WelcomeDestination Queenstown

Members Update

June 2017

Today’s agenda

• Welcome• Queenstown Airport – Colin Keel• Tourism Industry Aotearoa – Chris Roberts• Destination Update – Graham Budd• Winter Marketing Campaign – Diana Mendes• Winter Festival Overview – Lisa Buckingham

Winter Outlook2017

Evening flights full steam ahead

• Qantas and Virgin Australia ready to operate after-dark services

• All 4 airlines flying after-dark for peak winter season

• Spreads the flight schedule/peaks

• More travel options, better connections

• Enables commuter opportunities

Winter outlook summary

Peak winter schedule from 22 June

Overall capacity 14% up on last winter

Domestic +15%, International +10%

International passenger profile – 12 months to April 2017

Summary:

• Higher proportion of passengers who are young, Australian and on holiday than other NZ airports

• 67% of passengers on international flights are Australian

• 48% are under 35 years old

• 90% are on holiday or visiting friends or relatives

• 28% of ZQN passengers arrive on direct international flights

International passenger profile

Seasonality:

• Australian pax peak in winter

• 79% trans-Tasman pax Australian, 49% under 35

• NZers more evenly spread through year, peak in school holidays

• Other nationalities peak in summer

• Younger pax peak in winter, especially 15-35 years

• Passengers >55 years peak in summer and autumn

International passenger profile – top 5 markets

• Australia: 67% of pax, +13%. Peak in winter. Half under 35 years old

• New Zealand: 10% of pax, +11%. Peak in school holidays

• USA: 6% of pax, +21%. Peak in summer

• UK: 3% of pax, +23%. Peak in summer

• China: 3% of pax, +1%. Peak at Chinese New Year (Jan/Feb)

Domestic passengers last 12 months

• 1.3m pax on domestic flights

• +16% on previous 12 months

• Strong capacity growth on AKL route

• NB: ~70% international visitors arrive on domestic flights

• Domestic pax peak Christmas/early Jan

• Inbound/outbound affected by holidays and events either in Queenstown or elsewhere

EasterAdele

Marathon

Gearing up for winter operations

• Grooved runway, final stage of $20m airfield upgrade

• New de-icing for runway, footpaths

• New runway sweeper clears 230,00sqm per hour (our runway is 85,000sqm)

• ‘Helga’ then disperses snow (2,700 tonnes per hour)

• New vehicle to de-ice aircraft at gate rather than towing to taxiway

• People power, snow clearing vehicle fleet, contractors on call

Car parking and traffic flow improvements for winter

Summary

• Passenger numbers +38% in the last 3 years

• Strong community growth across the region

• Public car parking +70% by Dec 2017

• $4.6m infrastructure investment in 18 months

• More technology and more choices e.g. Tap‘n’Go

Car parking and traffic flow improvements for winter

At the terminal

• New roundabout, reduce congestion 40%

• Dedicated coach park

• Free 2-min public drop-off lanes reinstated

• Free 20-min express pick-up/drop-off

• $4 parking 21-40 mins

• Terminal Car Park A and B, 450 spaces

• $25 day parking, $100 a week

Car parking and traffic flow improvements for winter

Park and Ride Trial – Brookes Rd behind Mitre 10

• Timed with Stage 1 Hawthorne Dr and removal of SH6 parking

• 150 spaces, 300 by end of year

• Suited to 2+ days

• Pay to park, free to ride

• Shuttle initially every ½ hour

• Average $10 a day, $70 a week

• We want your feedback

Master Plan 2045

• Long term plan over 30 years

• 3 snapshots at 2025, 2035 and 2045

• Robust demand forecasting

• Clean sheet approach

• Detailed scenarios for aeronautical, terminal and landside development

• Integrate with district planning and community needs

• Broad stakeholder and community engagement

Airport evolution

PastWonderful and inspiring pioneering aviation heritage

PresentTension of frontier flying/living with planning, growth & regulation

FutureSustainable balance between tourism development and local lifestyles in our region

Our master plan needs to keep the Southern lakes region connected with the world

Airstrip Airfield Airport Aerohub? Aeronet?

