Tourism New Zealand (TNZ) has shifted its focus from Australia and North America to Asia, as the country works towards building a more resilient and broader portfolio of inbound markets amid tougher economic times.
Rene de Monchy, chief executive, TNZ, told TTG Asia: “We are going to focus on building off peak travel from Asia, as the region gives us the highest seasonality. We want to get more productivity out of the Asia region (as the different markets have various) outbound timings, to even (visitation) out as much as we can across the year.”
For example, in India, the big travel season is from April to June, while for Japan and South Korea it is during summer, from June to August. These months are generally New Zealand’s lull season.
“As such, we’ll be launching a full suite of activities across consumer and trade. Last year, we didn’t have any activity in South Korea and India, but in this new financial year, we will be pushing a full suite of marketing activations in key Asian markets,” he added.
Specific trade activities will include Kiwi Link in China and a roadshow in Singapore, to enable the sector to re-engage and reconnect with buyers, as a lot of travel to New Zealand is still converted through trade channels.
Consumer marketing will also be intensified, under the banners of the If You Seek campaign which launched last August, or 100% Pure New Zealand.
“The If You Seek campaign is performing really well, and people are engaging with it highly. At a global level, 92 per cent of people are more interested in New Zealand after they’ve seen the campaign than they were prior. We’ll continue to use that with new creatives,” said de Monchy.
So far, in this first year of recovery and New Zealand’s first summer post-lockdown, de Monchy pointed out that operators have had to scale back up as well as look for and train staff, which has been “challenging” as travel demand was returning faster than anticipated, leading to a manpower constraint in running activities, increase in flight ticket prices, and lack of rental cars.
He opined that by early 2024, recovery will “stabilise” and operators will be “thinking ahead towards the next summer”.
When asked if there was an overall target in terms of the number of visitors that New Zealand wants to welcome, de Monchy shared that TNZ “does not set a volume target, but a value target”. This is because tougher economic times are expected globally, and tourism will be a “really important buffer” for the New Zealand economy.
“This is why as we look ahead to 2024, we will work on maximising the value of visitors and ensure that they grow more quickly than the volume. Part of this work is influencing visitor choices when they arrive in New Zealand, to enhance their experience, and ensure they have a more positive impact on the places they visit,” he stated.
He is optimistic about New Zealand’s tourism future.
“But we are also realistic that it will be very competitive,” noted de Monchy. “We are going to have to focus and work very hard to (win more Asian outbound travellers), as the region is crucial for both tourism and exports.”
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Results from the Southeast Asia Summer 2023 Domestic Travel Survey, conducted by consumer research firm Milieu Insight, reveals interesting insights on the willingness to travel domestically, concerns for safety, and the number and duration of trips planned for the year.
The survey involved 2,500 working individuals aged 20-65 in Indonesia, Thailand, Vietnam, Philippines, and Malaysia in April 2023.
Findings show a positive outlook for the travel industry in the region, with about eight in 10 respondents (76%) keen to travel in their own country; 85% of respondents across the region plan to embark on at least two domestic trips this year.
Four in 10 respondents in Thailand intend to take four or more trips this year, the highest across the region for domestic travel intent. This suggests that travel companies should consider offering packages and promotions that cater to multiple trips to boost the frequency of travel.
Additionally, the duration of travel per trip remains stable across markets, with the majority preferring an average of three to four days per trip. This information is valuable for travel companies when planning their packages and promotions.
Interestingly, the promotion of the destination is less impactful than a recommendation from family/friends in most countries, except Malaysia and Thailand, which means the tourism offices have done well in boosting local tourism.
The survey also revealed that concerns about Covid-19 safety have waned across most of the countries surveyed, with the Philippines showing the highest level of concern, likely due to rising cases in the country as reported by the Department of Health (4,456) in the last week of April 2023.
Travel spots and sceneries rank highest in key considerations for domestic travel in Indonesia (69%), Thailand (66%) and Vietnam (58%), while the safety of travel (69%) tops the list of considerations for respondents from the Philippines.
Of noteworthy mention is that while costs of the whole vacation do have an impact on travel decisions, especially for domestic travellers in Indonesia (61%), Malaysia (61%) and Thailand (60%), the weather of the destination takes precedence especially for those living in Thailand (62%) and Vietnam (55%). This could likely be due to concerns about extreme weather events that can happen quite frequently in both countries, reflecting the negative impacts of global warming.
Beach holidays are popular across the region, with destinations known for their beautiful beaches ranking first in each country: Boracay in the Philippines, Bali in Indonesia, Danang in Vietnam, Sabah in Malaysia, and Phi Phi Island in Thailand.
Waterfalls across Thailand are hotspots for domestic travellers, with 24% of respondents choosing them as favourite travel destinations.
National carriers (full-service airline) are top choice among respondents in the Philippines, Indonesia and Vietnam: Philippine Airlines (76%), Garuda Indonesia (74%), and Vietnam Airlines (72%).
In Malaysia (84%) and Thailand (83%), low cost carrier AirAsia is the airline of choice, likely due to higher price sensitivity for travellers in both the countries.
When planning holiday activities, South-east Asians prove to be foodies, with about five in 10 planning a food trip experience, while four in 10 respondents from Indonesia, Malaysia and Vietnam are keen to shop locally.
Beach holiday activities are especially popular among Filipinos, with five in 10 respondents choosing swimming and other beach activities like paragliding or parasailing (13%).
Among Thai respondents, 65% is keen to join tours, which is also a popular activity for Malaysians (45%), Indonesians (40%) and Filipinos (43%).
Museum visits are especially popular among respondents in Vietnam and Malaysia, with at least two in 10 inclined to visit a museum while on vacation.
From sightseeing to relaxing holidays, travel planners should consider that South-east Asian travellers are drawn to activities that offer them opportunities to relax and unwind. With the diverse food culture in different states, the opportunity to eat like a local and discover hidden food gems will definitely be a draw.