ANNUAL BUSINESS PLAN JULY 2014 JUNE 2015

Transcription

1 ANNUAL BUSINESS PLAN JULY 2014 JUNE 2015 This annual plan has been designed to reflect the positive future outlook for the New Zealand visitor economy, building confidence within Marlborough and to respond to the marketing objectives outlined in Destination Marlborough s Visitor Attraction Strategy These objectives are to: Grow awareness and preference for Marlborough as a desirable visitor destination. Build visitor length of stay and spend in Marlborough Drive visitation to extend the summer peak and build shoulder seasons Introduce Marlborough as a winter destination Encourage repeat visitation Align domestic marketing activity to support Regional Event Strategy Attract & maintain private sector investment and industry partnerships to leverage core funding. Support the identification and development of new and existing tourism experiences and services that will enhance the visitor experience. THIS YEAR DESTINATION MARLBOROUGH WILL FOCUS ON: The Destination Marlborough team will be working on a range of marketing initiatives to position Marlborough as a compelling destination to visit both within New Zealand and abroad. With a priority on smoothing seasonality, domestic and Australia consumer marketing initiatives will be targeted toward driving visitation in the shoulder seasons. In association with the Direct to Consumer Group and Food and Beverage Marketing Collective, Destination Marlborough will be working to align destination marketing activity with airline, rail and ferry operator promotions to target visitors from Auckland Wellington and Christchurch. Alongside this will be initiatives aligned with five key Marlborough events to attract and extend visitation. The one-off additional investment in conference marketing will be used to increase the ability of the Marlborough Convention Bureau to call on potential conference organisers and attract them to visit the region to see first-hand why Marlborough is a credible conference destination. Working with the Marlborough Convention Bureau members to secure future business for the region is the priority. Led by Marlborough District Council, the development of The Marlborough Story means this year Destination Marlborough will focus on transforming all marketing and communication resources to reflect the values and themes of the Marlborough Story using the regionally adopted look and feel. One-off grants from the Canterbury Community Trust and Marlborough District Council have provided the funding for this project to be implemented. A major re-architecture and redesign of the Marlborough website is underway, to improve search engine rankings, enhance the online visitor experience, and convert visitors to sales via online bookings and i-site referrals. This will also incorporate mobile optimising the site and reflecting the Marlborough Story through the look and feel. This year Tourism New Zealand is prioritising activity to leverage the last of The Hobbit Trilogy which Marlborough will be taking full advantage of through media hosting and promotion via Tourism New Zealand. Destination Marlborough Annual Business Plan 2014/15 Page 1

2 The nation will host the Cricket World Cup during February and March Marlborough will host a Junior World Cup qualifying tournament and will leverage the World Cup games being played in Nelson, Christchurch and Wellington by positioning the region as a central visitor hub, a breakaway destination, or a transit destination for CWC-related travel. Tourism New Zealand will be managing a significant international media programme which will provide opportunities for Marlborough to host. The FIFA U20 World Cup tournament will also provide an opportunity to attract visitors into the region. Our international trade engagement programme in association with the Trade Marketing Team will prioritise effort on the markets of Australia, UK/Europe, USA, South East Asia and China. Australian visitors spent $32 million in Marlborough year ended March 2013, maintaining this market is vital for the region. UK, Europe and USA were strong performers for Marlborough in the past and with a positive future for these markets it is important for Marlborough to up-weight education and relationship development with the travel sellers to attract FIT and cruise travellers. South East Asia has the greatest potential for Marlborough in the short to medium term and supporting trade education will be the priority this year. The approach to China is around positioning the region as part of a South Island experience and ensuring the region can respond effectively to the predicted increase in visitor arrivals in the future. The Blenheim and Picton i-sites will continue to provide free and unbiased booking and information services. This year the focus is on taking a more proactive role in becoming a conversion partner to regional marketing initiatives and driving sales through the regional website. With record numbers of cruise passengers due this season the Picton i-site will take a leadership role in coordinating with operators to offer a range of day trips specifically for cruise passengers. With the expansion of the Marlborough Airport terminal Destination Marlborough will be working with airport staff to encourage the provision of information services in the terminal to communicate with arriving and departing passengers. Alongside our tactical activity work programme, Destination Marlborough will be working in conjunction with the Marlborough District Council to facilitate the development an industry strategy for the visitor economy as a result of the Smart and Connected Innovation Stocktake. The outcomes of this strategy will inform the prioritisation of activities and focus for Destination Marlborough in the future. The Destination Marlborough Board will also participate in a Council led investigation into the formation of an organisation to bring together the entities and resources involved in economic development, tourism and events to achieve greater alignment of Council s Smart and Connected vision. The following summarises Destination Marlborough s activity plan, budget and KPI s along with the regions performance targets to track toward reaching a regional visitor spend target of $366 million by y/e March Destination Marlborough Annual Business Plan 2014/15 Page 2

