TOURISM NEW ZEALAND OUR VISITORS UNDERSTANDING HISTORIC VIEW TOTAL ARRIVALS YE JUNE 2016

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1 TOURISM JAPAN 94K 3% NEW ZEALAND UNDERSTANDING OUR VISITORS GERMANY 91K 3% CHINA 397K 12% UK 214K 7% USA 258K 8% Our market infographics are drawn from two different sources. HISTORIC VIEW: Past Visitor Research This is information collected about those who have visited New Zealand. This is the source for the Market Snapshot infographics. It is primarily sourced from Statistics New Zealand (International Travel and Migration), and the Ministry of Business, Innovation and Employment (International Visitor Survey). FUTURE VIEW: Active Considerer Research An Active Considerer is someone who has New Zealand in the top five of next destination choice. This is the source of information for the Consumer Profile infographics, helping us understand how our target audience sees New Zealand as a holiday destination. AUS 1,365K 41% REST OF WORLD 26% HISTORIC VIEW TOTAL ARRIVALS YE JUNE 2016 USA 15.4M UK 5.0M GERMANY 5.9M CHINA 26.4M JAPAN 4.1M FUTURE VIEW OF OUR TARGET AUDIENCE ACTIVE CONSIDERERS OF NEW ZEALAND AUS 3.7M

2 USA IS OUR THIRD LARGEST MARKET BY VISITOR SIZE AND VALUE. IN RECENT YEARS, THIS MARKET HAS DELIVERED STRONG GROWTH. EDUCATION 7K VISITING FRIENDS / RELATIVES 50K PURPOSE OF VISIT BUSINESS 21K TOTAL 258K CONFERENCES 5K OTHER 13K HOLIDAY 161K AVERAGE LENGTH OF STAY 14 DAYS HOLIDAYS 17 DAYS ALL VISITORS HOLIDAY STAY DAYS 2.2M TOTAL STAY DAYS 4.3M HOLIDAY VISITORS AVERAGE SPEND SPEND CONTRIBUTION 19% REPEAT VISITORS $5,308 $5,022 $782M $1.167B 81% FIRST TIME VISITORS HOLIDAY TOTAL HOLIDAY TOTAL 1/9 SOURCES: STATISTICS NEW ZEALAND INTERNATIONAL TRAVEL AND MIGRATION; MBIE INTERNATIONAL VISITOR FORECASTS; MBIE INTERNATIONAL VISITOR SURVEY (HOLIDAY VISITORS); MBIE REGIONAL TOURISM ESTIMATES

3 FORECAST GROWTH IN THE NEXT TWO YEARS IS VERY STRONG, SUPPORTED BY INCREASED AIR CAPACITY. 42% GROWTH FORECAST FROM 2015 TO USA ARRIVALS (000) TOTAL UP 10% ON K FORECAST BY 2022 HOLIDAY UP 13% ON TOTAL HOLIDAY 2/9

4 USA INDEPENDENT PROFESSIONALS ARE THE LARGEST SEGMENT WITH THE MAJORITY AT THE YOUNGER END OF THE AGE GROUP. AGE PROFILE HOLIDAY VISITORS 10% 41% BACKPACKERS % INDEPENDENT PROFESSIONALS ACTIVE BOOMERS ,000 4,000 3,000 2,000 1, / YEARS

5 MOST USA HOLIDAY VISITORS COME VIA AUSTRALIA. MORE DIRECT SERVICES HAVE STARTED RECENTLY FROM HOUSTON, LOS ANGELES AND SAN FRANCISCO. LOS ANGELES 19% SAN FRANCISCO 19% HONOLULU 6% HOUSTON 4% 40% 42% DIRECT USA TO NEW ZEALAND AIR CAPACITY IN 2016 VS % 4/9 CALIFORNIA 23% STATE OF RESIDENCE TEXAS 7% NEW YORK 6% FLORIDA 5% WASHINGTON 4% ILLINOIS 4% COLORADO 4% HAWAII 3% MASSACHUSETTS 3% OTHER STATES 41%

