Planning, Finance & Community Committee Meeting - "Destination Marlborough Mid-year Activity Update"
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Planning, Finance & Community
Committee Meeting
11 June 2020
This Report relates to Item 3 in the Agenda
“Destination Marlborough Mid-year Activity Update”
Destination Marlborough
mid-year activity update
2019/2020
Summary of year to 25 March 2020
Destination Marlbrough had met or was on track to meet 16 of the 19 Service levels set by the
DM Trustees.
Visitor spend in the region reached $411million, up 3% on previous year and ahead of national
average of 1%. Partnership contributions (cash and in kind) reached $1,894,406.
The region had welcomed over 50 ships in a strong cruise season that began in October.
Marlborough i-SITE sales turnover was performing ahead of budget as was the i-SITEs NPS for
customer satisfaction, and the Havelock i-SITE was open for its fourth summer season.
Trade agent training and famil hosting was on track, and Business Events conferencing bids were
on target with 6 new conferences confirmed for the region and 5 decisions due in April.
Recruitment for the BEM position took four months so hosting service level was not on track.
Media hosting and DMs partnership with TNZ had generated 111 stories with a reach of
834million globally and worth $13,412,075 equivalent advertising value.
DM had undertaken a successful campaign in Auckland promoting Spring shoulder season travel,
and a $1m campaign in Australia in partnership with Tourism New Zealand, Christchurch Airport
and the SOUTH RTOs. The Wellington Autumn campaign had launched in February and due to
run through to the end of March promoting travel in April-June with Air New Zealand and
Interislander as partners.
Service Levels
PROJECTS MEASUREABLES 19/20 8 Months Pre COVID
Two domestic shoulder season campaigns delivered with campaign One achieved
Domestic Marketing
KPI’s met or exceeded. Second interrupted
International Two JV Australia campaigns delivered with campaign KPI’s met or One achieved
Marketing exceeded. Second cancelled
Media Minimum of 50 media outlets visit the region. 20 ON TRACK
150 qualified travel sellers famil region. 131 ON TRACK
Trade Marketing
1000 wholesale and frontline travel sellers trained. 816 ON TRACK
Business Event Minimum 40 business event planners hosted. 16 NOT ON TRACK
Attraction and Minimum of 20 regional conference bids compiled and submitted. 16 ON TRACK
Leverage A minimum of 55% bids won. 37.5% (6) ON TRACK
Online Information Active visits to marlboroughnz.com up 20% Maintained
provision Reach of content – 25% Social Engagement. 76%
Marlborough i-SITES achieve a sales turnover of $2.8 million. $2,261,182 ON TRACK
Visitor Information
Marlborough i-SITEs NPS visitor satisfaction levels of 80% met or
Support 83.56%
exceeded.
MDC investment matched with partner contributions in 2:1 ratio. $1,894,406
Destination $979k
Management 3 Industry updates per year. Seven
10 Product Development and Business Capability workshops held. 21
Organisation 88% Employee retention rate. TBC post COVID
Performance Present audited 2018/19 financial statements to MDC. Achieved
2
Medium and Long-term Trackers
Activity 2016/17 2017/18 2018/19 2019/20 2019/2020
ACTUAL ACTUAL ACTUAL TARGETS 8 Month pre
COVID
ACTUAL
External
Spend by visitors in $360mill $387mill $397mill 4% increase $411mill
Marlborough1 (YE March) (RTO benchmark) (Achieved)
Visitor nights in Marlborough2 763,201 792,742 731,551 4% increase N/A
(YE March)
Length of stay in Marlborough2 1.87 1.93 1.85 2 N/A
(YE March)
Internal
NPS score and percentage of
customers satisfied with visitor New
79.03 84 80 83.6%
information centres and Measure
services 3
Extending season – % growth in
Spring and Autumn spend
New
matches or exceeds previous Exceeds Exceeds Exceeds N/A
measure
Summer (maintaining Summer
growth) 1
Number of business event bids 17 20 20 20 16
submitted or supported
Business event bid win/loss 50% 50% 55% 55% 37.5% (6 wins)
ratio (based on financial year)
Value of business event bids
$1.6mill $1.7mill $3.8mill $3mill $1.2mill
won in financial year1
Growth in active visits to New
20% 20% 20% N/A
marlboroughnz.com measure
1
Source: MBIE MRTEs and BERP
2Source: MBIE CAM (does not include Bed and Breakfasts or sharing economy) DISCONTINUED NOV 2019
3
Source: Customer Radar Net Promoter Score measure
3
Selection of key highlights to date
Full activity report will be presented with audited accounts
Launched the Live /Work/Play website
An enhanced and expanded MarlboroughNZ
website showing potential visitors why
Marlborough is a brilliant place to live, work,
play, invest, film, succeed and enjoy life. The
site has been built to provide an online portal
to showcase Marlborough in a way that
doesn’t duplicate what organisations are
already doing, but instead, strengthens and
underpins their activity. The content has been
crafted to consistently tell ‘the Marlborough Story’.
