Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com

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Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Tourism and our regions –
                     the long haul

PROFESSOR DAVID G SIMMONS
LINCOLN UNIVERSITY             CHAIR EARTHCHECK RESEARCH INSTITUTE
NEW ZEALAND
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Agenda

• Explore the global coronavirus outbreak in the context of New Zealand tourism,

• Highlight the nature, extent and potential of domestic recreation and tourism
  (including the inability of New Zealanders to travel overseas), for our region.

• Explore how regions and businesses can adapt to a domestically focused market.
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Coronavirus ~ A most unwelcome hitch-hiker
                                    Google : international
                                    aviation (24hrs) 2018

                                    https://coronavirus.jhu.edu
                                    /map.html
                                    21:35: 31 Mar, 2020
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
And so on, onto to New Zealand

 Connectedness not distance predicts the spread
 of a pandemic

 Brockman and Helbing (2013) Science 342, 1337

                                                  NZ Herald ; 0904; 20 Apr 2020
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Flattening the curve
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Virus rolls to more remote regions

                                                                 Rolling national and
                                                                 regional outbreaks

                                                           vaccine

                                                                            manufacture @scale

            Isolation strategies (level 4)                                              distribute /administer

                                  4 weeks ??
                                               8 weeks : Wuhan

                                               13 weeks UK (BBC)
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Outlook for international arrivals
• Bleak
• My estimate recommence Q1 or Q2, 2022
• Shamubeel Eaqub : 2023 (60 minutes : 19th Aprril)
   • Best estimate 20 - - 50 percent down

But what of domestic travel and tourism?
Tourism and our regions- the long haul PROFESSOR DAVID G SIMMONS LINCOLN UNIVERSITY NEW ZEALAND - ChristchurchNZ.com
Tourism:    economic
impact in New Zealand

58% of tourist expenditure in New Zealand is
generated by domestic visitors

… includes day trips of more than 40km one way

AND 3.01 mn overseas trips were made by New
Zealanders last year
.. 78% were leisure tips (2.34mn trips)

Their take out’ expenditure from NZ is estimated at
$6.5bn
Domestic Expenditure
                     %
      REGION         Domestic tourism spend
                     of regional total (2019)

Manawatu-Whanganui              82%
Gisborne                        79%
Taranaki                        78%
Northland                       76%
Hawke's Bay                     74%
Waikato                         74%
Bay of Plenty                   70%
Nelson                          68%
Wellington                      67%
Marlborough                     67%
Tasman                          62%
Southland                       60%
Canterbury                      59%
West Coast                      48%
Auckland                        45%
Otago – Q Lakes                 45%
SI Visitation by TLA

Domestic Day        Domestic Overnight
(40km)
                    International
International Day   Overnight
Visitation … recreation, excursions, tourism
                    % dom of
     TLA              total

     Waimakariri      96%
     Hurunui          92%      Domestic Day        Domestic Overnight
     Timaru           91%      (40km)
     Ashburton        89%                          International
     Selwyn           88%      International Day   Overnight
     Kaikoura         74%
     Christchurch     73%

      Buller          69%
      Grey            67%
      Westland        39%
     SI TOTAL         71%
% Dom
                                                                                                                                      visitation
                                                                                                        TLA                            of total

Visitation                                                                                              Waimakariri
                                                                                                        Hurunui
                                                                                                        Timaru
                                                                                                                                        96%
                                                                                                                                        92%
                                                                                                                                        91%
                                                                                                        Ashburton                       89%
                                                                                                        Selwyn                          88%
                                                                                                        Kaikoura                        74%
                                        Canterbury TLA visitation (2018)                                Christchurch                    73%

4000

3500

3000

2500

2000

1500

1000

500

  0
       Waimakariri          Hurunui        Timaru          Ashburton           Selwyn        Kaikoura                  Christchurch

                     Domestic Day     Domestic Overnight               Internat'l Day   Internat'l Overnight
Visitation

                            West Coast TLA Visitors (2018)
600

500

400                                                                                                  % Dom
                                                                                                    visitation
300
                                                                                         TLA         of total
200
                                                                                         Buller       69%
100
                                                                                         Grey         67%
                                                                                         Westland     39%
 0                                                                                       TOTAL SI     71%
            Buller                        Grey                           Westland

      Domestic Day   Domestic Overnight          Internat'l Day   Internat'l Overnight
Flattening the curve and regional dependencies

                              Lincoln University 5th April, 2020
2015’ 19th, April, 2020
https://covid19map.co.nz/
The outlook
Significant break in international arrivals (across all categories)
         Treasury Scenario 1 : 1 year
         Vaccine : Q1, Q2 2022… or longer
                   Potential for an Australian NZ bubble … Pacific
                   Reduced demand ~ especially for long haul
Domestic travel
         IS significant ~ but variable across sectors and activities
         Will be supressed along with economic activity
         Potential substitution for NZers offshore travel
         Post Earthquakes we saw considerable empathy for people and places
A bounce “back” or a long-haul to a new future
Governments work : Respond: reimagine: kick start
Action : focus on what we can see and manage
Business
• Reshaping businesses to a domestic market
   • accommodation, travel and tours, attractions
   • Prepare for a staged lifting of pandemic levels

Products
• Developing new products for the local and domestic traveller
   • Maori, tours, …

Destinations
• Reframing local destination visitor strategies and promotional campaigns
   • Directing to places of need (and opportunity)
Remember 1984!

                 https://www.ngataonga.org.nz/set/item/173
Thank you for your attention

David G Simmons
Professor of Tourism
David.Simmons@Lincoln.ac.nz
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