Tourism counts on backpackers for industry lifeline

Backpackers travel further into the regions than other visitors as they are often looking for adventure. Photo / Sarah Ivey

Young adventure-seeking travellers are being seen as a lifeline for the $20 billion New Zealand tourism industry as older travellers feel more pressure on disposable income in the global recession.

George Hickton, chief executive of Tourism New Zealand, said yesterday the youth traveller sector would be one of its key targets over the next year.

"We have identified youth as a sector of the market, rather than country, that is still showing signs of growing and if that is the case we want to make sure we get our fair share."

In the year to March 191,570 backpackers visited New Zealand - similar to the number of people who come from the United States every year, which is New Zealand's third largest source market after Australia and Britain.

Hickton said youth travellers, defined as those aged 18 to 30 who stayed in backpacker accommodation for at least 30 per cent of their time, were less tied to investment returns and house prices and some were being spurred into travel because of losing their job or not being able to find one in the tough economic environment.

"There is a lack of jobs and people are saying let's go and have a look at the world if they can."

Airfares, particularly from Europe, were the cheapest they had ever been and the lower New Zealand dollar was also attractive.

Scott Bason, general manager of bungy and adventure tourism business Mokai Gravity Canyon near Taihape, welcomed the decision.

He said Tourism New Zealand's lack of focus on the backpacker market had been a bone of contention for businesses.

"Their focus has been on the middle-aged traveller with large amounts of disposable income and more time to spend seeing the country."

Bason said the approach was understandable but it meant the backpacker market tended to be forgotten.

Hickton said Tourism New Zealand had been criticised in the past for its approach to the youth market but some of that criticism was unfair.

"In markets like the UK we have had a youth sector and have had a campaign with STA travel."

Hickton said historically Tourism New Zealand had treated the backpacker market the same as other sectors such as family and the over-50s.

"It's not as if we have totally ignored it."

However, the marketing campaign may not have been as visible as other ones as it was focused on new media rather than traditional television commercials.

Hickton said money spent on targeting the youth market would be in the hundreds of thousands rather than the millions.

"What we are looking at is based on the web."

That included having a presence on sites like Facebook and Bebo.

The campaign would target travellers before they left home as well as those who might already be working overseas.

"We will be capitalising on word of mouth - that sector responds well to that."

Hickton said it was difficult to know what level of growth the campaign would get but any growth would be good.

Ministry of Tourism research manager Martin Svehla said backpackers were good for the industry because they travelled further into the regions spreading the tourism dollar across New Zealand rather than just across the main centres.

Ministry of Tourism data shows backpacker numbers were up 5 per cent in the year to March compared with overall visitor numbers which fell by 3 per cent.

Backpackers on average stayed 28.9 days and spent $3106 per person compared with the average for all visitors of 21.2 days and $2798 per person.

In the year to March backpackers spent $595 million, although that was down on the 2006 March year where they spent more than $610 million.

Hickton said while Australia and China remained its focus over the next year it was also looking at how it could target emerging markets France, Spain and South America.

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* Backpackers on average stay 28.9 days and spend $3106 each.
* The average for all visitors is 21.2 days and $2798 each.