How do we sustain growth?

Airline and airport capacity

responding

Technology changing the way

we interact

Growing visitor numbers and changing mix

Destination infrastructure

reaching capacity

• Customer experience• Regional prosperity• Community support• Environmental balance

Guiding principles

SUSTAINABLESupport a safe, commercially-focused, environmentally-conscious and community-orientated business

ADAPTABLEAllow for staged growth and innovative solutions aligned to visitor and community needs

AFFORDABLERecognise the economic challenges and opportunities associated with growth

MEMORABLEProvide our visitors with an exceptional service experience representing the best of the region

and a sense of place

Potential growth forecast

0.61.5

3.2

6.07.1

0

1

2

3

4

5

6

7

8

2005 2015 2025 2035 2045

Pas

sen

gers

(m

illio

ns)

Key considerations

LOOK? FEEL? SOUND? COST?For customers & visitors

For airport stakeholders

For shareholders

For local communities

For wider region and nation

Help us shape tomorrow

Help us shape tomorrow

• Community discussions July - September

• Questions to consider for the airport and region:

– What number of passengers could we facilitate at the existing airport?

– How could we grow our capacity at Queenstown Airport?

– What’s the environmental and community impact of these demand forecasts?

– What are our options for providing capacity elsewhere?

– What demand can the region accommodate and what demand does it want to accommodate?

Chris Roberts – Chief Executive

THE VOICE OF NEW ZEALAND’S TOURISM INDUSTRY

Tourism for TomorrowChris Roberts

TIA

Productivity

VisitorExperience

Connectivity

Target forValue

Insight

NZ tourism by the numbers

• Tourism Spend 2016:

– Annual total NZ$34.7b, up 12.2%

– Domestic NZ$20.2b, up 7.4%

– International NZ$14.5b, up 19.6%

• Record arrival numbers:

– 3.5m in 2016, up 12%

• 332,000 people directly or indirectly employed in tourism, 1 job in 8

• Largest Export Earner - NZ$2b a year more than dairy

(No. 1 for 15 of the past 20 years)

Tourism = almost half of total NZ export growth since 2012

Source: MBIE

The GST Dividend

2014: $50m2015: $200m2016: $400m2017: $400m+

Well over $1b in additional government revenue from overseas visitors in just 4 years

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2013 2014 2015 2016 2017

GST from International Visitors

GST previous level GST actual Poly. (GST actual)

Millions

The Big Issues

• Infrastructure

• People and Skills

• Regional Dispersal

• Seasonality

• Social Licence

• Funding

A Sustainable Tourism Future

ENTRIES CLOSE FRIDAY 16 JUNE SUBMISSIONS DUE 20 JUNE

Celebrating outstanding performance across three individual and eight business categories

Air New Zealand Supreme Tourism Award winner receives $10,000 worth of international air travel

www.nztourismawards.org.nz

2017 Awards Dinner7 September, at the Air Force Museum, Christchurch

tia.org.nz

Visitor data

CAM April Month 2017

CAM year end April 2017

Commercial Accommodation Monitor

Annual Guest Nights

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

91%

77% 74%

86% 83%82% 81%

65%60%

85%88%92%

Monthly guests

Queenstown Hotel occupancy 2016

80%

• 36 Hotels• Monthly ave. capacity

= 191,625• Annual capacity

= 2,299,500

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

81%

63%

55%

73% 72%70% 72%

39% 40%

70%75%

81%

Monthly guests

Queenstown Motel occupancy 2016

66%

• 55 Motels• Monthly ave. capacity

= 85,167• Annual capacity

= 1,022,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

85%

56% 58%

78%74%

82%

69%65%

70%

79%84%

88%

Monthly guests

Queenstown Backpacker occupancy 2016

74%

• 22 Backpackers• Monthly ave. capacity

= 72,088• Annual capacity

= 865,000

Total annual spend YE April 17

$2,113m+6.6%

Domestic spend Y/E April 2017

$683m+ 3.1%

International spend Y/E April 2017

$1,430m+8.3%

Australia y/e April 2017

$475m+12%

China y/e April 2017

$208m-10%

China – Tour package prices

China – FIT package prices

USA y/e April 2017

$208m+18%

Rest of Asia y/e April 2017

$158m+14%

UK y/e April 2017

$100m+3%

Business Plan 2017/18 approved

QCB Plan• Position as preferred C&I destination• Grow market share - domestic and

