Lake Wanaka TourismStrategic Plan: Towards 2028

01 Executive Summary

Visitors are drawn to the Wanaka region by its outstanding natural beauty but leave extremely satisfied with their experience, talking about the people and the warmth of welcome they received.

Tourism is the primary economic driver for the Wanaka region. Spend by visitors – which has doubled in the last 6 years - sustains businesses and jobs across the food & beverage, accommodation, retail, activities, transport and automotive sectors.

It also sustains a quality of choice and variety of shops, services and amenities for the benefit of the wider community that a population of this size couldn’t support on its own.

What makes the Wanaka region a great place to visit also makes it a desirable place to live. Rapid growth in both visitor and resident numbers has created opportunities and challenges, highlighting the need for region-wide long-term planning and timely infrastructure investment to meet community and visitor needs, with visitor and resident numbers forecast to increase in the next 10 years.

Lake Wanaka Tourism is a membership-based organisation representing 490+ businesses. Growing awareness and preference for travel to the Wanaka region is at the heart of the work that Lake Wanaka Tourism undertakes. Core activity will focus on attracting higher value visitors, smoothing out seasonality, improving business capability, advocating for the needs of our industry and our visitors and ensuring tourism contributes positively to this region.

This plan outlines the core strategies that will guide our long-term activity.

Visitors rank the Wanaka region in the top 5 of 170 global destinations reviewedwith a net promoter score of 62%

Visitors spend $573 millionor $1.57 million per day in the Wanaka region

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02 About Lake Wanaka Tourism

OverviewLake Wanaka Tourism is the Regional Tourism Organisation formed in 1993 to market the Wanaka region to domestic and international visitors.

It is a region of spectacular natural beauty, bounded by the Te Wahipounamu UNESCO world heritage area (Mt Aspiring National Park) in the west, Haast Pass in the north and the Crown Range saddle to the south. It includes the towns of Wanaka, Albert Town, Lake Hawea, Makarora, Cardrona and Luggate.

Lake Wanaka Tourism is an incorporated society representing 490+ local businesses who fund LWT through a tourism levy on commercial and accommodation rates collected on our behalf by QLDC.

It is governed by a Board of 6 Directors elected from the membership, along with a QLDC appointed councillor representative. Subscription membership is also available to eligible businesses who wish to access membership benefits.

Lake Wanaka Tourism also own and operate the Wanaka i-SITE Visitor Information Centre, as a fully owned trading subsidiary.

MissionPromote the Wanaka region to the world as a four-season destination, inspiring people to visit, stay and share.

Provide leadership and support for members and act as an advocate for our place, our people and our visitors.

VisionThe Wanaka region will be recognised as a leading NZ destination, delivering an outstanding visitor experience.

ValuesManaakitangaShowing respect, hospitality, generosity and care for others.

Whanaungatanga A relationship through shared experiences and working together which provides people with a sense of belonging.

Kaitiakitanga Guardianship and protection of our natural, built and cultural resources for the benefit of current and future generations.

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$149m26% of total

$59m10% of total

$106m18.5% of total

$58m10% of total

$105m18.3% of total

$19m3% of total

$77m13.4% of total

$165m29% of total

$139m25% of total

$174m30% of total

$91m16% of total

$236m41% of total

$336m59% of total

03 The Visitor Economy

Visitor Satisfaction and SpendVisitors are highly satisfied with their experience, ranking the Wanaka region in the top 5 of 170 global destinations, with a net promoter score of 62%.1 Domestic visitors rank the Wanaka region number 1 in NZ.2

Visitor spend has more than doubled in the past 6 years to $573 million3, growing at twice the overall New Zealand rate.

Spend by Quarter3Visitation is seasonal with peaks in summer and winter. Strong growth in the last 3-4 years has primarily been in the peak summer season from domestic visitors at Christmas/New Year and international visitors Feb/March. However capacity to absorb growth exists outside this time.

Spend by Sector3Visitor spend sustains businesses and jobs across the food & beverage, accommodation, retail, activities, transport and automotive sectors.

Spend by Origin3The Wanaka region attracts visitors from NZ and around the world, providing a healthy diversified market mix.

