OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council

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OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
OAMARU ADVENTURE PARK
Market Summary & Design | November 2016

               PRIVATE AND CONFIDENTIAL
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
LEAD CONSULTANT:   CLIENT:
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
CONTENTS

1.00 BACKGROUND                       6.00 COMPETITOR ANALYSIS
1.01 Introduction                     6.01 Competitor Overview
1.02 Design Brief                     6.02 Ziplines & Airparks
                                      6.03 Canyoneering
2.00 EXECUTIVE SUMMARY                6.04 Climbing & Via Ferrata
2.01 Site & Resident Market           6.05 Wildlife Viewing
2.02 Visitor Market
2.03 Competitor Analysis              7.00 COMPONENT MATRIX & MASTER PLAN
                                      7.01 Aerial Adventure
3.00 SITE ANALYSIS                    7.02 Family Fun & Event Space
3.01 Geography                        7.03 Arts, Culture & Active Sightseeing
3.02 Transportation & Accessibility   7.04 Bunkhouse Concept
3.03 Climate                          7.05 Master Plan
3.04 Land Zoning

4.00 RESIDENT MARKET ANALYSIS
4.01 History
4.02 Politics
4.03 Economy
4.04 Stakeholder Groups
4.05 Demographics
4.06 Cost of Living

5.00 VISITOR MARKET ANALYSIS
5.01 Annual Arrivals
5.02 Key Markets
5.03 Motivations
5.04 Age
5.05 Trip Characteristics
5.06 Attractions
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
1.00
BACKGROUND
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
1.00 BACKGROUND

1.01               SELECT CONTRACTS
                   Select Contracts is a specialised company that designs, builds
                   and operates all types of leisure and entertainment projects for its
INTRODUCTION       clients. Select Contracts concentrates on being able to a) take any
                   type of leisure and entertainment project from concept through
                   to completion and ongoing operation and b) enter into an existing
                   project/operation and re-position it operationally to increase
                   revenues and provide better shareholder returns.

                   During a new project the company prides itself on being a very
                   valuable development and operations partner to its clients,
                   managing the entire development on their behalf. The company
                   is vertically integrated with operators designing and building for
                   operators. Select Contracts conceptualises the concept, prepares
                   market studies & business plans, prepares all detailed design
                   documentation, project manages & cost engineers the build out,
                   sets up all marketing, branding & sales processes, attends to all
                   pre-opening management & procedures and operates the facility
                   once open on a management contract.

                   This turnkey approach enables clients to rely on one point of
                   contact through the entire development or re-development of
                   their project, which reduces the overall cost and significantly
                   improves efficiency.

       1.01
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
1.00 BACKGROUND

PROJECT DESCRIPTION
In November 2015, Select Contracts was engaged to assist Waitaki
District Council by examining the current visitor attraction mix in
                                                                      1.01
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.

The outcome of the above works outlined a number of potential
attractions for the Waitaki District Council to pursue and one of
those was an Adventure Park next to the Blue Penguin Colony in
Oamaru.

This document is a conceptual design and business planning
document for the Adventure Park.

                                                                                 1.01
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
1.00 BACKGROUND

1.02               ETHOS
                   Oamaru has a strong business potential in many different markets. The aim is to develop strong attractions as part of Oamaru’s unique
DESIGN APPROACH    culture with the following guiding ethos:

                   FAMILY                                                              DIFFERENTIATION THROUGH SKILLED ACTIVITY

                   •        Valuable memories created for all visitors and families    •        Introduction of beginners to new sports & activities

                   •        Attractions and activities to suit all ages                •        Constant education and improvement

                   •        Family specific features to encourage return visits        •        Encourage as many repeat visits as possible

                   SUSTAINABILITY                                                      PASSIVE PARTICIPATION

                   •        Operational efficiency and monitoring of energy use        •        Inclusion and enjoyment for all ages and abilities

                   •        Aim to be zero waste facility                              •        Encourages social interaction and family engagement

                   •        Awareness & Education for visitors and staff alike         •        Positive experience for all visitors during their stay

                   •        Aim to include social support schemes for various
                            outreach programs
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
1.00 BACKGROUND

CLIENT OVERVIEW
The Waitaki District Council was created in 1989 when the former
Waitaki County, Waihemo County, Palmerston Borough and
                                                                    CONSTRAINTS (TECHNICAL)
                                                                    •   The harbour breakwater continually needs innovation to
                                                                        depower wave action to prevent deterioration. Any structure
                                                                                                                                        KEY OBJECTIVES
                                                                                                                                        The following key objectives have been established for this
                                                                                                                                        project. These include but are not limited to:
                                                                                                                                                                                                                 1.03
Oamaru Borough councils were amalgamated.                               built on the breakwater will have to withstand forceful waves
                                                                                                                                                                                                                 DESIGN BRIEF
                                                                                                                                        •   Creating unique leisure attractions with a host of features for
                                                                        and debris thrown by the waves.
Waitaki is the only district in the South Island that lies within                                                                           the whole age-range to enjoy.
two regions. A major reason for this split was the governance
                                                                                                                                        •   Incorporate the overall design of the site and the as part of the
of the Waitaki River, which forms a political boundary between
                                                                                                                                            experience.
Canterbury and Otago. This is why the district has two regional
authorities – the Otago Regional Council and the Canterbury                                                                             •   Create attractions that will draw guests from regional, national
Regional Council.                                                                                                                           and international markets.

