Long haul visitor arrival numbers continue to fall in New Zealand as the impact of recession still dominate most countries. New Zealand’s early reported cases of Swine flu has also had a major impact on Asian arrivals. May arrivals statistics show visitors from China fell 33 per cent while the important Japanese market decreased by more that 40 percent. The Australian arrival numbers however continue to grow with the one million annual visitor number now having been achieved for the first time. The increase in Australian visitors is mainly due to a dramatic increase in transtasman flight capacities that has created low fares.
Archive for the ‘New Zealand Travel’ Category
NZ attracts 1 million Australians
Tuesday, June 23rd, 2009We are Contagious
Tuesday, May 12th, 2009Reports are emerging that New Zealand’s early cases of Swine Flu has lead to a sharp drop off in tourist arrivals from Asia. The news sensitive Japanese market has been particularly hard hit with reports of heavy last minute cancellations.
Statistics NZ have been reporting negative arrival numbers for many months as the world economic slow down sharply effects long haul travel destinations like New Zealand. This latest scare will inevitably have a flow on effect for accommodation providers.
Ski Season Boom May Be A Bust
Wednesday, April 29th, 2009The media in New Zealand have all been running an interesting story about the upcoming ski season.
The South Islands largest ski field operator, NZSki, who own two fields in Queenstown and one at Mt Hutt near Christchurch are claiming that pre-season bookings to Australian tourists are at a record high.
NZSki claims that with the low New Zealand exchange rate and travel warnings issued by the Australian government to traditional popular winter destinations of Bali, Fiji and Thailand, have had a phenomenal effect on demand for winter ski holidays. The company however has not release any figures to substantiate these claims.
Accommodation providers have however shed doubt on NZSki’s claim of a projected bumper ski season. Most in the ski resort accommodation sector are experiencing very weak forward bookings for the upcoming ski season. Claims that NZSki is perhaps talking up the season are further promoted as other ski fields employ reduced staffing numbers in anticipation of a soft season.
Holiday Parks Prove Popular
Monday, March 30th, 2009Travellers staying at holiday parks contribute more than $623 million a year into the New Zealand economy. This represents 3 per cent of New Zealand’s $20 billion tourism industry.
A new report commissioned by the Holiday Accommodation Parks Association of New Zealand (HAPNZ) has shown that travellers staying in holiday parks contribute more than $623 million per year into the New Zealand economy.
Of this national expenditure figure, 55% is contributed to domestic travellers and 45% by international visitors.
The research also highlighted that holiday park visitors spend about 18% of their daily expenditure on accommodation costs which is considerably less than other types of accommodation. This lower daily spend means that a larger part is spent in support of other businesses.
Many holiday parks are located on prime real estate often fronting the ocean, rivers or lakes. This has resulted in many privately owned parks closing to realise underlying value in the land that they occupied. Even council owned parks are facing pressure from local communities for alternative land uses. Most council owned parks are located close to town centres. Growing populations has resulted in many district councils scrutinising other land use alternatives before committing to lease renewals.
It is now common to visit many costal resort towns in New Zealand to find that a new housing subdivision sits where once stood a holiday park. It is clear that this important sector of New Zealand’s accommodation industry is facing lage headwinds.
Map of New Zealand for website use
Wednesday, March 11th, 2009I am receiving many enquiries for a free New Zealand map clip art image for use on websites.
Please find here a free map of NZ for websites.
Finding Visitor Information
Sunday, March 8th, 2009Living in a tourist resort you see and meet many visitors in all manor of touring mode. From the rental car or campervan, the package bus tourist or the traveller that has many months to meander through New Zealand. One thing is common, visitors rarely get off the beaten track to explore some of the lesser but equally awe inspiring sights or activities.
Most scenic hot spots have visitor ‘i-SIGHT’ and Dept. of Conservation (DOC) offices that will supply travellers with information.
i-SIGHT’s are usually located in the prime centre of towns, where as DOC offices may not be as obvious in some locations.
The i-SIGHT or visitor information sights are accredited member of New Zealand’s official Visitor Information Network endorsed by Tourism New Zealand. That said, i-SITE’s are also commission based booking offices. They have good local knowledge but are primarily there to book tours and accommodation. They offer impartial advice within this field but they are there to sell the services of the local businesses that are registered with them.
i-SIGHT’s are funded by local council rates and charge businesses a registration fee. If a business is not registered with these visitor information sights, then these businesses will not be promoted by the i-SIGHT.
There is no advantage to the local business community in promoting the word “free”, however some of New Zealand’s best gems are tucked away down little dirt roads, often not even sign posted.
For example, if you were to enquire at the official i-SIGHT about trout fishing at Lake Wanaka, you would be given a run down on all the commercial operators. You would be asked what type of fishing you wish to do, fly, trawling, remote heli guided etc etc. You would not be told that you can purchase a daily fishing licence, rod and reel and take yourself down a well formed road to a well known river and fish for free.
The cost of the rod and reel will be a fraction of the cost of a fishing tour operator. The Clutha river has some of the best trout fishing in the world and is located only five kilometres from the town centre and the i-SIGHT.
To get good local information on activities and sights you are best to visit the Dept of Conservation office. DOC has no commercial incentive and offers good free advice and information booklets containing maps about local attractions. Once equipped with this information you can then decide if you require a commercial operator to experience the desired activity or attraction by visiting the i-SIGHT.
South Island Guide
Thursday, February 26th, 2009The world’s leading travel book publisher, Lonely Planet is to produce a new guide exclusively on the South Island of New Zealand.
