ANNUALREPORT2014

ALLIED MEMBERProduct Supplier

INBOUND MEMBERInbound Tour Operator

ALLIED MEMBERTourism Services

Organisation

2014

OUR MISSION:To support and represent our members for the purpose of facilitating

business partnerships in the tourism export sector.

TECNZ MEMBERS

26% 15%59%

2013/2014 Board of Directors and Secretariat

President’s Report

Chief Executive’s Report

Benefits of Belonging

Annual AccountsStatement of Financial PerformanceStatement of Movement in EquityStatement of Financial Position

TECNZ was Founded in 1971 Inbound Member Tour Operators - 50 Allied Supplier Member - 210

as at 31 March 2014

WHAT’S INSIDE

2013/2014 TOURISM EXPORT COUNCIL BOARD

PRESIDENT MartinHorganManagingDirectorSouthernWorldNZCHRISTCHURCH

VICE PRESIDENTGeoffYeeManagingDirectorGSNPacificAUCKLAND

VICE PRESIDENTSteveShearerDirectorInternationalSalesScenicHotelGroupAUCKLAND

Back left to right:VanceBoyd,SteveShearer,DylanRushbrook,AdeleMarsden,StuartNeels,RainerHeidtke,GeoffYee

Front left to right:JennySimpson,MichelleCaldwell,StephenEcclestone,LesleyImmink(CEO),MartinHorgan(President),AnnaBlack,DominicCheng

REPRESENTING INBOUND TOUR OPERATOR MEMBERSMartin HorganManagingDirectorSouthernWorldNZCHRISTCHURCH

Stephen EcclestoneInboundGroupsCountryManagerNZ,KuoniGTAAUCKLAND

Rainer Heidtke ManagingDirectorC&EToursCHRISTCHURCH

Anna BlackGeneralManagerGeneralTravelNZAUCKLAND

Stuart NeelsGeneralManagerATSPacificNZAUCKLAND

Adele MarsdenDirectorNewZealandEducationalToursTAURANGA

Dominic ChengDirectorWinchesterTravelAUCKLAND

Geoff YeeManagingDirectorGSNTravelAUCKLAND

REPRESENTING ALLIED MEMBER SUPPLIERSVance BoydManagingDirectorKiwiDiscoveryQUEENSTOWN

Steve ShearerDirectorofInternationalSales&BrandDevelopmentAUCKLAND

Michelle Caldwell CentralNorthIslandRegionalManager–HukaFallsJet,AgrodomeNgaiTahuTourism,RainbowSpringsROTORUA

CO-OPTED BOARD MEMBERSJenny SimpsonInternationalMarketingandTourismDevelopmentManagerAirNewZealandAUCKLAND

Dylan RushbrookChair–YoungTECSkycityHotelsAUCKLAND

LIFE MEMBERSKeith JohnstonAUCKLAND

Blair SheehyAUCKLAND

Russell WhiteAUCKLAND

Michael WiedemannAUCKLAND

Peter LowryWELLINGTON

Warren HarfordROTORUA

IampleasedtopresenttheTourismExportCouncilofNewZealand’s2014annualreport.

LastyearwhenIwrotethisreport,theindustrywasfeelingpositive,morethanjustalittleoptimisticthatwiththeworldbackonitsfeet,thewormhadfinallyturnedandnormalservicehasresumedforNewZealandinboundtourism.

Well,wewereright!Weshouldbefeelinggoodaboutourselvesandtheinboundtourismindustry.We’venowhad2seasonsofreallypositivegrowth.Overthelastyear,whilsttheChinajuggernauthaspulledbacktoarespectful8.0%growthin

arrivals,(theyearpriorwewitnessedastaggering26%increase),whatIamthrilledtoseeisthattraditionalmarketsofUSA,UKandGermanyhavegrownarrivalsby12%,3%and16%respectfully.ThisisallgreatstuffandoverallattheendofJune2014,NewZealandvisitorarrivalswereup5.7%.

