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                                        OAMARU VISITOR ATTRACTIONS VISION
                                          Market Study & Opportunity Analysis | January 2016

                                                                 PRIVATE AND CONFIDENTIAL

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LEAD CONSULTANT   CLIENT

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CONTENTS

1.00 INTRODUCTION                     6.00 CURRENT ATTRACTIONS
                                      6.01 Arts & Literature
2.00 EXECUTIVE SUMMARY                6.02 Classic Cars
2.01 Site Analysis                    6.03 Gastronomy
2.02 Resident Market                  6.04 Natural World
2.03 Visitor Market                   6.05 New Zealand History
2.04 Current Attractions              6.06 Steampunk
2.05 Opportunity Analysis             6.07 Wellness & Adventure
2.06 Next Steps                       6.08 Relevant Planned Developments
                                      6.09 Accommodation Supply
3.00 SITE ANALYSIS                    6.10 Marketing
3.01 Geography
3.02 Transportation & Accessibility   7.00 OPPORTUNITY ANALYSIS
3.03 Climate                          7.01 Arts & Literature
                                      7.02 Classic Cars
4.00 RESIDENT MARKET                  7.03 Gastronomy
4.01 History
                                      7.04 Natural World
4.02 Politics
                                      7.05 New Zealand History
4.03 Economy
                                      7.06 Steampunk
4.04 Stakeholder Groups
                                      7.07 Wellness & Adventure
4.05 Demographics
                                      7.08 Accommodation
4.06 Cost Of Living
                                      7.09 Marketing

5.00 VISITOR MARKET
5.01 Annual Arrivals
5.02 Key Markets
5.03 Motivations
5.04 Age
5.05 Trip Characteristics
5.06 Attractions

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1.00
INTRODUCTION

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1.00 INTRODUCTION

1.00
                     In November 2015, Select Contracts was engaged to assist
                     Waitaki District Council by examining the current visitor
                     attraction mix in Oamaru and the wider district.
INTRODUCTION         The broad remit was to suggest ways in which the existing
                     attractions could function better together and where gaps exist,
                     what could be created to encourage:

                     •   more visitors;

                     •   staying for longer; and

                     •   spending more money in the region.

                     Following time spent in the area, exploring existing attractions
                     and meeting with a large number of different stakeholders
                     including elected officials, charity trustees, business owners,
                     employees and volunteers a number of key themes emerged.
                     These are repeated throughout this document.

                     The result is a bringing-together of the information and ideas
                     collected during our time in the region and reflecting on the
                     challenge thereafter. We cannot claim ownership of all of the
                     ideas presented in the final section of the document but have
                     tried to edit those given to us in order to best fit the objectives
                     of the exercise.

                     The Waitaki District is a remarkable place and we look forward
                     to a continuing relationship because we now feel invested in the
                     future of the place ourselves.

                                                                                           LANE’S EMULSION, OAMARU

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1.00 INTRODUCTION

                         1.00
                         INTRODUCTION

WAITAKI DISTRICT COAST

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2.00
EXECUTIVE SUMMARY

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2.00 EXEC SUMMARY

2.01
                     OAMARU
                     Oamaru is a beautiful harbour town on the east coast of New
                     Zealand’s South Island. The urban area was built around a
SITE ANALYSIS        bustling Victorian port. Nearby, the town is surrounded by a
                     landscape of low, rolling hills used primarily for agriculture.

                     To the north is the Waitaki River and to the west it is possible to
                     see the mountains of Otago. South of the town, the coastline is
                     a mix of sedimentary rocks and beach.

                     TRANSPORT
                     The principal connection with the rest of the South Island is
                     State Highway 1 which runs north/south through the town along
                     the coast. Domestic air access is available through Timaru and
                     international flights are available from Dunedin, Queenstown
                     and Christchurch. Rail service is limited to once or twice per
                     week.

                     CLIMATE
                     The warmest months of the year are January and February
                     when the average is around 16°C and there are over 15 hours
                     of daylight. During the coolest months of June and July
                     the temperature rarely drops below 5°C. Rains are low by
                     comparison to many coastal towns and consistently around 10
                     days per month throughout the year.

                                                                                           OAMARU HARBOUR

     2.01                                                                                                   010
2.00 EXEC SUMMARY

                                                                                              2.02
HISTORY
The Waitaki District has archaeological sites dating back as far as
1500 AD but modern European development didn’t happen until
much later, during the 1850’s. Harsh storms forced the town                                   RESIDENT MARKET
to develop a concrete breakwater in 1872 and the town grew
rapidly with a safe port.

Refrigeration dramatically changed the local industry and the
export trade began to boom. This continued for decades,
including having a big impact in WW1 and WW2. Beyond this,
market changes caused a decline and many of the town’s
Whitestone buildings became derelict.

MODERN DAY
The region’s current largest employer is the Alliance abbatoir
in Pukerai (just north of Oamaru) with over 900 employees.
Other large local industries are agriculture, forestry, fishing,
manufacturing, retail and construction. The region is governed
by the Waitaki District Council.

STAKEHOLDERS
Key stakeholders identifed by this report include:

•   Waitaki District Council

•   The Oamaru Whitestone Civic Trust

•   Tourism Waitaki

•   Heritage New Zealand

•   Waitaki Tourism Association

DEMOGRAPHICS
The district’s population appears to be growing slowly, most
recently measured at around 1% per year. The population is also
getting older, projected to have a median age of 52 by 2031. The      OAMARU PUBLIC GARDENS
population is typically older than the New Zealand average and
the household income in Waitaki District is lower than the New
Zealand average. Nevertheless, living costs are comparably low.
An average house in Waitaki District is a little over half the New
Zealand average of $558,000.

                                                                                                           2.02   011
2.00 EXEC SUMMARY

2.03
                     ARRIVALS
                     Since 2012, growth in international visitor numbers has
                     accelerated and in 2015 the total surpassed 3 million for the first
VISITOR MARKET       time. Forecasters expect this figure to surpass 3.75 million by
                     2021. In 2015, the majority of these international arrivals were
                     from four countries:

                     •   Australia - 52%

                     •   China - 13%

                     •   USA - 10%

                     •   UK - 8%

                     SPEND
                     In 2016, overnight visits to the Waitaki District are forecast to
                     exceed 330,000 with day visits exceeding 810,000. However,
                     data shows that by proportion, these visitors are not spending
                     as much on tourism products as the New Zealand average.
                     This suggests that the current offer does not generate as much
                     income benefit for the region as it could.

                     When on holiday, overall spend per person for each of the top
                     four countries of origin is:

                     •   Australia - $2,400

                     •   China - $3,200

                     •   USA - $3,500

                     •   UK - $3,800

                     SHORT VISITS
                     Visitors to the Waitaki region stay for just 1 or 2 nights, often on
                     a pre-booked itinerary that leaves them little time to explore
                     and discover some of the attractions they may not have heard
                     of prior to their visit. The most visited ticketed attraction in the   OAMARU BLUE PENGUIN COLONY
                     region is the Oamaru Blue Penguin Colony.

    2.03                                                                                                                 012
2.00 EXEC SUMMARY

                                                                                   2.04
ARTS & LITERATURE
Oamaru is a known hub for arts and literature nationally. There
are a range of galleries, bookshops and artisan workshops
throughout the town.                                                               CURRENT ATTRACTIONS

CLASSIC CARS
The town is home to an impressive classic automotive
collection and an active builder and restorer of 50’s and 60’s
motor cars.

GASTRONOMY
There are two world-renowned restaurants nearby and various
other commended eateries and cafes. Moreover, the region has
a number of breweries, wineries and a whiskey company.

NATURAL WORLD
The Waitaki District has some of the most accessible natural
attractions in New Zealand.

NEW ZEALAND HISTORY
Heritage attractions are a key component of the region’s
tourism offer. Notably, the Oamaru Whitestone Civic Trust
manage 17 Victorian properties in Oamaru and Heritage New
Zealand have two major sites just south of the town.

STEAMPUNK
‘Tomorrow as it used to be.’ - Steampunk is a science-fiction
genre and interational phenomenon with strong influence in
Oamaru, including a growing ticketed attraction.