                                                                                                                                        •   Create attractions that bridge visitor gaps so the activities are
                                                                                                                                            operational all year round.

                                                                                                                                        •   Maximise use of the indoor and outdoor spaces in the area.

                                                                                                                                        •   Create destination attractions that will provide a solid return on
                                                                                                                                            investment to the developers.

                                                                                                                                        •   Consider working to attract school groups, international
                                                                                                                                            visitors and corporate visitors to the site 365 days of the year.

                                                                                                                                                                                                                                1.03
OAMARU ADVENTURE PARK - Market Summary & Design | November 2016 PRIVATE AND CONFIDENTIAL - Waitaki District Council
2.00
EXECUTIVE SUMMARY
2.00 EXECUTIVE SUMMARY

2.01                      SITE
                          The proposed adventure park for Oamaru will take place in two phases. The first phase site locations will include the breakwater, and the Cape Wanbrow track to the top of the headland. As phase one
                          generates revenue, it will fund the second phase of the attractions. This process is not only more financially sustainable, but from a marketing perspective, allows for two major attraction launches driving
SITE & RESIDENT MARKET    excitement and build-up each time. Phase two will be located adjacent to the Blue Penguin Colony buildings, at the base of the quarry, including the red sheds and current boat storage facility.

                          RESIDENT MARKET

                          HISTORY
                          The Waitaki District has a wealth of prehistoric sites of interest and more
                          recent archaeological sites. Modern European development didn’t happen
                          until the 1850’s. Harsh storms forced the town 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 underutilised.

                          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 identified 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 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.
2.00 EXECUTIVE SUMMARY

VISITOR MARKET

ARRIVALS
                                                                                     2.02
                                                                                     VISITOR MARKET
Since 2012, growth in international visitor numbers has accelerated and
in 2015 the total surpassed 3 million for the first time and already nearing
3.5 million in 2016. Forecasters expect this figure to surpass 3.75 million by
2021. In 2016, the majority of these international arrivals were from four
countries:

•   Australia - 54%

•   China - 16%

•   USA - 11%

•   UK - 8%

International visitors to the Waitaki District are broadly representative of
visitors to New Zealand overall.

SPEND
Recent data shows that the area recorded 394,000 overnight visits in
a rolling-month total to January 2016. 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. Some visitors
are 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 region is the Oamaru Blue
Penguin Colony.

                                                                                                 2.02
2.00 EXECUTIVE SUMMARY

2.03
                          The competitor analysis is designed to give further insight into the scale and proximity of similar attractions
                          within a one hour and one to three-hour drive time radius. The analysis was completed with 4 major
                          subsections; ziplines & airparks, canyoneering, climbing & Via Ferrata, and wildlife viewing.
COMPETITOR ANALYSIS       There are currently no zipline or airpark attractions in close proximity to Oamaru. The closest such attractions
                          are located more than a 3-hour drive away in Christchurch and Queenstown. The Christchurch attraction is
                          a traditional treetop airpark featuring ziplines, whereas there are several differentiated zipline attractions in
                          Queenstown that cater to eco and adrenaline tourism.

                          There are currently no man-made canyoneering attractions in New Zealand, there are however two guided
                          natural canyoneering adventures operating just within 3 hours drive of the project site. Both offer a wide
                          range of guided tours ranging drastically in price, duration and required skill.

                          Outside of a small indoor climbing facility as part of a local recreation centre, there is nothing in the way
                          of man-made climbing attractions in close proximity to Oamaru. The closest such facilities are located in
                          Wanaka, a 2-hour and 45 minutes drive from the project site. The attraction offers an indoor climbing facility
                          and an outdoor Via Ferrata course.

                          Finally, the nearest wildlife viewing operations are in Dunedin, approximately 1.5 hours drive from Oamaru.

                          With regards to these particular attraction types, there is little substantial competition within a reasonable
                          driving time of the proposed project site.
3.00
SITE ANALYSIS
3.00 SITE ANALYSIS

3.01                  PROJECT SITE
                      Oamaru is the largest town in the North Otago region of New
                      Zealand’s South Island. It is the main town in the Waitaki District
GEOGRAPHY             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 Oamaru Blue Penguin
                      colony. The top of the quarry and breakwater will be the site
                      locations for phase I. Adjacent to the penguin colony just below
                      the quarry face is the proposed site location for phase II.

