NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...

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NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
NZ International Tourism Recovery Plan 2022-2025
        Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021
              NZ’s leading international tourism organisation (private sector)
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary                                                                                                      Scott Mehrtens, Chair TECNZ

Dear Minister Nash
• On behalf of the Tourism Export Council of New Zealand (TECNZ)’s Board, we hope you find TECNZ’s International Tourism Recovery Plan 2022-2025 a
  helpful guideline for the government’s Reconnecting to the World plan. Our Plan has the support and input from the Board of Airlines Representatives NZ,
  Auckland International Airport, Christchurch International Airport, NZ Maori Tourism, NZ Cruise Association and Business Events Industry Aotearoa. All
  organisations are private sector businesses that influence the selling, transport, arrival and hosting of international visitors to NZ.
• TECNZ acknowledges the government’s specific tourism industry investment in 2020 and 2021 and mainstream business lockdown support ($) in 2021.
  Much of this investment was to stimulate domestic visitation. Thank you.
• Our Inbound Tour Operator (ITO) members and international tourism supplier businesses have either had zero or very limited revenue since March 2020.
  The survival of international tourism has reached a very serious state.
• To stimulate the rebuild and safe return of international visitors TECNZ is requesting a third tranche of targeted tourism industry investment for
  international businesses. This is to ensure international tourism remains intact for 2022-2023 and beyond.
• Our International Tourism Recovery Plan provides four components:
    1. Market intel from ITO international partners
    2. Vaccination rates in source country markets
    3. A roadmap of market recovery per country
    4. A proposed three-year public/private investment plan
• Why are ITOs the most strategic asset in NZ’s international tourism recovery? They act the as the commercial conduit and contract business with offshore
  agents and link them with NZ tourism suppliers. The demand for safe travel in the future will drive the use for travellers to use offshore agents and ITOs
  to book/host their travel. ITOs bring visitors safely into NZ, ITOs do not bring in freedom campers, ITOs only bring in high-value visitors.
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary (2)
• On a global travel perspective, NZ has reached a critical state. Many of NZ’s ITO international partners (offshore wholesalers and agents) have reached a
  tipping point of now removing NZ from their list of countries to sell for the next 1-2 years. This will only get worse with every day that passes that the NZ
  Government cannot give ITOs and their offshore partners an indication of when the border will reopen. We need to make it as simple as possible for our
  partners to ‘sell’ NZ and attract visitors back.
• An ‘intention date’ to reopen the border from the Prime Minister is needed by our offshore partners to start selling NZ. For NZ to not lose the booking
  window for future visitors to return in 2022 it is imperative we can share dates and border setting criteria.
• We need a date by 1 Nov 2021 because the booking lead in time from ITO’s offshore partners, can be anything from 3 months for independent travellers to
  18 months for group tour series. If we cannot let the world know soon that our borders will reopen in Q1 of 2022, offshore partners will simply look for
  other international destinations. Bookings currently being held in ITOs systems will then move to the 2023-2024 year and the window for NZ to capitalise
  on reconnecting to the world could be lost and the potential of hundreds of tourism businesses closing will become a reality.
• TECNZ recently conducted an ITO survey to seek insights from their international commercial partners (that contract business) in the way NZ is being
  perceived around the world and what will it take for NZ to be sold to clients in 2022 and 2023. Response rate was 78%. See separate paper for more detail.
• The biggest frustration from offshore partners is the lack of a tangible plan which means NZ is no longer as desirable as it was earlier this year. NZ is losing
  bookings and consumer confidence in NZ is waning as a result. However, offshore clients and agents are pro vaccination and are open to pre-entry
  conditions (within reason).
• ITOs are holding bookings for these key markets: USA/Canada 59%, Australia 53%, Europe 40%, Germany 34%, China 23%, Singapore 19%, Taiwan 19%,
  Hong Kong 14%
• All of NZ’s key source markets are tracking above NZ’s vaccination target goals.
• TECNZ recommends NZ only welcomes back international visitors who are fully vaccinated and who adhere to NZ’s border settings
• NZ need’s to signal by Nov 2021 that our country will be open to long-haul flights next year, to capture network planners will who make decisions in
  Jan/Feb 2022 on whether they keep NZ on their international schedules for the next two years, or drop NZ as a route. If major airlines cancel the routes, it
  will be a long time to recoup this.
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary (3)
• International airlines will become a primary driver with travel conditions stating they will only accept passengers that are fully vaccinated.
• TECNZ fully supports the Board of Airlines Representatives NZ (BARNZ) submission for further MIAC funding from October 2021
• TECNZ has developed arrival and visitor spend forecasts for 30 countries based on IATA data, research and a set of assumptions that include:
     • Airline connectivity, IATA and future airline forecasts
     • Digital passports (IATA) are compulsory for international travel https://www.iata.org/en/programs/passenger/travel-pass/
     • Demand from offshore wholesale agents/clients and propensity to travel by international visitors
     • Geo-political and economic status in source country and COVID trends
     • Vaccination rates in source countries that meet/exceeds NZ needs level of vaccination rate
     • No global recession and potential of inflationary pressures
     • NZ’s positive global health and visitor profile with COVID management
     • World Travel & Tourism Council and UNWTO travel trends
     • Intel from global alliance (Australia, UK, Ireland, Europe, South Africa and Canada)
• TECNZ proposes the following border settings which allows visitors to return to NZ:
                                                                                                                                    NZ reaches an 80%
                                                                                                                                    vaccination level by
     • NZ reopens border once 80% of population is vaccinated (Nov 2021)
                                                                                                                                      November 2021
     • No MIQ for international arrivals from key markets
     • Quarantine free travel for vaccinated visitors
     • Health declaration passport to prove vaccination
     • Negative PCR or RT-PCR test, LAMP or antigen test pre-travel to NZ
     • Rapid antigen or lateral flow test for arrivals at border
     • Use of country contact tracing APP linked to vaccination record
     • Use of saliva testing if required in NZ
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary (4)
• TECNZ proposes the return of key markets by the following dates will help NZ with ‘Reconnecting to the World’
     • Australia from 1 Dec 2021
     • USA from 1 Feb 2022
     • China/Pacific Rim from 1 May 2022
     • UK/Europe from 1 July 2022
     • 80% NZ vaccinated by Nov 21 (goal)
• When the border reopens, it will take 2-4 years for NZ to see pre-COVID visitor arrivals. An example of recovery rates for NZ’s 4 key markets is noted below.
  There will be an uneven restart across markets and segments.
    Country                    YE May 2022                      YE May 2023                      YE May 2024                  YE May 2025 (pre-COVID)
    Australia                 894,751 (60%)                   1,267,564 (85%)                  1,491,252 (100%)                       1,491,252
    China                     16,407 (05%)                     180,480 (55%)                    246,109 (75%)                          328,145
    USA                       34,763 (10%)                     243,340 (70%)                    312,866 (90%)                          347,629
    UK                          0     (0%)                     133,861 (60%)                    200,792 (90%)                          223,102
• Visitor segments in order of return from each market noted below. See Appendix C for timeframes:
     • Visiting Friends & Relatives (VFR) visitors
     • Premium/luxury high net worth travellers
     • Holiday visitors
     • Cruise visitors
     • Business visitors
     • Youth and education
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary (5)
• In FY19, the value of the international NZ Business Events sector was calculated at $1.5bn
  (Tourism New Zealand).
• Business Events are seen as a high value catalyst within the tourism eco-system, providing
  income and supporting jobs to not only airlines, hotels, tourism and hospitality, but also
  specialists like ITO’s, Professional Conference Organisers and event planners.
• If the border reopens as per the TECNZ plan, the estimated value of business events earnings
  by YE Dec 2022 is $269m, by YE Dec 2023 the value will increase to $378m, by YE Dec 2024 it
  should each $563m and by YE Dec 2025 a value of $672m.
• Cruise brought $547 million to the NZ economy last season (2019-2020) from 43 ships and
  283,000 unique cruise ship passengers.
• The industry recognises that continued collaboration between destinations and the cruise
  community will remain essential to the resumption of cruise operations that keeps health of
  passengers, crew and communities visited at the forefront so that cruise is a positive
  experience and not overwhelming.
                                                                                                         International business events
• All future cruise passengers will be required to be vaccinated. It will take 3-4 years for NZ to see      and cruise are significant
  a return of pre-COVID passenger numbers.                                                                    contributors to NZ’s
• Transport operators, professional tour guides and a large proportion of our member                     international tourism offering
  accommodation properties have been decimated without international visitors. These are
  businesses that have been completely overlooked through the STAPP process and second
  round of Tourism Communities funding support. They are part of the infrastructure to safely
  transport, host and accommodate visitors and need targeted support.
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary (6)
• In order to facilitate a safe and well-managed return of international visitors to NZ, TECNZ proposes a public/private sector investment strategy. We
  acknowledge the government’s previous targeted industry support in 2020 including $18.5m for 26 STAPP ITOs (strategic assets). Thank you.
• TECNZ proposes Government invests a further $18m over the next four years to rebuild NZ's international tourism contribution of $17.5bn and NZ's global
  reputation. This will be matched by $18m private sector ITO contribution if everything goes according to plan with recovery and rebuild.
• We propose a downward sliding scale of investment by Government and an upward scale of investment from the private sector over 4 years. Pre-COVID
  medium to large ITOs/suppliers used to invest >$200,000 travelling 3-4 months per year offshore. Smaller businesses $30-$50,000 each year.
•   The three phases of investment are:
      • Jumpstart the reconnection with the world for ITOs and businesses that are involved in international tourism
      • Support businesses to reconnect and drive the conversion of demand to be realised
      • Accelerate bookings to start the rebuild process of NZ’s international tourism offering

