Soaring international visitor arrival numbers have thrown the spotlight on New Zealand’s tourism sector, with concerns expressed about whether we have the infrastructure to cope with the massive lift in arrivals that has occurred over the last three years.

John Key has pledged $12m to provide better facilities, such as public toilets, to areas with small populations but a big tourism presence. The government has also established “Project Palace” to try and attract investment for the construction of new hotels, with the availability of accommodation becoming a significant constraint in many parts of the country.

Infometrics has constructed estimates of demand for commercial accommodation units and compare them with the supply of units in These estimates of demand do not make any adjustments for increases in the use of peer-to-peer accommodation. Infometrics says although there has been significant growth in Airbnb, in particular, that growth has been nowhere near enough to make up for all of the increased demand for accommodation by visitors to New Zealand over the last couple of summers.

Infometrics says its estimates confirm that, at peak times, the commercial accommodation sector is under the most capacity pressure in the last 20 years. For 2015 and 2016, all three months at the start of the year had demand estimates above supply.

The seasonal swings in domestic demand for accommodation are relatively minor compared with the international movements. The big seasonal component in domestic holidaymaking is taken up by holiday parks, rather than other commercial accommodation types.

and see the graphs.

YHA New Zealand is offering 360⁰ tours of 20 hostels around the country, meeting the expectations of their tech-smart audience.

The 360⁰ tours and website tours are available on Google, Facebook, YouTube, Weibo and directly on their website www.YHA.co.nz.

YHA says it’s one of the first major accommodation networks worldwide to adopt this technology on such a large scale.

As a leading youth travel brand YHA says it’s important to keep their communication platforms up-to-date to meet the expectations of their increasingly tech-smart audience.

One of the challenges inherent in selling accommodation is to provide prospective customers with a room’s spatial sense and size, says Brian Westwood, Manager, Marketing and Sales, YHA New Zealand.

By immersing prospective customers into the hostel, YHA is able to demonstrate how spacious, clean and comfortable their hostels are. As travel and accommodation purchases are about confidence, customers want to be assured that they are buying a product they will enjoy, whether it is an activity or a place to stay.

Mr Westwood says the 360⁰ tour field is changing rapidly. YHA collaborated with Derek Golding of GoldingArts on a technology that will allow them to adapt and develop over time and to keep up with those changes, including the capability to include multilingual versions, to add layers of video and other imagery.

Virtual Reality (VR) Goggles and smartphones make virtual reality immersion experiences very accessible. YHA New Zealand is convinced that tomorrow’s customers will expect 360⁰ tours to be as easily available for products as standard photographic imagery.

View YHA’s 360⁰ tours on YouTube – https://goo.gl/ZRmg01

YHA’s 360⁰ tour for YHA Wellington on www.YHA.co.nz for desktops – http://goo.gl/n0fhi1

YHA’s 360⁰ tour for YHA Wellington on www.m.YHA.co.nz for mobile devices – http://goo.gl/Ei7732

Managed by the Ministry for the Environment, the annual Green Ribbon Awards recognise the outstanding contributions made by individuals, organisations, businesses and communities to protecting and enhancing New Zealand’s environment. The Awards were presented in Parliament on 7 June.

The judges said Air New Zealand has made a commitment to improving sustainability performance by focusing on two key areas. Firstly, to reduce its climate change impact by reducing aviation emissions and investigating renewable energy options; and secondly through support of conservation projects.

Air New Zealand is acutely aware that their brand and tourism are based on the quality of the environment, and are investing in a modern fleet and operating it as efficiently as possible. They are also developing a genuinely impactful offsetting programme, and supporting climate science through partnership with Antarctica NZ.

Air New Zealand is improving their sustainability performance, and seeing how they can do better, by taking external advice and critique. Working in partnership, they are helping to bring back birdsong to our Great Walks, and also transport endangered species around New Zealand, and enable monitoring of our marine reserves. In-flight documentaries showcasing these help raise the profile of this work.

about the 2016 Award winners.

Skyline Queenstown is investing in an estimated $60 million redevelopment of its iconic facility, one of the most significant investments Skyline has made since the current gondola system was installed in 1987.

The proposed development includes the replacement of its gondola and luge chairlift, as well as a major expansion of its upper complex and a brand new lower terminal building in order to accommodate the anticipated growth in visitor numbers over the next 30 years.

As the tourism company prepares to mark its 50th year of operation in 2017, Skyline is proposing to:

  • replace its existing four-seat gondola system with a state-of-the-art 10-seat gondola;
  • expand the capacity of its restaurant, Stratosfare, from 330 seats to 650 in a flexible configuration for multiple dining options;
  • replace the existing two-seater chairlift that services the Skyline Luge with a four-seat chair;
  • expand the panoramic viewing deck from 68m2 to 430m2 and almost double its capacity for conferences and events to cater for up to 770 delegates in purpose-built facilities.