Australia• Association business strategy• Focused targeting and business

development• Establish measurable and relevant KPI’s• Invest in CRM and sales support system• Skills and resources

QCB Update

• Business Plan approved• Increase investment + 50%

• Investment in Sales & CRM system

• TNZ strategic planning completed

• Event Planner/product directory

• AMWAY 2018

• Famil programme – Pre MEETINGS

• Lead management

• Hosted famils & site inspections

• Events for 2017/18 confirmed• MEETINGS• Get Global• Convene South• CIBTM• IMEX• AIME• CINZ Conference• PCO Assoc. Conference• Australia/Queenstown week• TNZ Bureaux Aust roadshow• 2018 Domestic famil

MEETINGS Insights• Strong demand remains

• 40 of 90 Australian buyers wanted ZQN famil• 8 buyers and 1 media hosted

• Leads for 2018/19 and 2020• Australia

• 71% PCO and 29% corporate/associations• 68% new companies

• NZ/ROW• 56% PCO’s and 44% corporate/associations

• Convention Centre enquiries??• Highly desired – huge demand remains• Off-site 300+ capacity dinner venues

• Hotel capacity constraints• Pricing• New international 5 star hotels desired

TRENZ Auckland May 10 -12

TRENZ Insights

•Accommodation• Availability & pricing

• New hotel capacity

• Alternative options sought

•Regional displacement• Reducing average length of stay

• Less time & budget for activities

• Interest in biking & trails

Queenstown Australia week

• Replacing Australian road show in 2017• October 29th to November 2nd

• Bringing Australia to Queenstown• Hosted C&I buyers• Trade buyers/influencers• Member exhibition/meeting appointment events• Famils/site inspections• Australian market trends and insights programme

• Workshops• Presentations

• Details and Expressions of Interest

Queenstown……..Tasmania

Winter Marketing Campaign

Our Town. Your Town. Queenstown.

Winter Digital Campaign

Objectives

• Continue to build Queenstown’s position as the leading winter ski holiday destination in the Southern Hemisphere

• Grow number of Australian ski visitors against 2016 as measured by IVS

• Educate and inspire travel to Queenstown for a ski holiday

Target Audience

• 20-45yrs

• Sydney, Melbourne, Brisbane & Gold Coast

• Skiers and snowboarders of all ability levels

Winter Digital CampaignKey messages

• True Alpine destination in the heart of the Southern Alps

• Easily accessible with international airport and direct flights from Australia

• Choice of four ski fields with varied terrain plus backcountry, the closest one just 20 minutes away

• Cosmopolitan destination with vibrant après ski, renowned activities and restaurants

• Range of quality accommodation within short drive of ski fields

Strategy

• Utilise real visitor experiences to inspire travellers

• Leverage 100,000+ images and 5,000+ videos shared by visitors in winter 2016

Winter Digital Campaign

Concept

Our town. Your town. Queenstown.

Campaign structure

• 4 x Video assets

• Retargeted Link ads with further information

Winter Digital Campaign

Lisa Buckingham – Festival Director

Queenstown Winter Festival

Queenstown Winter Festival Sponsors 2017

Key Sponsors

Festival Supporters

Media Partners

• Aspen Hotel Queenstown

• Azur Lodge

• Blue Peaks Apartments

• Blue Peaks Lodge

• Copthorne Queenstown Lakefront

• Copthorne Queenstown Lakeview

• Crowne Plaza

• Heartland Hotel

• Heritage Queenstown

• Hilton Queenstown Resort & Spa

• Mercure Queenstown Resort

• Hotel St Moritz

Queenstown Winter Festival Accommodation Partners 2017

• Millbrook Resort

• Novotel Queenstown Lakeside

• Nugget Point Hotel

• Oaks Shores Resorts

• Peppers Beacon

• Queenstown Park Boutique Hotel

• Ramada Queenstown

• The Rees Hotel & Luxury Apartments

• Relax It’s Done

• Rydges Lakeland Resort Queenstown

• Scenic Suites Queenstown

• Sofitel Queenstown Hotel & Spa

Marketing so far . . .