     Investment Partner                Investment Dec 2021             Investment May 22             Investment May 23              Investment May 24
                                             Jumpstart                       Support                     Accelerate                       Rebuild
     Government $                              $10m                           $6m                            $2m                            $0m

     Private sector $                           $0m                           $1m                            $7m                           $10m

     Total investment $                        $10m                           $7m                            $9m                           $10m

     ROI YE Jun                                 $0m                          $2.2bn                         $7.9bn                        $10.4bn

• We propose TECNZ will be the Administrator of the grant fund with a Panel comprising of representatives from MBIE, Tourism NZ and the CEO/Chair of
  TECNZ. Criteria will be established for TECNZ’s international businesses (members) to apply for funding to ensure accountability and ROI measurement.
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
Executive Summary (7)
• Our (TECNZ) international tourism members have extensive experience in working with offshore wholesalers and agents. The industry is ready to drive
  the start of recovery and we wish to partner with Government to help rebuild NZ’s world-class international tourism offering.
• TECNZ has actively supported and promoted a safe and phased reopening of NZ’s border to international visitors, when the time is right.
• What we are saying is Q1 of 2022 is the right time to start and here is our plan to help guide decision-making on the industry’s future. Our strategy is a
  cautious and staged approach we believe the private sector can deliver on and that we believe meets the phased approach the government is currently
  working on with low, medium and high-risk pathway criteria.
• We acknowledge that some New Zealanders are hesitant about the reopening of NZ’s border to international visitors. However, to save jobs and
  support communities feeling the impact of no visitors and to ensure international tourism contributes again in a positive way economically, socially,
  culturally and environmentally in the future, it is important NZ takes the next step of reconnecting to the world.
• We will work with our international and NZ partners to ensure the recovery of international tourism will ensure there is a phased and safe return with
  the utmost priority on quality experiences that highlight NZ’s unique manaakitanga (hospitality) offering, with kaitiakitanga (guardianship) and
  sustainability at the forefront of businesses thinking. This is not new to our members. We relish the opportunity to show NZ how we can rebuild the
  industry.
• We look forward to hearing from you and we are happy to be contacted to provide more background or clarify any questions you might have.

Ngā mihi nui

Lynda Keene, Chief Executive, Tourism Export Council of NZ
Email: Lynda@tourismexportcouncil.org.nz Phone: 027 6644 836
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
TECNZ’s contribution to the economy, offshore market
intel, airline connectivity and global vaccination rates
NZ International Tourism Recovery Plan 2022-2025 - Plan prepared by: Tourism Export Council of New Zealand, 4 October 2021 NZ's leading ...
International Tourism and ITO Value to NZ Economy

     International                                              •    $17.5bn annual international earnings, $48m per day
        Tourism                                                 •    NZ’s largest export industry; 20.1% of total exports
     annual value
                                                                •    $16.4bn direct value (5.5%), indirectly $11.3bn (4%) of NZ’s total GDP.
         to NZ
                                                                •    Annual GST from visitors $3.9bn with $1.8bn from international visitors
       economy
      $17.5billion                                              •    No. jobs approx. 384,186 direct and indirect jobs 13.6% of NZ workforce

                                                            •       $9.62bn of total international spend NZ of $17.5bn
      ITO annual                                            •       ITOs bring in 55% of all international arrivals to NZ
      value to NZ                                           •       1.8m international visitors out of annual 3.4m visitors
       economy                                              •       ITOs provide bookings to >60% of tourism businesses in NZ
      $9.62billion
                                                            •       95% of ITO revenue is redistributed back out to regions

Data Source: NZ Tourism Satellite Account Dec 2019 issued March 2020, ITO value estimated based IATA visitor arrival trade booking
International / Offshore Market Intel
TECNZ recently conducted an ITO survey to seek insights from their international commercial partners (that contract business) in the way NZ is being perceived
around the world and what will it take for NZ to be sold to clients in 2022 and 2023. The bullet points are a brief summary. The results show why ITOs are
concerned about the future of NZ’s international tourism recovery if we don’t get visitors starting to return to NZ in Q1 of 2022.
• The biggest frustration for offshore partners is the lack of a tangible plan with targets and timelines. The lack of a clear plan to reopen borders means NZ is
  no longer as desirable as it was earlier this year. We are losing bookings as a result. Consumer confidence is waning. However all of our clients and agents are
  pro vaccination and are open to pre-entry conditions (within reason). In every market our clients are holding off committing to travel because of lack of any
  significant guidance from the government on the border reopening plans.
• If major airlines cancel the routes, it will be a long time to recoup this. It is critical NZ must keep airline connections
• What markets are ITOs holding bookings for? USA/Canada 59%, Australia 53%, Europe 40%, Germany 34%, China 23%, Singapore 19%, Taiwan 19%, Hong
  Kong 14%
• USA/Canada – demand now shifting to open countries as wouldn’t want to do MIQ and lack of a plan from NZ government is frustrating.
• Australia, China, Singapore, Hong Kong, Taiwan: mix of demand – some markets high demand once NZ reopens and vaccination levels are high
• UK, Germany – mostly demand is high but wouldn’t do MIQ and can’t understand strict border stance and frustration around lack of plan. Some may travel
  to Australia instead if their border opens first and won’t be back to NZ as it’s their once in a lifetime trip down-under
• Japan – high demand for package, series and one off tours
• 78% of ITOs are holding bookings for Jan-June 2022 period
• 63% of ITOs are holding bookings July- October 2022 period
• 68% of ITOs holding bookings for 2022-23 season
• 38% of ITOs holding bookings for 2023-24 season
• Click here for more detail
Importance of International Airline Connectivity
•   It is absolutely vital to NZ’s international tourism recovery that the country does not lose any further airline connections
•   TECNZ fully supports the Board of Airlines Representatives NZ (BARNZ) submission for further MIAC funding from October 2021 until the
    country reopens for travellers. Thank you for the extension announced 1 October 2021.
•   We need to signal by Nov 2021 that New Zealand will be open to long-haul flights next year, to capture network planners will who make
    decisions in Jan/Feb 2022 on whether they keep NZ on their international schedules for the next two years, or drop NZ as a route
•   Airlines will take 3-6 months to reactivate aircraft and crew, they require a lead-in period.
•   Airlines have no ability to make losses on routes, cash reserves are gone and debts are mounting
•   Every route needs a strong business case to win aircraft

