Case Study: New Zealand i-SITEs - Victorian Visitor Information Centre Summit - VTIC
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Case Study: New Zealand i-SITEs Victorian Visitor Information Centre Summit Shepparton 9 August 2016
Australia/New Zealand: The worlds best visitor centre networks…?
Our markets are similar
Our structures and ownership is similar
Our challenges are similar
We can learn from each other
New Zealand tourism overview
Tourism: importance to New Zealand
• New Zealand's second largest export industry (behind dairy) in terms of
foreign exchange earnings. Soon to be number 1.
• Annual international tourism expenditure in New Zealand NZ$11.8b (year
ended Mar15).
• 3.3 million international visitors a year spending on average NZ$3,490 each.
• Combined with domestic expenditure the tourism industry is worth NZ$29.9b
a year to the economy.
• Tourism directly employs 6.9% of New Zealanders – 168,012 people.
Total international visitor arrivals
(Top 10 markets)
Country Year ended June Compared to
2016 previous year
Australia 1,365,440 6.2%
China 396,928 26.7%
USA 257,536 10.4%
UK 213,808 7.9%
Japan 94,208 11.6%
Germany 91,232 12.5%
Korea 75,088 23.9%
Canada 55,472 9.8%
Singapore 53,456 13.1%
India 48,368 13.3%
All
3,291,128 10.6%
Countries
Trends • New Zealand is in the midst of an international market driven tourism boom • International visitor arrivals growing 11% pa • International visitor expenditure growing 25% pa • However domestic travel relatively flat • Focus on shoulder season growth as peak season constrained by capacity
National tourism strategy Forecast: By 2022: 4.5 million international visitors (1 million from China)
i-SITE overview
TIC’s, VIC’s and i-SITEs
TIC’s, VIC’s and i-SITEs – Why?
Local prestige
Promote local businesses – tourism and non-tourism
Promote events
Promote Council and community services
Keep visitors staying longer in the region
Encourage visitor spending in the region
Reinforce local identity/brand
Duty of care to visitors – safety/freedom camping
Disaster management
Everyone wants us but are they willing to pay?i-SITE history During 70’s and 80’s up to 130 Public Relations Offices and Information centres operating using the white i on blue background. Many loosely grouped around Information centres NZ (ICNZ). New Zealand Tourism Board established VIN in 1990 Aim was to provide accurate, appropriate and objective information throughout New Zealand. Initially 100 members. In 1999 VIN became an incorporated society In 2002 i-SITE brand launched including fern and Visitor Information
Why is Tourism New Zealand involved?
i-SITE Visitor Information Network & Qualmark
Visitor Centres are a key part of the visitor experienceKey facts about i-SITE New Zealand
New Zealand’s official Information Centre
Network
All i-SITEs independently owned – united
by common brand and membership of VIN
Inc./i-SITE New Zealand
Currently 81 i-SITEs
None owned by VIN Inc: Almost all Council
owned or rely on some form of Council
funding/grant/contract
Employ ~500 staff
Handle ~ 7.5 million visitors
Turnover >$74 million
Only 10 profitable before Council/RTO
funding. Total deficit of >$10 million
Visitor Centres are big business but shouldn’t be judged
on profitability aloneMixed ownership Council's control 43% directly EDA/RTOs directly control 24% (Council part funded) IncSoc’s/Trusts control 16% - many of these receive Council grants Independent 11% (privately owned – 2 under contract to Councils) Local government is our most important stakeholder
Co-location is ‘in’
• For many Council owned i-SITEs the easiest
way to cut overheads is to co-locate
– Trend towards sharing staff, buildings with:
• Museums
• Art Galleries
• Performing Art Centres
• Libraries
• Community Service Centres
• Council Service Centres
• CafesNon-accredited VICs
Beside i-SITEs, New Zealand VICs are also operated by:
Department of Conservation
Community volunteer groups (often Council part funded)
PLUS: numerous private sector visitor centres
DOC/i-SITE collaboration an opportunityWho uses i-SITEs?
