In the heart of Wellington, the West Plaza Hotel offers you 102 spacious and comfortable rooms, excellent facilities and City Dining at its best. Located in the central business district, just a few minutes walk to explore the waterfront, top bars and restaurants the city has to offer. Whether you are here for sightseeing or business, the West Plaza Hotel will give you the Wellington experience you deserve.
INSIDE TOURISM – EXPORT MATTERS 26 September 2012
Cheaper from China: by President Martin Horgan
The 30 day Asia rate structure we have today was an initiative I expect New Zealand picked up a couple of decades ago from other destinations frequented by Chinese travellers.
The philosophy in New Zealand behind heavily discounting short lead hotel inventory was to “stimulate and unlock new business” from what was then the new and developing China (and other Asia) markets. The industry was also turned on by the prospect of last minute ‘top-up’ business that for many busy hotels represented the icing on the cake.
The forecast and outlook for inbound tourism is changing fast and arrival numbers from China are through the roof year on year. At the same time some of our traditional markets are doing it tough.
This has to mean that we’re selling more rooms to Chinese visitors than ever before, and therefore a higher percentage of rooms are going out the door at Asia/30 day rates – often 30% below traditional wholesale rates.
Is this something the hotel industry is worried about? As standalone room rates – are these short lead room rates sustainable for hotels? If not, is there potential for this to be an issue for the greater industry as hotels can no longer afford to upgrade and re-invest, ultimately bringing quality down?
Increasing arrival numbers suggest we’ve been successful in stimulating the Chinese market and there is no doubt we love the late feed that China and other Asia markets offer. But if we take a step back and look again at why we discount so heavily – is the Asia rate structure still relevant?
China is now the world’s second largest economy and gunning down the US quickly. Wealth has increased significantly in China and so in 2012, in the middle of the ‘GFC’ (that’s messing up other economies all around the world) it would be very easy to argue that markets such as UK, USA and Europe need a hand up and some encouragement to visit to New Zealand more than China does.
As the balance of the world’s wealth creeps east we’ve seen visitor numbers from China rocket, but I wonder if during that time Asia discounting has simply become habitual for us? What about when China becomes the world’s largest economy, will we still be discounting to this market? Should we? Right now that’s what it looks like.
We all know that China naturally has a late booking pattern. What we’ve done over the years is create an industry where the market is aggressively driven by a 30 day rate structure, but I’d like to know… is the bulk of the market actually stimulated by it?
Does Asia discounting now just play into the hands of this market? Would we do it again today? Are we inadvertently supporting shopping tour operators who want cheap destinations to lure shoppers to rRather than positioning New Zealand as a desirable quality destination?
At what stage and under what circumstances should New Zealand consider weaning China off the 30 day rate card? It’s worth thinking about I reckon.
Walk the treetops !!
Construction is now well under way on the site at Woodstock Rimu Road just 1.6 kms off State Highway 6 which is the main route to or from the Glaciers. If you have been passing you may have seen the roadworks at the intersection of the Woodstock Rimu Road and State Highway 6, just 15 minutes south of Hokitika.
The visitor information centre and cafe buidling is now to the framing out stage with the roof in place. The access road, carparks and access tracks are well established and the actual steel walkway structure will arrive on the site at the end of September.
Industry famils will be available as soon as possible, which I currently hope will be mid November. For any enquiries please contact Rusty Donnell
Tourism Business Magazine: August –September 2012
It was suggested recently that our industry was fragmented. This isn’t the dairy industry with a uniform product and sell price. Tourism represents a few thousand operators, none of which offer the same product. We’re all competing in the same market place and quite often for the same business – each trying to make a dollar. While there is a degree of diversification or fragmentation in our industry, it doesn’t mean that we are broken – we’re not, and this is a message that we need to send to the policy makers and parliamentarians.
During a period of difficult trading, the Tourism Export Council membership has grown. This is a strong indicator that the industry and our members recognise the value in solidarity and that as individual operators, we need to look at the bigger picture. We can learn from working with each other successfully and can certainly achieve more collectively that we can as individuals. If we were truly a fragmented industry, representative organisations such as the Tourism Export Council would be dead in the water – and I’m glad to say, we’re not.