                                                                                                    Source: BARNZ Sep 2021
Airline Connectivity Vital to Rebuild International Tourism
• NZ needs to achieve high vaccination rates and provide signal of border opening criteria and timeline as soon as practically possible or the network
  will continue to fall away as airlines redeploy their very expensive capital assets (i.e. aircraft) to other markets that are open, have growing
  passenger demand and thus the possibility of real revenue and return to profitability
• As other countries reach high vaccination and re-open borders, airlines are attracted to operate on more profitable passenger routes than operate
  cargo-only flights to NZ at breakeven level
• NZ needs to recover both Air NZ and foreign carriers air connectivity to ensure a vibrant and competitive aviation system for the benefit of
  consumers. We need to hang on to existing airlines as it will be much harder to re-attract airlines in the coming months and years due to smaller
  fleet and financial challenges. If we loose airlines it can take airports up to 5 years of air service development activity to recover a single airline/air
  route once its gone.
• Once airlines are burnt and exit the country it can take years for them to return, case study e.g. United Airlines exited New Zealand in 2003, they did
  not return to New Zealand again until 2016 – it required US airline industry restructuring and a merger with Continental Airlines, a restricting of fleet
  and a complete change in their senior management for them to finally forget the reasons that they left Auckland in 2003 and to then reconsider with
  them finally returning in 2016.
• Airlines like China Southern, American Airlines and Air Canada are cancelling summer flights to NZ due to lack of border opening settings and
  timeline. More security is needed by airlines to keep routes on.
• NZ must keep in line with countries (e.g. Canada, Europe, Australia, Singapore) and not fall further behind.
• The role of Auckland International Airport and Christchurch International Airport will be critical with retaining and attracting airlines back.
• Easing of border restriction will allow airlines to reinstate passenger capacity, which also brings along belly-hold cargo capacity.
• In 2022, NZ needs to transition MIAC cargo support scheme to a passenger focused support scheme to increase airlines’ confidence to deploy
  aircraft here when border settings ease should be considered.
Country Vaccination Rates 2 October 2021
                                       M                          M                               %                                     This table provides vaccination rates per
Country                           Doses Given             Fully Vaccinated           % Population Fully Vaccinated                      country with the source being
New Zealand                           5.22                       1.93                            37.9                                   https://ourworldindata.org/ (2 Oct 2021)
Australia                             28.6                       11.7                            45.5
                                                                                                                                        45.6% of the world population has received
China                                2.04b                      889.0                            70.7
                                                                                                                                        at least one dose of a COVID-19 vaccine.
US                                   395.0                      185.0                            56.2                                   6.31 billion doses have been administered
UK                                    93.8                       44.9                            66.9                                   globally, and 26.19 million are now
Germany                              108.0                       53.7                            64.6                                   administered each day (4 Oct 2021)
Canada                                56.4                       27.1                            71.3
                                                                                                                                        All of NZ’s key source markets are tracking
Singapore                             9.4                         4.5                            79.7
                                                                                                                                        above NZ with their % population fully
Japan                                165.0                       75.7                            60.2                                   vaccinated.
South Korea                           65.2                       27.0                            52.1
Hong Kong                             8.7                         4.2                            56.3                                   Airlines will dictate travelers must be
France                                94.8                       44.4                            65.9                                   vaccinated to travel.
Netherlands                           24.3                       11.5                            66.1
                                                                                                                                        TECNZ recommends NZ only welcomes
Switzerland                           10.4                        5.0                            58.2                                   back international visitors that are fully
Denmark                               8.8                         4.3                            75.0                                   vaccinated.
Finland                               7.6                         3.5                            63.6
Sweden                                13.8                        6.6                            63.7                                   On 4 Oct, the NZ Herald vaccination rate
                                                                                                                                        showed 48% NZ’rs are vaccinated.
United Arab Emirates                  20.1                        8.2                            83.7
Source:
https://www.google.com/search?q=australia%27s+vaccination+rate&rlz=1C1CHBF_enNZ767NZ767&oq=australia%27s+vaccination+rate&aqs=chrome.0.0i13l2j0i13i30l8.9001j0j4&sourcei
d=chrome&ie=UTF-8
Click this website link to see ‘real-time’ fully vaccinated percentages per country. Scroll down the main page till you come to this graph.
Hover the cursor over each country. Updated every two days. https://ourworldindata.org/covid-vaccinations
Pre-COVID International Arrival (000’s) and
Visitor Spend ($), Future Forecasts, Assumptions
and Reconnecting NZ to the World
Pre-COVID: NZ Annual Visitor Arrivals (000’s) per Key Market YE March 2020

                                                                              UK
                                                                            223,102     GERMANY
                                                                                         91,067
                                 USA                                                              NETHER
                               347,639                                                            LANDS                                                 SOUTH
                                                                                                                                           CHINA
                                                                                                  29,384                                                KOREA
                                                                                                                                          328,145
                                                                                        FRANCE                                                          81,660
                                                                                        39,507                                                                   JAPAN
                                                                                                                                                                 90,326
                                                                                                                                             HONG       TAIWAN
                                                                                                                                             KONG       49,179
                                                                                                                                             51,807

                                                                                                                                               SINGAP
                                                                                                                                               PORE
                                                                                                                                               60,932

   REST OF
   OCEANIA                                                                                                                                               AUSTRALIA
                                                                                                                                                         1,491,252

Source: TECNZ Forecast based on Stats NZ IVA Top 30 Countries Annual International Arrivals as at YE March 2020, UPDATED 1 October 2021
NZ Annual Visitor Spend ($M) per Country & Percentage of Total Spend YE Jan 2020

                                                                                                 REST OF
                                                                                                 EUROPE
                                                                            UK                   $1,210m
                                                                          $989m                   10.0%
                                                                           8.0%      GERMANY
                                                                                      $567m
                              USA
                                                                                       4.0%
                            $1,604m
                             13.0%
                                                                                                            CHINA
                                                                                                           $1,694m
                                                                                                            13.0%

                                                                                                                     REST OF ASIA
                                                                                                                       $1,607m
                                                                                                                        13.0%

                                                                                                                          AUSTRALIA
REST OF
                                                                                                                           $2,989m
OCEANIA
                                                                                                                            23.0%
 $647m
  5.0%

Source: Stats NZ, MRTEs YE Jan 2020 for pre-COVID value visitor spend, reviewed 1 October 2021
Forecast of International Visitors/$ Returning YE May 2022-2025
TECNZ has developed arrival and visitor spend forecasts for 30 countries based on research and assumptions noted below. The forecasts form a
roadmap for NZ’s international tourism recovery on a market basis.