What’sevenbetternewsisthatalreadytheseasonaheadisalreadylookingtobeverystrongwithalmostallmarketsbuoyantandengaged.It’sanicefeeling,andIthinkwe’reinagoodplacerightnow.

ThroughvariousformatssuchasChinaMarketFunding,TourismGrowthPartnershipinitiativeandsignificantextrafundingtoTourism,NewZealand,theGovernmenthascontinuedtoinvestinoursector.Thisconfidenceinourindustryhasbeenthecatalystforgrowth,butalsoourowndesiretoimproveproductivity,profitabilityandfinally,anaspirationtocreateavisionforthefuturewith‘Tourism2025’.

Atlastyear’sWairarapaConferencewereceivedaclearmandatetovoicemorestronglytogovernmentourpositionretheprotectionoftheenvironment–andthereforeNewZealand’stourismreputation.OurmembersurveyinOctoberclearlysupportedthisandwesubmittedour

PRESIDENT’S REPORTM

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ANpositiontotherespectiveenvironment,conservationandtourismministers.TherewasacollectivesighofreliefwhentheMinistersdecisiondecliningthemonorailtoMilfordwasreleased–butthat’sjustthestart.TECNZwillcontinueitsworkadvocatingfortheenvironmentandatconferencethisyearwewillhavetheopportunitytohearfromallmajorpartieswhattheircommitmenttotourismandtheenvironmentwillbe.

Advocatingfortheenvironmentisjustonethreadinsocialresponsibilitymandateourboardiscurrentlyworking,weneedtocontinuetoleadfromthefront-inspire,advocateandeducate.

TourismExportCouncilmembershipcontinuestogrowwithbothnewinboundandsuppliermembers,witha28%increaseofinboundmembersinthepastthreeyears.Thisisastrongindicatorthattheindustryandourmembers,nowmorethanever,recognisethevalueinwholesaledistribution.TECNZisasignificantandvaluedprivatesectortourismindustryandwillremainrelevant,addvalueandberesponsivetoourmembers’needs.

OurCEO,LesleyImminkhashadaveryproductive12monthsandagainbeenastrongambassadorfortheassociationandYoungTEC.YoungTECisnowfirmlyestablishedwithitsownstructureand

welookforwardtohearingmoreoftheirprogressduringtheyearatconference.TheBoardandIwanttothankLesleyagainforhercommitment,contagiousenthusiasmandenergy.

Wehaveagainheldelectionsfortheboardandit’sexcellenttoseestronginterestfromourmemberswhoarepreparedtocommitvaluabletimetotheTourismExportCouncilBoard.ThisyearwefarewellandthankStuartNeelsfromATSPacific,StephenEcclestonefromKuoniGTAandVanceBoydfromKiwiDiscovery.Stu,StephenandVancehaveallcontributedgreatlytotheBoardoverthepast5yearsduringaperiodofgreatchangefortheorganisation.WewelcomeMarkBadlandfromPacificDestinationz,JohnGregoryfromPanPacificTravelandRyanIngramfromRealJourneys.

LookingforwardtoseeingyouallatconferenceintheWaikato.

Martin HorganPresident

CHIEF EXECUTIVE’SREPORT– THE YEAR IN REVIEW 1APRIL2013–31MARCH2014

Ithasbeenabusyyearworkingwithmembersandmythanksgoestoeveryoneforyourregularcommunicationandsupport.KeyareasofworktheBoardhasbeenworkingonincludethezeroratingofGSToninboundtouroperatorfacilitationfees,promotionretheprotectionoftheenvironmentsowecanliveuptoour100%PureNewZealandpromise,andtheimportantissueofImmigrationandvisaissuesforvisitorsandemployees.Wecontinuetoaddourperspectivetotheagenciesconcernedandstrengthenourindustryrelationships.MostoftheseareasarecoveredinthePresident’sReport.

