DESTINATION ROTORUA

FIRST QUARTER UPDATE

—  World GDP (PPP)78,852.864

1        United States15,064.816

2        China, People's Republic of

11,316.224

3        India 4,469.763

4        Japan 4,395.600

5        Germany 3,089.471

6        Russia 2,376.470

7        Brazil 2,309.138

8        United Kingdom 2,253.585

Country (or dependent

territory)Population

1        China[7] 1,347,350,000

2        India1,210,193,42

2

3        United States 313,241,000

4        Indonesia 237,641,326

5        Brazil 192,376,496

6        Pakistan 179,090,000

7        Nigeria 162,471,000

8        Russia 143,030,106

Urban area Population

Auckland 1,377,200

Wellington 393,400

Christchurch 380,900

Hamilton 206,400

Napier-Hastings 124,800

Tauranga 121,500

Dunedin 117,700

Palmerston North 82,400

1,000

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2,800D

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Visi

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rriv

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TOTAL NEW ZEALAND INTERNATIONAL ARRIVALS TREND

IVA – Statistics NZ

36,500

-4,000 -5,000

22,800

-18,800

-900

-14,500

200

67,100

83,400

-40,000

-20,000

0

20,000

40,000

60,000

80,000

100,000

Australia United Kingdom

United States

China Japan Germany South Korea

Canada Other Total arrivals

+3.3% -1.7% -2.6% -21.4% -1.4% -21.6% +0.4% +3.3%+18.6% +11.7%

IVA – Statistics NZ

CHANGES IN INTERNATIONAL ARRIVALS 2010 – 2011 YEAR END

2,700 2,500

2,400 2,500 2,500

2,400 2,500

2,200 2,200

0

500

1,000

1,500

2,000

2,500

3,000

2003 2004 2005 2006 2007 2008 2009 2010 2011

Expe

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ure

per a

rriv

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)

CHANGES IN INTERNATIONAL ARRIVALS 2010 – 2011 YEAR END

Spend per Arrival – Ministry of Economic Development

Ministry of Economic Development

INTERNATIONAL VISITOR ARRIVALS TO ROTORUA YE DEC 2010

NEW ZEALAND INBOUND FORECASTS TO 2016NZ Inbound Forecast 2011-2016

3.0m

AUS 1.31m AUS 1.15mAUS 600K

1.8m 2.0mTotalArr 2.4m 2.6m 2.8m

0

50

100

150

200

250

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350

2000 2002 2004 2006 2008 2010 2012f 2014f 2016f

Vis

ito

r A

rriv

als

(0

00

)

Australia ChinaUSA UKJapan Korea

Ministry of Economic Development

DOMESTIC VISITOR ARRIVALS TO ROTORUA YE DEC 2010

Ministry of Economic Development

VISITOR ARRIVALS TO ROTORUA YE DEC 2010

Ministry of Economic Development

ROTORUA TOURISM COMMITTEE

BRUCE THOMASEN – DEPUTY CHAIRMAN

SUMMARY AND FEEDBACK FROM THE INDUSTRY WORKSHOP….o What do you consider the key strategic issues facing Rotorua industry?

o What do you see are the key actions to improving our international performance?

o What do you consider the key actions to growing our domestic performance?

ISSUE 1 - KEY STRATEGIC ISSUES FACING THE INDUSTRY Total %

Accessibility / Jet service / frequency transtasman, ZQN link ,cruise ships 5 8.6%

Perception / Branding / Unique selling points / marketing clarity 7 12.1%

Lack of events, promotion of, funding of 3 5.2%

Poor retail options / CBD lack lustre / night life 3 5.2%

Positive media exposure / strategy / influence 4 6.9%

Crime / Safety / Lack of community dignity, pride and passion/ reputation, H court 6 10.3%

