KEY ISSUE OR OPPORTUNITY: Convert high preference created by The Hobbit Trilogy, building should season arrivals

OUR STRATEGY: Increase arrivals in shoulder season and driving value through longer staying youth and higher spending premium

Drive Preference Focus Higher Value Visitors

Partner to Extend Reach

Launch new 100% Pure New Zealand campaign integrated with partners driving arrivals in spring & autumn shoulder

Establish NZ premium sector campaigns & activity (training & product development; PR/IMP)

Optimise strategic account management approach with trade. Focus partnership work within tier 1 accounts

PR activity focus on content & broadcast IMP

Integration of Special Interest into trade (product development) and PR programmes.

Use NZ/SQ partnership as call to action on seasonal campaigns

Youth targeted campaigns to drive engagement via partnerships with Facebook, Google and Influencers to drive shoulder conversion

Promote Working Holiday Visa (seasonality focus) with STA to stimulate spring travel

Source: Statistics New Zealand International Travel and Migration Dec 2015 MBIE: International Visitor Survey Sep 2015

•

•

•

•

•

Source: Statistics New Zealand International Travel and Migration Dec 2015

•

Holiday Stay Days

YE Dec 14 YE Dec 15 # Change YoY % Change

Backpackers 1,281,264 1,620,352 339,088 26.5%

Independent Professionals 999,136 1,121,408 122,272 12.2%

Active Boomers 256,288 269,808 13,520 5.3%

Other 121,552 92,560 -28,992 -23.9%

Total 2,658,240 3,104,128 445,888 16.8%

•

•

•

•

Source: Statistics New Zealand International Travel and Migration Dec 2015

•

•

Source: Statistics New Zealand International Travel and Migration Dec 2015

•

Source: Statistics New Zealand International Travel & Migration Nov 2015; Australian Bureau of Statistics Nov 2015

11

• The incidence of Active Considerers of New Zealand in Germany is increasing over the long term but

stabilised in recent quarters

• Compared to six months ago, more Germans are finding New Zealand unappealing, which is flowing through to

lower levels of consideration and preference – i.e. the key to growing active consideration is to grow appeal

• New Zealand’s key competitors are largely other long haul destinations

• Preference for New Zealand has been growing strongly over the past three years from 48% in Q2 FY13 to

69% in Q2 FY16 and this is driven by all segments

• New Zealand’s greatest relative strength is being clean and unpolluted – work still needs to be done on

raising perceptions of being easy to get around through the ‘everything close’ message or otherwise

differentiate on core preference drivers

• The major barriers for German Active Considerers are centred around the understandable concerns around

the time required to fly here and to experience New Zealand properly

• Tailored messaging by segment is required to address the varying knowledge gaps – IPs are more interested

in hearing about the length of time required while ABs are more interested in whether NZ is suited to their age

and fitness level

• Conversion of Active Consideration into visitation is difficult in the medium term with a large proportion (63%) of

German Active Considerers in the dreaming stage

• Backpackers are closer to booking a trip than Independent Professionals while almost three quarters of

German Active Boomers are in the dreaming stage and given their age and concerns around the length of time

required to fly to New Zealand could be difficult to convert

• Active Considerers in the booking stage turn their attention more to detailed questions around what level of

service they can expect in New Zealand, how welcoming locals are and driving etiquette whilst those in

dreaming are more interested in safety and ‘everything close’

• The peak season is the most popular followed by the Oct-Nov shoulder, with some scope to convert

considerers of the Oct-Nov shoulder into preferrers

• For the Spring shoulder, information on climate, suitable activities and knowledge about driving / getting

around may help drive preference while for the Autumn shoulder, information on friendly locals may have more

