ASIAN MARKETS China Korea Singapore Japan David Craig

ASIAN MARKETS China, Korea, Singapore, Japan David Craig – GM Asia

Contents • What we see • Focus on value • China: Issues and opportunities

Driving value in China • Focus on FIT • Tier 1 cities • Special interest – golf • Business Events

How? • Advocacy strategy • Leverage the best of old and new media • Encourage the Chinese to tell our story • Adjust PKP programme • Beef up Beijing • Relationships/partnerships

The New Zealand brand is strong Respite “We yearn for this country – it’s a spacious land with few people” Harmony “It’s a harmonious relationship – it’s only decades old really but there is no conflict” Trust “We have different cultures but we are close – we trust them”

But popularity brings risk • Seasonal peaks and over-crowding • Driver safety • Guide quality • Rising expectations

Holiday Arrivals – Jan to Jul 14 + 10% 140, 000 120, 000 105, 136 115, 232 Arrivals 100, 000 80, 000 60, 000 40, 000 20, 000 0 Jan-Jul 13 Source: Statistics New Zealand – International Travel and Migration Jan-Jul 14

Number of Tourists Tourism Law – Impact in 2014 -5% Shopping Tours 63, 665 Independent Holiday 60, 318 +69% 25, 983 15, 416 Jan-Jun 13 Jan-Jun 14 Source: Statistics New Zealand – Travel and Migration Statistics Immigration New Zealand – Visa Approvals Jan-Jun 14

China Holiday Stay Days: Jan – Jul 14 1, 000 902, 944 900, 000 800, 000 Arrivals 700, 000 698, 816 600, 000 500, 000 400, 000 300, 000 200, 000 100, 000 0 Jan-Jul 14 Source: TNZ Insights Jan-Jul 14

Length of Stay in New Zealand - Holiday Days in New Zealand 8 7 6 5 4 2007 2008 Source: TNZ Insights 2009 2010 Source: Statistics New Zealand – International Travel and Migration 2011 2012 2013 2014

Length of Holiday in New Zealand - July 2013 July 2014 7. 1 Days 8. 5 Days Source: Statistics New Zealand – International Travel and Migration

Airline news • China Eastern to launch high season charter service from Shanghai to Auckland in December • China Southern up to ten flights weekly from October • China Air to introduce three flights weekly from Taipei to Christchurch via Sydney

Encouraging signs from Japan • Visitor growth: 77 k, +4% • Committed to a two segment strategy to ensure long -term health • Senior Nature Lovers • Young Adventurers • Preference levels increasing • Additional airline capacity – • Air NZ +30% in FY 15

And from Korea… • Visitor numbers: 53 k, +6% • Demonstrated the value of high impact, TV-led PR • Daddy, where are you going? • A focus market for new regional Premium Manager • Korean Air increase to 747 daily service

The SQ/Air NZ alliance • Visitor numbers from Singapore: 45 k, +18% • SQ daily A 380 confirmed for Auckland route from October 27 th • Air New Zealand targeting flights from early January 2015