Half of international visitors still using inbound tour operators for travel

Research conducted by Auckland Tourism, Events and Economic Development and the Tourism Export Council New Zealand has revealed between 40 and 55 per cent of international leisure visitors use inbound tour operators and distribution channels to book travel to New Zealand. Auckland Tourism, Events and Economic Development (ATEED) in partnership with the Tourism Export Council New Zealand (TEC) surveyed Inbound Tour Operators (ITO) to help determine the value the sector provides to the Auckland economy. Respondents were asked questions around spend data for Auckland, length of stay in itineraries and lead times for various international markets.

Based on the research findings the ITO sector is worth an estimated $139 million to Auckland in terms of revenue from international visitors. ATEED Manager Tourism Jason Hill says despite the increase in the use of digital marketing and online purchasing for travel over the years the research has shown that the ITOs remain a vital link in the travel distribution channels. “Tourism operators are a vital part of the Auckland economy and ATEED works closely with the industry along the travel supply chain to ensure that Auckland tourism product and content is well represented,” he says.

“Tourism generates in excess of $5 billion of GDP each year and supports more than 50,000 full time jobs. This research has provided a good base to help us further understand the value of the ITO sector and how we can identify more opportunities to help this traditional trade channel grow.”

CEO TEC Lesley Immink says, “This kind of research has provided the organisation some interesting market intelligence and given us a great understanding of the value of our inbound operators. It’s quite clear that there’s still a large proportion of the international leisure market who prefer to use ITOs, particularly in the more niche and high end international visitors,” she says. “The information we have collated gives the organisation and industry some qualitative data on the economic contribution to the Auckland region and we look forward to working with ATEED going forward.”

Key findings were:

1. ITO sector is worth an estimated $139 million to Auckland in terms of revenue from international visitors
2. On average 28% of an ITOs total NZ revenue relates to consumption of Auckland product
3. Estimated 487,000 (or 77%) or ITO customers spend at least one night in Auckland
4. 87% of ITOs promote Auckland as part of their itineraries
5. 91% of ITOs operate as ITO with 72% of ITO business done direct with wholesale agents
6. 51% group bookings, 31% FIT – others up to 6 % were education, MICE and cruise
7. 40% of group bookings were series tours with 60% ad hoc groups

The survey was undertaken in May – June 2015 and Angus & Associates were contracted to do the research. More indepth results re the contribution to the wider tourism industry and by market will be shared over the coming weeks.Contact lesley@tourismexportcouncil.org.nz for more information.