Assumptions:                                                             Market Return:

•   Airline connectivity, IATA and future airline forecasts               • Australia from 1 Dec 2021
•   Propensity to travel                                                  • USA from 1 Feb 2022
•   Demand from offshore wholesale agents/clients                         • China/Pacific Rim from 1 May 2022
•   Digital passports are compulsory for international travel             • UK/Europe from 1 July 2022
•
•
    Source country vaccination rates meet or exceeds NZ goal
    No MIQ for international arrivals
                                                                                                                         2022
•   Quarantine free travel for vaccinated visitors from low-risk countries
•   Health declaration passport to prove vaccination
•   Negative PCR or RT-PCR test, LAMP or antigen pre-travel to NZ
•   Rapid antigen or lateral flow test for arrivals at border
•   Use of country contact tracing APP linked to vaccination record
•   Saliva testing for visitors and businesses where required
•   NZ’s positive global health and visitor profile with COVID management
•   Geo-political/economic status in source country COVID trends
•   There is no global recession and potential of inflationary pressures
•   NZ willingness to receive visitors
•   WTTC and UNWTO travel trends
•   Intel from global alliance (Australia, UK, Ireland, Europe, South Africa and
    Canada)                                                                                          Spreadsheets showing return on a per country
                                                                                                       basis over 4 years are available on our
                                                                                                       website or contact our office.
Reconnecting NZ to the World
• TECNZ has a plan to help reconnect NZ to the world.
• Pages 17-18 show pre-COVID annual international visitor arrivals and visitor spend per key market and forecasts for recovery over the next three years.
• When looking at return of visitor markets on a spend and number of annual arrivals basis, despite Australia providing the largest number of visitors, when
  you compare the visitor spend of China ($1,694m), USA ($1,604) ), UK ($989m) and Rest of Europe ($1,210m), there is merit in attracting visitors from these
  markets back to NZ as soon as possible. Not only are they high spending/value visitors, they stay more time in NZ, travel to more regions than Australian
  visitors do, they have an interest in Maori tourism and cultural experiences and appreciate NZ’s sustainability focus.
• In considering the level of demand, rate of vaccinated residents in source markets and propensity to travel, TECNZ suggests the roadmap that government
  can consider for the return of visitors across the four quarters of 2022 as noted below. If visitors can return earlier, that will enhance the recovery.
• Dec 2021     Australia
• Q1 of 2022 USA and Canada
• Q2 of 2022 China, Singapore, Taiwan, Hong Kong, South Korea, Japan
• Q3 of 2022 UK, Germany, France, The Netherlands, all Europe
• Pages 20-25 provide an overview of each key market and forecasted return in arrivals and spend over the next three years to May 2024.
• If our roadmap is implemented, the recovery will show a 28.9% visitor return by YE May 2022, by YE May 2023 a 68.5% return, by YE May 2024 a 88.1%
  return of visitors and spend with a projected pre-COVID return of annual visitors by YE May 2025.

What is needed to help the NZ industry achieve these targets?
• A border reopening date for visitors (plus criteria) and additional targeted funding for businesses impacted by the border to ensure they can drive the
  rebuild and return of international visitors.
International Tourism Recovery Plan 2021-2025

Border                        Jan-Mar               Apr-Jun   Jul-Sep   Oct-Dec    Jan-Mar
Opening                         2022                 2022      2022      2022        2023

Market Return
                    Dec
Australia

                                   Q1
US, Canada

                                                      Q2
China, Singapore, Taiwan, Hong Kong, South Korea, Japan

                                                                 Q3
UK, Germany, France, The Netherlands, all Europe

Source: TECNZ updated 1 October 2021
NZ International Tourism Recovery Roadmap (No. Arrivals 000’s and % Recovery)
                               Market recovery based on USA from 1 Feb 2022, China/Pacific Rim from 1 May 2022 and UK/Europe from 1 July 2022
                                              By YE May 2024, total annual visitor arrivals 88.1% of pre-COVID arrivals (2,980,142)

                               Pre
                              COVID
                                            Assumptions:                              May 21                 May 22                  May 23            May 24
        Australia           1,491,252   •   Australia from 1 Dec 2021                (10%) 149,125        (60%)    894,751         (85%) 1,267,564   (100%) 1,491,252
                                        •   USA from 1 Feb 2022
        USA                   347,629   •   China/Pacific Rim from May 2022                               (10%)     34,763         (70%)   243,340   (90%)    312,866
                                        •   UK/Europe from July 2022
        China                 328,145
                                        •   Airline connectivity and forecasts
                                                                                                          (5%)      16,407         (55%) 180,480     (75%)    246,109

        UK                    223,102   •   Digital passports compulsory                                  ( 0%)          0         (60%) 133,861     (90%)    200,792
                                        •   Vaccination rates in countries
        Germany                91,067   •   80% NZ vaccinated by Nov 21                                   ( 0%)          0         (60%)   54,640    (90%)     81,960
                                        •   All visitors provide proof of vac.
        Japan                  90,326   •   Propensity to travel                                          ( 0%)         0          (55%)   49,679    (70%)     63,228
                                        •   Demand from offshore wholesale
        South Korea            81,660
                                            agents/clients
                                                                                                           (5%)     4,083          (55%)   44,913    (70%)     57,162

        India                  67,395   •   Geo-political and economic status                              (0%)                    (10%)    6,740
                                                                                                                        0                            (30%)     20,219
                                            in source country COVID trends
        Singapore              60,932   •   No global recession                                            (5%)     3,047          (55%)   33,513    (90%)     54,839
                                        •   Be aware of potential inflationary
        Taiwan                 49,179       pressure                                                       (5%)      2,459         (55%)   27,048    (70%)     34,425
                                        •   Industry, non-industry sources
        Hong Kong              51,807
                                        •   NZ’s global health and visitor                                 ( 5%)     2,590         (55%)   28,494    (90%)     46,626

        France                 39,507       profile with COVID management
                                                                                                           ( 0%)        0          (60%)   23,704    (90%)    35,556
                                        •   NZ willingness to receive visitors
        The Netherlands        29,384   •   WTTC and UNWTO trends                                          ( 0%)        0          (60%)   17,630    (90%)    26,446

Source: TECNZ Forecast based on Stats NZ IVA Top 30 Countries Annual International Arrivals as at YE March 2020, UPDATED 1 October 2021
Short-haul Australia from 1 Dec 2021                                               NZ International Tourism Recovery Roadmap:
 Long-haul travel from 1 Feb 2022                                                    Annual Visitor Spend $M and % Recovery

                                        Pre
                                       COVID                                           May 21                 May 22                   May 23                     May 24
            Australia               $2,989m                                           (10%) $258m          (60%)     $1,793m        (80%) $2,391m              (100%)   $2,989m

            USA                     $1,604m                                                                (10%)      $160m         (70%) $1,123m              (90%)    $1,444m
                                    $1,694m
            China                                                                                           (5%)      $85m           (55%)   $932m             (75%)    $1,271m
                                     $989m
            UK                                                                                              ( 0%)         0          (60%)   $593m             (90%)     $890m

            Germany                  $567m                                                                  ( 0%)         0          (60%)   $340m             (90%)      $510m

            Japan                    $310m                                                                  ( 0%)         0          (55%)   $171m             (70%)      $217m

            South Korea              $280m                                                                  (5%)      $14m           (55%)   $154m             (70%)      $196m

            Canada                   $348m                                                                  (5%)       $17m          (55%)   $191m             (70%)      $244m

            Rest of Europe         $1,210m     France, Netherlands, Scandinavia                             (0%)          0          (60%)   $726m             (90%)    $1,089m