WELLNESS & ADVENTURE
The Alps 2 Ocean Trail is a major investment in the region.        TOTARA ESTATE
Moreover, there are numerous other outdoor pursuits and
wellness facilities such as Hot Tubs Oamarama.

RELEVANT PLANNED DEVELOPMENTS
There is a significant expansion planned for the Oamaru Blue
Penguin Colony and a new attraction opening in a former
railway station adjacent to a restaurant and brewery.

ACCOMMODATION
Accommodation is heavily skewed towards motels and holiday
parks in the region. There is a limited amount of hotel capacity
in Oamaru.

                                                                                                2.04     013
2.00 EXEC SUMMARY

2.05
                                              ARTS & LITERATURE
                                              There are clear opportunities to link existing attractions
                                              with new products and activate existing spaces and learning
OPPORTUNITIES                                 resources during quieter months.
Full details are available in section 7.00.
                                              CLASSIC CARS
                                              Some improvements could be made to the existing attraction
                                              to encourage more visitors through better awareness and make
                                              links with Rod Tempero.

                                              GASTRONOMY
                                              There is scope in this area to link existing attractions with tasting
                                              tours, introduce educational programs for visitors, celebrate
                                              the growing beer industry and add new uniquely Oamaruvian
                                              venues to the mix.

                                              NATURAL WORLD
                                              Here there is opportunity to incrementally improve existing
                                              attractions and create new infrastructure to increase access and
                                              provide a space for tour operators to create new products.

                                              NEW ZEALAND HISTORY
                                              A range of different stories from local heritage are available to
                                              explore and present to the public in a new, ticketed attraction
                                              on Harbour Street. This presents the opportunity to package
                                              entry with other heritage attraction locally. Moreover, there is
                                              potential to create walking tours or audio guides that may yield
                                              an income stream.

                                              STEAMPUNK
                                              Efforts could be made to help Steampunk HQ to expand
                                              through assistance with infrastructure improvements.
                                              Furthermore, the theme could be extended to include dining,
                                                                                                                      LOAN & MERC BUILDING, OAMARU
                                              games and inventions.

          2.05                                                                                                                                       014
2.00 EXEC SUMMARY

                                                                                             2.06
WELLNESS & ADVENTURE
Cycling presents a continuing opportunity for the region. In
addition, adventurous activities that take advantage of existing
terrain or infrastructure may also be a viable way of expanding                              NEXT STEPS
the adventure tourism options.

ACCOMMODATION
There is a strong argument for building more accommodation
options in Oamaru, particularly in the hotel sector. The key
here is to make the accommodation itself an attraction so as
to maintain interest through the winter. Cyclists also provide a
growing opportunity for bespoke accommodation.

MARKETING
Attractions in the region are highly visually appealing and
would benefit from being presented accordingly online. Few
attractions are making use of the marketing assets they own
(e.g. website, social media channels) and earn (e.g. review
websites) and better use of these assets could lead to better
awareness, notably with the FIT segment.

NEXT STEPS

REVIEW
Let’s go through the opportunities presented, discuss and
elaborate with further ideas and examples.

PRIORITISE
We can help develop criteria for moving forward and begin to
sort the opportunities accordingly.

ACTION                                                             VIEW FROM TOTARA ESTATE
Make decisions on how best to bring the best, most impactful
ideas to fruition.

                                                                                                          2.06   015
016
3.00
SITE ANALYSIS

            017
3.00 SITE ANALYSIS

3.01                  OAMARU
                      Oamaru is the second largest town in the North Otago region
                      of New Zealand’s South Island. It is the main town in the Waitaki
GEOGRAPHY             District with a population estimated at 13,750 (NZ Stats).

                      Oamaru is a harbour town on the Pacific Ocean. Its surrounding
                      landscape of low, gently rolling hills is dedicated mainly to
                      farmland. Just south of the harbour lies a disused quarry, once
                      used to maintain the breakwater in the harbour. Near the base
                      of this disused quarry is the now famous Little Blue Penguin
                      colony.

                                                                                          OAMARU HARBOUR

    3.01                                                                                                   018
3.00 SITE ANALYSIS

WAITAKI
West of Oamaru, beyond the rolling Otago farmland, are
two distinct mountain topographies: the flat-topped block
                                                                                      3.01
mountains of Eastern and Central Otago and the glacially
                                                                                      GEOGRAPHY
sculpted mountains of the Otago Alps in the far west. The
Waitaki valley north of Oamaru is home to New Zealand’s largest
braided river, the Waitaki river. The river is fed by glacial lakes
from the Alps and passes through three man-made lakes as part
of a complex hydroelectric dam system.

                                                                      LAKE AVIEMORE

                                                                                                  3.01     019
3.00 SITE ANALYSIS

3.01                  COAST
                      Oamaru’s coastline is made up mainly of alluvial gravel from
                      the Waitaki River, raised beach deposits, sand and marine
GEOGRAPHY             sedimentary rocks. (Institute of Geological and Nuclear Sciences
                      Ltd.)

                                                                                                                      Select Contracts

                                                                                         WAITAKI DISTRICT COASTLINE

    3.01                                                                                                                                 020
3.00 SITE ANALYSIS

ROAD ACCESS
Located on State Highway 1, Oamaru is one hour south of
Timaru and two hours north of Dunedin, where the nearest
                                                                                                                                    SH
                                                                                                                                         -8
                                                                                                                                           3
                                                                                                                                                                          3.02
multi-destination domestic airport, is located. State Highway 1
                                                                                                                                                                          TRANSPORTATION & ACCESSIBILITY
is the longest most significant road in New Zealand running the                                                               SH -1 at junction
length of both main islands making Oamaru easily accessible by                                                                     with SH-83,
vehicle.                                                                                                                                Pukeuri
                                                                                                                                                  Pukeuri

             Traffic Count Location                   AADT

 SH 1 Between Waitaki Avenue & Virgil Street
                                                        12,813
 Oamaru

                                                                                                                                      -1
 SH 1 At Weston Road
                                                         7,896

                                                                                                                                   SH
 Oamaru
                                                                                                           SH -1 between
 SH 1 Junction With SH 83                                                                                 Waitaki Avenue
                                                         7,405                                            and Virgil Street
 Pukeuri

                                                                                            Weston

                                                                                                     SH-1 at
                                                                                                     Weston Road

                                                                                                                     Oamaru

                                                                                       -1
                                                                                  SH

                                                                                                                                                      Google Earth/NZTA

                                                                  NEARBY TRAFFIC COUNT SURVEY POINTS

                                                                                                                                                                                        3.02               021
3.00 SITE ANALYSIS

3.02                             AIR ACCESS
                                 Oamaru is reasonably easily accessible by air. The town has
                                 a small, privately serviced airport with chartered passenger
TRANSPORTATION & ACCESSIBILITY   flights. The nearest airport with domestic service to multiple
                                 destinations is Dunedin. Dunedin offers limited international
                                 service to Australia. The majority of international flights fly into                                                                      Christchurch
                                 Christchurch, a three-hour drive from Oamaru. Timaru has                                                                                  International
                                 regular flight service to Wellington, NZ.                                                                                                 Airport

                                                                                                                                                                Timaru
                                                                                                                                                                Domestic
                                                                                                                                                                Airport

                                                                                                                                Queenstown
                                                                                                                                International
                                                                                                                                Airport
                                                                                                                                                            Oamaru

                                                                                                                                                Dunedin
                                                                                                                                                International
                                                                                                                                                Airport
                                                                                                                          New Zealand
                                                                                                                          South Island

                                                                                                                                                                                Google Earth

                                                                                                        NEARBY AIRPORTS

                                                                                                                                                                                               022
3.00 SITE ANALYSIS

RAIL ACCESS
There is no regular rail access to Oamaru via New Zealand
Rail, however Dunedin Railways has a trip called the Oamaru
                                                                                                         3.02
Seasider. The trip totals 7 hours in length, stops briefly at
                                                                                                         TRANSPORTATION & ACCESSIBILITY
Moeraki and onto Oamaru for a one-hour stop and then returns
to Dunedin. Live commentary is provided and the train slows
for photo opportunities at sites of interest. The Oamaru Farmers
Market operates to coincide with the Oamaru Seasider schedule.
There is an option to take the train one-way for $72 NZD,
round-trip the train starts at $99 NZD. Trips are limited to once
or twice per week.

