KEY ISSUE OR OPPORTUNITY: Continue to drive growth of independent traveller while pushing to influence peak impact of Chinese New Year

OUR STRATEGY: To increase the value of Chinese visitors by developing the FIT sector (and niche high value groups i.e. Golf and Business Events

Drive Preference Focus Higher Value Visitors

Partner To Extend Reach

Drive new 100% Pure campaign with a fully integrated focus on driving IP arrivals in spring & autumn shoulders

Continue to develop golf and Business Events capability

Using TNZ aviation strategy to partner cost effectively with 4 airlines (Air NZ, CSA, MU and AC) to drive IP

Identify & leverage 1 - 2 high impact advocacy campaigns to drive shoulders

Develop relationship with CNTA, potentially collaborating on a project to build trust e g. driver safety

Provide input and coordination to NZ tourism organisations working in China e.g. AIAL, CIAL, ATEED etc

Identify and leverage OTA / peer recommendation China-centric channels to deliver messages for preference building

Develop and invest in Digital Travel Seller partnerships while maintaining tier 1 focus (PKP)

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Source: TNZ Insights

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13

• Active consideration for New Zealand has stabilised over the past year at a relatively high level of

47%

• The key to growing active consideration in future is to grow consideration – from this stage the

Chinese convert relatively easily into ACs

• Australia is New Zealand’s key competitor

• New Zealand is strong in Active Considerers minds with a high level of preference that continues to

rise

• While the top three competitive set is stable, Bali, Japan and South Korea have all risen as ‘second

tier’ competitors

• New Zealand’s greatest relative strength is being clean and unpolluted while the ‘everything close’

message presents a good opportunity to differentiate from competitors

• Having knowledge about how safe it is in New Zealand is key for many ACs when considering

whether to choose New Zealand or not; questions around the weather also top of mind

• Safety is top of mind for both key segments; otherwise IPs are more concerned with friendly locals,

food on offer and ease of travelling around and ABs are concerned about their age and fitness

level

• Almost a third of Active Considerers claim to be ready to book, above the global average, and there

are no significant differences in where people are at in the journey by segment

• Those in booking have additional questions about what it’s like to drive in New Zealand – indicating

opportunity to promote the safe driving content currently being promoted to Chinese

• Preference for the shoulder seasons is quite high among Chinese Active Considerers making it an

ideal market to focus shoulder season activity on

14

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15

16

100% 20%

80% 24%

56% 3% 54% 6% 47%

OnlineChinese aged

18 to 74 intarget citites

NZ is highlyappealing

Woulddefinitely

consider NZ

NZ is apreferred

destination tovisit

Would spendat least

CNY10,000 ona trip

ACs - We

only survey

these

people

Q4 FY15 100% 19% 81% 21% 60% 6% 54% 6% 48%

17

We cannot compare over time as

weighting methodology changed

significantly for FY16

11% 3%

82% 89%

7% 8%

Q4 FY15 Q2 FY16

AC Backpackers

IndependentProfessionals V2

Active BoomersV2

53% 62%

42% 37%

Q4 FY15 Q2 FY16

Group

FIT

18

53%

46%

40%

29% 27% 24%

21% 20% 19% 18%

Top five…

19

20

21

76%

76% 75%

83% 81%

79% 80%

83% 84%

84%

84%

86% 89% 77%

75% 68%

72% 78%

87% 83%

78% 83%

84%

81% 77% 75%

1

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

performance 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

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44%

43%

39%

30%

25%

24%

24%

23%

22%

21%

18%

18%

17%

13%

13%

7%

What the accommodation options at various attractions and locations

Availability and quality of public transport

The travelling time and distance between things to see and do

The level of English required to get around

The cost of domestic airfares

What the local driving rules and laws are

Cost of using public transport

The cost to hire a car or campervan

What the local driver licensing and insurance requirements are

What the local driving conditions are like

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

The availability of bus tours or other guided tours

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

What the local options are for renting a car or campervan

What the local petrol prices are

Information on getting around for elderly or disabled persons

What the accommodation options at various attractions and locations

Availability and quality of public transport

The travelling time and distance between things to see and do

The level of English required to get around

The cost of domestic airfares

What the local driving rules and laws are

Cost of using public transport

The cost to hire a car or campervan

What the local driver licensing and insurance requirements are

What the local driving conditions are like

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

The availability of bus tours or other guided tours

The availability of navigation tools in my language

What the local options are for renting a car or campervan

What the local petrol prices are

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 How safe is it from crime? 45%