                      The site operations will include the Cape Wanbrow track to
                      take visitors to the top of the headland via Bushy Beach. Cape
                      Wanbrow was an important lookout point during the Second
                      World War and hosts gun emplacements and remains of old
                      barracks.

                      The natural coastal vegetation at Bushy Beach Scenic Reserve is
                      the last remaining in the area. Wind-sheared scrub, dominated by
                      hebe, ngaio, mahoe and broadleaf, clings to the cliffs and shelters
                      penguins, and other seabirds, and a variety of insects.

                      A unique flora and fauna exists here, because a number of
                      native plants and insects are at either their southern or northern
                      geographical limit.

                      The oldest known fossil remains of a tuatara in New Zealand were
                      found here on this geologically fascinating headland.

                      New Zealand sea lions and elephant seals are occasional visitors
                      to this beach.

                      Cape Wanbrow is a mix of volcanic and sedimentary rock features
                      that are internationally significant. Pillow lava surge deposits and
                      volcaniclastic sediments and breccias form steep cliffs with rocky
                      platforms below.

      3.01
3.00 SITE ANALYSIS

ROAD ACCESS
                                                                                                                                                                                                     3.02
                                                                                                                          SH
                                                                                                                               -8
                                                                                                                                 3
Located on State Highway 1, Oamaru is one hour south of Timaru                                                      SH -1 at junction
and two hours north of Dunedin, where the nearest multi-                                                                 with SH-83,

destination domestic airport, is located. State Highway 1 is the
                                                                                                                              Pukeuri
                                                                                                                                        Pukeuri                                                      TRANSPORT & ACCESSIBILITY
longest most significant road in New Zealand running the length
of both main islands making Oamaru easily accessible by vehicle.                                                                                                                             Christchurch

                                                                                                                            -1
                                                                                                                                                                                             International

                                                                                                                         SH
AIR ACCESS                                                                                       SH -1 between
                                                                                                Waitaki Avenue                                                                               Airport
                                                                                                and Virgil Street
Oamaru is accessible by air. The town has a small, privately
serviced airport with chartered passenger flights. The nearest
                                                                                  Weston
airport with domestic service to multiple destinations is Dunedin.
Dunedin offers limited international service to Australia. The                             SH-1 at
                                                                                           Weston Road
majority of international flights fly into Christchurch, a three-hour                                                                                                             Timaru
drive from Oamaru. Timaru has regular flight service to Wellington,
                                                                                                           Oamaru
                                                                                                                                                                                  Domestic
NZ.                                                                                                                                                                               Airport
                                                                             -1
RAIL ACCESS                                                             SH

There is no regular rail access to Oamaru via New Zealand Rail,
however Dunedin Railways offers a tourist service called the                                                                                      Queenstown
Oamaru Seasider. The trip totals 7 hours in length, stops briefly at                                                                              International
Moeraki and onto Oamaru for a one-hour stop and then returns                                                                                      Airport
to Dunedin. Live commentary is provided and the train slows                                                                                                                   Oamaru
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, or on a round-trip..
(Prices are $72 NZD and $99 NZD respectively at time of writing
but subject to frequent change.) Trips are limited to once or twice                                                                                               Dunedin
per week.                                                                                                                                                         International
                                                                                                                                                                  Airport
                                                                                                                                     New Zealand
                                                                                                                                     South Island

                                                                                                                                                                                                                 3.02
3.00 SITE ANALYSIS

3.03                                                                 TEMPERATURE
                                                                     Weather conditions vary in the Waitaki Valley ranging from the
                                                                     coastal climate to the more continental climate of the interior.
CLIMATE                                                              The coast has a mild and temperate maritime climate that features
                                                                     warm summers and cool winters with a relatively narrow annual
Data used to produce the charts in this section is from Oamaru,
                                                                     temperature range of approximately 10°C. During the warmest
on the coast of the Waitaki District. This is used to broadly
                                                                     months from November through March, temperatures on the
represent the climate of the region but it should be noted that
                                                                     coast rarely peak above 20°C with an average annual high of
differences exist between this location and other areas within the
                                                                     15.7°C. The coldest months are May through September with an
District.
                                                                     average annual low of 6.8°C.

                                                                     Climate in the interior is generally warm and temperate, the
                                                                     average annual temperature for the interior near Kurow is 10.6°C
                                                                     with an annual rainfall average of 527mm. Heading further east
                                                                     down the river to Duntroon, the average annual temperature
                                                                     drops to 5.9°C and annual average rainfall increases to 912mm.

                                                                     SUNSHINE
                                                                     At around 45 degrees latitude south of the equator, the Waitaki
                                                                     Valley 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.

                                                                     RAINFALL
                                                                     Rainfall in the Waitaki Valley ranges greatly from the coast to the
                                                                     interior. The coast is relatively dry with only 127 days of rain per
                                                                     year with less than 600mm rainfall annually. Monthly rainfall is
                                                                     very sporadic with no correlation to the time of year. 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.