                                                                                      Dunedin Railways

                                                                    OAMARU SEASIDER

                                                                                                                       3.02               023
3.00 SITE ANALYSIS

3.03                  TEMPERATURE
                      Oamaru has a mild and temperate maritime climate that features
                      warm summers and cool winters with a relatively narrow annual
CLIMATE               temperature range of approximately 10°C. During the warmest
                      months from November through March, temperatures rarely
                      peak above 20°C with an average annual high of 15.7°C. The
                      coldest months are May through September with an average
                      annual low of 6.8°C.

                      DAYLIGHT
                      At 45 degrees latitude south of the equator, Oamaru has a
                      daylight range of 9.4 hours per day to 16.2 hours per day. The
                      darkest month is June and the lightest month is December, with
                      12.5 hours of daylight at the Equinoxes.

                                                                                       024
3.00 SITE ANALYSIS

RAINFALL
For a coastal town, Oamaru is relatively dry with only 127 days
of rain per year with less than 600mm rainfall annually. Monthly
                                                                     3.03
rainfall is very sporadic with no correlation to the time of year.
                                                                     CLIMATE
The rainiest months are January, March, July and December
with a range of 53-63mm of rain per month. The driest month is
September with only 32mm of rain.

                                                                               3.03       025
026
4.00
RESIDENT MARKET

              027
4.00 RESIDENT MARKET

4.01
                        HISTORY & CULTURAL IMPORTANCE

                        MOA HUNTERS
HISTORY                 Oamaru has numerous archaeological sites, some dating back
                        as far as 1500 AD. These sites date back to the Archaic Moa-
                        Hunter phase of Maori culture. Today, the Vanished World
                        Society of North Otago, aims to educate and raise awareness of
                        these archaeological sites and conservation of fossils.

                        EUROPEAN EXPLORERS
                        The first European explorer to sight New Zealand was Dutchman
                        Abel Tasman in 1642. It wasn’t until 1769 when Captain James
                        Cook circumnavigated and mapped New Zealand. He reached
                        Oamaru in 1770 where he stayed for only four days, stating the
                        country looked barren and uninhabited.

                        INDUSTRIAL GROWTH
                        Oamaru was visited in the 1830’s by sealers and whalers. Whale
                        products were exported before New Zealand was a colony or
                        had a government. In 1840 New Zealand officially became a
                        British colony and was settled by more Europeans in the 1850s.
                        A disastrous storm in 1868 forced Oamaru’s leaders into action.
                        Virtually all passengers and cargo moved by sea, so the port
                        was vital to Oamaru. The dangerous harbour made insurance
                        expensive – merchants knew that they had to make their port
                        safe, or fall behind rival towns. In 1872 a concrete breakwater
                        was constructed and by 1875 virtually all shipwrecks had ceased
                        and the town grew very quickly as a major port.                   REFRIGERATION
                                                                                          In 1882, the invention of the refrigerated steam ship meant the first ever frozen meat shipment to England on the Dunedin. The
                                                                                          economy grew from one based on local trade and wool to the export of wool, butter, cheese, frozen beef and mutton to Britain.
                                                                                          Refrigerated shipping was the base of New Zealand’s economy until the 1970s.

                                                                                          POST-WW2
                                                                                          After the Second World War the port’s trade was mainly trans-Tasman and coastal. Oamaru grew rapidly after the war, though, and
                                                                                          the port stayed busy, handling oil, lime, grain, flour and general cargo. From the 1960s the new Cook Strait rail ferries made big
                                                                                          inroads into the coastal general-cargo trade, offering shippers a cheaper, faster, more flexible service. The coastal ships switched
                                                                                          to bulk cargoes, but the new oil tankers of the mid-1960s were too big to port in Oamaru, and the volatile grain trade collapsed
                                                                                          in the early 1970s. The last trading vessel visited Oamaru in 1974. With conventional coastal shipping nearing its end, the Oamaru
                                                                                          Harbour Board decided not to risk investing money in the maintenance of the harbor and breakwater. The main street’s Victorian-
                                                                                          era whitestone buildings remained as the cost of tearing them down was not feasible during this time. What was then seen as an
                                                                                          extravagance of earlier times is now an anchor attraction in Oamaru. (New Zealand History)

    4.01                                                                                                                                                                                                                         028
4.00 RESIDENT MARKET

1500
                      Timeline

         Archaic Moa-Hunter phase of Maori culture.         4.01
1642
         Abel Tasman (Holland) first European explorer      HISTORY
         to sight NZ.

         Captain James Cook circumnavigates and maps
1769
         New Zealand.

         Captain James Cook reaches Oamaru, stays
1770     only for four days, stating the country looks
         uninhabited and barren.

1830’s   Whalers and sealers begin to visit Oamaru.

         New Zealand officially becomes a British
1840
         Colony.

         Early settlement by more Europeans, Oamaru
1850’s
         begins to build.

         A disastrous storm hits Oamaru, forces leaders
1868
         into action to build a breakwater.

1872     Concrete breakwater constructed.

1875     Virtually all shipwrecks ceased.

         First refrigerated shipment of frozen meat to
1882
         England on the Dunedin.

         Shipping becomes mainly trans-Tasman and
         coastal. The port remains busy, handling oil,
1945
         lime, grain, flour and general cargo until the
         1960s.

         Coastal ships switched to bulk cargoes. New
1960’s   oil tankers too big to use in Oamaru, decline in
         trade

1970’s   Volatile grain trade collapse, trading slows.

1974     Last trading vessel visits Oamaru.

                                                                      4.01         029
4.00 RESIDENT MARKET

4.02
                        WAITAKI DISTRICT

                        GOVERNANCE
POLITICS                The Waitaki governing body consists of 10 council members
                        and mayor, Gary Kircher. The Waitaki district is divided into the
                        Canterbury region (60%) and Otago region (40%). It is the only
                        political district divided by two regions. A major reason for this is
                        the Waitaki river which physically divides the two regions. With
                        major hydro projects dispersed along the river it was decided to
                        put the two regions under one administrative district. 63% of the
                        district’s population lives in the district seat, Oamaru.

                        FARMING
                        The district is sparsely settled area comprised mainly of
                        farmland. In recent years, there have been numerous proposals
                        for new farming operations which has the local population
                        concerned that farming could shift from family-run business
                        to agribusiness leading to an increase in local ecological
                        degradation and the siphoning of capital over-seas.

                                                                                                WAITAKI DISTRICT COUNCIL BUILDING

    4.02                                                                                                                            030
4.00 RESIDENT MARKET

                                                                                          4.03
HEADLINES
•   The latest reports from the Ministry of Business, Innovation
    & Employment and other relevant sources, provide current
    economic trends for the Waitaki District:                                             ECONOMY
•   The largest employer in the Waitaki region is the Alliance
    abattoir located in Pukerai just ten minutes north of
    Oamaru. The plant employs over 900 people during peak
    times (Alliance)

•   A total of 2,317 people are employed in agriculture, forestry
    and fishing (19.6% of Waitaki District’s population)

•   The next largest industries (numbers employed):
    manufacturing (1,954), retail trade (1,153) and construction
    (1,135)

•   Waitaki has a 19% share of NZ agricultural GDP

•   GDP for Waitaki from forestry, fishing, mining, electricity,
    gas, water and waste services, for the year to March 2012:
    $264 million (23.9%)

•   GDP for Waitaki from Agriculture for the year to March
    2012: $210 million (19%)

•   The region of Otago has a 3.8% unemployment rate in the
    year up to March 2015, a -1.2% change from 2014 to March
    2015.

•   In 2013 the median housing price hit $280,000, a 14.3%
    increase from 2012, the largest year-over-year increase
    recorded since 2005.

•   2014 housing prices decreased 4.4% from the previous
    year’s spike.

•   Total visitor spend in Waitaki District is $115 million per
    year (year to March 2014). The largest spend ($77.5M) is
    domestic, followed by Australia ($11.1M). (MBIE)                THE CRITERION HOTEL

                                                                                                    4.03         031
4.00 RESIDENT MARKET

4.04
                        WAITAKI DISTRICT COUNCIL
                        The Waitaki District Council (WDC) is the local governing body
                        for the Waitaki District, representing the people of the District.
STAKEHOLDER GROUPS      From the Council’s Local Governance Statement (2014):

                        “The purpose of the Waitaki District Council is to meet the
                        current and future needs of communities for good-quality
                        local infrastructure, local public services, and performance of
                        regulatory functions in a way that is most cost-effective for
                        households and businesses.”