Previous 6M

available in Jun-

16 - question

added Jul-15

2 How safe it is to participate in adventure activities? 40%

3 How often does it rain? 35%

4 Whether it gets too hot in summer? 32%

5 How easy is it to travel around? 31%

6 The length of time required to fly to NZ 31%

7 How long does it take to travel between the main attractions? 30%

8 How welcoming are the locals to tourists from my country? 30%

9 What is the length of time needed to experience NZ properly? 30%

10 Will I be able to buy the type of food I like to eat? 28%

40

What do ACs want to know more about before choosing New Zealand? IPs V2 ABs V2

1 How safe is it from crime? 44% 50%

2 How well suited it is to people of my age group? 47%

3 How safe it is to participate in adventure activities? 39% 45%

4 How long does it take to travel between the main attractions? 29% 44%

5 How often does it rain? 34% 39%

6 What is the length of time needed to experience NZ properly? 29% 38%

7 The length of time required to fly to NZ 31% 36%

8 Are the things to see and do unique, unlike anything I can do at home 33%

9 How physically fit I’d need to be 33%

10 How welcoming are the locals to tourists from my country? 29% 32%

11 Will I be able to buy the type of food I like to eat? 27%

12 How easy is it to travel around? 30%

13 Whether it gets too hot in summer? 31%

= ranks higher with IPs than with ABs in terms of the top ten knowledge gaps

41

42

43

44

45

46

47

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

1 How safe it is to participate in adventure activities? 39% 47% 39%

2 How safe is it from crime? 48% 52% 36%

3 The length of time required to fly to NZ 29% 33% 33%

4 How often does it rain? 36% 41% 30%

5 Will I be able to buy the type of food I like to eat? 28% 30%

6 How easy is it to travel around? 32% 31% 30%

7 Whether it gets too hot in summer? 33% 30% 29%

8 How long does it take to travel between the main attractions? 31% 31% 28%

9 Driving on the left hand side of the road 27%

10 What is the driving behaviour / etiquette of locals like? 27%

11 What is the length of time needed to experience NZ properly? 33%

12 Whether there is a broad variety of things to see and do? 28%

13 How welcoming are the locals to tourists from my country? 33% 33%

14 Are the things to see and do unique, unlike anything I can do at home 28%

= ranks higher with dreaming than with booking

48

47% 48% 44%

24% 29% 34% 28%

9%

18% 14%

17%

15%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

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

Consider

Prefer

Opportunity(considered but notpreferred)

49

47% 46% 44%

23% 30% 33% 27%

10%

17% 13% 16%

14%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

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

Consider

Prefer

Opportunity(considered but notpreferred)

50

55% 54% 50%

26% 31% 35% 30%

4%

24% 19% 20%

22%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

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

Consider

Prefer

Opportunity(considered but notpreferred)

51

49% 46% 43%

24% 30% 33% 26%

10%

18% 13% 17%

15%

Consider Prefer Consider Prefer Consider Prefer Consider Prefer

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

Consider

Prefer

Opportunity(considered but notpreferred)

52

53

54

55

Q1 FY13:

• Driving JV • Sailing JV

Q2 FY13:

• Sailing JV

• 100%

Middle

Earth

• 100%

Pure

• Air NZ JV • CS JV

Q3 FY13:

• Hobbit

• Romance

(Yao Chen)

Q4 FY13: Q1 FY14: Q2 FY14:

• 100%

Pure NZ

• CS JV

• ANZ Romance

Q3 FY14:

• 100%

Pure NZ

• ANZ Hobbit

Q4: FY14:

• 100%

Middle

Earth

• Hobbit

Adventure

/ Romance

Q1 FY15:

• ANZ JV (Spring)

Q2 FY15:

• 100%

Pure

(DWAWG

)

• CZ JV

• ANZ JV (Hobbit)

Q3 FY15:

• ANZ JV

(Hobbit &

Autumn) • CZ JV

Q4 FY15

• ANZ JV

(Autumn)

• CZ JV

Q1 FY16

• 100%

Pure

• ANZ JV

(Spring)

Q1 FY13: Q2 FY13: •

Q3 FY13: •

Q4 FY13: Q1 FY14: Q2 FY14: Q3 FY14: •

Q4: FY14: •

Q1 FY15: Q2 FY15: •

Q3 FY15: •

Q4 FY15

•

Q1 FY16

•