With more than 787,000 people using the gondola each year, the current system is, at times, reaching its capacity of 1100 guests per hour. A new 10-seat gondola is expected to take up to 3000 guests per hour, with the number of gondola users projected to nearly double by 2030.

Skyline Enterprises chairman Mark Quickfall says the development is an important investment for the future tourism landscape as it will accommodate ongoing growth for many years to come.

“This development is about future-proofing Skyline Queenstown as a premium tourist attraction and ensuring it delivers to a world-class standard. As well as accommodating higher visitor numbers, it will feature one of the most technologically advanced gondola systems available, cutting down wait times at the base terminal and improving the overall guest experience. It’s going to benefit every gondola user – whether they’re coming up to enjoy the incredible scenery from our viewing deck, access world-class mountain biking trails and other tourism businesses or experience Skyline Queenstown’s famous Luge, great hospitality and star-gazing.”

Tourism New Zealand chief executive Kevin Bowler says: “Queenstown already offers visitors some of the most spectacular views and scenery in the world. The state-of-the-art Skyline Queenstown Development Project is about providing a built environment that does justice to its magnificent setting. This development represents the kind of vision and thinking we need to see more of to ensure our visitors continue to have an exceptional visitor experience in New Zealand.”

The Skyline facilities are being designed by award-winning architect Michael Wyatt. “The new base terminal building, which houses the gondola cabins when they’re not in use, will be a striking sculptural machine hall with a transparent ground floor. The movement of gondolas will be seen as coming and going through the glass and up the hill. The building will become a landmark by virtue of its function and importance to Queenstown,” he says.

“The extension of the existing Skyline complex must remain sympathetic to the landscape. This building, when viewed from town, will give a similar impression to the current complex on Bob’s Peak, but it will be adjusted to make it more interesting.”

In order to complete the gondola replacement, Skyline Queenstown must close for 8-12 weeks – proposed for autumn 2018. Skyline Queenstown general manager Lyndon Thomas says about 80% of construction work will occur either side of the temporary closure, however every effort will be made to ensure the day-to-day running of the gondola, Luge or dining options, mountain biking, and other tourism businesses won’t be affected.

“This is an exciting project for Skyline Queenstown; it is a one-in-30-year development so it is very important to us that we get it right,” Thomas says. “This development represents our passion and our vision for Skyline continuing to be a world-class leisure experience that adds to the amenity of Queenstown, for both locals and visitors. Most importantly, we’re dedicated to creating something that the community, local businesses and shareholders will be proud of.”

A resource consent application for the development is expected be lodged with Queenstown Lakes District Council later this month. All going well, it is hoped the project will commence in March 2017.

The incentive busines, worth at least $50 million dollars, was secured thanks to the joint efforts of Tourism New Zealand, Destination Queenstown, Air New Zealand and Immigration New Zealand.

The group will visit in multiple waves of 500 in autumn 2018.

Tourism New Zealand Chief Executive Kevin Bowler says it’s a massive win. It will spread visitors across the off-peak season, supporting employment and bringing significant economic benefit.

“The $50 million in value is estimated just from Amway’s spend on the incentive alone. Each of the 10,000 staff will also contribute additional personal spend while in the country bringing the total even higher.

“The win also sends a clear message that New Zealand is a significant player in the incentive business sector.

“It comes as a result of collaboration at its finest. We know that one of the key reasons New Zealand won was because of the coordinated approach we took and the proposal that answered all of Amway’s questions.

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In the 121 days of November-February, the region hosted over 960,000 Commercial Guest Nights, a growth of more than 8% on the previous summer, which itself grew by 5.6% compared with 2013/14. This record total continues a strong growth trend for tourism in Wellington.

Wellington Regional Economic Development Agency Chief Executive Chris Whelan said the results suggested New Zealanders are seeking more from summer than just beach resorts.

“We saw a huge 14% increase in Domestic Guest Nights across November to February, which is a tremendous result for the businesses in Wellington’s visitor economy.”

The numbers also demonstrated the impact of a successful major events programme, Mr Whelan said.

“The single biggest driver of visitation to Wellington this summer was the Royal Edinburgh Military Tattoo, which brought an estimated 45,000 thousand people to the region. Add to that a series of big concerts, sporting events, Chinese New Year and Te Papa’s popular Dreamworks: The Exhibition and we had the foundation for a strong summer season.”

Mr Whelan also said the results were helped by a coordinated approach to promotion.

“Once upon a time Wellington’s visitor economy slowed down over summer, as business travel slowed and people tended to head to the beach. In recent years, we’ve focused on promoting our major events and exhibitions, packaging a ‘whole of Wellington’ destination experience around them. With such variety throughout the region, and exceptional walkability for event attendees in the city, Wellington delivers on this promise, and we’re seeing positive numbers as a result.”

Looking ahead, Mr Whelan said the visitor economy’s strong performance was making an atttractive case for further hotel development in the region.