                        The Council defines its desired outcomes in four areas:

                        •   Waitaki people are safe and healthy (Social)

                        •   Waitaki’s distinctive natural environment is valued and
                            protected (Environmental)

                        •   Waitaki has a diverse, sustainable economy (Economic)

                        •   Waitaki is served by responsive and efficient local
                            government (Council)

                                                                                             THAMES STREET, OAMARU

    4.04                                                                                                             032
4.00 RESIDENT MARKET

                                                                                               4.04
THE OAMARU WHITESTONE CIVIC TRUST
The Oamaru Whitestone Civic Trust (OWCT) is a charitable trust
that owns 17 buildings in Oamaru and leases some of them to
a variety of businesses subject to conditions relating to the type                             STAKEHOLDER GROUPS
of activity, business viability and fit with the Trust’s vision and
mission:

VISION
Establishing Oamaru as a world heritage destination by bringing
alive and preserving New Zealand’s best collection of Victorian
buildings.

MISSION
Preserving Oamaru’s Victorian Precinct and developing the
buildings and streets into a destination locals embrace, visitors
want to experience and which drives economic growth and
community pride.

                                                                      HARBOUR STREET, OAMARU

                                                                                                           4.04       033
4.00 RESIDENT MARKET

4.04
                        TOURISM WAITAKI
                        Tourism Waitaki (TW) is the Regional Tourism Organisation (RTO)
                        for the Waitaki District. It is responsible for promoting the region
STAKEHOLDER GROUPS      to domestic and international visitors.

                        In addition to its role as promoter for the region, Tourism Waitaki
                        is also the operator of:

                        •   Blue Penguin Colony

                        •   iSite Oamaru

                        •   Alps 2 Ocean Trail

                        Further to these operations and as part of a wider drive to
                        increase visitor spend in the region, TW also engages in
                        prospective development of new attractions such as the
                        proposed Harbour Street project. Where projects require direct
                        investment, there are set criteria for TW’s involvement.

                                                                                                                                                                                                                         Tourism Waitaki

                                                                                               TOURISM WAITAKI 2025 STRATEGY
                                                                                               MORE THINGS                                                           MORE PEOPLE

                                                                                               1.   A broader range of medium- to high-end accommodation             1.   A modest 1% annual growth compounding year on year, as
                                                                                                    options, relieving pressure on and providing scope for more           seen in the CAM;
                                                                                                    active promotion of the mid-range offerings;
                                                                                                                                                                     2.   Occupancy rate rising to an average of 32% by 2025;
                                                                                               2.   More facilities, attractions, and infrastructure;
                                                                                                                                                                     3.   Higher visitation to and ticket uptake for all district
                                                                                               3.   A greater range of attractions and services that both attract         attractions;
                                                                                                    and encourage a greater number of visitors to visit and stay
                                                                                                                                                                     4.   Mature conferencing infrastructure, attracting 12
                                                                                                    in the District;
                                                                                                                                                                          conferences annually by 2025;
                                                                                               4.   Higher, better paid, and more stable employment in direct
                                                                                                                                                                     5.   Focussed, consistent, themed domestic promotion and
                                                                                                    sales;
                                                                                                                                                                          publicity campaigns;
                                                                                               5.   Greater conversion of visitors to paying guests;
                                                                                                                                                                     6.   Increased IBO volumes to bell-weather operators (OBPC,
                                                                                               6.   More high-value product in the industry.                              Wrinkly Ram, Ohau Ski Fields, A2O, Brydone Hotel, Heritage
                                                                                                                                                                          Gateway Hotel, HQ, etc.);
                                                                                               MORE TIME                                                             7.   New Conference and Incentive strategy that is actively
                                                                                                                                                                          promoted and drawing in groups.
                                                                                               1.   Higher average length of stay, progressing to 2.5 by 2025;

                                                                                               2.   Marketable local products and general District-wide
                                                                                                    itineraries available incorporated into the sales portfolio of
                                                                                                    major IBOs, travel agents, and FIT networks.

    4.04                                                                                                                                                                                                                                   034
4.00 RESIDENT MARKET

                                                                                                                                         4.04
HERITAGE NEW ZEALAND
Heritage New Zealand is a Wellington-based autonomous
Crown Entity. The organisation is charged with long-term
conservation of New Zealand’s most significant heritage places,                                                                          STAKEHOLDER GROUPS
including its own role as custodian of 48 historic properties. It is
funded by Government, supporters, donations, grants, bequests,
and through revenue generated at the heritage properties they
care for around the country.

Locally, Heritage New Zealand manage Totara Farm and Clarks
Mill and are a member of The Oamaru Whitestone Civic Trust.
They have one full-time manager, two part-time visitor hosts
and approximately 5 volunteers.

Photo: Introduction film at Totara Estate

                                                                       WAITAKI TOURISM ASSOCIATION
                                                                       The Waitaki Tourism Association (WTA) is an independent group
                                                                       of businesses that provide the majority of the tourism product
                                                                       on offer in the region. They are typically grouped into:

                                                                       •   Accommodations

                                                                       •   Attractions

                                                                       •   Food & Drink

                                                                       •   Shopping

                                                                       •   Services & Events

                                                                       The association meets to discuss industry issues and operates a
                                                                       website with information about the tourism offer in the region.

                                                                                                                                                     4.04       035
4.00 RESIDENT MARKET

4.05                                                                                                                                       Proportion of Population by Five-Year Age
                        WAITAKI DISTRICT
                        Oamaru’s population of 13,750 makes up more than half of the                                                          Group, Waitaki District Census 2013
                        total population of Waitaki at 20,829 (NZ Stats), so a combined
DEMOGRAPHICS            demographic analysis of the district and town is key to                                        9.00
                        understanding the region as a whole:
                                                                                                                       8.00
                        •   Waitaki’s resident population has grown at about 0.3% per
                            year from 2001-2013 (Waitaki Government).                                                  7.00
                        •   The resident population had an estimated increase of 0.9%
                            in Waitaki, between 30 June 2014 and 2015 (MBIE).                                          6.00
                        •   New Zealand has an ageing population as a whole and                                        5.00
                            the Waitaki district is an exaggeration of this. Waitaki has a
                            higher percentage of population in the older age groups,                                   4.00
                            from 40 plus years as well as a lower younger population
                            between the ages of 10-40 years. (ECAN)                                                    3.00
                                                                                                                                              Waitaki   New Zealand
                        •   By 2031, Waitaki’s median age is projected to increase by 8                                2.00
                            years (36%), from 45 to 52 years, the largest increase of all
                            districts surveyed in the Canterbury region (ECAN).                                        1.00
                                                                                                                       0.00

                                                                                                                              4
                                                                                                                                          9
                                                                                                                                          4

                                                                                                                                   20 9
                                                                                                                                   25 4
                                                                                                                                   30 9
                                                                                                                                   35 4
                                                                                                                                   40 9
                                                                                                                                   45 4
                                                                                                                                   50 9
                                                                                                                                   55 4
                                                                                                                                   60 9
                                                                                                                                   65 4
                                                                                                                                   70 9
                                                                                                                                   75 4
                                                                                                                                   90 9
                                                                                                                                          4
                                                                                                                                         +
                                                                                                                              0-

                                                                                                                                       -1

                                                                                                                                      -2

                                                                                                                                      -3

                                                                                                                                      -4

                                                                                                                                      -5

                                                                                                                                      -6

                                                                                                                                      -7

                                                                                                                                      -8
                                                                                                                                      5-

                                                                                                                                       -1

                                                                                                                                      -2

                                                                                                                                      -3

                                                                                                                                      -4

                                                                                                                                      -5

                                                                                                                                      -6

                                                                                                                                      -7

                                                                                                                                     85
                                                                                                                                    10
                                                                                                                                    15
                                                        Household Income Distribution in Waitaki and
                                                                    New Zealand, 2013
                                     25%
                                                             Waitaki             New Zealand
                                     20%
                                                                                                                                                                 •    Household income in Waitaki District is typically lower than
                                                                                                                                                                      New Zealand as a whole.
                                     15%                                                                                                                         •    The largest earnings group, 19% of the Waitaki population,
                                                                                                                                                                      earn between $30,000-$50,000 annually.