The NZ Herald quoted an industry leader recently as saying “the industry had to accept it had done a done a poor job of promoting New Zealand and needed to do something about that”. This is tough talk and although we can always do more collectively, our marketing has been smart and for the most part cohesive. Tourism New Zealand have lead this and have increased presence off-shore, are engaging in multiple channels and actively pursuing new market opportunities in Asia. Coordinated successful famil programs have continued to support our highest yielding markets and have led the New Zealand trade off-shore to participate in various trade and kiwilink road shows. As operators, we back this up with our own marketing dollars and activities that take our members to all corners of the globe. Promoting first, destination New Zealand and secondly our own products.
But there is still room for improvement. The industry and ‘all its partners’ need to be sure we’re kicking goals for the same team and have the same objectives. The wider industry needs more opportunity to communicate internally to understand and agree what the immediate and long term objectives, opportunities and risks are for New Zealand tourism. Then we can agree how best to manage that information.
I look forward to catching up with you all at Conference 2012 on the West Coast.
Martin Horgan – President
Auckland Airport has many corporate responsibilities to trade and tourism, our passengers and stakeholders. Auckland Airport is investing in an airport and traveller experience all New Zealanders can be proud of. Auckland Airport is continually developing its capacity and services to ensure it will sustainably cope with an anticipated 24 million passengers a year by 2025.
Travel in style with Pacific Tourways, a premium coach operator recognised as one of New Zealand’s leading coach companies. We offer a wide range of air-conditioned vehicles from 13 to 53 seaters based in Auckland, Wellington, Christchurch and Queenstown. Our coach captains are ambassadors of our country with the local knowledge of both the North and South Islands. We’re 100% committed to tourism in New Zealand. Our goal is to make life as easy as possible for the tour organiser and to show all our passengers exactly what New Zealand has to offer. We genuinely believe New Zealand is the greatest place on earth to tour and we aim to prove it!
Tranzit Coachlines is one of Aotearoa’s largest family-owned and operated transport companies. Established in 1924, we’ve been doing what we enjoy most for 90 years – transporting people. Being Kiwi means we offer down-to-earth service and do as we say. We get people around the city, regions and touring our beautiful country. With a wide range of modern vehicles, from 12 to 53 seats, mini-buses to luxury coaches, we offer the ideal transport solution for you no matter how big or small. Our drivers are trained to the highest standard possible to ensure you have a safe, comfortable journey and an enjoyable experience. We are a trusted transport provider for inbound tour operators specialising in customised New Zealand travel.
Top tour operators recognised by industry
Two of New Zealand’s top operators have been recognised as the best in the business by their industry peers at an awards dinner held at Shantytown on the West Coast.
Pacific Destinationz was named as the Inbound Tour Operator of the Year, while the Scenic Hotel Group received the Operator of the Year Award, at the annual Tourism Export Council awards night. Inbound tour operators nominate allied supplier members and allied members nominate inbound tour operators. The groups are judged on their innovation, marketing, business operation, communications, accessibility and industry relationships. The Board then assesses those nominated based on a points system to choose three finalists and it goes back out to the respective member groups to vote for the winners.
Pacific Destinationz– “Inbound Tour Operator of the Year” 2012
Pacific Destinationz Limited is a wholly New Zealand owned company operating as a wholesale inbound tour company in New Zealand and Fiji. Relationships and partnership with New Zealand accommodation, transport and sightseeing providers is critical to any successful operation. Pacific Destinationz has always highly valued these relationships and fully realise that without their support they would be unable to achieve standards of excellence. Pacific Destinationz offers a full range of product to all markets but has tended to concentrate in developing markets such as Southern Europe and South America. With a stable committed team with multiple language skills, the company fully realise this award is true recognition of the outstanding work of the “PD family”. As a finalist for the past three consecutive years, the Management and staff are truly honoured and humble in accepting the award.