Launched Business and Product Development capability programme
From July 2019 DM launched monthly Lunch and Learns for businesses to gain insight into
segments of the industry, learn how the market works and find ways to help drive business.
Each session covers such topics as distribution channels, yield and pricing, social media best
practise. The aim is to create a resilient sustainable visitor businesses in Marlborough.
Pelorus video and imagery
DM partnered with the Pelorus Promotions Group to increase image and video assets, and
content for the Havelock, Pelorus, Kenepuru and Mahau Sound. Great video content is now on
DMs website and image library
Trade Training
Agents from Australia, North America,
UK/Europe, NZ, China, and new markets of
India and Singapore were hosted and
educated on the Marlborough proposition.
And why Marlborough should be part of a
New Zealand itinerary, and connecting
product to agencies for commercial
contracts.
4
Samantha Brown, Places to Love – PBS North America
Top of the South episode aired across the US on Friday 25th January on PBS and featured
Brancott, Te Pā, Pelorus Mail Boat, On the Track Lodge and Mills Bay Mussels. The episode had
an estimated audience of over 700,000 and an advertising value of over $2.1 million before
syndication. It is a brilliant showcase of the Marlborough region, including our wine, culture,
landscape and cuisine.
Auckland Spring/Wellington Autumn Campaigns
Both campaigns targeted shoulder season travel through digital, print and partnerships -
Facebook, Google Adwords, inserts in both NZ Herald and Dominion post, competitions and
packages as call to action. Wellington campaign included DMs first partnership with Air New
Zealand through AirNZ Website, EDMS, competition, price points and GrabaSeat. Air NZ Activity
paused for pandemic. (covers of Dom Post and NZHerald print inserts and AirNZ example below)
Hosting Breakfast TV at Vines Village
In February, TVNZ’s live breakfast show was broadcast from
The Vines Village, as part of their Kiwibank New Zealander of
the Year roadshow. The show duration was 3 hours, in which
they interviewed local identities and toured the village trying
local produce. This was a brilliant way to showcase the
diverse produce of the region, as well as showcasing locals
doing brilliant things.
TUIA 250 Commemorations and Legacy
Destination Marlbrough was thrilled to be involved in the
TUIA 250 Commemorations. DM was part of TUIA 250s
communications committee and supported the Event
through digital, social and consumer EDMs. In addition to the
event in November the legacy opportunity for the region is
immense, although work has been paused due to the
pandemic.
5
COVID Pandemic and Response
On 15 March 2020, the tourism industry ground to a halt. Border restrictions were put in place
and in a short expanse of time the county went to complete lock down on 25 March.
DM promptly suspended the reminder of Q3 and all of Q4 activity on 18 March 2020.
i-SITEs closed to foot traffic and staff worked ‘behind closed doors’. The last Cruise ship arrival
was 15 March 2020 and the remaining nine scheduled ships of the season were cancelled. Major
trade and conference shows, TRENZ and MEETINGS, were cancelled as were all onshore and
offshore travel shows and sales calls. Media, travel agent and business event hosting was
suspended as was the annual Big Day Out agent event in Marlborough. Wellington campaign
work was paused including Air NZ partnership activity that was scheduled to be in market from
16 March 2020.
The organisation immediately changed focus to industry communications and business support.
Destination Marlborough’s response to COVID-19
Communication and business support: Tri-weekly COVID Dmail updates covering level changes
and implications, and directing businesses to DM, MCOC and BTM for business support relief or
advice.
• Immediate start of business support programmes specifically targeted to local visitor
industry. Weekly DM updates presented by GM for local industry – 210 attendees over
5 weeks.