            Rest of Asia            $1,607m    Singapore, HK, Taiwan, India, Mal                            (0%)          0          (55%)   $884m             (70%)     $1,125m

            Rest of Americas         $229m     South America                                                (0 %)         0          (5%)    $11m              (30%)      $69m

            Rest of Oceania          $647m     Pacific Island nations                                       ( 10%)      $65          (50%)   $323m             (75%)     $582m

Market recovery visitor spend ($m) based on USA from 1 Feb 2022, China/Pacific Rim from 1 May 2022 and UK/Europe from 1 July 2022
Visitor spend values estimated on pre-COVID annual visitor spend and percentage return of each key market. Spreadsheets providing more detail are available.
Source: Stats NZ, MRTEs YE Jan 2020 for pre-COVID value visitor spend
•    Australia from 1 Dec 2021
                                                                                                                  •    USA from 1 Feb 2022
                                                                                                                  •    China & Pacific Rim from 1 May 2022
                                                                                                                  •    UK/Europe from 1 July 2022

Source: TECNZ Forecast based on Stats NZ IVA Top 30 Countries Annual International Arrivals as at YE March 2020, UPDATED 1 Oct 2021
Source: TECNZ Forecast based on Stats NZ IVA Top 30 Countries Annual International Arrivals as at YE March 2020, UPDATED 1 Oct 2021
Cruise
• Cruise is a key driver of the worlds economies and the return of cruise is vital to putting people back to work helping to fuel our recovery from this
  pandemic. 50% of the global cruise fleet has returned to service, 100% by December 2021 will have restarted with over 2 million cruisers safely taken a
  cruise since 2020.
• A vast majority of cruise lines require passengers and crew to be fully vaccinated. An enhanced array of stringent health protocols onshore and on board
  are producing this safe and successful restart world over. https://www.porthole.com/cruise-line-vaccination-requirements/ . Layered prevention, detection
  and response strategy from the time of booking to disembarkation is successfully designed to mitigate the risk of COVID-19 in the cruise setting.

What’s happening in New Zealand?
• In order to support precious livelihoods throughout NZ it is imperative NZ cruise is part of any border reopening talks. Cruise lines need 2-3 months to
  prepare/provision/recruit/market destinations.
• Cruise brought $547 million to the NZ economy last season (2019-2020) from 43 ships and 283,000 unique cruise ship passengers. This was a 12% decline
  on the previous seasons results. Cruise is NZ’s fourth largest visitor market behind Australia, China, USA and UK markets.
• 90% of the New Zealand 21-22 season (Oct-May) has been cancelled due to uncertainty of NZ borders so far. Prior to COVID there was a forecast level of 49
  ships and 387,000 cruise ship passengers.
• The industry recognises that continued collaboration between destinations and the cruise community will remain essential to the resumption of cruise
  operations that keeps health of passengers, crew and communities visited at the forefront so that cruise is a positive experience and not overwhelming.
• In preparation for the 2022-2023 season, a phased restart begins that will encompass a return of vaccinated passengers from low-risk, highly vaccinated
  countries. Cruise lines are putting in place strong health protocols on board ships that will ensure cruise is a safe way to travel.
• Demand is high for NZ as a destination. Recovery of the cruise industry is some way off and we anticipate will take 3-4 years to recover.
51% of all cruise passengers in NZ are from Australia and 7% are NZ’rs.

NZ Cruise Association (NZCA) proposes due to new health protocols being
implemented on ships that wish to book NZ for the 2022-2023 season, that
government approves visitation due both being safe source destinations.

Graph and table data from NZ Cruise Association Annual Report 2019-2020
International Business Events
• The Business Events sector within New Zealand consists of both domestic and international attendees who may be visiting New Zealand to attend a
  conference or participate in an international incentive programme, some examples below:-
     • In 2016, AIG brought 150 of their most successful agents from across Asia, primarily Japan (AIG’s second largest market), to New Zealand for a three
        day high end incentive. Their stay consisted of accommodation in a 5 star Auckland property, a welcome event at the Auckland Museum, exclusive
        restaurant experience, shopping and tourism excursions, attendance at an All Black game, followed by individual travel extensions, at own cost, to
        other parts of the country. For this event, an ITO was engaged to provide logistics support and planning. Estimated value $750,000
     • In 2018, Amway China incentivised 6,000 of their top sellers to an incentive trip to Queenstown. Held over 11 waves, the programme consisted of 4
        to 5 star accommodation, tourism activities, gala dinner at Coronet Peak and engaged the services of a variety of different suppliers including ITO and
        event management company to provide logistics. The event was held in a traditionally quiet period of the tourism season and raised New Zealand’s
        profile as a Business Event destination in China. Estimated value $50m
• In FY19, the value of the international NZ Business Events sector was calculated at $1.5bn (Tourism New Zealand). In FY21, this was reduced by 78% to
  $37m (Business Events Data Project). Business Events are seen as a high value catalyst within the tourism eco-system, providing income and supporting
  jobs to not only airlines, hotels, tourism and hospitality, but also specialists like ITO’s, Professional Conference Organisers and event planners. The sector is
  also the driver behind investment in New Zealand’s three international convention centres, Te Pae Christchurch, Tākina and the New Zealand International
  Convention Centre.
• The cost of closed borders to the sector is estimated at $534m. This is the value of the international business which was coming across New Zealand’s
  borders prior to lockdown.
• It is anticipated, with the opening of Te Pae Christchurch, over $100m (Ernst & Young) in spend per annum, will be injected into New Zealand’s economy
  through international visitors.
• In an increasingly competitive world, New Zealand’s inability to provide a robust plan of intent is severely jeopardising our ability to go to market, providing
  confidence to the local industry and manuhiri, as well as a return on investment to both Government and private investors.
International Business Events
• BEIA supports TECNZ’s proposed dates for the return of key markets by the following dates will help NZ with ‘Reconnecting to the World’
   Country                                 Proposed Border Opening Date           Country                                 Proposed Event Return Date
   Australia                               From 1 Dec 2021                        Australia                               From 1 Mar 2022
   USA                                     From 1 Feb 2022                        USA                                     From 1 Jun 2022
   China & Asia                            From 1 May 2022                        China & Asia                            From 1 Aug 2022
   UK/Europe                               From 1 Jul 2022                        UK/Europe                               From 1 Oct 2022
• When the border reopens, it will take 3-4 years for NZ to see pre-COVID visitor arrivals. This is due to the pre-planning time it takes for some major events
  and would also align with the opening of additional infrastructure. During this time, it is anticipated that Tourism New Zealand, in close partnership with the
  business events sector, will embark on a strong marketing campaign to encourage visitation.
• NZ already has booked several large scale opportunities out of Australia, valued in the range of $50 – 60M which are heavily dependant on a 1 Dec 2021
  border opening for a March 2022 delivery. BEIA anticipates high levels of interest from South East Asia and Japan from 1 June 2022.
• A timeline YE Dec 2022, 2023, 2024 an 2025 of estimate business events visitors and estimated value from this sector is noted below.