                                     10%                                                                                                                         •    There is a notable difference in the $100,000+ category,
                                                                                                                                                                      likely due to the differences in industry type between
                                                                                                                                                                      predominantly rural Waitaki and more urban locations such
                                       5%                                                                                                                             as Auckland and Wellington.

                                      0%
                                                   00

                                                                                                                                      +

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                                                                                                                         0
                                                                      00

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                                        U

                                                                                                           0,
                                                                                          $5
                                                        $2

                                                                            $3

                                                                                                         $7

    4.05                                                                                                                                                                                                                             036
4.00 RESIDENT MARKET

                                                                                                      4.06
LIVING IN OAMARU
Cost of living data for Oamaru is scarce so combined data for
Timaru and Dunedin has been selected for this instance.
                                                                                                      COST OF LIVING
•   Average monthly disposable salary after tax is $3,200.

•   Median weekly rent on a 2 bedroom flat is $180 (MBIE,
    Waitaki District, December 2015).

•   Median weekly rent on a 3 bedroom house is $270

•   A meal at an inexpensive restaurant is around $20.

•   Domestic beer (draught, 0.5l) is around $7.50.

•   A regular sized cappuccino costs approximately $4.25.

•   A cinema ticket is approximately $15.

•   The average house value in the Waitaki District is $232,366,
    compared to a New Zealand average of $558,146 and
    an Auckland (capital city) average of $933,264 (qv.co.nz,
    December 2015).

                                                                   BANDSTAND, OAMARU PUBLIC GARDENS

                                                                                                                       4.06   037
038
5.00
VISITOR MARKET

             039
5.00 VISITOR MARKET

5.01
                       NEW ZEALAND
                       Annual visitors to New Zealand remained at or near 2.5 million     Million
                                                                                                            New Zealand Annual Visitor Arrivals
                       from 2005 to 2012, showing a gradual increase each year with
ANNUAL ARRIVALS        the exception of 2012. Since 2012, growth has increased notably     3.5
                       and the total number of visitors arriving to New Zealand in the
                       year ending November 2015 was over 3 million for the first time.
                       Forecasts for 2016 and beyond predict further growth in tourist     3.0
                       numbers. By 2021, forecasters expect visitor arrivals to exceed
                       3.75 million. Similarly, expenditures are expected to increase
                       from $8.2 billion in 2015 to $11.1 billion in 2021.
                                                                                           2.5

                                                                                           2.0

                                                                                           1.5

                                                                                           1.0

                                                                                           0.5

                                                                                           0.0
                                                                                                    2005 2006 2007 2008 2009 2010   2011    2012 2013 2014   2015
                                                                                                                      Year Ended November

    5.01                                                                                                                                                            040
5.00 VISITOR MARKET

                                                                                Regional Tourism Estimates (Year End March 2015)
                                                                                                                                                            5.01
WAITAKI DISTRICT
Visitor increases to Waitaki District are broadly representative of
the overall arrivals to New Zealand as a whole. Forecasts suggest
that in 2016 overnight visits will exceed 330,000 and day visits                           Retail Sales - Other                                             ANNUAL ARRIVALS
will exceed 810,000. Most growth is anticipated to come from
visitors of international origin (NZ RTO Forecasts).
                                                                                   Other Passenger Transport
However, regional tourism estimates (data from card
transactions, aggregated by category) show the difference in
expenditure between the Waitaki District and New Zealand                            Food & Beverage Services
averages.

Data suggests that visitors to the Waitaki region spend                               Other Tourism Products
proportionately more on fuel, food and beverages than the New
Zealand average and less on other retail sales, tourism products,
cultural, recreation and gambling services.
                                                                                    Accommodation Services
It is reasonable to suggest that the existing tourism offer in
the region does not attract actual spend in line with the rest of       Retail Sales - Fuel & Other Automotive…
the country. As described in Tourism Waitaki’s 2025 strategy
document, this is one of the key issues facing the RTO.
                                                                      Retail Sales - Alcohol, Food & Beverages

                                                                      Cultural, Recreation & Gambling Services

                                                                                                                  0%      10%        20%     30%      40%
                                                                                                                       Waitaki RTO    New Zealand Average

                                                                                                                                                                          5.01    041
5.00 VISITOR MARKET

5.02
                       ORIGIN
                       International tourism is worth $11.8 billion to New Zealand
                       (Tourism New Zealand).
KEY MARKETS
                       New Zealand’s largest international markets, which account for
                       70% of the total visitor market, are from Australia, China, USA
                       and the UK. (NZ Stats 2015)

                       China (+39.8%), Korea (20.9%) and India (+16.8%) had the largest
                       year-over-year increases in holiday visitation from October
                       2014-September 2015.

                       AUSTRALIA
                       Australia accounts for more than half of all visitors. Fuelled by a
                       strong economy, its proximity and an appetite for international
                       travel, Australia continues to be an essential market to New
                       Zealand’s tourism industry.

                       CHINA
                       China, New Zealand’s second largest visitor market, has a
                       growing middle-class with a sustained growth in visitation over
                       the past five years.

                       UNITED STATES OF AMERICA
                       Similar to other Western markets, there is a strong seasonal
                       trend around US holiday visits with almost half choosing to visit
                       during New Zealand’s summer months, December to March.
                       However, growth is present in the shoulder seasons around
                       summer, attributed by an increase in US cruise visitors, the
                       second largest cruise market after Australia.

                       UNITED KINGDOM
                       The UK has a long-standing history of travel to New Zealand.
                       Due to this, visitation numbers are steady and unlikely to see
                       drastic increases that were seen prior to the global financial
                       crises. (Tourism New Zealand)

    5.02                                                                                     042
5.00 VISITOR MARKET

                                                                    5.02
EMERGING MARKETS

INDIA, INDONESIA & LATIN AMERICA
India’s traveller market is referred to as the “next China.” The
                                                                    KEY MARKETS
World Tourism Organization predicts that India will account for
50 million outbound tourists by 2020. The Indian market has
two peaks of visitation, somewhat opposite that of Western
markets making India very attractive to the NZ tourism industry
as they offset shoulder seasonality issues.

Indonesia is currently New Zealand’s 24th largest source of
visitors. Securing a direct air service to/from Jakarta remains a
key goal in growing this market. Outbound travel from Indonesia
is growing rapidly, with over seven million departures in 2012,
more than double the number of departures in 2003.

With the exception of Argentina, the Latin American markets
have experienced strong economic growth in the past decade.
This has resulted in a growing middle class eager to travel
overseas for leisure and education. The Latin American market
in 2014 came in at just under 26,000 visitors. (Tourism New
Zealand.)

                                                                                  5.02    043
5.00 VISITOR MARKET

5.03
                       PURPOSE OF VISIT
                       The majority of all visits to New Zealand by the top four visitor markets (Australia, China, UK and USA) are for leisure and visiting               Country         Total Visitors
                       family and friends. In the November 2015 report on international travel and migration, all of these countries, except for the UK, had
MOTIVATIONS            an increase in visitors over the previous year. (NZ Stats)                                                                              Australia                               1,270,000

                                                                                                                                                               China                                    237,000
                       SHOPPING
                                                                                                                                                               USA                                      201,000
                       Uniquely, more than half of the China visitor market (56%) enjoys shopping group tours and premium group tours, which no other
                       country engages in on such a scale.                                                                                                     UK                                       196,000

                                               Purpose of Visit - Australia Visitors                                                                 Purpose of Visit - China Visitors

                                                                                                                                                                                     Leisure/Vacation

                                                                                             Leisure/Vacation
                                                                                                                                                                                     Business/Conference

                                                                                                                                                                                     Visit Friends/Relatives
                                                                                             Business/Conference

                                                                                                                                                                                     Education

                                                                                             Visit Friends/Relatives
                                                                                                                                                                                     Shopping Group Tours

                                                                                             Education                                                                               Premium Group Tours

                                                                                                                                                                                     Other

    5.03                                                                                                                                                                                                           044
5.00 VISITOR MARKET