• Targeted tourism business capability and support programme available free to all
operators – focus on mindset, skillset and tourism acumen. DM already had this
structure in place through the Lunch and Learn programme launched in July 2019 and
this enabled the organisation to swiftly repurpose this for COVID19 response. The
programme remains popular and DM worked with NRDA to include Nelson/Tasman
operators. Launched 17 April, running 11 workshops in eight weeks – 430 attendees.
• Regular calls and emails to local industry and external industry bodies and partners to
gather as much intelligence as possible to feed back to Marlborough industry and
economic recovery groups
Marlborough i-SITEs
• Marlborough i-SITEs played a unique critical emergency management role supporting
MBIE Visitor Emergency Management Advisory Group, by sourcing Temporary
Accommodation to support CDEM and MBIE and supporting domestic and international
travellers that could not leave the region.
• Core focus assisting local, domestic, and international visitors in the region find their
way to a safe haven, either here in Marlborough or by returning home. Picton and
Blenheim centres began operating ‘behind closed doors’ on 22 March and continued to
support visitors, locals, WINZ, and Civil Defence Emergency Management.
• Sourcing immigration, embassy and consular support through multilingual staff
• Communications channel to local tourism industry with information on level guidelines,
Health and Safety, operating procedures, booking and cancelation support.
• Wage subsidy was applied for and approved for 18 full and part time i-SITE staff to 14
June 2020 - $120,873.60 (this included summer contracted staff). Note: Wage subsidy
was not sought for the six Destination Marlborough marketing staff.
6
DMs activity during lockdown
DM represented the voice of 900 Marlborough tourism operators with key National industry
bodies - Tourism New Zealand, Minister of Tourism, MBIE, Regional Tourism NZ, Tourism
Industry Aotearoa, i-SITE New Zealand, New Zealand Cruise Association, Christchurch Airport
and key partner NRDA.
DM represented the 900 Marlborough tourism operators through TEAMS, Economic Action
Marlborough with input into Marlborough’s Economic Recovery Response Plan for COVID-19.
Marketing campaign in Wellington paused. A ‘light’ social media presence continued
concentrating on operator and COVID-19 updates and tactfully encouraging future travel
planning when it is safe to do so.
Launched Brilliant Backyards –Mid-April
Encouraging locals to get out and explore
Marlborough’s Brilliant Backyard, and to
support Marlborough tourism and
hospitality operators when restrictions lift.
Eight-week promotion through Marlborough
Express and social channels. Objectives: to
encourage locals to explore the region post
lockdown, stimulate cashflow during
lockdown. Quizzes educating locals on the
product within the region and encouraging
them to pre purchase vouchers for activities,
accommodation transport and hospitatliy
providers. All prizes purchased by DM to ensure cashflow to local operators.
Post lockdown - Expanded and ongoing campaign to encourage local visitation of local visitor
industry
Launched ‘Support Local Backyard’ End April – to support Marlborough tourism, retail and
hospitality and producers who could operate safely in Level 3. An additional social campaign
leveraged off the Brilliant Backyard weekly promotion.
Trade Marketing – change in focus to support operators with packaging product for the
domestic market. Continued engagement with Tourism New Zealand offshore offices, NZ based
inbound tour operators and offshore wholesalers, commenced virtual training with Australian
travel agents and travel companies such as Flight Centre and TravelManagers reaching up to 600
agents
Business Events – immediate management of postponements of 2020 confirmed events and
advocate for reconfirmation for 2021 (eg LGNZ). Pursued unconfirmed business, bids, and
conferencing opportunities for Marlborough. Close contact with Marlborough venues and BEM
operators, hospitality, and accommodation providers.
Marlborough i-SITEs – Operated ‘behind closed doors’ managing enquiries, bookings and
cancellations, all staff undertaking NCEA tourism papers, training and upskilling on local product
and tours.
7
Planning
The Pandemic is difficult to plan around. The travel restrictions at each Alert Level and timing of
each level has been unclear. To ensure the best use of budget DM planning has been based
around the following likely scenarios, while in the knowledge that these can change at any time.
Alert Level 2 Local campaign to drive locals to visit, experience and support Marlborough
tourism and hospitality product (May/June). Research tells us that there will be
some early adopters for travel, those that wish to immediately support tourism
business, and those that are more comfortable to travel in Level 1
Alert Level 1 Domestic Campaign to drive zone, Nelson, Tasman, Canterbury. North Island
promotion as air and ferry connectivity increases and is becomes affordable.
(July – December)
Tourism New Zealand led Domestic Campaign launches in Level 1. Partnership
opportunities with RTOs and i-SITEs.
