Jour 2060 W19 Report: NZ Tourism Industry Market Analysis (2014-2017)

This report provides a comprehensive analysis of the New Zealand tourism industry, examining data from 2014 to 2017, with a specific focus on the Australian market. The report delves into general characteristics and trends of international tourism, including visitor numbers, spending patterns, and the purpose and length of visits. It presents key information on the Australian market, comparing annual and monthly data, and analyzing the percentage of Australian visitors and their spending. The report explores the arrivals data, comparing trends between international and Australian visitors, and examines expenditure patterns. Additionally, it analyzes the purpose of visits, places visited, attractions, and activities. The report concludes with a comparison of trends, assessment of strengths and weaknesses, and recommendations for targeting the market. The report utilizes data from various sources and provides insights into the tourism landscape, offering recommendations to the New Zealand government for future development and growth.

TOURISM INDUSTRY REPORT
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Table of Contents
Introduction...................................................................................................................3
Discussion....................................................................................................................3
Section one – General Characteristics and Trends..................................................3
Section two– Individual Market - Summary of Key Information................................6
Section three – Arrivals (Monthly Dec data).............................................................8
Section five – Purpose and length of visit (December Data)..................................10
Section six – Places visited, attractions and activities............................................12
Conclusions and Recommendations..........................................................................13
Section one - Comparisons of Trends....................................................................13
Section two - Strengths and Weakness of Specific Market....................................14
Section three - Recommendations for targeting this market...................................14
References:................................................................................................................15
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Introduction
The paper deals with the analysis of the tourism industry in New Zealand based on
the given data set. The analysis has been performed considering the footfall made
by the internal tourists in the last 4 years (2014 to 2017) with a focus on Australian
visitors. Based on the analysis, finally, the recommendation has also been provided
to the NZ Government to upgrade the tourism industry for attracting more tourists in
the future.
Discussion
Section one – General Characteristics and Trends
The general trends of the international tourism market in New Zealand have been
very positive with considerable growth prospects in future years (Insch, 2020).
Last few years tourism data of the country may reveal the fact that the number of
visitors visiting the country has been consistently growing on a yearly basis. On
average, almost 33,05,743 international visitors visit the country each year ("Insights
| Stats NZ", 2020).
Particulars 2014 2015 2016 2017 Average
Total No. of
International Visitors
28,57,400 31,31,92
7
34,99,939 37,33,70
7
33,05,743
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2014 2015 2016 2017
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
Total No. of International Visitors
On average, people stay in New Zealand less than 9 days (average figure being
8.8). Considering the data of 9 principal markets, it may be observed that the
average spending is almost $2,168 ("Insights | Stats NZ", 2020).
Particulars 2014 2015 2016 2017 Average
Average Spending $1,984 $2,398 $2,206 $2,081 $2,168
2014 2015 2016 2017
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
Average Spending
The growth in spending has also been observed to be upward as far as the last four
years data is concerned, as shown herein.
Spending (9 Principal
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Markets)
Year Amount
2014 $5,67,02,78,658
2015 $7,50,93,06,963
2016 $7,71,94,74,208
2017 $7,76,88,67,829
2014 2015 2016 2017 Average
$0
$1,000,000,000
$2,000,000,000
$3,000,000,000
$4,000,000,000
$5,000,000,000
$6,000,000,000
$7,000,000,000
$8,000,000,000
$9,000,000,000
Spending (9 Principal Markets)
The primary purpose for which international visitors generally come to New Zealand
is to spend their Holiday, as compared to other purposes such as visiting friends &
relatives, business, education, conferences & conventions, etc ("Insights | Stats NZ",
2020).
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2014 2015 2016 2017
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
Holiday Visiting friends & relatives Business
Education Conferences & conventions
Considering the aforesaid data, it may be construed that the country has been a
global tourist spot for international visitors for years and the recent data corroborates
the same.
Section two– Individual Market - Summary of Key Information
Table 1 - Annual Data (2014-2017)
Particulars 2014 2015 2016 2017
Total No. of
Australian
Visitors 12,47,760 13,26,800 14,09,200 14,72,160
Total No. of
International
Visitors 28,57,400 31,31,927 34,99,939 37,33,707
% of Australian
Visitors 44% 42% 40% 39%
Spending by
Australian
$2,04,41,70,00 $2,43,95,94,97 $2,48,74,86,72 $2,55,72,05,78
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Visitors 3 5 2 9
Spending (9
Principal
Markets)
$5,67,02,78,65
8
$7,50,93,06,96
3
$7,71,94,74,20
8
$7,76,88,67,82
9
% of Australian
Spending 36% 32% 32% 33%
Average
Australian
Spending $1,638 $1,839 $1,765 $1,737
Percentage
Africa and the
Middle East 1% 2% 2% 2%
Australia 28% 25% 25% 24%
Canada 3% 2% 2% 2%
China 14% 17% 16% 14%
Germany 6% 5% 6% 5%
Japan 3% 2% 3% 3%
Korea, Republic
of 2% 2% 3% 2%
UK 11% 11% 9% 10%
USA 10% 11% 11% 12%
Rank I I I I
Table 2 – December only Data (2014-2017)
Particulars 2014 2015 2016 2017
Total No. of Australian Visitors 1,68,208 1,77,392 1,93,680 1,91,696
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in December
Total No. of International
Visitors in December
4,02,518 4,44,883 4,94,193 5,13,349
% of Australian Visitors in
December
42% 40% 39% 37%
Average Stay by International
Visitors in December
13.6 13.4 12.7 12.4
Average Stay by Australian
Visitors in December
11.7 11.5 10.8 10.8
Rank I I I I
Section three – Arrivals (Monthly Dec data)
The aforesaid data shows that the arrival numbers have been growing at a
consistent rate over the last few years establishing the fact that the country has been
a preferred destination for internal visitors.