MEMBERSHIPMembershipatMarch2014shows50Inboundtouroperatormembers,anincreaseof9.2%comparedtothepreviousyearand210Alliedsuppliermembers,anincreaseof9.6%overthepreviousyear.Thisisagreatreflectionrethehealthoftheorganisationandourvaluetotheindustry.

FINANCEThisyearannualmembershipfeeshavea$20increaseforInboundTourOperatorsat$2585+GSTwithAlliedmembersremainingat$700+GST.TheinboundmemberfeealsoincludestheannualQualmarklicencefeeandmembershiptoTIA.

Subscriptionincomeincreased9.4%from$248,562to$262,203inthe2013/2014year.GoodfinancialmanagementsawtheAssociationproduceasurplusof$28,328.Netassetsandequitynowstandat$236,332withtheAssociationbeinginthebestfinancialpositioninitshistory.

MARKETING AND PUBLIC RELATIONSCommunicationscontinueonaregularbasiswithemailnewslettersandmoreemphasiswasplacedonourwebsiteasamembershiptoollinkingitwithsocialmediachannels.

Thewebsitehasbeenupdatedandhastheabilitytodomoredetailedfilteringandsearches.eg.WhichinboundoperatorsworkintheIndiamarket?Whichalliedmembersdorentalcarhire?HotelaccommodationinOtagoorAuckland?Weencouragememberstovisitwww.tourismexportcouncil.org.nz/memberspage.

TheannualTourism Export Council Inbound Travel Directoryremainedtheprimaryprintedcollateralfortheorganisation.Thetrademanualhasadistributionof8000withthemajorityinoffshoreagents/wholesalers/TNZ/NZTEoffices.Thereisane-bookandPDFversionoftheDirectoryavailableonthewebsite.

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Annual Conference TheTourismExportCouncilConferencewasheldinMasterton,Wairarapa20-23August2013with211attendeesincluding36localWestCoasttouroperators.ManythankstoDestinationWairarapaforhostingahighlysuccessfulconference!

HamiltonWaikatoTourismweresuccessfulwiththeirbidforthe2014Conference.TheeventwillbeheldattheNovotelTainuiHotel26/27August.Thelocalindustrylooksforwardtowelcomingandhostingdelegates.

YOUNG TEC – young Tourism Export CouncilYoungTEChasmadegreatprogresswith140memberswithavolunteerexecutivecommitteeandregionalco-ordinatorsinAuckland,Rotorua,Wellington,ChristchurchandQueenstown.TheyhavetheirownconstitutionandelectionprocessmodelledontheTourismExportCouncil.

Aseriesof‘after5’andbreakfastnetworkingsessionsaroundthecountryhavebeenheldduringthepastyearandtheYoungTECconferenceheldthedaybeforetheXmasSymposiumwashighlysuccessful.Duringthewintermonthsof2014,the“nationaldevelopmentprogramme”withmentorswasinitiated.

AnothernewYoungTEC‘first’istheExcellenceAward.ProudlysponsoredbyTourismNewZealand,AirNewZealand,AccorHotelsandtheTourismExportCouncil,thesuccessfulwinner

willspendtwoweeksinaTourismNewZealandoffshoreoffice.Thewinnerwillbeannouncedattheannualtourismconference.

Member ForumsOurmembersalwaysvaluegettingtogethertodiscussissues,networkandsocialise.InboundmembershaveseveralforumsduringtheyearandourDecembermemberupdateandChristmasNetworkingFunctionisafirmfixtureontheindustrycalendar.LastDecemberwasagreatsuccesswith270membersandguestsattendingtheeventatthePullmanHotel,Auckland.

Inbound and Operator of the Year AwardsTourismExportCouncilInboundTourOperatorsnominateAlliedsuppliermembersfortheawardandAlliedmembersnominateInboundTourOperators.TheBoardassessesnomineesbasedonapointssystemandchoosethreefinalists.Thesefinalistsarethenassessedbyinboundandalliedmembersrespectivelyandtheyvoteforthewinner.