   Country                     YE Dec 2022                       YE Dec 2023                        YE Dec 2024                         YE Dec 2025
   Australia              36,373 (80% pre covid)                45,467(100%)                       59,107 (130%)                       68,200 (150%)
   Rest of World          33,508 (40% pre covid)                 62,827 (75%)                      87,958 (105%)                       125,655 (150%)
   Est. value                  $269,386,080                     $378,617,600                       $563,407,380                         $672,638,900
NZ’s Readiness for Border Reopening
https://www.tourismtradechecklist.co.nz/

• TECNZ has developed an online platform allowing for the collection, storage and sharing of
  information relating to being COVID-Ready and business trade compliance. The Tourism Trade
  Checklist is a replica of the Australian Tourism Trade Checklist.
• NZ international tourism businesses are ready to receive international visitors. There is growing
  demand from offshore wholesale and agents that NZ can demonstrate that businesses have a
  priority focus on health and safety. The industry is ready.
• ITOs and offshore wholesale agents can access a directory of tourism supplier information including
  public liability, indemnity insurance docs and COVID Ready Health & Safety Plans.
• When tourism businesses submit their COVID Ready Health & Safety Plan, the plan is checked
  against Ministry of Health, Worksafe and World Travel & Tourism COVID Health Guidelines.
• Businesses then receive a COVID Ready badge and the WTTC Safe Travels stamp logos to use to
  promote their business as prepared and ready to welcome back international visitors.
• The WTTC Safe Travels stamp is now being used in 400 destinations worldwide. TECNZ representing
  the private sector in NZ was one of the first in the world to sign-on to the protocols. Qualmark has
  also signed up to the protocols through their new Covid Clean initiative.

TECNZ supports the use of the IATA Travel Pass Initiative:
Public/Private Partnership Investment Plan
TECNZ Public/Private Partnership
       Investment Plan
Government/Private Sector Investment Proposition
Investing in NZ inbound tourism businesses to jumpstart, support and accelerate to beyond pre-COVID’s $9.6bn* tourism export earnings per annum.
• The Tourism Export Council of New Zealand (TECNZ) is a trade association established in 1971 thatrepresents the businesses of the NZ international tourism
  sector. Pre-COVID, our mission was to support and represent our members to achieve sustainable growth in export earnings. In 2021 it is to help members
  rebuild NZ’s international tourism visitor offering.
• We work closely with Tourism New Zealand, offshore tour wholesalers and agents, our Allied members (tourism businesses selling products and services),
  national tourism organisations, regional tourism organisations and government agencies (DOC, MBIE).
• ITOs act as the B2B commercial conduit between offshore wholesalers/agents and NZ tourism businesses (like Fonterra links farmers with international
  companies/wholesalers and clients to NZ purchase goods and services). ITOs contract business.
The Stats and Facts about ITOs pre-COVID
• 74 Inbound tour operator members, currently 60 members (loss of 14 ITOs, 26%). However, we believe another 10-12 are due to wind-up by Dec 2021.
• 1143 staff in the inbound sector, 389 at 31 March 2021 (loss of 66% of inbound workforce)
• 95% of all revenue generated by inbound tour operators is redistributed back out to regions. This provides benefits to local operators and communities.
• $10m spent by ITOs offshore each year marketing NZ. Most ITOs spend >$200,000 per year and three months a year travelling offshore.
• ITOs bring visitors safely into NZ, ITOs do not bring in freedom campers, ITOs only bring in high-value visitors
• ITOs sell NZ itinerary packages with advance bookings 1-2 years ahead of visitors arriving in NZ (for group, independent and incentive travellers)
• ITOs are expert crisis management operators. They have always had contact tracing capability
• ITOs use Qualmark and sustainable tourism businesses and work closely with Maori tourism providers

*$9.6bn ITO contribution to NZ $17.5bn earnings from international visitors based on 55% of all visitors being bought into NZ by ITOs
Proposed 3-Stage Public/Private Funding Plan
      Stage 1: Jumpstart
      Just when ITOs need to start promotion and advertising in offshore markets to rebuild for the latter part of the 2022 season, they are at
      their lowest ever cash-flow point, having had no income for 20+ months. They have survived, but only just, and desperately need funding
      support for marketing and promotion to re-ignite their offshore contacts and ensure NZ is at the front of the queue. Many destinations
      will be marketing fiercely and fighting over the travellers’ dollar and the pent-up demand. ITOs need help to capture this. They will also
      need to start recruiting talent to rebuild their teams.
      Proposed marketing and promotion funding support – 90% government / 10% ITOs of normal average annual combined TECNZ ITO
      members’ marketing spend and mental health services

      Stage 2: Support and Accelerate
      As forward bookings begin to rebuild, and borders maybe re-open, more employees will be needed to help meet the growing demand to
      travel to NZ. ITOs will still need marketing and promotional funding support to continue to drive forward contracts and secure tourism
      income for the coming season.
      Proposed marketing and promotion funding support – approx. 45% government / 55% ITOs of normal average annual combined TECNZ
      ITO members’ marketing spend and mental health services.

      Stage 3: Accelerate and Rebuild
      After two annual cycles of re-invigorated promotion and upscaling staff numbers, ITOs will secure future contracts and inbound tourism
      income to NZ should be starting to return to pre-COVID levels by 2024. A smaller amount of continued funding support for marketing and
      promotion will help ITOs regain previous tourism export income levels and accelerate to further growth.
      Proposed funding support – 15% government / 85% ITOs of normal average annual combined TECNZ ITO members’ marketing spend.
Timelines and Forecasted Return on Investment                                                                    ROI - forecasted tourism export sales

      Jumpstart: December 2021
      Significant offshore marketing and promotion to reignite, reconnect with markets and drive future contracts and        YE Jun 22 ROI $2.2bn
      bookings for 2022, 2023 and beyond. Start to recruit staff to prepare for 2022.
      • Government investment $10m
      • ITO investment $0m

       Support: May 2022
       As ITO contracts with offshore agents begin to increase, ITOs marketing investment can increase, yet will require    YE Jun 23 ROI $7.9bn
       continued support. Building capability for 2022-2023 season
       • Government investment $6m
       • ITO investment $1m

       Support & Accelerate: May 2023
       ITOs will be starting to return to pre-COVID levels of bookings and contracts for the coming season, and now is
                                                                                                                            YE Jun 24 ROI $10.4bn
       the time to drive for significant growth. Building for 2023-2024 season and beyond
       • Government investment $2m
       • ITO investment $7m

       Accelerate & Rebuild: May 2024
       ITOs will be starting to return to pre-COVID levels of bookings and contracts for the coming season, and now is      YE Jun 25 ROI $12.1bn
       the time to drive for significant growth. Building for 2024-2025 season and beyond
       • Government investment $0m
       • ITO investment $10m
Investment Proposition
• TECNZ acknowledges the 2020 investment of $18.5m for STAPP ITOs as strategic assets was to keep the international tourism eco-system alive for the
  future. Thank you. No-one knew how long NZ would be impacted by COVID. The pandemic has lasted much longer than first expected and as a result
  more investment is needed in the ITO network.
• TECNZ proposes Government invests a further $18m over the next three years to keep the pipeline of contracted business alive to rebuild NZ's
  international tourism contribution of $17.5bn and NZ's global reputation. This will be matched by ITOs over a four-year period.
• TECNZ proposes a downward sliding scale of investment by Government and an upward scale of investment from the private sector. Pre-COVID
  medium to large ITOs/suppliers used to invest >$200,000 travelling 3-4 months per year offshore. Smaller businesses $30-$50,000 each year.
• TECNZ proposes to be the Administrator of the investment fund with a Panel of MBIE, TNZ and CEO/Chair as members on the Panel. TECNZ members
  will apply for grant funding against criteria with full accountability, ROI measurement and reporting on a six-monthly basis. Happy to discuss further.