International

$97m Australia (16.9% of total)$52m USA (9.0%)

$47m China (8.2%)$34m Rest of Asia (5.9%)

$31m Rest of Europe (5.4%)$30m UK (5.2%)

$19m Germany (3.3%)

$56m Canterbury (9.8%)$53m Auckland (9.2%)$49m Otago (8.6%)$19m Mid-North Island (3.3%)$15m Southland (2.6%)

Domestic

Food & Beverage Accommodation

Fuel & Automotive

Retail

Other Transport

Activities

Other Tourism Product

1 Tourism Sentiment Index. 2 AA Traveller3 Monthly Regional Tourism Estimates YE April 2019

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Future ForecastsRecord numbers of people are travelling globally. The rising wealth of middle-class populations around the Pacific Rim, technology gains reducing travel costs, and increased air capacity have stimulated greater demand for travel due to its aspirational appeal.

The Wanaka region’s spectacular natural beauty, quality of life and connectivity to the world (air & internet) make it an increasingly desirable place to visit and live, with visitor and resident numbers forecast to grow.

The growth pressures facing the Wanaka region are not unique. We can learn from how other global visitor destinations have dealt with the opportunities and challenges of visitor growth4. This will inform the approach LWT takes to intervene directly, advocate or collaborate with other organisations on the most effective solutions. 4 Coping with Success, McKinsey & Co

5 MBIE NZ Tourism Forecasts 2019-2025

NZ Tourism Forecasts for 2019-255 show that international arrivals to NZ are forecast to grow 4.0% a year to 5.1 million by 2025, and spend by 4.3% a year, with most growth from Australia, China and USA.

If current market share is sustained this could result in 140,000 more international visitors to the Wanaka region by 2025, generating an additional $133 million and 300,000+ extra guest nights, assuming timely investment creates extra capacity.

QLDC population projections forecast the Wanaka region’s population will double from 12,320 in 2018 to 24,300 in 2028. New Zealand’s population is forecast to increase by approximately 700,000 from 4.8 million in 2018 to 5.5 million in 2025, creating more domestic visitors.

NZ Tourism Forecasts2019- 20155

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04 Strategic Priorities

Identity

Balance

A clear, compelling and differentiated brand identity.- Deepen our connection with our land, history and culture.- Create impactful and engaging content that communicates this connection to visitors.

Achieve balance for our member businesses, host community and environment.- Target higher end interest-based sectors/markets to grow visitor value over volume and attract visitors who spend more and stay longer.- Target visitors to travel in shoulder season to spread demand and smooth out seasonality effects.- Cultivate a balanced mix of markets for resiliency.- Introduce broader visitor sector success measures, eg: spend spread across sectors and seasons, visitor net promoter score (NPS), resident net promoter score (align with QLDC), and environment indicators.

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PotentialSupport all our people in realising their potential to deliver an exceptional visitor experience.- Facilitate workshops and training with leading industry experts to further member business capability.- Encourage member business commitment to TIA’s ‘Tourism Sustainability Commitment’.- Support and develop internal capability and competency.

KiatiakitangaGuardianship and protection of our natural, built and cultural resources for the benefit of current and future generations.- Collaborate with key stakeholder groups to actively manage the effects of tourism growth for the long-term viability of our destination.- Monitor destination reputation and quality of visitor experience.- Advocate to build understanding and support for tourism.- Encourage visitors to look after our place.

BackgroundStrategic priorities have been informed by member feedback in workshops instigated by Lake Wanaka Tourism in mid-2018 that identified key opportunities and challenges arising from the success of our visitor economy.

These were consistent with themes from the Link Upper Clutha survey in 2017, and the Ignite Wanaka Chamber of Commerce survey in 2018. 6

05 Measuring Success

Visitor SpendGoal 1Grow visitor spend at a greater rate than visitor volume.

$816mTotal Spend

by 2028

Goal 2 Smooth out the effects of seasonality - grow winter and autumn visitor spend.

Visitor SentimentGoal 3Maintain Visitor Satisfaction and Destination Reputation

Target 4% annual spend growthAgainst 2% visitor volume growth

$245m. 30% of total spend by 2028Target 3.5% increase in winter spend share

$163m. 20% of total spend by 2028Target 25% increase in autumn spend share

To note, data will be measured by: Visitor Spend - MRTE

Visitor Sentiment - Tourism Sentiment Index62%or above

by 2028Target 62% or above net promoter score (TSI)

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06 Appendices – In More Detail

1 Tourism Sentiment Score from independent company Destination Think ‘Tourism Sentiment Index’ research

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3 Monthly Regional Tourism Estimates YE April 2019

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