CongratulationsgotoReal JourneysonbeingelectedastheTourismExportCouncilAllied‘OperatoroftheYear’for2013.OtherfinalistswereHobbitonMovieSetToursandSkycityHotels.

Thewinnerofthe‘InboundTourOperatoroftheYear2013’wasonceagainPacific DestinationzwithfinalistsNewZealandJourneys(2007)LtdandSouthernWorld.Congratulationstoallthefinalistsandwinners!

TRENZOver150TourismExportCouncilMembersexhibitedatTRENZinApril2014inAuckland.Itisgreattosee50%ofexhibitorsareTourismExportCouncilmembers.EleveninboundmemberswerealsopresentasBuyers.

STANDARDS & PERFORMANCE

Goods & Services Tax (GST): Overthepastyear,thisitemremainedthesinglemostimportantissueforinboundmembers.TECNZconsidersitunfairthatinboundtouroperatorsthatareownedoffshorecanstillzeroratethefacilitationfeeontheirNewZealandpackagesmakingitdifficultforlocallyownedcompaniestocompete.AsimilarsituationexistsinAustraliaandduringtheyearaninboundtouroperatorwonajudgementinthehighcourt,rulingthatgstcouldbezerorated.ThisopenedthedoorforfurtherdiscussionswithIRDandgovernmentinNewZealandbutthelatterappealdecisionwasoverturned.TheBoardandinboundoperatorshavedecidednottopursuethisissueanyfurther.

DoC National Guiding ConcessionTheTourismExportCouncilandtheDepartmentofConservation(DOC)guidingconcessionallowsTourismExportCouncilinboundtouroperatorstoaccompanyclientsduringstopsofuptoonehouratpublicconservationareasforshortwalks,viewpointsandphotoopportunities.

TheconcessioncameintoeffectApril12012andthe2013-2014yearhasactedasatrialtoidentifyanomaliesandallowmemberstocostfeesintofutureitineraries.ThesuccessoftheagreementisdependentonDOC’slevelofcomplianceandabilitytoidentifyandprosecutenoncompliantinboundoperators.

QualmarkAllinboundtouroperatormembersmustbeQualmarkaccreditedundertheinboundtouroperatorsendorsedcriteria.SincecommittingtoQualmarkasacompulsorypartofourinboundmembershipcriteria,TECNZbelievesoverallstandardshaveimprovedandthebenefitshavebeenseenbybothmembersandthewiderindustryalike.

InboundtouroperatorswhowishtoworkwithTourismNewZealandoffshoremusteitherhaveourendorsement(beamember)ortheoptionofa‘visitorservices’categoryQualmarkendorsement.

ToconcludeI’dliketoextendmythankstoTourismExportCouncilPresidentMartinHorganandotherBoardmembersfortheirsupportandIlookforwardtothecomingyear.

Lesley ImminkChiefExecutive

BENEFITS OF BELONGING TO THE TOURISM EXPORT COUNCIL•Marketingopportunitiestopromoteyourproducts&services•Anassociationthatunderstandsinboundtourism•Qualityandsustainableworldclasspractises•Sharedindustrycommunicationsandintelligence•MembershiptoyoungTourismExportCouncil•Businessnetworkingopportunitieswhichinclude:

Tourism Export Council of New Zealand Annual Conference: InAugusteachyeartheTourismExportCouncilholdsanindustryconference,whichincludesamarketupdatebyTourismNewZealandseniorexecutivesandoverseasmanagers.

Tourism Export Council of New Zealand Xmas Symposium: EachDecembertheTourismExportCouncilholdsitsXmasMembersupdateandnetworkingfunctioninAuckland.•Inboundmemberforumshostedtwiceduringtheyear•Boardmeetingsarebi-monthlywithtwohostedregionally.