Discounting 3 5.2%

Length of stay, changing perceptions, stay longer and do more 3 5.2%

Funding 3 5.2%

ISSUE 2 – WHAT DO YOU SEE ARE THE KEY ACTIONS TO IMPROVING ROTORUA’S INTERNATIONAL PERFORMANCE?Leverage local identities , ambassador program 4 5.0%

Target markets - military/ UK / US / Sports clubs/ retirees/ sister cities leverage 4 5.0%

TNZ partnership opportunities, education, support, networking 6 7.5%

Accessibility – trans-tasman, ZQN jet service direct, central park hub & spoke, coach 7 8.8%

Airline relationships 4 5.0%

Distribution chain relationship management, collateral, education, famils 5 6.3%

Growth opportunity - grow the pie, Identify gaps, research, 4 5.0%

Australia is key, niche opportunities, 3,5,7 + itineraries, event links, Mono Rotorua 4 5.0%

China Strategy, profitable, long term, education, use our advantages, mono NZ 4 5.0%

Funding, leverage spend, partnerships, Rotorua Inc, Scion,etc. Yield, investment 5 6.3%

Niche industry action groups , share knowledge, workshops, DRM BP shared 4 5.0%

ISSUE 3 – WHAT DO YOU CONSIDER THE KEY ACTIONS TO GROWING OUR DOMESTIC PERFORMANCE?

%

Events strategy, major, iconic, boutique , strengths, night, sports, rally, MTB, champion, festivals, markets 7 14.0%

Domestic Brand presence, reboot the brand positioning, perceptions, lift exposure 5 10.0%

Length of stay, stay longer do more, seasonal campaigns, 5 10.0%

Niche markets, MTB, Fishing,schools, research for opportunity, super gold card op, Baby boomers, internet schools 4 8.0%

C&I , special interest, special occassion, Rotorua Inc, Scion, 5 10.0%

Family opportunity, consistent message eg2+3c packages 3 6.0%

Promote core assets, lake, forest, geothermal, adventure, honeymoon, own our stengths, holiday capital , DOC, Fish & Game, heath, spa 4 8.0%

Safety, community, dignity, pride, communicate to our locals 3 6.0%

Retail, top quality, product development, investment, 3 6.0%

OUR STRATEGIC PRIORITIES ARE …1. Aggressively target and grow the Asian visitor market – specifically China;

2. Grow and increase Rotorua’s share of the Australian visitor arrivals to New Zealand – especially off peak;

3. Increase the average room nights and spend to at least equal the national average for both international and domestic visitors to Rotorua;

4. Increase Auckland visitor market by 5% - 50,000 visitor nights;

5. Take a leadership position in online marketing and travel search;

6. Create value and work in partnership with Rotorua region operators;

7. Increase ease of access to Rotorua as a visitor destination.

WE AIM TO ACHIEVE THESE BY …1. Becoming the most innovative and desirable visitor destination in New Zealand

2. Growth – Faster than the market average for visitor Numbers, Stay & Spend

3. Focused on Key Markets and Visitor Segments

4. Investment Growth - By Iwi, Industry and Infrastructure owners

5. Employment - A significant employer of higher value jobs

6. Education - Centre of excellence for the tourism industry

INTERNATIONAL MARKETING

ACTIVITY THAT HAS ACHIEVED SOME GREAT OUTCOMES FOR THE DESTINATION….

o Chinese Markets Strategy

o Australian Consumer Shows and Famils

o Cruise Ships and working with Tourism Bay of Plenty

ROTORUA MUST BE ON THE CUTTING EDGE OF DEVELOPING THE NEW CHINA MARKET This is not about ADS China business

It is about understanding the changing expectations the new Chinese visitor

There is a clear focus on increasing both nights stayed and dollars spend not volume.

DRM must take a lead in guiding Tourism New Zealand and their Chinese influencer Famil programme

Our appointment of a dedicated Chinese market specialist is the first amongst RTO’s, but it wont be the last

This focus will be about developing new relationships with direct influencers in the distribution chain.