                                                                                                                                                                                     5.03
LEISURE
The USA visitor market is the largest leisure group with 59% of visitors travelling for that purpose alone. For both the Australian and
the UK visitor market, 40% travel with the purpose of leisure.
                                                                                                                                                                                     MOTIVATIONS
Visiting family and friends is the most popular purpose of travel for UK visitors (52%) and Australian visitors (42%). It is also a
common purpose for US travellers (21%). (Tourism New Zealand)

VISITOR EXPERIENCE
Of the 3 million visitors to New Zealand annually, 3900 were selected for a survey of their experience. Overall, visitors are highly
satisfied with their New Zealand experience. They leave with an overall satisfaction level of 9.1 out of 10. The natural and built
environment and natural scenery are key reasons visitors chose New Zealand. (Tourism New Zealand)

                           Purpose of Visit - USA Visitors                                                                 Purpose of Visit - United Kingdom Visitors

                                                                       Leisure/Vacation
                                                                                                                                                           Leisure/Vacation

                                                                       Business/Conference
                                                                                                                                                           Business/Conference

                                                                       Visit Friends/Relatives

                                                                                                                                                           Visit Friends/Relatives
                                                                       Education

                                                                                                                                                           Working Holiday
                                                                       Other

                                                                                                                                                                                                   5.03    045
5.00 VISITOR MARKET

5.04                                                                                                                            Age of All Visitors to New Zealand,
                       A DIVERSE AGE RANGE

                       OVERALL                                                                                                      YE November 2011-2015
AGE                    Data shows that New Zealand remains popular primarily to                                     700
                       visitors between the ages of 25 and 34 years for all visitors to the
                       country. This age range has had the largest increase year-over-                                                             2011    2012     2013   2014    2015
                       year, however, there is an increase in visitors of all age groups                            600
                       overall. The UK is the only country that has seen a significant
                       drop in visitors aged 25 to 34 years.
                                                                                                                    500

                                                                                              Visitors, Thousands
                       DIFFERENCES BY ORIGIN
                       Visitors from the United States have had a spike in the retirement                           400
                       age group of 65 years and over in the last five years, the largest
                       age group of the US visitor market. The UK has had a decrease
                       in all age ranges except for visitors aged 65 and over. Visitors                             300
                       from China had the most significant increase in the past year
                       alone across all age groups, primarily visitors 25 to 65 years of
                       age. Australia has had the most consistent and steady growth                                 200
                       amongst all age groups with visitors aged 24-35 remaining as
                       their largest visitor group by far.
                                                                                                                    100

                                                                                                                     0
                                                                                                                          Under 15 15–24   25–34   35–44    45–54     55–64       65+

      5.04                                                                                                                                                                                046
5.00 VISITOR MARKET

                                              Age of Visitors from Australia,
                                                                                                                                                                                          5.04
                                                                                                                                        Age of Visitors from China,
                                                YE November 2011-2015                                                                    YE November 2011-2015
                             300                                                                                          90
                                                         2011    2012      2013     2014    2015                                                                                          AGE
                                                                                                                          80
                             250                                                                                                 2011   2012     2013     2014   2015
                                                                                                                          70

                                                                                                   Visitors, Thousands
       Visitors, Thousands

                             200                                                                                          60
                                                                                                                          50
                             150                                                                                          40
                                                                                                                          30
                             100
                                                                                                                          20
                              50                                                                                          10
                                                                                                                          0
                                  0                                                                                            Under 15 15–24     25–34     35–44   45–54   55–64   65+
                                       Under 15 15–24   25–34    35–44    45–54     55–64   65+

                                          Age of Visitors from the United States,                                               Age of Visitors from the United Kingdom,
                                                YE November 2011-2015                                                                         YE 2011-2015
                                                                                                                          60
                             60
                                                                                                                                          2011     2012     2013    2014    2015
                                                2011    2012    2013     2014     2015
                             50                                                                                           50
                                                                                                   Visiitors, Thousands
Visitors, Thousands

                             40                                                                                           40

                             30                                                                                           30

                             20                                                                                           20

                             10                                                                                           10

                             0                                                                                             0
                                      Under 15 15–24    25–34   35–44     45–54     55–64   65+                                Under 15 15–24     25–34     35–44   45–54   55–64   65+

                                                                                                                                                                                                   5.04         047
5.00 VISITOR MARKET

5.05
                       TRIPS TO NEW ZEALAND
                                                                                                                                   Length of Stay of Visitors,
TRIP CHARACTERISTICS
                       RETURNING VISITORS                                                                                          YE November 2011-2015
                       For the majority of visitors overall, it is their first time visiting                           900
                       New Zealand. However, in the case of visitors from Australia
                       however, the majority are returning visitors.
                                                                                                                       800
                                    Country                           First Time Visit                                 700

                                                                                                 Visitors, Thousands
                        Australia                                                          41%
                                                                                                                       600                                                          2011
                        China                                                             96%
                                                                                                                                                                                    2012
                        USA                                                               80%                          500
                        UK                                                                 75%                                                                                      2013
                                                                                                                       400
                                                                                                                                                                                    2014
                       LENGTH OF STAY
                                                                                                                       300                                                          2015
                       Compared to the US and the UK, visitors from Australia make
                       the shortest trips, likely due to proximity and ease of travel to                               200
                       New Zealand. Visitors from the UK spend twice as much time
                       on holiday in New Zealand than any other country. The typical
                       length of holiday for US visitors is either 7 days, 9 days or 14                                100
                       days.
                                                                                                                        0
                                                                                                                             1–3    4–7           8–14        15–21   22 and over
                                                                                                                                          Length of Stay (Days)

    5.05                                                                                                                                                                                   048
5.00 VISITOR MARKET

         Length of Stay by Country and Purpose,
                                                                                                                                 5.05
                                                            FAMILY & SHOPPING
                                                            Visitors from China have the most unique trip characteristics.
                    YE February 2014                        They spend more than twice as much time visiting family and
                                                            friends (VFF), nearly two months, compared to other countries.       TRIP CHARACTERISTICS
70                                                          Despite this enormous difference, visitors from China engage
                                                            mainly in shopping group tours or premium group tours (56%).
          Business   Holiday   VFF        Shopping Tour     The average length of these types of trips is only two days
60                                                          making the overall average length of stay for a visitor from China
                                                            just three days.

50

40

30

20

10

0
     Australia       China           UK               USA

                                                                                                                                               5.05     049
5.00 VISITOR MARKET

5.05                                                                                                          Distribution of Spending in Top Four Cities
                       VALUABLE VISITORS
                       Visitors from China spend the most money on their trips                                       for Visitors from China, 2014
                       compared to other countries, most of which is on retail goods.
TRIP CHARACTERISTICS   Total spend by visitors from China in 2013 was $732 million.
                       Despite visitors from China spending more money on average
                       per trip than any other country, the vast number of visitors
                       from Australia contributed $2.247 billion in 2013. The UK and
                       US contributed $608 million and $502 million the same year
                       respectively.
                                                                                                                                                                  Auckland
                                     Country               Spend Per Person (Holiday)                                                                             Queenstown
                        Australia                                                 $2,400                                                                          Christchurch
                        China                                                     $3,200                                                                          Other
                        USA                                                       $3,500                                                                          Rotorua
                        UK                                                        $3,800

                       UNIQUE SPENDING HABITS
                       Australia, the UK and the US all have very similar spending habits
                       with regards to which destinations they spend their money in. All
                       three of these countries spend most of their money in Auckland,
                       followed by Queenstown, Christchurch and Wellington
                       respectively. China differs greatly as their visitors spend most
                       of their money (62%) in Auckland, followed by Queenstown,
                       Christchurch and Rotorua.

                                    Distribution of Spending in Top Four Cities             Distribution of Spending in Top Four Cities          Distribution of Spending in Top Four Cities
                                          for Visitors from Australia, 2014                        for Visitors from the US, 2014                       for Visitors from the UK, 2014

                                                                          Auckland                                                Auckland                                             Auckland
                                                                          Queenstown                                              Queenstown                                           Queenstown
                                                                          Christchurch                                            Christchurch                                         Christchurch
                                                                          Wellington                                              Wellington                                           Wellington
                                                                          Other                                                   Other                                                Other

    5.05                                                                                                                                                                                              050
5.00 VISITOR MARKET

                                                                                                                                                                                                         5.05
WAITAKI DISTRICT

A QUICK OVERNIGHT
The most recent available data on overnight stays in commercial
                                                                                                                                                                                                         TRIP CHARACTERISTICS
accommodation in the Waitaki District shows an average of
1.56 nights spent in the district per stay. Tourism Waitaki aims to
increase this to 2.5 by 2025 by working to develop the overall
tourism offer and sell itineraries that retain visitors longer than is
currently experienced.