Key international markets:
• Germany
• UK
• USA
• Australia
• Other Europe
Some of NZ’s ‘Top 10’ markets
Under represented:
• Australia
• China
Extremes: • Japan
Some centres can be up to 80% local • Korea
Some centres can be up to 85% domestic
Some centres can be up to 95% international
Every i-SITE has a different marketKey VIC differences: AUS vs NZ
• No state government involvement in New
Zealand
• Close relationship with NTO
• NZ VICs have large national touring focus
• Professional staff vs. volunteers
• NZ move to integrate with National Park VICs
• National marketing of brand
More similarities than differencesNational brand marketing Expert local knowledge Information and bookings Network throughout New Zealand The official visitor information network
Gateway airport displays Auckland international terminal – escalator to baggage claim January-March 2015
Gateway airport displays Auckland international terminal baggage hall January-March 2015
newzealand.com 33 million visits annually i-site.org
newzealand.com mobile • 55% of users now on mobile devices • newzewaland.com in-country geo- location optimised version now live • ‘Find my nearest i-SITE’ now on front screen • Includes opening hours, directions and direct connect (phone/email)
Proving our value
• Problem:
– Owners/stakeholders often judge value on profitability
– i-SITEs generally don’t/can’t make a profit
– We know we add value but wanted definitive proof
• Solution:
– Demonstrate ‘value add’ proposition by quantifying our
non-commercial activities
We are often regarded as a ‘cost’ rather than a ‘benefit’Economic impact • Research undertaken in mid-2015 by independent economic analysts using accepted methodology • Key finding: i-SITEs across the country are adding value to regional economies by improving visitor experiences that in turn increase local spending and generate local benefits
Direct influence Learning #1
• $73.6m in direct sales by i-SITEs
• $224.9m in additional direct sales due to i-
SITE influence
– Visitors taking advice from i-SITEs (personal
interaction with consultants or taking brochures
or viewing advertising) but then booking direct
with suppliers
• = $298.5m total
For every $1 transacted in an i-SITE we directly influence
a further $4.05 in spending direct with suppliersAdding unique value Learning #2
• “Sure, but if i-SITEs didn’t exist this activity
would take place direct anyway. You’re just
clipping the ticket”
– Sure, that’s partly true, but…
• $109.3m of this additional spending was due
to i-SITE influence that would NOT have taken
place if the i-SITEs didn’t exist
For every $1 transacted in an i-SITE we directly influence
a further $1.48 in spending direct with suppliers which
wouldn’t have taken place without our involvementUnlocking potential
• VICs are able to unlock and facilitate additional
expenditure within the region because they link
visitors with the ‘things to do’ that they were
previously unaware existed.
• As a result, VICs can make the visitor experience
more pleasurable, more convenient and generally
‘richer’ for visitors.
• VICs facilitate visitor activity within the regions,
which in turn facilitates the purchase of goods
and services by visitors to the regions.
They stay longer and buy stuffFlow on effects Learning #3
• Both Councils and ratepayers are getting value
for money
• That $109.3m of additional spending
translates to a $146.8 GDP effect.
– This supports 2,200 job equivalents
– And returns $90.2m to households through
income
For every $1 provided by Councils in funding, the network returns
on average $8.70 in GDP
For every $1 provided by households (ratepayers), the network
returns on average $5.20 in incomeEconomic impact Download report: http://www.tourismnewzealand.com/tools-for-your-business/i-site-new-zealand/
Measuring customer satisfaction
• Highly satisfied customers promote the
network more than advertising can do
• They are also usually highly satisfied with the
local/regional tourism products
• Proving to owners (Councils) that we do a
great job of satisfying customers is also a key
network outcome
Tracking customer satisfaction is just as important as tracking
financial performanceCustomer Radar • 24/7 live customer feedback • 1 year trial using 13 i-SITEs • Currently 45 i-SITEs using (first year 50% subsidised by i-SITE NZ)
Customer Radar
Customer Radar results
100.0% Customer Radar - Network NPS Score
95.0%
90.0%
85.0%
80.0%
75.0%
70.0%
350
Customer Radar - Network65.0%
Responses Promoters
60.0% Passives
300 4
55.0% Detractors
47
5 50.0%
250 24 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
7 5 6
6 17
200 32 31 20 3
4 28 3
11
5 25
150 4 19 5
7
30 258 4
231 15 4
8
100 4 199
182 20 182 187 166 169
147 148 149
120 110 106
50
83
0
For the first time we can now prove we are doing an exceptional
job at delivering great customer serviceFuture direction
VICs will continue to be an important part of delivering a
personalised visitor experience
The internet will only enhance our reason to existKey challenges Increasing funding pressure and scrutiny from local government - need to deliver measurable returns A change in the mix of international visitors with different travel preferences, resulting in reduced awareness and usage of the network – growth in new markets (i.e. China) with no visitor centre history Changes in mobile technology usage by visitors – both as information and booking source Working in isolation – need to work closer with partners (Tourism NZ, RTOs, DOC, Local Government, private sector)
New strategy • 2016-2020 strategic plan under development • Focus will be on: – Brand and awareness – Productivity – Customer experience – Valuing the network • By: – Using technology to transform the business – Improving our training and knowledge management – Taking a commercial lead
More information i-site.org | newzealand.com
More information tourismnewzealand.com
Nga mihi / thank you
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