Tourists stopped coming from abroad when the border closed in March. Photo / Mike Scott
New Zealand faces a $ 12.9 billion a year income gap without international visitors.
Research for New Zealand Tourism shows that it takes 12 overnight trips from the Kiwi to match the expenditure of one international visitor and foreign tourists spend up to three times as much a day than locals.
International visitors spend $ 232 a day, Kiwis traveling around the country spend $ 155 a day while locals spend $ 74 a day.
“Kiwis do a wonderful job traveling within the country but New Zealand will need high-value international visitors to shore up the sector and economy beyond weekends and public holidays,” said Tourism NZ chief executive Stephen England-Hall.
Total international visitor spending was $ 17.2 billion in the 12 months ended March last year. New Zealanders spend $ 23.7 billion on domestic holidays and it is estimated that because they are unable to holiday abroad, this will be boosted by $ 4.2 billion – half of what Kiwis spent on overseas trips last year.
The study by Tourism NZ – the government agency – and economist, Fresh Info, draws data from the Ministry of Business, Innovation and Employment and Stats NZ.
This suggests Government revenue is boosted by $ 849 for each international visitor. New Zealand tourists pay around $ 11 a day at GST while international visitors pay $ 26 a day.
Every $ 178,000 of tourism expenditure creates one job and this equates to 42 international visitors or 480 overnight domestic trips.
England-Hall said tourism was essential to the country’s recovery and the research would clear up some misconceptions.
“Tourism is a major employer of women and youth and an average of every $ 178,000 of visitor expenditure creates one new job. This job is important for our region, especially where there may be few other job options.”
“Embracing technology and enhancing digital capabilities can increase tourism productivity even further. This can result in higher wages and better standards of living, especially for our regional communities.”
England-Hall said research shows there is still some work to be done to become more environmentally friendly.
“The sector is doing some amazing things to reduce or offset carbon with many operators moving towards zero carbon. While there is still work to be done, tourism’s carbon efficiency is improving, and its intensity is lower than that of other large sectors including agriculture, utilities and mining. “
He said the study results would be shared with the Government and industry with more research expected to be carried out in the coming months.
As Air New Zealand changed its Airpoints scheme, the value of the loyalty, now the star of the airline’s operations, was outlined in an analyst report.
Forsyth Barr says the Airpoints schematic is scalable, light on assets and generate relatively stable income.
“ We believe this is a double business that is higher than Air [NZ’s] the aviation business and make a material contribution to the current share price, ” said analysts Andy Bowley and Scott Anderson.
“ This may sound strange, but a number of US airlines have recently used their loyalty schemes as collateral in recent funding events. “ This airline will increase capital in the first half of 2021.
Forsyth Barr has upgraded the airline’s rating to neutral, having implemented the Airpoints value as part of a revised net asset value approach.
Chief executive Greg Foran said loyalty would be the “second engine of growth” and the scheme was now under review. Among other changes, the airline may introduce new top tier Airpoints.
In addition to the Elite Plus tier, surveys indicate that there may be a chance of obtaining lifetime status at a lower tier.
A survey sent to Airpoints members indicated that a target range of between 2800 and 3200 status points a year would be required to pocket Airpoints Elite Plus membership, compared to 1500 points to reach the current Airpoints Elite tier, and 900 for Airpoints Gold.
The Australian-based Executive Traveler said that the benefits of Elite Plus status derived from the survey included the possibility of free same-day flight changes for domestic, transtasman and Pacific flights, free parking at members’ “home airports” and free Elite status for the nominated partner. from Elite Plus members.
Analyst Forsyth Barr said the main sources of external loyalty revenue include bank partners, via credit card aligned schemes, and a number of retailers.
Under normal operating conditions, loyalty represents just another revenue stream for an airline and can be valued as part of the company’s overall profit base, in cash flow-based valuations or some revenue.
“However, when the airline business generates significant losses, the normally defensive flow of loyalty revenue can easily be lost, especially if it is not shared,” said the analysis. ” The book value approach to airline valuation ignores the light asset nature of loyalty schemes that generate revenue from third parties (credit card companies and retailers) regardless of whether the aircraft is flying. ”
The Air NZ scheme has about 3.5 million members – up from 1.2 million eight years ago. The airline does not provide any financial details about its Airpoints scheme, beyond disclosing balance sheets for loyalty-related “upfront earnings”.
This liability reflects the dollar amount of Airpoints owed between the members. Bowley and Anderson said the lack of disclosure, exacerbated by Covid-19, made it difficult to assess Airpoints.