   Investment Partner                       $M                        $M                    $M                     $M                       $M
                                          Aug-20                     Dec-21                May-22                 May-23                   May-24
   Government Investment                   18.5*                     $10.0                  $6.0                   $2.0                      $0
   ITO Investment                          $0.0                       $0.0                  $1.0                   $7.0                     $10

   Forecasted ROI                         Aug-21                    YE Jun-22             YE Jun-23              YE Jun-24                YE Jun-25
                                          $Billion                   $Billion              $Billion               $Billion                 $Billion
   Return on Investment                    $0.0                       $2.2                  $7.9                   $10.4                    $12.1
   Purpose of investment          Retain international links   Jumpstart partnerships   Support demand       Support & Accelerate     Accelerate & Rebuild

    Note: ROI dates are different from investment dates because a period of time needed to see results
Forecast Results against ROI
_______________________________________________________________________________________________
Annual         Government       ITO         Forecast %      No.        Annual Visitor
               Investment    Investment   Market Return   Arrivals       Spend ($M)
_______________________________________________________________________________________________
YE Dec 2021       $10m         $0m            10%         211,213>        $258m (Mostly Australia)
_______________________________________________________________________________________________
YE May 2022        $6m         $1m           4.4%         978,148       $2,201m (Australia, China, Asia)
_______________________________________________________________________________________________
YE May 2023        $2m         $7m           28.9%       2,319,134      $7,965m (All markets)
_______________________________________________________________________________________________
YE May 2024          0        $10m          88.1%        2,980,142     $10,429m (All markets)
_______________________________________________________________________________________________
YE May 2025          0        $10m          100%         3,384,517*    $12,194m^ (All markets)
_______________________________________________________________________________________________

Source:
>Stats NZ Actual annual visitor arrivals YE Jul 2021
*Stats NZ Number of total international arrivals YE Mar 2020 (China and Asia markets stopped travelling Feb 2020)
^Stats NZ MRTEs Annual visitor spend YE Jan 2020
Visitor Spend ($) per Key Market YE May 21-YE May 24
• The following table provides a forecast of annual visitor spend per key market over the next four years based on percentage return of
  markets relating to TECNZ’s assumption of travel, border settings and vaccination rates in NZ and source countries.
• For more detail, please refer to the attached spreadsheet.

Country                         YE May 21            YE May 22              YE May 23               YE May 24            YE May 25 (pre-COVID)
                                   $M                    $M                     $M                      $M                        $M
Australia                          258                  1,793                  2,541                   2,989                     2,989
USA                                 0                    160                   1,123                   1,444                     1,604
UK                                  0                     0                     593                     890                       989
China                               0                     85                    932                    1,271                     1,694
Germany                             0                     0                     340                     510                       567
Canada                              0                     17                    191                     244                       348
Japan                               0                     0                     171                     217                       310
Rest of Europe                      0                     0                     726                    1,089                     1,210
Rest of Asia                        0                     80                    884                    1,125                     1,607
Rest of Americas                    0                     0                      11                     69                        229
Rest of Oceania                     0                     65                    453                     582                       647
Total                              258                  2,201                  7,965                  10,429                    12,194

 Source data is from YE Jan 2020 TECTS
Visitor Arrivals (000’s) per Key Market YE May 21-YE May 24
• The following table provides a forecast of annual visitor arrivals per key market over the next four years based on percentage return of
  markets relating to TECNZ’s assumption of travel, border settings and vaccination rates in NZ and source countries.
• For more detail, please refer to the attached spreadsheet.

Country                     YE May 21                       YE May 22      YE May 23                   YE May 24            YE Mar 2020 No. Arrivals
Australia                    149,125                         894,751        1,267,564                   1,491,252                  1,491,252
USA                             0                             34,763         243,340                     312,866                    347,629
UK                              0                                0           133,861                     200,792                    223,102
China                           0                             16,407         180,480                     246,109                    328,145
Germany                         0                                0           54,640                      81,960                      91,067
Canada                          0                              3,555         39,100                      49,764                      71,091
Japan                           0                                0           49,679                      63,228                      90,326
India                           0                                0            6,740                      20,219                      67,395
South Korea                     0                              4,083         44,913                      57,162                      81,660

Source data is from YE Mar 2020 Stats NZ Visitor Arrivals
Appendices
Appendix A: Airlines Flying to/from New Zealand                                   Source: BARNZ June 2021

                                    Airlines need both inbound and outbound travellers to
                                    consider putting a destination on their global air network.

                                    Airlines currently flying with cargo/freight and ex-pat Kiwis
                                    will work quickly to fill the front of the plane with visitors to
                                    offset government’s MIAC investment.

                                    These airlines will be the first to invest significantly in
                                    marketing NZ as a destination to their citizens. Fiji Airways
                                    and Air Vanuatu are not considered key visitor markets.

                                    US airlines will schedule NZ in 2022 if given enough advance
                                    notice of what the government’s reopening border plans are
                                    for visitors

                                    Other cargo airlines that will focus on return of international
                                    visitors include: Malaysia Airlines, Air Canada and Air Tahiti

                                    Inbound Tour Operators (ITOs) work closely with airlines and
                                    book passenger seats.
Appendix B: ITOs – Who do they support?
                                                        INBOUND TOUR OPERATORS – WHO DO THEY SUPPORT?

For many tourism operators, being active overseas in multiple markets is difficult if not impossible. Trading in multiple time zones, currencies and languages is
a bridge too far and these businesses – particularly small, regionally located operators – rely on inbound tour operators to deliver high-yielding international
visitors to their doors. Without ITOs, opportunities for regional communities and their economies to benefit from international visitation is virtually nil.

                                                                             TOURS                  RESTAURANTS

                                                               ATTRACTIONS                                        WINERIES

                                                                  Breathing
                                                                    life into
                                                       ACC OMMODATION  NZ’s
                                                                   tourism
                                                                                                                         CRUISES

                                                                   industry

                                                                                      ITOs                        TRANSPORT
                                                                 AIRLINES

                                                                 ITOs DELIVER:           DELIVER:
                                                                                           Jobs
                                                           •     Jobs                Regional Economic
                                                                                          Growth
                                                           •     Regional Economic Growth
                                                                                      Export Earnings
                                                                                     Business Viability

                                                           •     Export Earnings      Local Business
                                                                                         Growth

                                                           •     Business Viability
                                                           •     Local Business Growth
Appendix C: Visitor Recovery by Market Segment

                                                                China, Singapo re, Hong                 U K , G e r m a n y,    A ll markets return
Australia                         USA, Canada                     Kong, Japan, South                    Other Europe             from 1 Oct 2022.
                                                                    K o r e a , Ta i w a n                                       Recovery to pre-
                                                                                                                                COVID arrivals to
                                                                                                                                   take 3-4 years

  Dec                                     Feb                                   May                            Sep                      Oct
  2021                                   2022                                   2022                          2022                     2022

VFR                                                                           VFR                           VFR
                                        VFR
Premium                                                                       Premium                       Premium
                                        Premium
Holiday                                                                       Holiday                       Holiday
                                        Holiday
Business                                                                      Business                      Business
                                        Business
School groups                                                                 International education       Cruise
                                                                                                            Youth/Backpackers

 Based on NZ border being open to Australia by 1 Dec2021 and long-haul markets by 1 Feb 2022
Appendix D: Who are TECNZ’s ITO Members?
Inbound Tour Operators                           Inbound Tour Operators