impact

12

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• •

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13

14

100% 39%

61% 37%

24% 4% 20% 8%

12%

OnlineGermans aged

18 to 74

NZ is highlyappealing

Woulddefinitely

consider NZ

NZ is apreferred

destination tovisit

Would spend at least €2000

on a trip

ACs - We

only survey

these

people

Q2 FY15 100% 37% 63% 40% 24% 4% 20% 7% 12%

15

100% 38%

62% 33%

29% 3% 26% 13%

13%

OnlineGermans aged

18 to 24

NZ is highlyappealing

Woulddefinitely

consider NZ

NZ is apreferred

destination tovisit

Would spend at least €2000

on a trip

Backpacker

s

Q2 FY15 100% 33% 67% 39% 28% 3% 24% 12% 12%

16

100% 39%

61% 36%

25% 4% 21% 9%

13%

OnlineGermans aged

25 to 54

NZ is highlyappealing

Woulddefinitely

consider NZ

NZ is apreferred

destination tovisit

Would spend at least €2000

on a trip

Independen

t

Professional

s V2

Q2 FY15 100% 37% 63% 39% 24% 3% 21% 8% 13%

17

100% 41%

59% 41%

18% 3% 14% 4%

10%

OnlineGermans aged

55 to 74

NZ is highlyappealing

Woulddefinitely

consider NZ

NZ is apreferred

destination tovisit

Would spend at least €2000

on a trip

Active

Boomers V2

Q2 FY15 100% 38% 62% 41% 22% 4% 17% 5% 12%

18

30% 22%

59% 68%

11% 10%

Q4 FY15 Q2 FY16

AC Backpackers

Independent ProfessionalsV2

Active Boomers V2

IPs V2 have grown

from 59% in Q4

FY15

ABs V2 have

declined from 30%

in Q4 FY15

19

55%

43% 41% 37%

30% 25%

18% 17% 17% 13%

Top five…

20

21

45%

44%

43%

62% 65%

59% 61%

78% 74%

69% 66% 64%

71%

49%

56%

64% 60%

63% 66% 65%

69% 74%

71% 69%

69% 69%

49%

54% 59% 60%

63% 59%

56%

69% 71%

69% 69% 68% 67%

22

23

ACs are biased towards New Zealand by design. Because we’re already talking to people that really like the idea of visiting

New Zealand, New Zealand tends to get rated much more favourably on the brand attributes than competitors do. To

better understand relative performance, we need to adjust for this bias and provide an indexed view of performance:

– A score of 100 means performance is in line with expectations after adjusting for bias

– Above 100 indicates a relative strength

– Below 100 indicates a relative weakness

Scores are relative, i.e. removing / adding attributes and / or destinations from the analysis would give different scores

We look at how a given number of competitors perform on

a given number of attributes to derive an index that

measures expected performance

It’s key to note that the score is relative – any change to

the competitor and / or attribute sets will result in a

change in the indices

For example, if next quarter the top give competitors

are different to the ones from this quarter, the scores

reported for New Zealand next quarter will be different

to the ones reported this quarter

24

! Heat map shading is across all attributes and competitors in the

table

25

! Heat map shading is now across rows

26

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41%

40%

36%

32%

31%

24%

24%

23%

19%

18%

17%

17%

15%

13%

12%

11%

The cost to hire a car or campervan

The travelling time and distance between things to see and do

What the accommodation options at various attractions and locations

How to visit things to see and do, if you’re not renting your own vehicle

What the local driver licensing and insurance requirements are

What the local options are for renting a car or campervan

The cost of domestic airfares

The availability of bus tours or other guided tours

What the local driving rules and laws are

Cost of using public transport

The level of English required to get around

Availability and quality of public transport

What the local petrol prices are

The availability of navigation tools in my language such as Google…

What the local driving conditions are like

Information on getting around for elderly or disabled persons

The cost to hire a car or campervan

The travelling time and distance between things to see and do

What the accommodation options at various attractions and locations

How to visit things to see and do, if you’re not renting your own vehicle

What the local driver licensing and insurance requirements are

What the local options are for renting a car or campervan

The cost of domestic airfares

The availability of bus tours or other guided tours

What the local driving rules and laws are

Cost of using public transport

The level of English required to get around

Availability and quality of public transport

What the local petrol prices are

The availability of navigation tools in my language

What the local driving conditions are like

Information on getting around for elderly or disabled persons

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What do ACs want to know more about before choosing New Zealand? Current 6M Previous 6M

1 The length of time required to fly to NZ 40%

Previous 6M

available in Jun-

16 - question

added Jul-15

2 What is the length of time needed to experience NZ properly? 29%

3 Driving on the left hand side of the road 25%

4 How long does it take to travel between the main attractions? 22%

5 What and where the recommended things to see and do? 22%

6 Whether it gets too hot in summer? 22%

7 How often does it rain? 21%

8 How safe is it from crime? 20%

9 How physically fit I’d need to be 20%

10 How welcoming are the locals to tourists from my country? 20%

40

The length of time required to fly to NZ

Driving on the left hand side of the road

How well suited it is to people of my age group?

How physically fit I’d need to be

What and where the recommended things to see and do?

What is the length of time needed to experience NZ properly?