Anecdotally, a local tourism professional described a common
Oamaru itinerary for visitors on a bus tour of the South Island
from China:

17:30 Bus arrives, visitors check-in to accommodation.

18:00 Buffet dinner.

19:00 Bus departs for Oamaru Blue Penguin Colony.

19:15 Visitors begin penguin watching experience.

21:00 Bus returns visitors to hotel.

07:00 Buffet breakfast.

08:00 Checkout and bus departs.

MANAGED CHANGE
Interviews with some accommodation managers reveal
change is possible. In the past five years one business reports a
significant increase in the average length of stay, moving from
a period when the typical visitor stayed for 1 night to a current
situation where stays of up to 5 nights are more common.

The reasons for this are likely two-fold:

1.   High Quality Information - the operator deals personally with a small number of guests. They are able to provide detailed, beautifully formatted information to their clients and specialist tour
     operators about each potential attraction.

2.   Well Developed Itineraries - the operator has worked extensively to build their own supplier network so that itineraries can be reliably implemented according to guest needs in a way that is
     suitable for export.

Another operator attributes recent improvements in occupancy (from 40% to 70% over two years) and length of stay (particularly during the traditionally slow winter period) to a rise in the free
independent traveller (FIT) market segment. Moreover, the revenue per night for this operator increased by 33% during the past two years.

The common denominator is non-reliance on a tour operator to develop itineraries. Information flows directly from attraction to consumer and is not bottle-necked by a tour operator that may be
adversely affected by other factors such as commission agreements with higher cost attractions and accommodations elsewhere in New Zealand.

                                                                                                                                                                                                                       5.05     051
5.00 VISITOR MARKET

5.06
                       DOMESTIC VISITORS
                       The popular activities lists provide good insight into key
                       motivations for visitors to and travellers within New Zealand.
ATTRACTIONS            Domestic travellers enjoy many of the same activities
                       as international visitors with some slight variations. Like
                       international visitors, visiting friends and family is a strong
                       motivation for domestic travellers.

                       Most popular activities and trip motivators (most popular to
                       least) for domestic travellers (NZ Stats 2012):

                       1.   Dining

                       2.   Visiting Friends And Relatives

                       3.   Shopping

                       4.   Business

                       5.   Sightseeing (Land)

                       6.   Walking And Trekking

                       7.   Other Scenic/Natural Attractions

                       8.   Entertainment

                       9.   Swimming

                       10. Fishing

                       11. Other Attractions

                       12. Museums And Galleries

                       13. Volcanic/Geothermal Attractions

                       14. Medical Visit

                       15. Other Water Activities

                       16. Performing Arts

                       17. Theme And Leisure Parks

                       18. Cycle Sports

                       19. Boating

                       20. Golf

                       21. Snowsports

                       22. Gardens

    5.06                                                                                 052
5.00 VISITOR MARKET

                                                                   5.06
INTERNATIONAL VISITORS
Most popular activities (most popular to least) combined for
Australia, China, UK and USA (Tourism New Zealand, 2015):
                                                                   ATTRACTIONS

1.   Walking and hiking

2.   Boating/Scenic Boat Cruises

3.   Volcanic/geothermal attractions

4.   Museums and galleries

5.   Historic Buildings/heritage attractions

6.   Botanical gardens

7.   Visiting Friends and Relatives

8.   Zoos/wildlife/marine parks

9.   Maori performances/cultural attractions

     Country                   Preferred Activities

                 Bars/nightclubs, snowsports, visiting friends
                 and family, jet boating, luge, sporting events,
 Australia
                 family events, golf and theme and leisure
                 parks.

                 Farm tours, geothermal attractions, gardens,
 China           Marae visits, farm shows, Maori performances,
                 hot pools and shopping.

                 Wine trails/vineyards, museums, scenic boat
 USA             cruises, Doubtful Sound, film locations and
                 Milford Sound.

                 Beaches, glaciers, museums, visiting friends
                 and family, whale watching, bars/nightclubs,
 UK
                 swimming, seal colonies and geothermal
                 attractions.

Photos: Tourism New Zealand

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                                                                                                                                                                                                         ART ON TYNE
                                                                                                                                                                                                         An art boutique stocking jewellery, upcycled items (such as
                                                                                                                                                                                                         vintage ceramics), paintings and gifts.
ARTS & LITERATURE
Oamaru is known as a hub for art and literature both in the                                                                                                                                              CUSTOMS HOUSE GALLERY
region and more broadly in New Zealand. The town is home
to a large number of galleries and bookshops. Moreover, there                                                                                                                                            Headquarters of the North Otago Art Society, provides
are numerous venues for the performing arts. Some attractions                                                                                                                                            exhibitions and classes. Welcomes visitors.
are publicly owned and operated, such as the Forrester Gallery
while others are private businesses such as Adventure Books.                                                                                                                                             THE GLASS ROOM
                                                                                                                                                                                                         Unique works of art in glass by Jill Bayley, Nikki O’Brien & Robyn
                                                                                                                                                                                                         Douglas.

                                                                                                                                                                                                         IAN ANDERSEN LIMESTONE SCULPTOR

                                                                 FORRESTER GALLERY                                                                                                                       Natural New Zealand Oamaru limestone sculptures designed &
                                                                 The gallery is housed in a neo-classical building built for the Bank of New South Wales in 1884. Started with a bequest from John M.    carved by Ian Andersen.
                                                                 Forrester, it is funded and administered by the Waitaki District Council. It has a varied exhibition programme and houses a growing
                                                                 collection of regionally significant artworks. There is also an area dedicated to children and workshops.                               THE LOFT
                                                                 Plans are confirmed for the North Otago Museum to move into a space to be constructed as part of an expansion to the Forrester          The Loft is a creative space for visual arts that provides a
                                                                 Gallery building.                                                                                                                       working space for local artists. Situated above the Lazy Cat
                                                                                                                                                                                                         Pottery & Tileworks (pictured) it is open for public to meet and
                                                                                                                                                                                                         watch artists at work.

                                                                                                                                                                                                         OASIS
                                                                                                                                                                                                         Antiques, art, interiors and textiles. Selected imports from China
                                                                                                                                                                                                         and Indonesia. New Zealand and British studio ceramics, vintage
                                                                                                                                                                                                         New Zealand photography and reference books on a range of
                                                                                                                                                                                                         subjects.

                                                                                                                                                                                                         STEAMPUNK HQ
                                                                                                                                                                                                         A unique science fiction art experience that is explored in more
                                                                                                                                                                                                         detail in the Steampunk section of this document.

                                                                                                                                                                                                         TAYLOR MADE OAMARU

                                                                                                                                                                                                         Handcrafted bone jewellery, locally made greenstone pendants,
                                                                                                                                                                                                         silver and paua jewellery, limestone are and steampunk curios.
                                                                 GRAINSTORE GALLERY                                                  LAZY CAT POTTERY & TILEWORKS
                                                                                                                                                                                                         THE WOOLSTORE GALLERIES
                                                                 The Grainstore Gallery is privately run in the Victorian Precinct   The Lazy Cat Pottery & Tileworks showcases the work of
                                                                 on Harbour St. Visitors can watch artists at work and explore a     resident artist/ceramicist Vaughan Tessier-Varlet who has trained   A range of art, gifts, homeware, ladies fashion and stone
                                                                 treasure trove of art and curiosities. Among others, it features    in the UK, France and New Zealand. Upstairs, the building           carvings.
                                                                 work from local artist, Donna Dementé and fashion items such        houses ‘The Loft’ gallery.
                                                                 as hats and jewellery.