“However, based on recent loyalty scheme transaction value assessments, third party loyalty assessments and registered loyalty scheme providers, we rate Airpoints at $ 725 million. While it appears significant in the context of the airline’s $ 1.9 billion market capitalization, it is only about 15 per percent of the company’s pre-Covid value. “
Analysts said their estimates of the scheme’s value had a “reasonable margin of error”.
Air New Zealand can get more direct economic value from the Airpoints loyalty scheme by generating additional revenue through sales points / air miles to third parties including credit card companies (many schemes issue a larger proportion of points to third parties than to their own airlines) .
The airline can expand its membership base: about 90 percent of its members are New Zealanders so the scope for growing its membership base is limited by its historic success and New Zealand’s population.
However, the airline can increase the proportion of its active members and expand its plans to include more partners.
“ We expect Airpoints to expand the depth and breadth of its retailer / financial services relationship, to white label its own credit cards as other airlines have successfully done, and to expand Airpoints’ store for redemption options. ”
How the airline loyalty scheme works
Analyst Forsyth Barr explains that loyalty schemes usually cover the broader business of the airline (because Airpoints are located within Air NZ). However, some schemes are treated inappropriately because of tenure requirements, funding arrangements, or reporting frameworks.
Regardless of whether a schema is internalized or externalized, they share common features:
• Selling points: The scheme sells (issue) points to airlines and third parties (scheme partners). • Points awarded to members: Airlines and scheme partners issue points / air miles to scheme members as an incentive to purchase other flights, products and services. • Members exchange points / air miles: Members can redeem the points earned by booking flights or through third party redemption partners. • Flights usually make up the majority of exchanges. According to Air NZ, more than 90 percent of Airpoint dollars redeemed is spent on flights. At Qantas, this is about 80 percent. At United, 97 percent, of which 20 percent are exchanged with partner airlines.
Steven Adams and RJ Hampton. Photos / Getty and Photosport
Steven Adams is is set to head to New Orleans – and, for a few minutes, it looks like he’s not the only player with New Zealand ties on the deal.
The reported deal – which will see Adams move from the Oklahoma City Thunder to the New Orleans Pelicans as part of a four-team trade centered around the Jrue Holiday being trafficked to the Milwaukee Bucks – is, as you might get from the previous pedantic, somewhat complicated.
So even the man who reported on the trade, ESPN’s Adrian Wojnarowski, had a little trouble explaining it, leading fans to believe RJ Hampton was part of the deal.
Hampton, who played for the New Zealand Breakers last season as part of the NBL Australia’s Next Stars program, was picked this week by the Denver Nuggets as their 24th pick in the NBA Draft.
The Nuggets got the pick from the Pelicans in exchange for a 2023 lottery-protected first-round pick, and the Pelicans decided to send that 2023 pick to the Thunder, along with two second-round picks, in exchange for Adams.
Sources: Steven Adams-to-Pelicans trade includes Denver, which trades a 2023 lottery-protected first-round pick for his 24th pick (RJ Hampton) on draft night. That choice goes to Thunder – along with two seconds – for Adams.
When the trade is confirmed, Adams will not be New Zealand’s first ever basketball presence in New Orleans, with Sean Marks playing 79 games over two seasons from 2008-2010, when the franchise was known as the New Orleans Hornets. New Zealand Breakers keeper Corey Webster also spent pre-season with the squad in 2015.
Stonehenge Aotearoa is a full-scale adaptation of Stonehenge – and a stargazer’s paradise. Photo / Stonehenge Aotearoa.
While previously redundant tourist destinations are becoming more attractive and accessible to the average Kiwi with international borders closed, that doesn’t mean we won’t be competing for space in the busy summer months. Everyone has the same agenda, which means it’s also time to consider alternatives. Of course, there are some experiences – like traversing the volcanic landscape of Tongariro Crossing, or having a cool drink at Hobbiton’s Green Dragon Inn – that just can’t be duplicated.
But others can. If you do a little research, you’ll find that many of New Zealand’s popular attractions have lesser-known partners and are often cheaper. Here are six close siblings of some must-do activities in the country.
Dig your private spa in the sand
An hour south of Raglan, Kawhia is a quiet seaside village with a harbor full of peas, oysters and mussels. It’s also where you’ll find one of the lesser known hot spring beaches. (Yes, there is more than one.)