An insight into the dataset may further reveal that the tourism trend from Australia,
the chosen country for the purpose of the paper, to New Zealand. The Australian
visitors have also become increasingly interested in opting for New Zealand as their
favored place of vacation, as may be established from the above table as well.
For the purpose of the report, 9 principal markets have been chosen where from
most of the tourists come to New Zealand. Out of those 9 principal markets, Australia
stands at first place denoting the fact that the Australian people prefer New Zealand
more, as a tourist destination, as against the other 8 principal markets.
The data in the table below shows the changes in the visitation for the last few years.
The growth in the visit by international visitors has increased considerably to the
extent of 12% in the year 2016, as compared to its previous years. On the contrary,
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the growth for Australian tourists during the same period under review stands only at
6%. However, the current year witnesses a fall to almost 7% and 4% in the tourist
growth, as compared to the previous year’s growth rate for both the international as
well as Australian visitors respectively.
Change in - 2014-15 2015-16 2016-17
Total No. of Australian Visitors 6% 6% 4%
Total No. of International Visitors 10% 12% 7%
Section four – Expenditure (Annual Data)
As far as spending made by the tourists is concerned, a close perusal into the figure
in the table below may show that the average spending by those 9 principal markets
have also been considerably growing for last few years and 2015 witnessed a surge
of almost 32% in tourist spending as against its last years' data. However, the growth
rate for Australian visitors in tourism spending has fallen drastically from 32% in the
year 2014 to almost 1% in the year 2017, depicting a cause of concern for the New
Zealand tourism authority, as Australia, is one of the largest contributors for country's
tourism revenue base for years (Zhang, Kim & Goodsir, 2019).
Change in - 2014-15 2015-16 2016-17
Spending by Australian Visitors 19% 2% 3%
Spending (9 Principal Markets) 32% 3% 1%
Average Australian Spending 12% -4% -2%
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2014-15 2015-16 2016-17
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
Total No. of Australian Visitors Total No. of International Visitors Spending by Australian Visitors
Spending (9 Principal Markets) Average Australian Spending
Section five – Purpose and length of visit (December Data)
International Visitors: 2014 2015 2016 2017
Holiday 1,88,88
0
2,20,512 2,47,808 2,57,104
Visiting friends & relatives 1,69,13
6
1,79,424 1,93,584 2,01,600
Business 17,296 17,568 17,808 18,656
Education 2,768 2,624 2,608 2,912
Conferences & conventions 3,632 2,688 4,432 5,072
The purpose of the visit, as stated earlier, has primarily been a vacation, that may be
exhibited from the table herein as well. However, it is to be noted that the visitation
becomes a seasonal matter and December month, being the festive month, is one of
the periods where tourist's footfall may be considerably higher as compared to other
time periods of the years (Orchiston & Espiner, 2017). Hence, the data related to
December month only has been considered in this segment.
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2014 2015 2016 2017
0
50,000
100,000
150,000
200,000
250,000
300,000
Holiday Visiting friends & relatives Business
Education Conferences & conventions
Australian Visitors: 2014 2015 2016 2017
Holiday 62,128 68,752 76,384 70,352
Visiting friends & relatives 87,968 90,448 97,632 1,00,032
Business 10,624 10,720 10,528 11,248
Education 368 416 368 384
Conferences & conventions 1,648 1,392 2,192 1,968
On a similar note, the Australian data of tourists visit in the month of December also
reveals the same growth pattern, like that of the internal visitors. The quantum and
growth both have majorly been observed in the Holiday segment only (Weaver,
2017).
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2014 2015 2016 2017
0
20,000
40,000
60,000
80,000
100,000
120,000
Holiday Visiting friends & relatives Business
Education Conferences & conventions
Section six – Places visited, attractions and activities
Since New Zealand is a globally renowned tourist spot, the case study shows data of
31 places of visit. However, for the purpose of ease of analysis and understanding,
the top five places have been chosen as shown in the figure.
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2014 2015 2016 2017
It shows that the following five places have been most visited:
Place 1
Place 4
Place 20
Place 21 and
Place 30
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