Scenic Hotel Group– “Tour Operator of the Year” 2012
Scenic Hotel Group is the largest New Zealand owned and operated hotel chain. Formerly Scenic Circle, the Group rebranded in 2009 and consists of the Qualmark 3-star Heartland Hotels, 4-star Scenic Hotels and the 5-star Te Waonui Forest Retreat. Multi-million dollar annual investments in refurbishment, renovation and expansion, and a dedication to the best New Zealand suppliers and products keeps the Group at the forefront of domestic and international tourism. Family values driven by the entrepreneurial and philanthropic Hagaman family underpin the highest levels of service and commitment to the best in tourism and hospitality. The Scenic Hotel group and team are ‘delighted’ to be recognised by their industry peers and business partners in accepting this award.
Big benefits are set to come to the Wairarapa after it was announced the region will host the 2013 Tourism Export Council Conference.
The decision was announced at Thursday night’s theme night at Monteiths Brewery on the West Coast following the 2012 Tourism Export Council Conference. Chief Executive, Lesley Immink says the conferences traditionally alternate between the North and South Islands.
“We are delighted to be staging the 2013 conference in the Wairarapa winning by three votes over Hamilton-Waikato. The 190 delegates at this year’s conference greeted the announcement with much enthusiasm so we know we’re going to get plenty of support,” she says.
Destination WairarapaChief Executive David Hancock says the Wairarapa team who put in a joint bid to host the conference are rapt. These included representatives from the Copthorne Hotel & Resort Solway Park, Tranzit and Tui Brewery whose presentation showed a fun and personable side to the Wairarapa and highlighted the great time delegates will have at the conference.
“This is fantastic. It will bring the top New Zealand inbound holiday destination decision makers to the Wairarapa and give us and every tour operator in the region a real vehicle to promote the region,” he says. “When the West Coast last hosted this conference at Franz Josef in the early 1990s the region saw a big rise in awareness and visitor numbers surged – we expect to see those benefits in the Wairarapa.”
Mr Hancock says being awarded the conference was the culmination of years of hard work by the regional tourism organisation of working closely with inbound operators and educating them about the region.
“We can’t underestimate how much value this conference means to us. It is an exciting opportunity to showcase the Wairarapa and over the coming months we will be calling on other tourism operators in the region to be involved.”
Mrs Immink says that getting tourism operators to different parts of the country is a key part in educating them on the attractions and activities on offer.
“The Wairarapa has a growing reputation as a visitor destination and we know that Destination Wairarapa will do a great job in ensuring that delegates from around New Zealand and overseas will see it at its very best.”
The dates for the August 2013 conference will be announced in the next few weeks.
The Tourism Export Council (TECNZ) and the Department of Conservation (DOC) have now finalised a 10-year guiding concession to allow TECNZ inbound tour operators to accompany clients during stops of up to one hour at public conservation areas for short walks, view points and photo opportunities.
Building on that held by the Bus and Coach Association (NZ), this new concession will allow TECNZ members to accompany clients beyond parking areas and into public conservation areas as they tour around New Zealand. Revenue gathered through this concession will go toward DOC’s recreation and conservation work around the country.
The concession came into effect on April 1 2012 and, while primarily aimed at coach tour groups, can be used by TECNZ member-operated minivans and chauffeured vehicles if they meet the other criteria. Members wishing to spend more than an hour at any one site are still required to apply for a concession in the usual way.
This concession brings TECNZ into line with other tourism concessionaires who currently visit public conservation areas as part of their itineraries in terms of fees and group sizes. The first year will act as a trial process to identify anomalies and allow TECNZ members to cost fees into future itineraries. Being a DOC approved concessionaire in addition to inbound operator members having Qualmark endorsement will add further value to inbound tour operators marketing efforts as a strong point of difference going forward.
Speaking of going forward, registrations are now open for the Tourism Export Council ‘conference event of the year’ hosted on the West Coast 21-24 August. The Tourism West Coast team and Shantytown guaranteed at last year’s conference if chosen, to make this ‘the most memorable conference’ ever. Members voted the West Coast to host, so come and support them by registering for the conference. Part of the experience can begin with the process of getting there. Aside from flights in and out of Hokitika, KiwiRail is offering free TranzAlpine train travel to Greymouth return. Take the extra day and opportunity to join one of the most stunning train trips in the world! The theme for the final night is “kiwiana” so start thinking about your costume now. Come as a famous kiwi, an icon, a music band, politician or a bottle of tuimato sauce… Visit www.tourismexportcouncil.org.nz website to see the latest information and download registration forms.