The drill is exactly the same as in the Coromandel. At low tide, drive to the end of Ocean Beach Rd, where you’ll find a black, soulless beach above. You have to bring your own shovel. Watch for signs of steam rising from the sand and start digging. Once you reach the hot springs of Te Puia Springs, soak in the knowledge that somewhere across the island, lots of people are screaming for the same thing.
Try one of the world’s best burgers
Oh, Fergburger. Even if you’ve never seen the queues for this Queenstown institution, you’ve probably read blog posts or articles all about the burgers: how juicy the meat is, how tender the bread is and how amazing it is. it’s open for almost 21 hours a day.
What they don’t get romantic about, however, is how long you have to wait in line. If you are too hungry to wait in line, all you need to do is head over to the Devil Burger. Offering a similar product, at the same price, that is what the locals are for.
Find kiwi in the wild
Thanks to its remote location and difficult sea crossings to get there, Rakiura (Stewart Island) remains relatively flawless compared to other popular tourist destinations. However, it is still struggling under the load of attractive visitors; pre-pandemic, about 44,000 people were visited per year. That’s about 111 tourists for each resident.
The island’s main attraction is the rare opportunity to see kiwis in the wild. It’s home to around 13,000 of New Zealand’s 68,000 kiwi, and the subspecies that live here can sometimes even be seen during the day for insects by the beach.
The catch? If seeing kiwi is your only goal, travel long distances without the guarantee you’ll see it.
Alternatively, there are a number of fenced predator-free shelters on the North Island and South Island that offer nighttime kiwi tours, including Wellington’s Zealandia and Waikato’s Sanctuary Mountain Maungatautari. But the two hour tour presents a very limited window of time for viewing elusive birds, which is why it is so worthwhile to spend a night on Kāpiti Island.
This predator-free island is home to around 1,400 tiny looking kiwis, presenting one of the most reliable opportunities to spot them. Starting at $ 395 per adult ($ 230 per child), Kāpiti Island Nature Tours kiwi-sightseeing packages include transportation, accommodation in a glamping tent or cabin, and guided night tours.
Hike one of New Zealand’s iconic walks
When Lonely Planet released its Ultimate Travel List earlier this month, 13 Kiwi destinations qualified, with Fiordland National Park topping the 29th position.Most visitors opt to take a boat tour through Milford Sound, but that area came first. undeniably the Milford Track. One of New Zealand’s 10 Great Walks, dubbed “the world’s best walk,” takes hikers through valleys carved by glaciers, past ancient rainforests and cascading waterfalls.
However, its reputation means it’s expensive (the hut costs $ 70 per person per night alone) and very difficult to book. Earlier this year, spots on track for the 2020-2021 season were almost sold out within 10 minutes of opening the booking system.
However, even though there are only 10 “Great Streets” in New Zealand, there are dozens of “great roads.”
The closest connection to the Milford Track is the Gillespie Pass Circuit, a 58 km loop best suited for experienced hikers with river crossing skills. Located near Mount Aspiring National Park, it also takes four days, reaches an altitude of 1,600 meters, and has serviced lodges along the way. And on publication, reservations are still available for the hut (only $ 20) during the holiday period.
Experience the magic of collecting glowworms
Waitomo is not the only place where large numbers of glowworms gather. For a cheap and fun version of the same, you can head to the DOC-run Waipū Caves in Northland, which are completely free to access.
If you don’t want to stray far from Waitomo and be in it for glowworms (not caves) sign up for the Lake District Adventures night kayaking tour ($ 109). On a four hour sunset excursion, you will paddle along the shores of Lake Karapiro. As dark falls, you’ll drift silently on the Pokaiwhenua Stream, your path only lighted by glow worms. The effect is very subtle, and with fewer people, your oar hitting the water is the only sound you’ll hear.
Stargazing in the Dark Sky Nature Reserve
Aoraki Mackenzie Dark Sky Reserve is an area known for its low levels of light pollution and many nights with bright stars. Currently, it may be the only one of its kind in the Southern Hemisphere – but it won’t last long. Wairarapa is currently preparing to become the world’s largest Dark Sky Reserve, a designation which is expected to come later this year.
This is where you can experience some of the most unique and personalized astronomy tours in the country. For example, Becky Bateman of the local Under the Stars will bring her telescope straight to your accommodation. Then there’s Stonehenge Aotearoa, a full-scale adaptation of Stonehenge. If you show up on Friday or Saturday at 8:30 p.m., you’ll have the opportunity to look through the telescope and learn how the structure works. General admission is $ 15.
For more New Zealand travel ideas and inspiration, visit newzealand.com