3 Summary activity plan for 2014/15 Priorities Develop and deliver seasonal and targeted campaign activity to grow domestic visitation. Supporting campaign initiatives led by airlines, transport operators and commercial entities where Marlborough is profiled. Inclusion of key events in promotional activity and partnership marketing. Hosting a comprehensive official regional website for planning and booking a visit to Marlborough Driving inclusion of Marlborough in above-the-line consumer campaign activity in Australia. Generating positive media editorial coverage about Marlborough as a visitor destination. Work programme - Develop destination marketing activity around St Clair Vineyard Half Marathon, Forrest Grape Ride, Wine and Food Festival, Classic Fighters and Nelmac Garden Marlborough in association with Direct to Consumer Group. - Develop destination content to support Air New Zealand and Grab A Seat promotions. - Develop destination content to leverage Interislander and Bluebridge advertising spend - Exhibit at Auckland On-Water Boat Show with Port Marlborough & DTC members (September) - Support destination campaign for Tranz Scenic re-launch (September) - Support stand with Wine Marlborough & Marlborough Wine Show at Taste of Auckland (November) - Leverage the Cricket World Cup games being played in Nelson, Christchurch and Wellington by positioning the region as a central visitor hub, a breakaway destination, or a transit destination for CWC-related travel (February/March 2015). - Explore Koru Lounge activation with F&B Collective (TBC) - Updated design to reflect Marlborough Story attributes and improve site navigation - Mobile-optimised to enhance usability on mobile devices - Development & implementation of new content framework to reflect Marlborough Story visitor experience and user progression through to bookings - Development of SEO-enhanced content to improve rankings on search engines - Development of new content sections, with a priority on a wedding section - Website SEO & online advertising to target Australian market - Support F&B Collective members in-market campaign activity with destination messaging - Marlborough stand at Taste of Sydney (March) NZ Winegrowers-led - Investment in Tourism New Zealand led consumer campaigns to promote Marlborough via Wellington and Christchurch. - Attendance at Go Bike show to promote QCT, Cape Campbell Track, Graperide & biking in vines (October) - Build interest and support promotional activity through regular Australian consumer edm - Hosting international media in region via Tourism New Zealand s International Media Programme - along with general IMP exploit opportunities for media visitation through The Hobbit premiere, Cricket World Cup and FIFA u20 international events. - Regular media edm to grow editorial coverage and attract media visits - Targeting and hosting domestic media in region - Identify media partners to develop reader competitions and promotions in association with editorial - Co-ordinate story concepts and experiences for regular Saturday Express travel features Destination Marlborough Annual Business Plan 2014/15 Page 3

4 Use third party sites and social media to develop online content and conversations to influence trip planning decisions Integration of The Marlborough Story across all destination marketing activities Research & monitor segmented visitor trends, perceptions & spend in region to inform destination marketing initiatives Deliver comprehensive visitor information and booking services through the Blenheim and Picton i-sites Extend information service delivery at key entry/exit points and sites to engage with visitors Maintain partner programmes with local businesses to support and extend reach of promotional activity. Mange the operation of the Marlborough Convention Bureau to grow conference and incentive business to the region over the shoulder and winter months. Managing a trade engagement programme in conjunction with the Trade Marketing Team partners to influence and educate international travel sellers to grow Marlborough content in New - Post editorial content and deals on NewZealand.com - Seasonal & campaign advertising & posts to targeted audiences on Facebook - Explore options for seeding content on to third party travel sites - Align key visitor attraction messages to reflect the Marlborough Story - Begin building a campaign image & video library to support marketing activity - Redesign & re-launch official visitor website - Incorporate Marlborough Story into Destination Marlborough stationery and collateral (ie visitor guide, e-newsletters, trade directory, conference planner, regional bid documents) - Integrate Marlborough Story within tactical marketing campaigns - Develop trade and consumer show exhibits incorporating the Marlborough Story. - Investigate and establish a cost effective visitor research programme - Manage and operate the Blenheim and Picton i-sites within budget while maintaining a professional service. - Taking a proactive role in becoming a conversion partner for regional marketing campaigns including managing online bookings through regional website. - Encourage increased uptake of online bookings by local operators - Coordinate shore excursions and meet and greet service for cruise ship visits. - Exit partnership in Kaitaki i-site March Liaise with Port Marlborough on future opportunities for Picton terminal visitor information presence in terminal upgrade. - Support and encourage Marlborough Airport to integrate a visitor information presence in upgraded terminal. - Produce and distribute the 2015 Marlborough official visitor guide - Work on a programme to increase visitor guide distribution outlets within region - Identify opportunities to provide visitor information resources at key events/conferences. Manage and co-ordinate local business partnership groups to collaborate with Destination Marlborough on marketing initiatives: Trade Marketing Team, Marlborough Convention Bureau, Food & Beverage Marketing Collective, Direct-to-Consumer Marketing Group - Actively build the list of prospective conference leads through a conference specialist for proactive follow up by the Marlborough Convention Bureau. - Target more conference organisers to visit Marlborough. Achieved through a combination of group and individual Marlborough Convention Bureau famils and Tourism New Zealand Business Event famils. - Increasing knowledge and lead generation through a programme of sales calls and attendance at MEETINGS and Convene South - Ongoing regular communication and development of resources to keep Marlborough front of mind. Includes development of the C&I Planner, presentations, fact sheets, quarterly newsletters etc. - Trade education visits to key international markets of Australia, UK/Europe, South East Asia, USA and China, whether it be directly, represented through our IMA or through SOUTH. - Attracting travel sellers to visit the region to experience Marlborough for themselves to assist them with selling it and to help keep the region front of mind. Achieved through TNZ famils, IBO famils and the Big Day Out. - Attendance at TRENZ to represent the region. Destination Marlborough Annual Business Plan 2014/15 Page 4