“Hotels in Wellington averaged more than 80% occupancy over the period, and for the Tattoo, Wellington was at capacity right across the region. These results, and, more importantly the solid longer-term trends, have seen investment in Wellington hotel development increasing, and we’re working to ensure our visitor demand continues to support new capacity in the sector.”

Hanmer Springs Thermal Pools and Spa is experiencing a surge in visitor numbers from Asia, after a concerted effort to attract visitors from the region.

The complex attracted 12,925 visitors from Asia in January and February 2016 compared to 7514 visitors in January and February 2015.

That’s an increase of 72%.

General Manager Graeme Abbot says it’s a huge achievement and has helped the complex set a new record.

“We attracted 100,670 visitors between 26 December 2015 and the 31 January 2016. This is the most visitors we have ever had during that period, which is our busiest time of year,” says Graeme.

“We have worked alongside Christchurch Airport and Christchurch and Canterbury Tourism to attract visitors from Asia, particularly China, to the South Island. It’s awesome to know that is paying off.”

Graeme Abbot says this work has involved his attending Kiwi Link events in China to showcase Hurunui and Hanmer Springs directly to Chinese travel agents. Graeme also attended the Kia Ora South sales presentations that were led by Christchurch Airport.

“We have created a Chinese language website to showcase Hanmer Springs and have a new Chinese-born sales and marketing co-ordinator. This appointment will help further boost our profile offshore, with a focus on Chinese social media and trade channels.”

Megan Li is Hanmer Springs Thermal Pools and Spa’s new sales and marketing co-ordinator.

She sees huge potential to attract even more Asian visitors, particularly Chinese, to Hanmer Springs.

“Hanmer Springs is very beautiful and very quiet…it offers an authentic Kiwi experience. Best of all it has many activities that will appeal to Chinese visitors – including the thermal pools and spa, the forest, jetboating, bungy jumping and Hanmer Springs Animal Park.”

Graeme Abbot is also in no doubt as to the importance and potential of the Chinese market to Hurunui and Hanmer Springs.

“Chinese visitors spend an average of $5,100 when they come to New Zealand. Ensuring our area gets a bigger slice of that will do wonders for our local economy. Best of all, we know that our accommodation, activities and stunning setting means that those who visit will not be disappointed,” concludes Graeme Abbot.

www.hanmersprings.co.nz

The 200-room, 4.5 star hotel will open at the end of 2017 and will be a convenient offering for travellers through the airport.

The airport will invest around $80 million in land and improvements for the hotel development, says Chief Executive Malcolm Johns.

He says the new hotel will be the second on the airport campus and is a direct response to airline and passenger inquiries for increased short-term airport accommodation.

“Many of our new Asian flights arrive in the evening, bringing visitors who have been flying for 12 hours or more. They want to rest before beginning their exploration of the South Island and expect to be able to do that near the airport.

“Corporate and leisure travellers arrive here on trans-Tasman flights late at night, some around midnight, or leave early in the morning. In both cases, they expect to be able to stay overnight on the airport campus, within walking distance of the terminal. From the end of next year, many more will be able to do that.”

Senior Vice President Operations for AccorHotels New Zealand, Fiji and French Polynesia, Chris Sedgwick, says the airport’s investment in new services and increasing airline capacity suggests the time is right for a new hotel in the precinct, particularly at a time when growing tourist numbers to New Zealand highlight the need for more accommodation.

Mr Johns says airport company (CIAL) staff working with airlines are regularly questioned about what hotel accommodation is being developed in Christchurch to fill the gap left following the quakes.

“Latest estimates from Christchurch & Canterbury Tourism suggest that Christchurch currently has about 800 hotels room fewer than what is needed to serve current tourism levels, let alone future growth. Our airline partners see the lack of new hotel accommodation as a big risk to them adding in any more services,” he says.

With new airline capacity adding around 10% (or 800,000) extra seats per annum at Christchurch, late last year CIAL began a feasibility study to consider building a 300-room hotel property on the campus. That study, market research and independent expert advice has informed the decision to start by building a 200-room hotel near the terminal.

Mr Johns says more budget accommodation will also soon be available at the JUCY Snooze backpacker the airport is also building, and which is well underway at the airport behind the new Spitfire Square convenience retail precinct. He says that will offer 280 beds from November this year, an investment of about $10 million in land and improvements.

“FY16 will see the airport handle an all-time record 6.3 million passengers – that’s 800,000 up on the post-quake low point of 5.5 million and 300,000 up on the previous all-time record of 6 million.

“We are expecting next summer to continue to reflect current growth trends and for more records to be set. This creates a great opportunity for the city’s tourism industry and for regional economic development across the South Island.”

Novotel Christchurch Airport will be the 9th Novotel branded hotel in New Zealand, and joins a global network of over 450 Novotels in 61 countries. The hotel will be AccorHotels’ 34th property in New Zealand.

The remarkable growth our industry has experienced over the past two years has required TIA to refocus our priorities. For 2016/17 our focus is very much on the big strategic imperatives that will ensure sustainable progress towards the goals of Tourism 2025.