Active Adventures                                Learning Journeys Ltd
A China Travel Company Ltd                       Leisure Time Group
Adventure South                                  LNZ International Travel Service Ltd
Ahipara Luxury Travel                            Master Travel Group Ltd
ANZ Sky Tours Ltd                                Moatrek New Zealand Ltd
ANZCRO                                           New Show International Travel
AOT Group Ltd + ATS Pacific (Helloworld Travel   New Zealand Educational Tours Ltd
Group)                                           New Zealand Journeys (2007) Ltd
APT International Tours Ltd                      New Zealand Trails
ATT Travel Service                               Nippon Travel Agency (New Zealand) Ltd)
Australia Tours 2000 (NZ) Ltd                    NZ-Australia Tours & Travel Ltd - Vietnam
Beyond The Blue                                  Oasis International Travel Service
China Travel Service (NZ) Ltd                    Once Upon a Trip - France, Europe
Destination Design                               Pacific Destinations Ltd
DNZ Travel                                       Pan Pacific Travel Corporation Ltd
Excel Travel - China                             Pioneer Travel
Farm to Farm Tours                               Prestige Pacific Tours
First Light Travel                               Red Carpet Tours Ltd
Flying Tiger Travel                              Scenic Luxury Cruises and Tours
General Travel New Zealand Ltd                   Seasonz Travel Ltd
Grand Aust NZ Pty Ltd                            Southern Crossings
GSN Pacific Ltd                                  Southern Travel+B3net Ltd
Haka Tourism Group                               Southern World Vacations (NZ) Ltd
Hana Tour Oceania                                Tāpoi Travel Limited
H.I.S. New Zealand Ltd                           Terra Nova Coach Tours (was C & E Tours)
Holiday Travel Management Ltd                    The Green Spot
Imagine NZ Travel                                Tour Time NZ Ltd
JTB New Zealand Ltd (TourEast)                   Travel Corporation NZ Ltd (Contiki + AAT Kings)
KAD International Ltd - China, Taiwan            Travelmore International Corp Ltd
Kingdom NZ Tour Ltd - China, Taiwan              Vyom Journeys Ltd - India
Kiwi Holidays Ltd
Appendix E: Who are TECNZ’s International Tourism Businesses?
The following list of Allied members who make up the transport, accommodation, activity and attraction, RTOs and tourism services sectors are the businesses that have for years being involved
with international tourism and have been the most impacted with the NZ border closed.

Activity and Attraction Members   Jucy Cruise                        Takiwa Tourism                         Transport Members                    Accommodation Members                      Nesuto Hotel and Apartments
                                  Kaitiaki Adventures                Tamaki Maori Village                                                                                                   Plateau Lodge
Alpine Luxury Tours               Kapiti Island Nature Tours         Taupo Tandem Skydiving                 Air Milford                          Accor Hotels
Altitude Tours                    Kelly Tarltons SEA LIFE Aquarium                                                                                                                          Quality Hotel Elms
                                                                     Te Hana te Ao Marama                   Air New Zealand                      ASURE Accommodation Group
AJ Hackett Bungy New Zealand      Kiwi Country Limited               Te Papa                                Auckland International Airport       Azur Lodge                                 Queenstown House B & B & Luxury Apts
Art Deco Trust                    KJet                               Te Puia                                Avis New Zealand                     Beachfront Hotel                           Ramada Group
Auckland Museum                   Lakeland Queen                     Terra and Tide                         Bayes Coachlines                     Bed & Breakfast Association                Rural Tours Ltd
Auckland Seaplanes                Larnach Castle                     The Red Barn                           Bluebridge Cook Strait Ferries       Boutique Hotels and Lodges NZ              Rydges Hotels & Resorts
Beachcomber Cruises               Marlborough Tour Company           TIME Unlimited Tours                   Budget Rent A Car                    Brentwood Hotel                            Safari Hotel Group
Bush and Beach 2013 Ltd           Maunga Hikurangi                   Tongariro River Rafting                Bus & Coach Association              Brooke Serene Hotel Management
Camjet                            MDA Experiences                    Totally Tourism New Zealand                                                                                            Scenic Hotel Group
                                                                                                            Christchurch International Airport   Capstone Hotels & Resorts
Chateau Tongariro and Wairakei    Mitai Maori Village                Tourism Holdings Ltd                                                                                                   Skycity Auckland
                                                                                                            Europcars                            Choice Hotels Asia Pac
Resort                            Monteiths Brewing Company          Transport World (Bill Richardson)      Entrada Travel Group                 City Lodge Accommodation                   Stamford Plaza Auckland
Chris Jolly Outdoors              Napier City Visitor Experiences
                                                                     Vector Wero & Vodafone Events Centre   Fullers Group LTD                    Cordis Auckand                             Sudima Hotels New Zealand
Christchurch Adventure Park       Napier Maori Tours
                                                                     Velocity Valley                        GCH Aviation                         CPG Hotels                                 Tahuna Beach Kiwi Holiday Park & Motel
Cruise Milford                    New Zealand Maritime Museum
                                                                     Waimangu Volcanic Valley               GO Rentals Ltd                       Distinction Hotels
Crystal Mountain                  Nga Haerenga The New Zealand                                                                                                                              TFE Hotels
                                                                     Waiotapu Thermal Wonderland            Hallmark Chauffeur Drive             Eagles Nest
Dive Tatapouri                    Cycle Trail                                                                                                                                               The Hermitage Hotel, Aoraki Mount Cook
EcoZip Adventures                                                    Waitangi Treaty Grounds                Heli Glenorchy                       Edgewater Lake Wanaka
                                  Ngai Tahu Tourism                                                                                                                                         The Mount Cook Hotel Collection
Encounter Kaikoura                                                   Wayfare                                Helicopters Nelson                   Heritage Hotels
                                  Ngati Awa Tourism                                                                                                                                         The Rees Queenstown
Explore Group                     Nomad Safaris                      Welcome Aboard/Christchurch            Hertz Car Rental                     Hilton Hotels & Resorts
                                                                     Attractions                            Johnston Coachlines                  Holiday Inn Express & Suites Queenstown    VR Hotels and Resorts
Fiordland Discovery               Polynesian Spa
Fiordland Jet Ltd                 Pure Cruise                        Weta Cave Workshop Tour                Limousine Services Queenstown        Holiday Parks Association of New Zealand   Invercargill Licensing Trust
Fiordland Trips and Tramps        Rotorua Canopy Tours               Whakarewarewa Living Maori Village     Pacific Tourways Auckland            Hotel Grand Chancellor                     West Plaza Hotel
Footprints Waipoua                Rotorua Duck Tours                 Whale Watch Kaikoura                   Pacific Tourways Christchurch        Jet Park Hotels
Footwhistle Glowworm Caves        Royal Albatross Centre             Whanganui River Adventures             Ritchies Transport                   Kohutapu Lodge & Tribal Tours Ltd
Fox Glacier Guiding               Rural Holidays NZ Ltd              Wheelie Fantastic Cycle Tours          Seasons Travels NZ                   Luxury Lodges of New Zealand
Franz Josef Wilderness Tours      Sculptureum                        Whirinaki Rainforest Experiences       South Pacific Helicopters            Millennium Hotels & Resorts
Gannet Safaris Overland           Shantytown Heritage Park           Wilsons Abel Tasman                    Southern Lakes Heliworks             Minor Hotels
Haast River Safari                Shotover Canyon Swing & Canyon     Wine, Art & Wilderness                 Super Shuttle                        Mitchell Corp New Zealand
Hanmer Springs Thermal Pools &    Fox                                Ziptrek Ecotours                       Volcanic Air                         Naumi Auckland Airport Hotel
Spa                               Skydive Auckland                   Zorb
Hell's Gate                       Skydive Queenstown Ltd
Hobbiton Movie Set Tours          Skyline Enterprises
iFLY Queenstown                   Southern Discoveries
Inflite                           Speights Brewery Tours
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