                                                                     The rainfall in the interior varies greatly. Near the top of the Waitaki
                                                                     Valley at Kurow, the annual average rainfall is 527mm, not much
                                                                     drier than the coast with the heaviest rainfall occurring in similar
                                                                     months- December, January and March. Heading further east
                                                                     down the river to Duntroon, the annual average rainfall increases
                                                                     to 912mm with the rainiest months being August, September,
                                                                     November and December.

               3.03
3.00 SITE ANALYSIS

BLUE PENGUIN COLONY
A discussion with the operation of the Colony needs to occur to
be able to work together to use the same front of house operation
                                                                    3.04
for ticket sales.
                                                                    LAND-USE & ZONING

RED SHEDS & BOAT STORAGE
One shed is currently occupied. Remaining sheds to either be
updated or rebuilt for accommodation use. Boat storage to be
relocated from quarry.

CAPE WANBROW TRACK
Reopen access to track via the Blue Penguin Colony. Access
should only be during daylight hours so as not to disturb the
penguins.

                                                                               3.04
4.00
RESIDENT MARKET
4.00 RESIDENT MARKET

4.01                    HISTORY & CULTURAL IMPORTANCE

                        MOA HUNTERS
HISTORY
                        Oamaru has numerous archaeological sites of interest, many
                        prehistoric. Some 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
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.
4.00 RESIDENT MARKET

4.02
                        WAITAKI DISTRICT

                        GOVERNANCE
POLITICS                The Waitaki governing body consists of 10 council members
                        and mayor, Gary Kircher, with two community boards. 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. Agriculture remains an important
                        part of life in the district. The industry is enjoying a period of
                        rapid expansion and relative prosperity from the investment in
                        irrigation infrastructure, intensification and improved processing.

                                                                                              WAITAKI DISTRICT COUNCIL BUILDING
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)

•   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.

•   Latest data available from MBIW shows total visitor spend in
    Waitaki District was $115 million in the year to March 2014. The
    largest spend ($77.5M) was domestic, followed by Australia
    ($11.1M).

•   Total international visitor expenditure in New Zealand, year
    ending December 2015, was $9,698 million.                           THE CRITERION HOTEL
•   The economic contribution of the domestic market, for the
    year ending March 2015, was $18.1 billion, a 6.3% growth over
    the previous year.

•   The international tourism market’s expenditure was 11.8 billion,
    with a growth of 17.1% over the previous year.
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. From
STAKEHOLDER GROUPS      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
4.00 RESIDENT MARKET

                                                                                                    4.04
THE OAMARU WHITESTONE CIVIC TRUST
The Oamaru Whitestone Civic Trust (OWCT) is a charitable trust
that owns 17 heritage buildings in Oamaru and leases some of
them to a variety of businesses subject to conditions relating to                                   STAKEHOLDER GROUPS
the type 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
4.00 RESIDENT MARKET

4.04
                        TOURISM WAITAKI LIMITED
                        Tourism Waitaki Limited is a CCTO, responsible for operating:

STAKEHOLDER GROUPS      •   Oamaru Blue Penguin Colony

                        •   iSite Oamaru

                        •   Alps 2 Ocean Trail

                        •   Events Waitaki

                        •   Oamaru Convention Bureau

                        •   Tourism Waitaki RTO

                        As the Regional Tourism Organisation (RTO) for the Waitaki
                        District. The organisation is responsible for promoting the region
                        to domestic and international visitors. The organisaton has
                        strategic marketing alliances with other RTO’s and has secured 7
                        conferences for the region in 2016.

                                                                                             Further to these operations and as part of a wider drive to increase   MORE TIME
                                                                                             visitor spend in the region, TW also engages in prospective
                                                                                             development of new attractions such as the proposed Harbour            1.   Higher average length of stay, progressing to 2.5 by 2025;
                                                                                             Street project. Where projects require direct investment, there are
                                                                                             set criteria for TW’s involvement.                                     2.   Marketable local products and general District-wide
                                                                                                                                                                         itineraries available incorporated into the sales portfolio of
                                                                                                                                                                         major IBOs, travel agents, and FIT networks.

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

                                                                                                                                                                    7.   New Conference and Incentive strategy that is actively
                                                                                                                                                                         promoted and drawing in groups.
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, including                                                                          STAKEHOLDER GROUPS
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
4.00 RESIDENT MARKET