5 Zealand travel itineraries and boost sales capability and confidence. Developing industry partnerships that will cost effectively leverage Marlborough s destination marketing funds. Managing a stakeholder communication programme to improve the understanding and visibility of the value of the visitor economy to Marlborough. Partnering with Marlborough District Council to establish an industry strategy for the visitor economy and taking an active role in maintaining industry momentum to achieve outcomes. - Promote of the Classic New Zealand Wine Trail, an international self-drive touring route incorporating Marlborough. - Maintain communication and support for cruise wholesalers to assist with shore excursion development. - Ongoing regular communication and provision of trade resource to the travel trade to keep Marlborough front of mind. Includes development of the Trade Directory, resources translated in Chinese, presentations, fact sheets, quarterly newsletters etc. - SOUTH - Christchurch Airport led South Island RTO partnership to attract long-haul airlines into Christchurch and increase South Island visitation from Asian markets. - Classic New Zealand Wine Trail partnership with Wellington, Wairarapa and Hawke s Bay to collectively promote the Classic New Zealand Wine Trail as an international self-drive touring proposition. - Australia joint venture marketing partnerships co-investing with regions, commercial operators, travel sellers, airlines and Tourism New Zealand. - Port Marlborough partnership to develop the cruise sector. - Marlborough Express to grow Marlborough travel content through Fairfax network and source editorial for publishing online. - Tourism New Zealand integration of Marlborough into International Media Programme, Trade marketing, consumer marketing, Business Event marketing, Premium and special interest marketing initiatives. - Work with Marlborough District Council to establish the industry strategy for the visitor economy and actively participate in forums and meetings to progress the action plan. - Support tourism operators to adopt the Marlborough Story into their delivery. - Facilitate training initiatives for operators with a focus on use of online channels for marketing and new market development - Maintain regular communication with the local business and ratepayer community via news media, DMail and attendance at events and meetings. - Provide advice and assistance to support business development initiatives relating to the visitor economy. - Maintain active participation in industry groups and meetings that will further the interests of Marlborough in the national arena. Ie Cruise New Zealand, RTONZ, TIA, Tourism New Zealand. Encouraging participation in accreditation programmes and facilitating education opportunities to improve service delivery and marketing expertise. Support the identification and development of new and existing tourism experiences and services that will enhance the visitor experience. Destination Marlborough Annual Business Plan 2014/15 Page 5

