- off tours but not if MIQ required International / Offshore Market Intel Oct-Dec 2021 USA/Canada Demand is high but now shifting travel to open countries Nervous about long-haul UK/Germany Demand is high but don t understand our strict borders May take their down- under trip to Australia instead Australia Demand is high, might lose outbound to other open countries

International Travel Trends #trending

Travel Trends Right now, approx. 65% of the world is already open to receive visitors Fully vaccinated visitors with negative PCR test from home country is standard procedure Flexible and refundable travel policies are needed When new destinations open, there is a big surge of enquiry levels

Travel Trends Important information needed for bookings: What protocols do you have in place to keep me safe? How often are your staff tested? Where are the nearest medical facilities? When visiting you, are we required to wear a mask?

International Tourism Recovery Plan 2022-2025 Jul-Sep 2022 Apr-Jun 2022 Oct-Dec 2022 Border Opening Jan-Mar 2022 Jan-Mar 2023 Market Return April Australia May US, Canada May China, Singapore, Taiwan, Hong Kong, South Korea, Japan Sep Two flights UK, Germany, France, The Netherlands, all Europe Source: TECNZ updated 30 November 2021

International Tourism Recovery Roadmap (Number of arrivals and % recovery) Pre COVID May 22 May 23 May 24 May 21 Australia 1,491,252 1,267,564 149,125 (85%) (10%) (20%) 298,250 (100%) 1,491,252 USA 347,629 (70%) (0%) 243,340 312,866 (90%) 0 China 328,145 (0%) 0 262,516 (70%) 196,887 (60%) UK 223,102 (90%) 0 (65%) ( 0%) 145,016 200,792 Germany 91,067 (90%) 59,154 81,960 (65%) ( 0%) 0 Japan 90,326 49,679 63,228 (70%) (55%) ( 0%) 0 By YE May 2024, total annual visitor arrivals 88.7% of pre-COVID arrivals (3,003,289) South Korea 81,660 (55%) 57,162 0 (0%) 44,913 (70%) India 67,395 (10%) (0%) 6,740 26,958 0 (40%) Singapore 60,932 (0%) (65%) 54,839 (90%) 39,606 0 Taiwan 49,179 0 (0%) 29,507 (60%) 34,425 (70%) Hong Kong 51,807 ( o%) 0 46,626 31,084 (90%) (60%) France 39,507 (90%) (65%) 25,680 35,556 0 ( 0%) The Netherlands 29,384 0 (65) ( 0%) 19,100 (90%) 26,446 Source: TECNZ Forecast based on Stats NZ IVA Top 30 Countries Annual International Arrivals as at YE March 2020, updated 30 November 2021

International Tourism Recovery Roadmap Assumptions: Airline connectivity Quarantine Free Travel (QFT) or self-isolation Propensity to travel 2022 Demand from offshore wholesale agents/clients Compulsory digital passports and proof of vaccination Negative PCR test, LAMP or antigen pre-travel to NZ Rapid antigen or lateral flow test for arrivals at border Contact tracing APP Geo-political/economic status in source country COVID trends Spreadsheets showing return on a per country basis over 4 years are available on TECNZ website Source: TECNZ updated 30 November 2021