How welcoming are the locals to tourists from my country?

How long does it take to travel between the main attractions?

Whether it gets too hot in summer?

What level of service you can expect from service providers?

How often does it rain?

How easy is it to travel around?

How safe it is to participate in adventure activities?

How safe is it from crime?

Will I be able to buy the type of food I like to eat?

= ranks higher with segment than with other segments in terms of the top ten knowledge

gaps

41

42

43

44

45

What do ACs want to know more about before choosing New Zealand? Dreaming Planning Booking

1 The length of time required to fly to NZ 38% 45% 42%

2 What is the length of time needed to experience NZ properly? 27% 35% 28%

3 Driving on the left hand side of the road 23% 31% 27%

4 What level of service you can expect from service providers? 26%

5 How welcoming are the locals to tourists from my country? 18% 25%

6 How safe it is to participate in adventure activities? 24%

7 How often does it rain? 21% 22% 23%

8 Whether it gets too hot in summer? 21% 24% 23%

9 What is the driving behaviour / etiquette of locals like? 23%

10 How well suited it is to people of my age group? 22%

11 How long does it take to travel between the main attractions? 21% 29%

12 What and where the recommended things to see and do? 21% 27%

13 How safe is it from crime? 19% 26%

14 How physically fit I’d need to be 19% 30%

15 What are the transportation options for travelling within NZ? 24%

= ranks higher with dreaming than with booking

46

50% 64%

28% 13%

30%

52%

12% 6%

20%

12%

16%

8%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

Shoulder (Oct-Nov) Peak Shoulder (Mar-Apr) Off-peak

Consider

Prefer

Opportunity(considered but notpreferred)

47

45%

69%

31% 21% 26%

50%

13% 11%

20%

19%

18% 10%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

Shoulder (Oct-Nov) Peak Shoulder (Mar-Apr) Off-peak

Consider

Prefer

Opportunity(considered but notpreferred)

48

50% 65%

27% 15%

28%

54%

11% 6%

21%

11%

16%

8%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

Shoulder (Oct-Nov) Peak Shoulder (Mar-Apr) Off-peak

Consider

Prefer

Opportunity(considered but notpreferred)

49

55% 58%

28%

6%

39% 46%

13% 2%

16% 11%

15%

4%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

Shoulder (Oct-Nov) Peak Shoulder (Mar-Apr) Off-peak

Consider

Prefer

Opportunity(considered but notpreferred)

50

51

52

SOURCES/NOTES:

1. Federal Statistical Office, Population: federal states, date, sex, age years, Time period: 31 December 2013; Coverage: Total population

2. Federal Statistical Office, Population based on the 2011 census, Table taken from website, Time period: 31 September 2014; Coverage: Total population

3. AGOF, Internet Facts 2015-04, Time period: Jan 2015; Coverage: Population aged 10+; Internet user definition: Internet usage in the last three month prior to the survey

4. ITU, Percentage of Individuals using the Internet 2005-2014; Time period: 2014; Coverage: Population age 16-74; Internet user definition: Internet usage in the last three months

5. Tourism New Zealand, Active Considerer Monitor Germany; Time period: Jan14-Dec14

6. TNS Analysis. Non-internet users are excluded as they are not accessible to Tourism New Zealand via digital marketing efforts.

Online Population

53

Paid media

Q1 FY13:

• 100%

Middle Earth

Q2 FY13:

• 100%

Middle Earth

Q3 FY13:

• Hobbit • Youth

Q4 FY13: Q1 FY14:

• 100%

Middle

Earth • Youth

Q2 FY14:

• 100%

Middle

Earth • Hobbit

Q3 FY14:

• 100%

Middle

Earth • Hobbit

Q4: FY14: Q1 FY15:

• Boomeran

g

• 100%

Middle

Earth

• ANZ

Hobbit

• Youth • STA

Q2 FY15:

• 100%

Middle

Earth

• Youth

• STA

• FTI

• Odigeo / ANZ

Q3 FY15:

• 100%

Middle

Earth

• ANZ Hobbit

Q4 FY15

• Youth

campaign • STA travel

Q1 FY16 • TBU

Significant PR activity

Q1 FY13: • 1

Q2 FY13:

•

Q3 FY13: Q4 FY13: Q1 FY14: Q2 FY14:

•

Q3 FY14: Q4: FY14: Q1 FY15: Q2 FY15:

•

•

Q3 FY15:

Q4 FY15

•

•

Q1 FY16