$US3.6k 5.2% Real GDP growth

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2 Indonesia s economic growth, the emergence of budget carriers and abolition of an exit tax has fuelled an increase in demand for outbound travel Indonesia economic and population statistics GDP per capita $US3.6k Population 246m Population with household consumption greater than $US4,500 per annum 6m Real GDP growth % Size of Tourism New Zealand s Target audience in Indonesia (the Emerging Considerer) 8.3m Emerging Considerer Definition: High Socio-Economic ( Members of SEC A) are travel decision-makers, have travelled internationally in the past five years and find New Zealand an appealing destination

3 Outbound out of region travel is growing at 9.7% a year while visitation to New Zealand is growing at a similar rate. There were 12,500 visitors to New Zealand last year (YE July 13) Travel statistics Visitors to NZ year ending May k 9.6% Outbound travellers per annum (2011) 7.1m 6.6% Holiday visitors to NZ year ending May k 16.8% Outbound travellers out of region (2011) 1.9m 9.7%

4 Australia, France and Italy are also highly appealing destinations to Emerging Considerers, together with Asian destinations. Top ten appealing destinations beyond NZ considered by Emerging Considerers (% ECs) (1) United Kingdom 39% 38% France 51% 53% USA Italy 36% South Korea 43% Hong Kong Thailand 31% Malaysia Singapore 28% 42% 54% Australia NOTES: 1. ECs sample size n = 499

5 Overall impressions of New Zealand (1) NOTES: 1. Sample size n = 499

6 Although interest is high in visiting New Zealand s natural attractions, Indonesian ECs are also interested in visiting food markets, crafts markets and vineyards Most popular activities Emerging Considerers are interested in participating in New Zealand Vineyards 72% Arts and crafts markets 73% Taking photos 73% Scenic boat ride/cruise 71% Beaches 71% Bathing in geothermal pools 80% Cultural experiences such as historical settlements and Maori cultural performances are more popular with 50+ age group Food markets 77%

7 Ownership of devices amongst Emerging Considerers is relatively high, with smartphone ownership within households almost ubiquitous Device ownership (household ownership) Indonesia (% of ECs) (1) Mobile Smartphone Tablet Desktop Laptop NOTES: 1. Sample size n = 499

8 With high Smartphone penetration, Emerging Considerers are as likely to use mobile devices as their main way of accessing the internet as they are PCs and laptops Accessing the internet via Desktop / laptop / netbook (% ECs) (1) 43% Main way of accessing the internet 46% 80% Proportion who access the internet at least once a day Usage of the internet at least once a day Desktop/laptop/netbook Mobile phone/smartphone Tablet Other None NOTES: 1. Sample size: ECs n = 499

9 Indonesian Emerging Considerers are big users of social media across all age groups, particularly Facebook and Google+ Usage of social media websites Use Follow brands Facebook Google+ YouTube Twitter Instagram LinkedIn Path Tumblr None of these 9% 9% 6% 9% 5% 7% 4% 3% 14% 30% 29% 36% 40% 53% 51% 68% 81% Facebook usage is high across all age segments, but the young age segments are the most likely to be following brands NOTES: 1. Sample size: ECs n = 499

10 Destination websites have a key role in providing information on getting around, which is key in improving perceptions of ease of seeing and doing things in New Zealand. Offline Sources play a key role also. Top 4 channels for search for flight Top 4 channels for search for getting around All ECs All ECs Website for a specific airline 90% Destination travel website 43% Talk to an airline representative in person 41% Read a travel article in a newspaper or magazine 41% Talk to an airline representative via phone or 38% Website for a specific travel agency 34% Airline fan page on a social media website 37% Website for a specific attraction or activity 32% Top 4 channels for search for accommodation All ECs Top 4 channels for search for on things to see and do All ECs Website for a specific hotel chain 63% Talk to friends / family / colleagues 41% Hotel aggregator website 55% Read a travel article in a newspaper or magazine 39% Accomodation provider fan page on social media website 42% Watch a TV show or documentary 35% Website for a specific travel agency 34% Talk to a travel agent in person 28%

11 Indonesian Emerging Considerers are generally comfortable with online purchase for both airlines and accommodation although travel agents also have a role Top 4 channels for search for booking and paying All ECs All ECs accommodation Website for a specific airline 80% Website for a specific hotel chain 42% With a travel agent in person 40% Hotel aggregator website 39% Website for a specific travel agency 32% With a travel agent in person 38% With an airline representative in person 29% Website for a specific travel agency 30%

12 Key points and implications on the Indonesian Emerging Considerer Insight Although the proportion of high socioeconomic Indonesians is low, New Zealand is of high appeal amongst this group and, reflecting the large overall population size, there are 8.3 million who could be considered as Emerging Considerers Emerging Considerers are skewed towards the older age groups although there is still a reasonable youth segment but regardless of age, all travel predominantly as families A key barrier to visiting New Zealand is a lack of knowledge of where to go and what to do Although New Zealand differentiates itself on landscapes and scenery, amazing beaches and cleanliness and also generally performs well on safety, it lags on other relevant attributes such as vibrant cities, unique experiences, being a place to relax and to have fun and ease of both getting to and of doing things which is indicative of a lack of knowledge Implications Cost is a major barrier to visiting, even amongst those with higher incomes, so marketing should be carefully targeted to the higher socioeconomic group Promoting travel to families represents the key opportunity, however there are age related differences in preferences that will need to be reflected Education about New Zealand as a leisure destination should be at the core of campaign content Although campaigns should be built around New Zealand s strengths in the natural attributes, it is important to support messages that address weaknesses such as providing information about accessibility, our cities and the experiences available Australia, France and Italy are also favoured destinations for Emerging Considerers and New Zealand's strengths and weaknesses reflect those outlined above Although interest is high in visiting New Zealand s natural attractions, Indonesian Emerging Considerers are also attracted to activities such as visiting food and crafts markets and vineyards Consider how New Zealand can be best positioned against these countries in particular, to avoid becoming an add on to an Australian trip, especially given a scarcity of direct air links Although nature based activities such as bathing in geothermal hot pools and scenic cruises should be featured in communication campaigns, food and wine is important to feature

13 Key points and implications on the Indonesian Emerging Considerer (continued) Insight The 50+ age group show interest in Maori cultural experiences as well as museums and art galleries Cycling is a key activity that Emerging Considerers would travel to New Zealand for although the younger segments is also interested in skiing and snowboarding and the older age segment is also attracted to salt water fishing The largest travel preference for Indonesian visitors is being able to practice their religious beliefs Accommodation preferences for Emerging Considerers tend towards mid range options such as 3 star hotels and cabins, while rented holiday homes are also popular probably as a result of the high proportion of family travel parties Emerging Considerers are large users of the internet, and in particular, from smartphones The key information channel for getting around is destination websites and ease of seeing and doing things is a highly relevant attribute New Zealand currently lags on Although there is high online usage, offline is still key for information on getting around and things to see and do, together with the booking process Implications Messages around natural attributes should be supported with messages around culture when promoting to this older age segment Skiing and fishing itineraries represent niche opportunities that can be presented, together with cycleways Information needs to be provided as part of any campaign about how observance of Islamic religion can be incorporated into a holiday and tourist industry service providers need to be sensitive to this issue A full spectrum of accommodation choices including rented accommodation should be provided in information and itineraries All online material must be optimised for viewing on smartphones newzealand.com has a key role to play in informing Indonesian Emerging Considerers to improve perceptions of New Zealand on the attribute of seeing and doing things It is important to understand the degree of influence played by travel agents in terms of destination choice and how best to engage with the trade

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