The Australian based company has recognised that many travellers visiting NZ, do not visit the North Island or simply use Auckland International airport as a transiting destination before proceeding to the South Island.
Hopefully the new guide will be able to offer a more in-depth look at some of the Islands attractions and scenic routes that have been glossed over by other guide books.
Gold of a Different Kind
Monday, February 23rd, 2009On a recent gold prospecting trip up the west coast of the South Island New Zealand I had the pleasure of staying at a wonderful self contained cottage.
Due to the rural setting, the accommodation located in Nelson Golden Bay area offered guest breakfast and dinner in a small dining room. The meals were truly remarkable due to the fact that all the vegetables were home grown in their own garden.
As a former city dweller, I was under the impression that vegetable only came from the supermarket who then sourced these from large factory type commercial growers.
The taste difference between the home grown variety and those sourced from the supermarket is truly astounding. I have had the displeasure of sampling many a salad in the United States or London, always believing that New Zealand vegetables were much superior. Now after experiencing the home grown varieties one must make a similar conclusion about supermarket vegetables.
Our host informed us that the commercial growers parameters are for size, volume and speed of growth.
Maybe this is the taste of the much over hyped “organic” I asked our hosts. We were assured that these home grown delights had received the full chemical anti bug treatment that the commercial growers use.
As for the gold prospecting, although I take it reasonably serious, it really is an excuse to get into nature and explore remote rivers. In other words I didn’t get much – 5 grams.
Australia New Zealand Common Border?
Sunday, February 22nd, 2009A Tourism and Transport Forum held in Australia has backed a call by Jetstar chief executive to bring Australia and New Zealand under a common border. A common border would allow flights between the two countries to operate as domestic services.
The forum fully supported moves to removed barriers to trade and tourism between the two countries.
Olivia Wirth, executive director of the Tourism and Transport Forum, said New Zealanders accounted for 20 per cent of Australia’s inbound tourists, while Australians visiting New Zealand accounted for nearly 40 per cent.
The proposal is now being discussed with government border control authorities.
It is estimated that passenger fares could reduce as much as 30 per cent and loadings increase by 40 percent through efficiencies gained by cutting border controls and international passenger charges.
This is a logical step in the CER (Closer Economic Relationship) agreement between both countries however I can see hard lobbying against the proposal by the major airports.
Most international airports in both countries have been sold to commercial interest with strong private equity shareholdings. They would see a common border a potential loss in revenue.
Queenstown – post-mortem of a Disaster
Tuesday, February 17th, 2009New Zealand’s premier holiday destination has recorded the biggest decline in occupancy rates in the country. Queenstown has recorded double digit declines in visitor nights for four months in a row ranging from 12% in September to 11% in December.
In July 2007 I wrote of the unusual situation of ‘Visitor nights increase despite high New Zealand dollar’. Now we have an exchange rate that is nearing historic lows and falling visitor arrivals and visitor nights. A perfect storm is brewing over Queenstown.
New Zealand’s property boom has changed the face of Queenstown in recent years as developers scrambled to relieve mum and pop investors of the added equity built up in their private homes.
Banks flush with overseas money propped up developers who had little trouble in pre-selling investments to people wanting a piece of the action. These developments have manifested mainly as apartment hotels offering the golden carrot of the ‘guaranteed return’.
The number of rooms available in the resort has greatly increased due to this property boom. The development of these new apartment hotels has been based exclusively on demand by mum and pop investors and not on a demand for more Queenstown visitor accommodation. Simply, more venders trying to sell more stock to less customers.
The influx of this relative new type of self catering accommodation has resulted in a new type of traveller. The self-catering visitor now ‘eats in’ more than dines out. This has had a profound effect on the local restaurant industry.
The resorts restaurant and bar industry has also been crippled by increased competition, rentals and a colloquial city council that has restricted their operating hours in a bid to tackle Queenstown’s growing alcohol fuelled petty crime rate.
Commercial developers have also been busy in the resort. Many thousand of square metres has been added or nearing completion. Leasing agents have pre-leased most space to international or national chains that like the property investors are keen to volley for a piece of the boom town.
Chains have been specifically targeted for their ability to pay high per metre rentals. Most chain stores are accustom to paying Westfield Mall type rentals. This has resulted in record rentals being struck in the CBD. Many long established business have relocated to fringe positions as the large chain stores out bid them for lease renewals.
Most leases are based on the Auckland District Law Society Lease that has a clause that does not allow rental reductions that may be required in times of economic downturn. As new valuations are done to support rent reviews, long standing strong businesses are facing increases that are economically unviable and unavoidable for the length of the lease term.
But what has that got to do with a down turn in tourism. Simply put, national and international tenants can run stores at exceptionally high occupational costs that results in artificially high rentals setting a precedent that most retailers can not support. Many tourist operators in Queenstown are smaller businesses and will struggle to survive resulting in a decrease in services to travellers. As a commercial landlord I should personally welcome this increases in my investment yields, however only if it is through sustained growth and not through a boom then bust cycle.
Another aspect to an influx of chain type brands is the lack of a unique experience for the visitor. Australian clothing stores line Queenstown’s streets for Australian visitors, go figure.
On the positive side, Queenstown is fighting back by heavily targeting the resorts largest visitor group. Air NZ has increased its trans-Tasman service. This could be however a repositioning of planes from less profitable routes rather than a jump in demand. I have previously written with my views on this marketing plan. See ‘NZ not immune’
Either way seats will be aggressively marketed and rooms will need to be occupied. The winner will be the travelling public that will undoubtedly get bargain deals.