4.05
                        WAITAKI DISTRICT
                        Oamaru’s population of 13,750 makes up more than half of
                                                                                                                                                 Proportion of Population by Five-Year Age
                        the total population of Waitaki at 21,900 (June 2015), so a                                                                 Group, Waitaki District Census 2013
DEMOGRAPHICS            combined 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                                         6.00
                                Waitaki, between 30 June 2014 and 2015 (MBIE).
                                                                                                                                     5.00
                        •       New Zealand has an ageing population as a whole and the
                                Waitaki district is an exaggeration of this. Waitaki has a higher                                    4.00
                                percentage of population in the older age groups, from 40
                                plus years as well as a lower younger population between the                                         3.00
                                ages of 10-40 years. (ECAN)                                                                                           Waitaki        New Zealand
                                                                                                                                     2.00
                        •       By 2031, Waitaki’s median age is projected to increase by 8
                                years (36%), from 45 to 52 years, the largest increase of all                                        1.00
                                districts surveyed in the Canterbury region (ECAN).
                                                                                                                                     0.00

                                                                                                                                                   4
                                                                                                                                                  9
                                                                                                                                                   4

                                                                                                                                            20 9
                                                                                                                                            25 4
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                                                                                                                                              85
                                                                                                                                             10
                                                                                                                                             15
                                            Household Income Distribution in Waitaki and
                                                        New Zealand, 2013
                        25%                                                                                                                      •   Household income in Waitaki District is typically lower than
                                               Waitaki        New Zealand                                                                            New Zealand as a whole.
                        20%                                                                                                                      •   The largest earnings group, 19% of the Waitaki population,
                                                                                                                                                     earn between $30,000-$50,000 annually.
                        15%                                                                                                                      •   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
                        10%                                                                                                                          as Auckland and Wellington.

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      4.05
4.00 RESIDENT MARKET

                                                                                                          4.06
LIVING IN WAITAKI DISTRICT
Data for the region gives an indication of the cost of living in the
District.
                                                                                                          COST OF LIVING
Groceries:

•   Milk (1L) $2.40

•   Loaf of Bread $3.25

•   Bananas $3.49/kg

•   Head of Lettuce $2.99

•   Imported Beer, 12pk $26.99

Salaries & Housing:

•   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 (MBIE,
    Waitaki District, December 2015).

•   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).

Going Out:

•   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.

                                                                       BANDSTAND, OAMARU PUBLIC GARDENS

                                                                                                                      4.06
5.00
VISITOR MARKET
5.00 VISITOR MARKET

5.01
                           NEW ZEALAND
                           Annual visitors to New Zealand remained at or near 2.5 million
                           from 2005 to 2012, showing a gradual increase each year with
ANNUAL ARRIVALS            the exception of 2012. Since 2012, growth has increased notably
                           and the total number of visitors arriving to New Zealand in the
                           year ending November 2015 was over 3 million for the first time
                           and already nearing 3.5 million by 2016. Forecasts for 2017 and
                           beyond predict further growth in tourist 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.
5.00 VISITOR MARKET

                                                                                                                                                                5.01
WAITAKI DISTRICT
Visitor increases to Waitaki District are broadly representative of                           Regional Tourism Estimates
the overall arrivals to New Zealand as a whole. Forecasts in 2012
suggested that in 2016 overnight visits would exceed 330,000                                    (Year End August 2016)                                          ANNUAL ARRIVALS
and day visits would exceed 810,000. Recent data shows that the
area exceeded this in 2015, with 394,000 overnight visits recorded
                                                                                   Food and Beverage Serving Services
in a rolling-month total to January 2016. Most future growth is
anticipated to come from visitors of international origin (NZ RTO
Forecasts).                                                                 Cultural, Recreation And Gambling Services
However, regional tourism estimates (data from card transactions,
aggregated by category) show the difference in expenditure                   Retail Sales - Alcohol, Food and Beverages
between the Waitaki District and New Zealand averages.

Data suggests that visitors to the Waitaki region spend               Retail Sales - Fuel and Other Automotive Products
proportionately more on fuel, and food and beverage services
than the New Zealand average and less on other retail sales,                                   Accomodation Services
tourism products, cultural, recreation and gambling services.

It is reasonable to suggest that the existing tourism offer in                                 Other Tourism Products
the region does not attract actual spend in line with the rest of
the country. As described in Tourism Waitaki’s 2025 strategy                                Other Passenger Transport
document, this is one of the key issues facing the RTO.

                                                                                                    Retail Sales - Other

                                                                                                                           0%       10%       20%   30%   40%
                                                                                                            NZ Average          Waitaki RTO

                                                                                                                                                                           5.01
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.

                           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. In 2016, China again had the
                           largest year-over-year increase (+23.7%) but slowed from the
                           previous year.