6 MEASURING PERFORMANCE Destination Marlborough KPI s 2014/15 Marlborough is profiled in three Australian marketing initiatives Five Marlborough events are featured within marketing campaign activity Marlborough is promoted at two consumer events in New Zealand The Marlborough Story is reflected across all promotional activity and communication tools. Website traffic increases by 20% on previous year A minimum of 100 travel sellers visit the region. A further 800 wholesale and frontline travel sellers receive training on Marlborough. A minimum of 25 conference organisors visit the region. A further 75 conference organisors receive training on Marlborough. A minimum of 30 media outlets are hosted in Marlborough. 1:5 return media hosting investment to equivalent advertising value i-sites maintain a minimum sales conversion rate of 13.5%. Marlborough product sales maintained at a minimum of 38% of total sales. Level of investment from Marlborough District Council toward regional marketing is maintained or increased. A minimum of $200,000 partner in-kind investment in Destination Marlborough marketing activity is achieved. Destination Marlborough will achieve an unqualified audit opinion on the financial statements presented to the Board and Marlborough District Council. Regional Performance Outcomes 2014/15 1. Visitor index growth for the months of March, April, May and September, October, November shows greatest index improvement. (Source MBIE Regional Tourism Indicators) 2. Visitor spend reaches $298 million by y/e March (Source MBIE Regional Tourism Estimates) 3. Conference delegate days reach 16,256 by y/e March 2015 (Source MBIE Convention Activity Survey) Destination Marlborough Annual Business Plan 2014/15 Page 6

7 DESTINATION MARLBOROUGH TRUST INC Budget by activity year ending 30 June 2015 & Actuals and budget by activity year ending 30 June /15 NOTES 2013/ /14 Income BUDGET ACTUALS BUDGET $ $ $ Marlborough District Council Destination marketing grant 526, , ,000 Tourism Targeted Rate 186, , ,000 One off grant Marlborough Story & Conference Mktg 80,000 1 Australia JV campaign contribution , ,000 Marlborough i-sites Display Advertising revenue 135, , ,276 Commission 280, , ,814 Merchandise & event ticket gross sales 160, , ,139 Administration fee revenue 38,984 35,966 47,746 TOTAL i-site income 613, , ,975 Industry Industry contribution to International Trade Marketing 74,900 96,396 98,800 Industry contribution to Consumer marketing 85,000 76,963 71,721 Industry contribution to Conference marketing 26,500 19,130 23,330 TOTAL Industry Contributions to Marketing 186, , ,851 Interest 9,500 8,520 9,500 Total Income 1,601,884 1,414,736 1,466,326 Expenditure by activity International Trade Marketing 188, , ,356 Consumer marketing - Australia, domestic, online and promotional resources 505, , ,273 Conference Marketing 69,154 26,889 35,081 Marlborough i-sites - including cost of goods 714, , ,889 Destination Management & Stakeholder Relationships 61,507 56,200 58,850 Management and Administration 37,427 34,687 34,756 Total Expenditure 1,576,904 1,399,418 1,493,205 Surplus/(Deficit) before non-cash Items 24,980 15,318-26,879 less Depreciation Total Depreciation Marketing Admin and i-site 17,709 10,278 Asset Write-Off 4,794 12,652 TOTAL SURPLUS/DEFICIT 7, ,531 NOTES 1. One-off funding tagged for the implementation of the Marlborough Story and Conference marketing. 2. This funding now included in core grant allocation. 3. Industry partners contributed another $294,166 of in-kind support for media and trade hosting and marketing campaign delivery in the 2013/14 year 4. Expenditure split has been changed to group all consumer marketing activity together. Destination Marlborough Annual Business Plan 2014/15 Page 7

8 DESTINATION MARLBOROUGH TRUST INC STATEMENT OF FINANCIAL POSITION AT: Jun-15 Jun-14 Jun-14 NOTES BUDGET ACTUALS BUDGET Assets Cash 179, , ,000 Accounts Receivable (net) 20,000 15,826 20,000 Prepayments & Unbilled Income Inventory 20,000 24,735 20,000 Total Current Assets 219, , ,000 Fixed Assets 27,000 22,424 20,965 Total Non Current Assets 27,000 22,424 20,965 Total Assets 246, , ,965 Liabilities Creditors 100, ,358 89,704 Provisions and Accruals 60,000 89,642 65,000 Fees/Funding in Advance 1 130, , ,000 Total Current Liabilities 290, , ,704 Long Term Liabilities Bank Loan website 0 5,247 5,112 Total Long Term Liabilities 0 5,247 5,112 Leased Asset & Financed Liabilities Total Liabilities 290, , ,816 Net Assets -43,417-50,688-91,851 Shareholder Funds Retained Earnings -50,688-52,322-52,322 Current Year Earnings 7,271 1,634-39,531-43,417-50,688-91,853 NOTES: 1. Fees/Funding in advance includes promotion display and Marlborough Marketing Group partnerships which are invoiced on a calendar year basis. CAPITAL EXPENDITURE Canterbury Community Trust Grant 25,000 Capital Expenditure on marlboroughnz.com URL 7,500 Capital Expenditure on website design and redevelopment 40,000 TOTAL CAPITAL EXPENDITURE 25,000 47,500-22,500 Destination Marlborough Annual Business Plan 2014/15 Page 8