2000: Pure NZ message paying off for tourism

By SIMON HENDERY

This year, as the 1997 Asian economic crisis and the political ructions of 1999 faded, the tourism industry got on with business.

Visitor numbers and foreign exchange earnings were at record levels. During the year to October (the latest available statistics), visitor arrivals were up 10 per cent.

The extra 13,000 travellers in October added $40 million more to the local economy.

After the knock-back that followed the Asian crisis, visitor growth from that region is now steady and included a 70 per cent increase in arrivals from South Korea and 49 per cent more from China.

Tourists contributed an estimated $4.63 billion to the local economy in the year to the end of September, up 25 per cent on the previous year.

Lumped together as one product, tourism is this country's biggest export earner, as the industry never tires of telling whoever will listen.

New Zealand now has a cohesive, if underfunded, marketing strategy in the form of the "100% Pure" brand.

It was launched amid some grumblings of dissatisfaction after the Murray McCully-Jenny Shipley-Kevin Roberts fiasco of 1998.

But now that the campaign is presenting a uniform image of this country to our diverse world markets, almost everyone seems happy.

Prime Minister Helen Clark still has concerns. At the opening of the Tourism Industry Association conference in August, she surprised the audience by ploughing into the campaign, saying it lacked the "multi-dimensional branding" the country needed.

"The 100% Pure brand has clearly worked for many audiences, but it will not work for all," she said.

"Our image needs to be broadened to encompass the sophisticated, upmarket, First-World, truly 21st century nation we are in a superb, natural setting. New Zealand as a whole needs a rebranding consistent with the reality that we produce world-leading products of high quality, and our tourism marketing has a big part to play in that."

George Hickton, the chief executive of the Tourism Board, which markets the brand, says he has yet to confront the Prime Minister over her concerns, but Tourism Minister Mark Burton is comfortable with the concept.

Mr Hickton says the Prime Minister's concerns relate to the initial identity of the brand, which has since grown and become more sophisticated.

Last month, the campaign beat off 600 other entries to win top prize in a competition for national tourism offices.

"The problem we have is that our main job is to ensure New Zealand works effectively as a visitor destination," Mr Hickton says. "Our task is to attract people here as tourists who want a holiday, so issues about New Zealand's identity have to be considered.

"But we're not responsible for the entire identity of the country."

Tourism New Zealand could well do with the Prime Minister as a friend next year. In the first quarter it will go cap-in-hand to the Government to argue for what Mr Hickton says is a long-overdue increase in the organisation's $52 million marketing budget.

He has a good case to argue the indicators look good and Tourism NZ is on target to reach its goal of attracting 1.9 million visitors a year by the end of June.

This summer the tourism industry will experience the best peak season it has had, Mr Hickton says.

"Whilst last year was about stopping the leaks and getting the boat pointed in the right direction, we've got good traction this year."

The fall in the dollar has been a two-edged sword for the industry.

While a low currency makes us look attractive as a destination, it also ramps up the cost of advertising to potential travellers in their home countries.

The board takes annual forward currency cover to protect it from exchange fluctuations, but that runs out on June 30 with the end of the financial year.

"Our budget hasn't increased for many years and at times like this, when we get a hit on the New Zealand dollar, it makes it quite difficult," Mr Hickton says.

"I think we're getting to the time where as a country we have to look at the sort of investment we want to put into maintaining the brand of New Zealand in the international tourism market.

"We will present a case [to the Government] and indicate how, from our point of view, we believe tourism is one of the key issues that can help to stimulate activity within the economy, and quite quickly."

The largest tourist operator, Tourism Holdings, had a healthy year, reporting a $14.8 million profit. It continued to shake down its assets with sales and buy-ups, and now seems to have a more focused idea of its place in the market and where it is heading.

Its November acquisition, for example, of backpacker bus services Kiwi Experience and Oz Experience seems timely. Figures for the year to September show a 15 per cent rise in the number of backpackers visiting New Zealand, to 190,000.

Herald Online features:

2000 - Year in Review