STATEMENT OF FINANCIAL POSITION AS AT 31st MARCH 2014 2014 2013 CURRENT ASSETS BankCurrent&CallAccounts 133,199 39,247 BankTermDeposits 81,331 142,310 AccountsReceivable 12,720 11,695 AccruedIncome&Prepayments 29,046 24,472 GSTReceivable 1,041 0 257,337 217,724

CURRENT LIABILITIES AccountsPayable 5,969 2,317 Accruals 8,479 6,894 IncomeinAdvance 10,000 0 GSTPayable 0 1,685 TaxationPayable 600 833 Total Liabilities 25,049 11,729 Working Capital 232,288 205,995 Fixed Assets 4,045 2,009 NET ASSETS 236,332 208,004

EQUITY 236,332 208,004

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OF SUMMARY STATEMENT

OF FINANCIAL PERFORMANCE AS AT 31 MARCH 2014 2014 2013 INCOME Membershipfees 264,490 250,862 Conference&Symposium 37,715 29,864 Sponsorship 9,500 7,250 Interest 6,962 6,558

Total income: 318,667 294,535

EXPENDITURE AGM/Meetings 33,847 21,704 EmploymentExpenses 129,575 115,203 Legal&Accounting 7,166 6,786 PR&Communications 13,677 12,942 OfficeExpenses 31,349 26,485 Specialprojects/YTEC 13,348 16,876 Subscriptions-TIA,Qualmark 57,950 53,933 Otherexpenses 2,183 2,642 Total expenses 289,095 265,571 NetSurplusforYearbeforeTax 29,592 37,964 LessIncomeTaxExpense 1,264 2,012

NET SURPLUS FOR YEAR AFTER TAX 28,328 35,952

STATEMENT OF MOVEMENT IN EQUITY FOR THE YEAR ENDED 31st MARCH 2014 2014 2013 TotalrecognisedREVENUES 318,688 294,535 TotalrecognisedEXPENSES 290,359 258,583 SurplusfortheYear 28,328 35,953 TotalrecognisedIncome&Expenditure 28,327 35,953 EquityatBeginningoftheYear 208,005 172,052

TOTAL EQUITY AT END OF THE YEAR 236,332 208,005

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RESULTS

END MAR 2011

186KEND MAR 2012

172KEND MAR 2013

208KEND MAR 2014

236K

FORANDONBEHALFOFTHECOUNCILChief Executive

Date:20JULY2014This is a summary of the full financial statements as at 31 March 2014. The full statements have been audited and are available on request from TECNZ. Note, this summary has not been audited.

50

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2014201320122011

91%17.1%1-2 YEARS

8.6%2-5 YEARS

20%5-10 YEARS

31.4%10+ YEARS

22.9%20+ YEARS

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45.7%

17.1%8.6%

11.4%30+ FTE’s 45.7%

33% 24% 16% 15% 12%

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2-5 FTE’s 17.1%

ALLIED

5-10 FTE’s 8.6%

10-20 FTE’s 17.1%

20-30 FTE’s 11.4%

FULL TIME EQUIVALENT EMPLOYMENT INCLUDING

NEW ZEALAND AND OFFSHORE

FTE’S EMPLOYED

TOURISM EXPORT COUNCIL OF NEW ZEALAND I associated logo

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MTheyoung Tourism Export Councilorganisationprovidesnetworkingandmentoringopportunitiestoyoungpeopleinthetourismindustrytodevelopindustryknowledgeandskills.young TECisaimedatthoseundertheageof36yearsandthecompanytheyworkforisaTourismExportCouncilofNewZealandmember.

young TECoffersitsmembersregularnetworkingeventswithotheryoungprofessionalsworkinginthetourismindustry,educationalworkshopsandamentoringanddevelopmentprogramprovidingup-to-datetourisminformationandtipstotakeintotheirownworkplace.

young TECwillhelptocreateahighlyskilledtourismsectorwithoperatorswhoareencouragedtogrowanddevelop,andinvestinthefutureofNewZealandTourism.ItisfreetojoinforemployeesofTourismExportCouncilmembersandcanhelpyoufurtheryourcareerinthetourismindustry.

EDUCATION

WELLINGTON

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AUCKLAND

CHRISTCHURCH/TOTS

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