                           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             International Visitors to New Zealand, September
                           growing middle-class with a steady growth in visitation over the
                           past six years.                                                                           2015-2016

                           UNITED STATES OF AMERICA                                                                 Other (Japan,
                           Similar to other Western markets, there is a strong seasonal                             Germany, S.
                                                                                                                       Korea)
                           trend around US holiday visits with almost half choosing to visit                   UK
                           during New Zealand’s summer months, December to March.                                       11%
                                                                                                               8%
                           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.                                 USA
                                                                                                         11%                        Australia
                           UNITED KINGDOM
                                                                                                                                      54%
                           The UK has a long-standing history of travel to New Zealand.
                           Due to this, visitation numbers are steady and unlikely to see                 China, People's
                           drastic increases that were seen prior to the global financial                  Republic of
                           crises. (Tourism New Zealand)                                                       16%

        5.02
5.00 VISITOR MARKET

                                                                                                                                                5.02
EMERGING MARKETS
                                                                                    Visitor Numbers for NZs Largest International
INDIA, INDONESIA & LATIN AMERICA
                                                                                          Markets, YE September 2012-2016

India’s traveller market is referred to as the “next China.” The
                                                                        1,600,000                                                               KEY MARKETS
World Tourism Organisation predicts that India will account for         1,400,000
50 million outbound tourists by 2020. The Indian market has two
peaks of visitation, somewhat opposite that of Western markets          1,200,000
making India very attractive to the NZ tourism industry as they
                                                                                                                                    Australia
offset shoulder seasonality issues.                                     1,000,000
                                                                                                                                    China
Indonesia is currently New Zealand’s 24th largest source of
                                                                         800,000                                                    USA
visitors. Securing a direct air service to/from Jakarta remains a key
goal in growing this market. Outbound travel from Indonesia is                                                                      UK
                                                                         600,000
growing rapidly, with over seven million departures in 2012, more                                                                   Japan
than double the number of departures in 2003.                                                                                       Germany
                                                                         400,000
With the exception of Argentina, the Latin American markets
have experienced strong economic growth in the past decade.              200,000
Argentina’s visitor market was on decline but grew significantly in
the last year. The strong economic growth of Latin America has                 0
resulted in a growing middle class eager to travel overseas for                        2012    2013    2014     2015    2016
leisure and education.

                                                                                                                                                          5.02
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 (Oct 2015 - Aug 2016)
                           family and friends. As of August 2016, all of these countries have had an increase in visitors over the previous year.
MOTIVATIONS                                                                                                                                                         Australia                                         1,384,432
                           SHOPPING                                                                                                                                 China                                              405,504
                           Uniquely, more than half of the China visitor market (56%) enjoys shopping group tours and premium group tours, which no other           USA                                                 269,984
                           country engages in on such a scale.
                                                                                                                                                                    UK                                                  215,488

                                                    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
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%).

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.

                           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
5.00 VISITOR MARKET

5.04
                            A DIVERSE AGE RANGE

                            OVERALL
AGE                         Data shows that New Zealand remains popular primarily to 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-year,
                            however, there is an increase in visitors of all age groups overall.
                            The UK is the only country that has seen a significant drop in
                            visitors aged 25 to 34 years.

                            DIFFERENCES BY ORIGIN
                            Visitors from the United States have had a spike in the retirement
                            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 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 amongst
                            all age groups with visitors aged 24-35 remaining as their largest
                            visitor group by far.

        5.04
5.00 VISITOR MARKET

                                                                                                                                                                   5.05
TRIPS TO NEW ZEALAND
                                                                                             New Zealand Visitor Length of Stay, YE November 2012-2016
RETURNING VISITORS                                                                     1,000,000
For the majority of visitors overall, it is their first time visiting New
                                                                                                                         2012    2013    2014    2015    2016      TRIP CHARACTERISTICS
Zealand. However, in the case of visitors from Australia however,                       900,000
the majority are returning visitors.
                                                                                        800,000
             Country                         First Time Visit                           700,000
 Australia                                                        41%
                                                                                        600,000

                                                                            Visitors
 China                                                            96%
                                                                                        500,000
 USA                                                              80%

 UK                                                               75%                   400,000
                                                                                        300,000
LENGTH OF STAY
Compared to the US and the UK, visitors from Australia make                             200,000
the shortest trips, likely due to proximity and ease of travel to
New Zealand. Visitors from the UK spend twice as much time on                           100,000
holiday in New Zealand than any other country. The typical length
of holiday for US visitors is either 7 days, 9 days or 14 days.                                0
                                                                                                       1–3         4–7          8–14         15–21   22 and over
                                                                                                                         Length of Stay (Days)

                                                                                                                                                                              5.05
5.00 VISITOR MARKET

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

                                                                                                 50

                                                                                                 40

                                                                                                 30

                                                                                                 20

                                                                                                 10

                                                                                                 0
                                                                                                      Australia       China           UK               USA

         5.05
5.00 VISITOR MARKET

                                                                      5.05
VALUABLE VISITORS
Visitors from China spend the most money on their trips
compared to other countries, most of which is on retail goods.
Total spend by visitors from China for year end August 2016 was       TRIP CHARACTERISTICS
$1,363 million. Despite visitors from China spending more money
on average per trip than any other country, the vast number of
visitors from Australia contributed $2.463 billion in the same time
frame. The UK and US contributed $1,029 million and $936 million
the same year respectively.

              Country               Spend Per Person (Holiday)

  Australia                                               $2,400

  China                                                   $3,200

  USA                                                     $3,500

  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 in Auckland, followed by Otago and Canterbury.

