China

Market Overview China’s strong economy and extensive Government stimulus measures insulated it from the worst of the economic downturn, but outbound travel has been heavily impacted by other factors including the Influenza A H1N1 (Swine Flu) pandemic. The market has strong growth potential for New Zealand and the outlook for the coming summer is positive, with increasing interest in semi and fully independent travel options.

The Chinese market is overwhelmingly dual-destination, with 90 per cent of Chinese holiday visitors to New Zealand also visiting Australia as part of the same trip.

While most holiday visitors travel New Zealand with organised group tours (89 per cent), feedback from travel agents suggests there is increasing interest from families and small groups in self-drive and campervan itineraries. At the present time less than 20 per cent of Chinese visitors travel beyond New Zealand’s main tourist centres.

Issues arising around the quality of experiences being provided to Chinese visitors in New Zealand led Tourism New Zealand to introduce a stringent monitoring system in 2007.

Approved Destination Status (ADS) tourism operators servicing the China market are now monitored to ensure they deliver itineraries including good quality accommodation, transport, activities and tour guide services.

Historic research has found that Chinese consumers have a low awareness of New Zealand and what it offers as a holiday destination. There are a growing number of Chinese travellers who are seeking rejuvenating and challenging holiday experiences, not just passive ‘look and see’ holidays, and our campaign works aims to reach these travellers.

In September 2009, a fourth round of the global 100% Pure New Zealand campaign started in China, focused specifically in Shanghai. The campaign strategy in China is to maintain the momentum of the original campaign which launched in April 2008 and drove record traffic to the Chinese language site of www.newzealand.com.

In the past eighteen months the Sichuan Earthquake and the subsequent official ban on overseas-bound delegation groups, the Beijing Olympics, and reaction to the H1N1 Influenza A (Swine Flu) outbreak have disrupted market growth. However, medium and long-term growth expectations for the market are very positive.

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