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                                                                                                                                                                                                      ARTS & LITERATURE

OPERA HOUSE                                                                                                                       REPERTORY THEATRE
Built in 1906 and restored in 2009, the Oamaru Opera House won an NZIA Heritage Award for the restoration work that was carried   The Oamaru Repertory Society has been entertaining the
out. The building houses a 548 seat auditorium, 102 seat theatrette, two grand meeting rooms, a board room, breakout spaces and   North Otago community with a variety of plays and theatrical
grand foyer. It is now marketed for conferences and functions as well as a range of performing arts.                              performances for over 50 years. They have their own 100 seat
                                                                                                                                  theatre on Itchen Street in Oamaru’s historic precinct. It was
                                                                                                                                  cleaned and repaired extensively in 2015.

ADVENTURE BOOKS                                                  MICHAEL O’BRIEN BOOKBINDER                                       SLIGHTLY FOXED SECONDHAND BOOKS
This book shop specialises in adventure literature. Especially   A traditional bookbinder, trained extensively in Auckland and    Established in 1995, Slightly Foxed Secondhand Books sells
on Antarctica-Polar Regions; Mountains-Mountaineering;           London and operating independently since 1988, in Oamaru is      good quality books on all subjects including New Zealand local
Exploration; Travel Adventures; Nautical; Natural History.       1994.                                                            history, modern first editions, fishing, hunting, mountaineering,
                                                                                                                                  literature and fiction, history, military, craft and biography.

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                                                             OAMARU AUTO COLLECTION
                                                             In central Oamaru there is an impressive classic car collection
                                                             as part of the Woolstore Complex on Tyne Street. Accessed
CLASSIC CARS                                                 through a gift shop, the motoring museum has approximately
                                                             30 vehicles. The owners are highly knowledgeable and the
You could be forgiven for not knowing about the automotive
                                                             collection changes regularly.
wealth of Oamaru. The town is home to an extensive classic
car collection and a notable motor body builder.             The collection includes a range of vehicles, with a particular
                                                             interest in rally car racing. There is a 1957 Ransley Riley, with
                                                             supercharged 4-cylinder 2.5l engine (right) and an ex Malcolm
                                                             Stewart Audi Quattro (bottom right).

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ROD TEMPERO MOTOR BODY BUILDER
A short distance south of Oamaru on the highway is an
unasuming industrial shed complex that houses the remarkable
work of Rod Tempero. From this base in Oamaru, he and his        CLASSIC CARS
small team build and restore desirable road registered cars of
the 50’s and 60’s era.

The vehicles are hand built, with every aspect to the original
specification, using techniques and tooling handed down over
three generations of motor body builders. Current projects
include a Maserati and a Jaguar.

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                                                              NEW ZEALAND WHISKEY COMPANY
                                                              In 1997 the last whisky distillery in New Zealand was closed down, and the hundreds of barrels of Cask Strength whisky auctioned
                                                              off or mothballed. In 2010, the New Zealand Whiskey team bought the last 80,000 litres in 443 barrels and moved them to their
GASTRONOMY                                                    current maturation store in Oamaru on the first floor of the Loam & Merc building on Harbour Street.
Oamaru has a range of excellent restaurants, coffee shops
and breweries. Moreover, it is also home to the New Zealand   SCOTT’S BREWERY
Whiskey Company, a farmers market and Whitestone Cheese.      Oamaru was officilally a dry town for much of the 1900’s but is now home to a number of breweries. One of the most visible is
Elsewhere in the Waitaki region one may find wineries and     Scott’s Brwery, located in the harbour area of the town. It serves a range of unique craft beers and exports throughout New Zealand.
other delights.                                               Moreover, the tasting bar also serves pizza and has a patio area with glass shielding from the wind.

NB: This section is by no means comprehensive and there
are a significant number of additional dining options and
gastronomic attractions in the region.

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                                                                                                                                                                                                    GASTRONOMY

FLEUR’S PLACE                                                    GALLEY CAFE                                                      KUROW WINERIES
A world-renowned restaurant, south of Oamaru. Fleur’s place      Borrowing stylings from Steampunk, this café is located on the   The Kurow region is known for wine producing in the Waitaki
has appeared in global media and known for its seafood dishes.   water in the Oamaru harbour area.                                District.

(Photo: theknot.com)                                                                                                              (Photo: livingwithlocals.com)

LADYBIRD HILL                                                    RIVERSTONE KITCHEN                                               WHITESTONE CHEESE
Ladybrid Hill is a winery, café, restaurant and salmon farm      Established by Bevan and Monique Smith in November 2006.         Whitestone Cheese was founded in 1987 as a diversification
located in Oamarama.                                             Built in a paddock on the family farm, 15 minutes north of       during the 1980’s rural downturn and a series of crippling
                                                                 Oamaru. In 2010. It has won numerous prestigious awards.         droughts. It is now a successful firm and offers tasting tours.
(Photo: ladybirdhill.com)
                                                                 (Photo: andamare.com)

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                                                               MOERAKI BOULDERS
                                                               A notable geological feature, approximately 30 minutes drive
                                                               south of Oamaru, is the Moeraki Boulders. These boulders
NATURAL WORLD                                                  are concretions formed 60 million years ago from Paleocene
                                                               sea floor sediment. Eventually thrust up from the ocean floor
The Waitaki District has some of the most accessible natural
                                                               millions of years ago, along with the erosion from wave action,
attractions in the world.
                                                               the boulders were exhumed from the mudstone enclosing them
                                                               and concentrated on the beach from coastal erosion. These
                                                               boulders are a popular point of interest for tourists that visit
                                                               Oamaru and surrounding area.

                                                               OAMARU PUBLIC GARDENS
                                                               The public gardens in Oamaru are known as a particularly
                                                               beautiful public space. The red bridge is an iconic feature
                                                               (below, left).

                                                               VANISHED WORLD
                                                               The Vanished World attraction in Duntroon forms part of the
                                                               Vanished World trail, a self-drive map of prehistorical attractions
                                                               in the region. The Vanished World Centre in Duntroon has
                                                               displays of fossils, rocks and interpretive graphics (below,
                                                               centre).

                                                               ELEPHANT ROCKS
                                                               A number of natural limestone formations near Duntroon
                                                               (below, right).

                                                               (Photo: blogspot.com)

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                                                                      6.04
OAMARU BLUE PENGUIN COLONY
The Oamaru Blue Penguin Colony is the principal ticketed
attraction in the region. Operated by Tourism Waitaki, it has
increased in popularity throughout the past decade and the            NATURAL WORLD
organisation has invested significantly in improving the visitor
experience and in scientific research led by an on-site specialist.

Each evening at dusk, often upwards of 150 penguins (subject
to the time of year) return from fishing to land. Visitors pay
to silently watch the endeavour from purpose-built seating.
Educational commentary is provided.

BUSHY BEACH
A short distance from Oamaru, Bushy Beach is home to a range
of wildlife. Notably the rare Yellow-Eyed Penguin. Signs request
humans leave the beach by 3pm each day so as not to disturb
the animals. Some basic shelters are provided on the headland
as a base for viewing.

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                                                                VICTORIAN PRECINCT
                                                                Oamaru’s Victorian Precinct is a busy hub filled with shops,
                                                                galleries, cafes, bars and restaurants, museums, a brewery, a
NEW ZEALAND HISTORY                                             steam train, plenty of fun activities. The majority of the buildings
                                                                in the area are owned and managed by the OWCT.
Heritage attractions are a key component of the tourism offer
in Oamaru and nearby.                                           Each year, the precinct is used to host an annual Victorian
                                                                Fete. Admission is charged and a wide range of activities and
                                                                attractions are offered, for example:

                                                                •   Vintage Train Rides

                                                                •   Limestone Sculpture

                                                                •   Vintage Machinery

                                                                •   Traditional Boats

                                                                •   Music

                                                                •   Puppet Show

                                                                The event is widely regarded as a fantastic feature of the town’s
                                                                annual program and recorded in excess of 4,500 attendees in
                                                                2015.

                                                                NORTH OTAGO MUSEUM
                                                                The North Otago Museum has a range of displays on life in
                                                                historic Oamaru. Morover, it holds the Willett’s collection, a
                                                                collection of Archaic material mostly from Waitaki River mouth.
                                                                Plans are underway to move the museum from the building
                                                                pictured (below, centre) to a new annex of the Forrester Gallery.

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