6 SUMMER IS THE BIGGEST SEASON FOR HOLIDAY ARRIVALS BUT GROWTH IN SHOULDER SEASONS IS VERY STRONG. NEARLY HALF OF USA HOLIDAY VISITORS ARRIVE IN THE SHOULDER SEASONS SUMMER AUTUMN WINTER SPRING 41% 26% 11% 22% SUMMER HOLIDAY ARRIVAL GROWTH VS LAST YEAR USA HOLIDAY VISITOR GROWTH RATE IN SPRING AND AUTUMN SHOULDER SEASONS EXCEEDING SUMMER PEAK 8.6% +12.8% SPRING AND AUTUMN HOLIDAY ARRIVAL GROWTH VS LAST YEAR 5/9

7 AUCKLAND AND OTAGO ARE POPULAR BUT USA TRAVELERS VISIT BETWEEN THREE AND FOUR REGIONS ON AVERAGE. VISITATION OVERNIGHT % OF SPEND TARANAKI 1% 1% 9% 3% NORTHLAND 56% 30% AUCKLAND 26% 6% WAIKATO 31% 6% BAY OF PLENTY MANAWATU-WHANGANUI 7% 2% 1% <1% GISBORNE WEST COAST TASMAN 25% 3% NELSON 8% 1% 11% 1% 11% 2% 27% 9% MARLBOROUGH 8% 2% WELLINGTON HAWKES BAY SOUTHLAND 24% 2% 53% 21% 38% 12% OTAGO CANTERBURY 6/9

8 TOP ACTIVITIES FOR USA HOLIDAY VISITORS. OBSERVING WILDLIFE 88% BEACH 65% VINEYARD / WINE TRAIL 40% WALK / HIKE / TRAMP 84% MUSEUM / ART GALLERY 54% GEOTHERMAL PARK 43% GLOW WORMS 43% NATIONAL PARK 74% SCENIC BOAT TRIPS 55% MAORI CULTURAL EXPERIENCE / ACTIVITY 61% USA HOLIDAY VISITORS VISIT ON AVERAGE TWO NATIONAL PARKS MOST POPULAR 7/9 41% 23% 23% FIORDLAND AORAKI MT COOK MT ASPIRING

9 USA HOLIDAY VISITORS STAY IN A VARIETY OF ACCOMMODATION TYPES AND SELF DRIVE TRANSPORT OPTIONS ARE WIDELY USED. ACCOMMODATION STAYED IN HOTEL MOTEL / MOTOR INN / SERVICED APPT LUXURY BACKPACKER / HOSTELS FAMILY AND FRIENDS CAMPING 58% 32% 19% 18% 17% 14% TRANSPORT USED SELF DRIVE IS A POPULAR OPTION WITH HALF RENTING A CAR RENTAL CAR 52% TAXI / SHUTTLE 47% TOUR BUS 39% PLANE 36% FERRY OR BOAT SERVICE 33% BUS SERVICE 23% COOK STRAIT FERRY 22% PRIVATE CAR 13% TRAIN 12% HELICOPTER 9% CAMPERVAN 8% 8/9

10 USA VISITORS ARE HIGHLY SATISFIED WITH THEIR TIME IN NEW ZEALAND AND MANY ARE LIKELY TO RECOMMEND NEW ZEALAND AS A DESTINATION. SATISFACTION MEETING EXPECTATIONS Expectations of the New Zealand experience 9.4/10 94% met or exceed 53% Exceeded 41% Met 7% Worse USA visitors have the highest satisfaction score of their New Zealand experience of all our top markets 0% Not Sure NET PROMOTER SCORE 1% 86% DETRACTORS LIKELY TO RECOMMEND NEW ZEALAND AS A DESTINATION 87% PROMOTERS 12% PASSIVES 9/9

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