Border Preference for early Trans-Tasman bubble however likely to be full closure to
late 2020/early 2021. If Trans-Tasman bubble a reality this year, then a limited
20/21 Cruise season is a possibility. (Cruise passenger spend in Marlborough $24
million 18/19 season).
2021/2022 Border opens, international travel restrictions eased, strong international
interest in travelling to NZ.
Brilliant Backyards local promotion - Encouraging locals to get out and explore Marlborough’s
Brilliant Backyard and support local tourism businesses. Ongoing
Marlborough Domestic Promotion – Engaging a local agency to support DM in campaign work
in three phases: Drive Zone – Nelson/Tasman/Canterbury; Wellington; Auckland as per timing
above. Working partnerships with Top of the South regions for touring loop options for NZ
travellers. Leverage TNZs domestic campaign where possible.
TNZ Domestic Campaign – Launching late June/Early July TNZ are working closely with all RTOs
to ensure regional messaging is incorporated and give regions the opportunity to leverage their
domestic campaign work.
Australian Trade and Consumer Marketing – trade promotion and training ongoing in
preparation for border reopening. Marketing and trade campaign planning to be in market as
soon as border plans are announced.
NEW PARTNER ACTIVITY WITH MARLBOROUGH CHAMBER OF COMMERCE
Make it Marlborough – is a partnership between Marlborough Chamber of Commerce and
Destination Marlbrough supported by MDC through TEAMS. As the designated marketing
organisation for the region Destination Marlbrough leads with MCoC, DM and a local sourced
creative agency making up the project team. It will deliver a 6-month multi-layered campaign to
support local businesses, tourism operators, hospitality, producers, retailers in the wake of the
COVID-19 crisis. The objectives are to drive business to the local economy, support all businesses
that employ our people, enliven townships and engage proud Marlborough advocates.
The campaign launched last week, www.makeitmarlborough.co.nz (housed on the
LIVE/WORK/PLAY platform), will run for 6 months but is designed with longevity in mind to
ensure it resonates with locals, thereby increasing community pride.
8Financial Position (2019/20)
DM aims to generate income to match MDC funding. Revenue is sourced through i-SITE
commission, merchandise sales and display fees, and Destination Marlborough marketing
partnerships and advertising opportunities.
Given the loss of i-SITE revenue the wage subsidy was applied for and approved for 18 full and
part time i-SITE staff to 14 June 2020 - $120,873.60 (as per Government guidelines this included
summer contracted staff). Note: Wage subsidy was not sought for six Destination Marlborough
marketing staff.
The majority of DMs marketing activity was undertaken in Q1 and Q3; and the remainder of Q3
and all Q4 activity was halted.
The organisation is expecting an estimated underspend $150,000 in DM activity for FY 19/20,
and as per discussions with council officers DM requests this rollover to the new financial year.
This will cover expected losses of income from tourism targeted rate, operator partnerships and
i-SITE revenue generation, and cover standing operational expenses.
New MBIE Announcement
STAPP for Regional Tourism Organisations
As part of the Government’s Strategic Tourism Assets Protection Programme, $20.2 million is
available to the 31 Regional Tourism Organisations (RTOs) across New Zealand.
MBIE and Central Government see the important roles RTOs play in supporting the tourism
system and in regional recovery. The tourism sector depends on capable, secure, and adequately
resourced RTOs that lead and coordinate activities alongside the tourism industry, stakeholders,
Māori/iwi and communities.
Funding is available for the 2020/2021 financial year for RTOs that can demonstrate a
commitment to:
• Advance the goals of the New Zealand-Aotearoa Government Tourism Strategy and
create a more productive, sustainable and inclusive tourism sector;
• Retain RTO investment from Local Government e.g. Government funding is not a
substitution for local government funding;
• Domestic marketing activity that complements Tourism New Zealand’s domestic
marketing; and
• Adopt a destination management approach in line with MBIE’s Destination
Management Guidelines which includes working with industry, communities and
stakeholders to plan for the future, supporting industry capability and product
development opportunities.
MBIE intend to allocate funding as follows:
Small-RTOs with funding less than $500,000 are eligible to receive up to $400,000.
Medium-RTOs with funding less than $3 million are eligible to receive up to $700,000.
Large-RTOs with funding over $3 million are eligible to receive up to $1 million.
Applications for funding opens 3 July 2020.
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