                                                                                 5.05
5.00 VISITOR MARKET

5.05
                           WAITAKI DISTRICT

                           A QUICK OVERNIGHT
TRIP CHARACTERISTICS       The most recent available data on overnight stays in commercial 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 for longer. 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.              21:00 Bus returns visitors to hotel.

                            18:00 Buffet dinner.                                                07:00 Buffet breakfast.

                            19:00 Bus departs for Oamaru Blue Penguin Colony.                   08:00 Checkout and bus departs.

                            19:15 Visitors begin penguin watching experience.

                           However, this does not reflect all trips made to the Waitaki District. In particular, those who spend time staying in holiday parks in self-
                           contained camper vans and other free independent travellers (FIT’s). This segment, it is argued by some in the region, are a likely source
                           of the best growth in stay length.

                                                                                                   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.

                                                                                                   One common denominator is non-reliance on a tour operator alone to develop itineraries. Information flows from attraction
                                                                                                   to consumer and is not subject to a curation process 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. Successful attraction managers
                                                                                                   work with tour operators to grow business and also market direct to consumers.

                                                                                                   Local authorities note that ‘some industry participants are not well-versed in dealing with tour operators, are not set up to handle
                                                                                                   trade clients, or are not providing the service that will attract trade clients’. This is a fair assessment and one that the local RTO seeks to
                                                                                                   address through its work. Change is likely to occur where industry participants balance an ability to work successfully with trade clients
                                                                                                   but retain an element of Oamaru counterculture to keep the experience authentic.
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.
Domestic travellers enjoy many of the same activities                                                                                ATTRACTIONS
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
                                                                  Image top and bottom left: Select Contracts; Image bottom right:
20. Golf
                                                                  Portside Restaurant & Bar, Oamaru
21. Snowsports

22. Gardens

                                                                                                                                               5.06
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.

                           Images: Tourism New Zealand

        5.06
6.00
COMPETITOR ANALYSIS
6.00 COMPETITOR ANALYSIS

6.01
                        Based on in-depth market research, a comprehensive competitor
                        analysis has been made for the Oamaru Adventure Park.

                        The primary competitor attractions were researched in a one-
COMPETITOR OVERVIEW     hour drive time radius from Oamaru. Since very few were found
                        within a one to two hour drive time from Oamaru, the secondary
                        search radius for competitors was extended to one to three hours
                        drive from Oamaru.
6.00 COMPETITOR ANALYSIS

ZIPLINES AND AIRPARKS
The closest ziplines and airparks, located in both Christchurch and Queenstown, are between 3 hours and 15 minutes, and 3 hours and 30 minutes drive time from the proposed project site. In Christchurch
there is one airpark attraction, Adrenaline Forest, a self-guided tree top adventure course with over 100 obstacles and 4 ziplines. The attractions reach 20 metres in height and the ziplines are a maximum of
                                                                                                                                                                                                                     6.02
90 metres in length. Prices are $43 for adults and either $28 or $18 for youth under 18, depending on height.
                                                                                                                                                                                                                     ZIPLINES & AIRPARKS

In Queenstown there are three attractions that include ziplines, one of which, Ziptrek, is a guided, forest based zipline tour, the other two are high-adrenaline bungy jumps and rope swings that have
expanded to include ziplines as later stage developments. Ziptrek, accessible through the Skyline Gondola on Bob’s Peak, comprises of two downhill, multi line, treetop tours ranging in price from $135 -
$185.

AJ Hackett is the birthplace of modern bungy jumping, and with 3 different areas for bungy, rope swings and ziplines they provide a diverse range of activities. Prices are on a per activity basis, ranging from
$275 - $169 for bungy jumps and rope swings, and $50 for the zipline.

Shotover Canyon is a high adrenaline rope swing and zipline attraction, marketed towards thrill seekers. Coined as the world’s highest cliff jump. the high speed, large rope swing can be used with a variety
of accessories, including chairs, tricycles, a slide, a quick release, etc. adding a layer of fun, fear and excitement. The Canyon Fox zipline has an added layer of adrenaline as well, users are dropped from
the platform using a unique metal track system falling several metres before being caught by the main zipline which is 240 metres long and 182 metres high. Clients then return across the canyon via a less
intense tandem zipline. Prices are $219 for the Canyon Swing or $165 for the Canyon Fox zipline.
6.00 COMPETITOR ANALYSIS

6.03                    CANYONEERING
                        There are two guided canyoneering operations existing within
                        the 3 hour drive time catchment, both of which include
CANYONEERING            abseiling and ziplines during tours. Canyoneering is the sport of
                        descending multi-stage waterfalls by hiking, swimming, jumping,
                        abseiling, climbing and zip-lining usually wearing a wetsuit
                        and climbing harness. Big Rock Canyons, operating around
                        two hours drive from the project site is a canyoneering guiding
                        operation that provides tours of varying lengths and difficulties
                        as well as multi-day courses. Tours range from $240 - $440
                        depending on the difficulty and length of tour. Daily tours are
                        generally aimed at beginners and include 20 metre ziplines that
                        end in water.