3 + 2 LOVE ROTORUA AUCKLAND CHINESE FIT & VFR CAMPAIGN - FEBRUARY 2012

Launched on Valentines Day

Great support from Rotorua industry

Encouraging New Zealand’s 200,000 plus Chinese Community to fall in love with Rotorua

Pre-launch targeted key influencers in from across the Auckland Chinese business and social community

Competition is a combination of leading Chinese media including television, radio, newspapers and magazines.

Also includes social media and online

LUXURY FAMILY

ADVENTUREROMANCE

JUMPING JOEY - OUR MAN IN OZ Strong AUD $ making long haul attractive

Very competitive environment at present

South East Asia, Europe and USA hot

New Zealand is losing market share

Cruise heavily competing against flights

AUSTRALIAN MARKET

The top destination for Australians remains New Zealand (97,300), followed by Indonesia which has grown 16.1 per cent to 76,300. Next is the USA, up 7.8 per cent with 64,200 outbound visitors. Thailand travel has grown 21.6 per cent in the same year to 46,800 with China in fifth place, up 11.6 per cent to 31,500. Other top ten destinations for Australians include Fiji, India, Singapore, the United Kingdom and Hong Kong, with every one showing year-on-year growth.

FAMILS (ex. SYDNEY)

TRADE & CONSUMER SHOWS

DATE LOCATION SHOW TRADE PARTNER ATTENDEES

Jan 22 Newcastle Hunter Travel Show Kirra Holidays 3,500

Feb 6 Gold Coast Flight Centre ANZCRO 4,970

Feb 11-12 Brisbane Flight Centre Nth.Isl Winter 19,670

Feb 18/19 Melbourne Flight Centre ANZCRO 37,500

Feb 18/19 Sydney Flight Centre Nth.Isl Winter 30,300

Feb 26 Newcastle Flight Centre ANZCRO 2,820

Mar 17/18 Melbourne Holiday & Travel Show Ski Express tba

Mar 21/22 Sydney Tourism NZ - Insights NZ Product tba

Mar 24/25 Sydney Holiday & Travel Show TNZ tba

DATE COMPANY PAX

Feb 8 AOT 2

Feb 11 Flight Centre 2

Feb 24 ANZCRO FCM 20

Mar 3 Newmans Holidays 8

Mar 10 Destination Rotorua 8

Mar 12 Adventure World, Value Tours 2

Mar 16 Flight Centre 5

THE GROWTH AND GROWTH OF THE INBOUND CRUISE MARKET

Rotorua and Tauranga have a good working relationship in terms of Cruise.

The majority of product is pre-sold , but this is varying with the changing demographic.

North Americans tend to be pre- booked and higher numbers, whereas Australians will be varied.

Increased consideration is on price and time of return to port.

Improvements planned for welcoming of passengers and upgraded i-SITE capacity

FACTS ON CRUISE

Mass market cruise is growing faster than other travel and according to market reports there is no limit to industry growth.

Next season Tauranga will see arrival of cruise ships with capacity to carry 3,500+ passengers.

Average turnover in the in the Port based i-SITE has increased 320% in a season.

Australia has surpassed North America as the main source of passengers to NZ in recent years.

INTERNATIONAL MARKETING

AREAS WE ACCEPT WE NEED TO IMPROVE AND DO BETTER….

o Working smarter with industry on market

development plans and activity that can be

budgeted and reported on quarterly.

o Take better leadership and communication

with Tourism New Zealand and others

such as airlines that directly influence

inbound market flow and development.

http://www.youtube.com/watch?v=B7JtKXeNMLI&feature=player_embedded

INTERNATIONAL MARKETING

UPCOMING ACTIVITY ON THE ROAD AHEAD…o Maintain a market development focus in line with strategy in Australia and China.

o Develop, consult and have in place by July a traditional markets industry plan.

o Work on an options to better represent and deliver outcomes across key product

segments such as youth/backpacker, mountain biking, luxury and Maori.