• New Website• Radio• Print• Online• Partner Promotions• eDM to Databases• Out of Home• Travel Trade

2017 Festival HubEarnslaw Park will be the Festival Hub from 12pm – 9pm for four days

• Main Stage entertainment• Atomic Coffee Pop Up• Festival Info Tent• Festival Hub Bar

2017 Queenstown Village Rink

The Village Green will be transformed into the Queenstown Village Rink from Thursday 22 June until Sunday 2 July

Day One: Thursday 22 June

Event/Activation Location

Anika Moa – Songs for Bubbas Qtown Memorial Centre

QRC Hospo Race Earnslaw Park

Monteith’s Dog Derby & Barking Coronet Peak & Earnslaw Park

Queenstown Winter Festival Welcome Queenstown Bay/Earnslaw Park

Winter Festival Frankton Arm Cruise TSS Earnslaw

Gibbston Valley Wine & Cheese Tasting The Winery

SKYCITY Quiz SKYCITY

Comedy Night Qtown Memorial Centre

Day Two: Friday 23 June

Event/Activation Location

NZSki Business Lunch Skyline

Olympus Queenstown Winter Meet Lake Hayes Pavilion

Old Mout Dodgeball Championships Queenstown Bay

Real Journeys Friday Night Party & Fireworks Earnslaw Park

Olympus Fireworks & Light Painting Workshop Earnslaw Park

SKYCITY Stampede Ice Hockey Qtown Ice Arena

Comedy Night – Friday Qtown Memorial Centre

Day Three: Saturday 24 JuneEvent/Activation Location

iHeart Radio Day on the Bay• Mitre 10 MEGA Raft Race• Vincent Holdings Jet Sprints• JUCY Undy 500• The Hits 90.4 Birdman

Queenstown Bay

Macpac Mountain Bikes on Snow The Remarkables

Creative Qtown Arts & Crafts Markets Queenstown Bay

Saturday Sounds from the Locals incl Burgers & Beers

Earnslaw Park

Winter Festival Frankton Arm Cruise TSS Earnslaw

SKYCITY Ball – Shanghai Nights Qtown Memorial Centre

Coronet Peak Opening of Night Ski• Auckland Airport Suitcase Race• Olympus Bobsled Championships

Coronet Peak

PechaKucha powered by Macpac The Heritage

SKYCITY Stampede Ice Hockey Queenstown Ice Arena

Day Four: Sunday 25 June

Event/Activation Location

Macpac Skin to the Summit Coronet Peak

Doubles Disc Golf Tournament Queenstown Gardens

NRG Queenstown Duck Race Village Green

Winter Festival Frankton Arm Cruise TSS Earnslaw

Auckland Airport Carnival Beach Street & Earnslaw Park

2017 Apres Ski & Dining Programme

Event/Activation Location

Botswana Butchery Luxury Lunch Botswana Butchery

Moet Champagne on Ice Below Zero Ice Bar

Skyline Night Bungy The Ledge Bungy/Skyline

Taj Indian Winter Meal The Taj Indian Kitchen

The Winter Feast by the Pop Up Chef Wakatipu Rugby Club

The Great Coalfire Rib Eating Race Coalfire

Whisky Masterclass Ballarat Trading Co.

Glow in the Foam Party Vinyl Underground

Eichardt’s & Gibbston Valley Winter Winemaker Dinner

The Grille by Eichardt’s

2017 Shopping Bonanza

How else can you get involved in Festival?

• Festival Event Participation:• Old Mout Dodgeball team

• The Hits 90.4 Birdman entry

• Mitre 10 Mega Raft Race

• QRC Hospo Race

• Auckland Airport Suitcase Race

• Olympus Dodgeball Champs

• Buy tickets

• Share our stories

#WinterStartsHere#QTWinterFest

THANK YOU!

Thank you