                        Deep Canyon in Wanaka is 2 hour and 45 minutes drive from the
                        project site and provides a wide array of guided canyoneering
                        adventures, the premiere of which includes a heli ride to the top
                        of the route and a jet boat ride home for $1080/person. Most
                        tours range from $240 - $650 and can last up to 12 hours.
6.00 COMPETITOR ANALYSIS

ROCK CLIMBING & VIA FERRATA
Rock climbing is a hugely diverse international sport ranging widely in difficulty, safety and commitment.
High difficulty climbing for experienced users usually takes place in public outdoor spaces or in dedicated
                                                                                                                6.04
gyms. Climbing for beginners, children and those looking for a “soft thrill” is often more lucrative and
                                                                                                                CLIMBING & VIA FERRATA
desirable from a paid attraction standpoint. Via Ferrata is a type of low risk, low difficulty rock climbing
typically aided by ladders, where users manage their own safety through clipping themselves to wires and
anchors during the ascent. There is one such course located within the catchment area in Wanaka, 2 hours
and 45 minutes drive from the project site. Wildwire Wanaka has two separate Via Ferrata courses that
climb next to a scenic waterfall. Tours cost between $189 and $249 and last from three to five hours.

Wanaka also plays host to an indoor climbing facility that includes a themed attraction for low skill
climbers, and an indoor sport climbing section that mimics outdoor climbing challenging for even highly
skilled climbers. Basecamp Wanaka’s themed climbing area is auto-belayed and includes climbs and
challenges that don’t need special equipment beyond running shoes and a rentable harness, and is suitable
and entertaining even for young children. Entry to the facility is $20 for adults and $17 for those under
18 years of age, young children receive further discounts for the themed climbing area. Basecamp also
provides guided outdoor climbing and courses in the area.

Within Oamaru there is a small indoor rock climbing wall at the Waitaki recreation centre, this facility is
not considered an attraction but rather a facility for the local climbing community. There are over 825
climbing routes in the Otago region, and many guiding operations that work in the area making it a popular
destination for experienced climbers. Oamaru may be able to create a low to moderate skill climbing
attraction, such as auto belay or via Ferrata climbing, and draw off the area’s reputation to market the
activity.
6.00 COMPETITOR ANALYSIS

6.05                    WILDLIFE VIEWING
                        The only wildlife-viewing attraction nearest Oamaru would be in Dunedin with Elm Wildlife Tours or Monarch Wildlife Cruises and Tours, a 1.5hour and 2.5 hour drive time respectively. Both tours offer
                        wildlife viewing in and around the Otago Peninsula. Elm Wildlife Tours offer wildlife encounters for viewing Yellow-eyed Penguins, Blue Penguins, Hooker’s Sea Lions, New Zealand Fur Seals, Albatross and
WILDLIFE VIEWING        other sea bird colonies. Monarch Wildlife Cruises differs in that they offer both land and sea tours for wildlife viewing.
7.00
COMPONENT MATRIX &
      MASTER PLAN
7.00 COMPONENT MATRIX

7.01
                         QUARRY-TO-HARBOUR ZIPLINES (PHASE I)

AERIAL ADVENTURE         The final daredevil experience in the zipline eco-tour will be the ‘Quarry Cliff Zipper’ an ultimate ‘no fear’ dual-zipline experience begins
                         at the top of the headland before descending past the quarry cliffs and over the waters edge to the landing platform on the harbour
                         breakwater.

                         ADVENTURE TOWER (PHASE II)

                         The unique tower is the ideal introduction to climbing, offering ‘Tower to Rock’ packages and taking in all aspects of climbing, rappelling
                         and free-fall jumping experiences in one location. Physical skills are tested, explored and overcome on varying faces and steep overhangs
                         built into the tower.

                         AERIAL HIGH ROPES (PHASE II)

                         This 2-storey adventure course combines climbing with agility on suspended balance beams and spinning platforms. Skills are tested
                         on the Trolley Slide, Horizontal Ladder and climbing walls before climbing the swooping hammock up to the second level for more
                         challenging elements, such as the Multi-Vine Crossing and Cargo Net Traverse. The final summit is the Crow’s Nest, for a bird’s eye view
                         of the surrounding area before taking the final challenge of the giant swing which swoops 11 meters off the ground and accelerates up to
                         60km/hour.

                         TOWER CLIMB (PHASE II)

                         The natural quarry cliffs offer a unique opportunity to experience climbing outdoors on a real rock surface. Under the guidance of climbing
                         experts participants will learn skills, climbing movements, useful knot making and belay techniques yet primarily focusing on fun and
                         engaging challenges for individual skill levels for all ages.
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