Close
 

Data dump: How Chinese laws affect New Zealand tourism

  • News
  • April 4, 2017
  • Courtney Devereux
Data dump: How Chinese laws affect New Zealand tourism

A new Chinese travel law that has been implemented is being blamed for the significant drop in tourism numbers coming into New Zealand. Statistics New Zealand shows why this decline is of less impact than we would assume. 

The new travel law places a ban on tour operations subsidising tour prices by packing itineraries with selective shopping destinations.

Before the law was created Chinese tourism companies could add on another 30 percent to the cost of New Zealand tours promoted in China.

The law includes measures to address issues such as tourist safety, unfair competition, and forced shopping trips, in which agencies offer cheap tours but recoup their costs from commissions in partner shops.

As a result of the law, New Zealand has already felt the loss of some of its usually busy tourist seasons.

Government figures show that tourist numbers boomed September 2015, but since the law late last year, the numbers have dropped 12 percent in October - the same month as the law passed - 16 percent in November and 11 percent in December compared to the previous year.

Annual growth in the number of Chinese visitors was tracking at 27 percent to 236,336 in the 12 months ended September 30, slowing to an annual gain of 16 percent to 228,928 the same time in 2013.

Even though Chinese tourism numbers have fallen, the economic gain hasn’t changed. Although there are less bulk tour groups there are smaller groups paying for higher class experiences. Experiences that involve more culture rather than larger cheap tourist attractions.

Ben Goodale, managing director of JustONE, says that this change in the expected market inevitably will result in some inconsistent consumer impacts on retail.

“The Chinese economy – and therefore the Chinese consumer – is maturing. It’s well established that there is a big rise in independent travellers from China, and conversely a decline in organised trips.”

According to Statistics New Zealand, China is the second key international market following Australia and is responsible for 41 percent of our tourism industry.

Goodale says that our tourism markets have been relying on these Chinese visitors, but would be smart to adapt to the new demands that are looking for quality and not quantity bases trips.

“If a retailer/retail centre has been over-reliant on lots of tours and the numbers drop, independent travellers won’t necessarily replace it as they will go where they like.”

Goodale’s comments back up BusinessDesk data that Chinese visitors are now more aware of ‘tourist traps’, and are starting to opt for more genuine tours and experiences.

“However, tourism in general is rising and tourist centres will replace lost trade with new, although the impact on some retailers may be greater,” says Goodale.

Not only is the number of tourists declining, the average stay of these Chinese guests is also changing.

Statistics New Zealand says that in 2015 China was the highest annual visitor and stayed the longest amount of time. Now, assuming the new law is the culprit, the Chinese market is now coming second in both categories.

Where China used to come first in both categories has now been overtaken

The recent drop in visitor numbers was also felt in a reduced number of people coming for business. The same government figures from Statistics New Zealand show the number of people coming to do business from China fell 43 percent in December from a year earlier and were down an annual 18 percent.

The Ministry of Innovation and Employment statistics show that in the year ending December 2016 the international visitor expenditure’s growth per annum from China was down 1 percent, which equals out to an average of 1.6 million in economic losses. Not exactly a small amount. 

Tourism is usually New Zealand’s largest export industry in terms of foreign exchange earnings. It directly employs 7.5 percent of the New Zealand workforce (around 300,000).

For the year ending in March 2016 total tourism expenditure was NZD$34.7 billion, an increase of 12.2 percent from 2014.

In 2015 the Chinese tourism sector was expected to be New Zealand’s largest market in terms of spending till 2017. Although per original statistics it is now Australia that has taken that spot.

The expectation of China overtaking as the biggest market by 2017 has dropped since the new law

The expectation the tourism sector was correct upon was that Australia would continue to be New Zealand's biggest market by arrivals. On average Auckland International Airport sees 1 million Australian visitors through its gates each year. 

The increase of tourists from China that are looking for a genuine New Zealand experience means that retailers, hospitality and the tourism sector alike will need to cater to those demands. Chinese consumer culture is heading more towards the quality of an experience and that is showing through the most recent statistics. 
 

​ ​

This is a community discussion forum. Comment is free but please respect our rules:

  1. Don’t be abusive or use sweary type words
  2. Don’t break the law: libel, slander and defamatory comments are forbidden
  3. Don’t resort to name-calling, mean-spiritedness, or slagging off
  4. Don’t pretend to be someone else.

If we find you doing these things, your comments will be edited without recourse and you may be asked to go away and reconsider your actions.
We respect the right to free speech and anonymous comments. Don’t abuse the privilege.

 
News

Ambiente: A window on the world

Global forces like Brexit and climate change are affecting trade worldwide. Sarah Dunn consults the Ambiente trade fair in Germany for evidence of how this ...

 
 

Sephora beauty bus to tour New Zealand ahead of store launch

  • News
  • June 24, 2019
  • Emily Bell
Sephora beauty bus to tour New Zealand ahead of store launch

If you hadn’t already heard, global beauty giant Sephora is coming to Auckland this July. Founded in France by Dominique Mandonnaud in 1970 and owned by luxury goods group LVMH Moët Hennessy Louis Vuitto, Sephora has since become a leading beauty pioneer, community and trailblazer in the industry, to say the least.

Read more
 
 

Pottery Barn hits the New Zealand market through Ballantynes

  • News
  • June 21, 2019
  • Sarah Dunn
Pottery Barn hits the New Zealand market through Ballantynes

Heritage Canterbury department store Ballantynes is introducing the US brands Pottery Barn, Pottery Barn Kids and West Elm to the Kiwi market through a New Zealand exclusive partnership with Williams-Sonoma.

Read more
 

Social scoreboard

Zavy and The Register have worked together to create a scoreboard that compares how the top 25 traditional media advertising spenders in New Zealand have performed on social media over the past 30 days, updated in real time.

 
topics
Regional rollercoaster
What does retail look like in 2019 for ...
Concept to closet
Business coverage of New Zealand Fashion Week.
Town centres
A positive retail environment over the past 12 ...
Amazon Arrival
Keeping up with all things Amazon as it ...
The Retail Yearbook 2017
As we battle our way through the busiest ...
Hospitality enhancing retail
Some think food and integrated hospitality offerings will ...
The future is bright
We spoke with four retailers in their twenties ...
Spotlight on signage
At first glance, the humble in-store sign might ...
Red Awards 2016
The Red Awards for retail interior design celebrate ...
Auckland Unitary Plan
Auckland is changing. The Unitary Plan will decide ...
How to open a store
Sarah Dunn considers what it would take to ...
All things to all people
Kiwi retailers share their omnichannel strategies.
Rising stars
Retail's top young achievers.
Delivering on your promises
The sale isn't over until your item is ...
Retail in heartland New Zealand
Retailers keep the regions pumping, but how strong ...
Sisterhood
Women in retail help one another. We spoke ...
The changing face of retail
Shifting demographics are creating big changes in New ...
The retail yearbook
With the help of experts in the retail ...
Retail rogues
We put the spotlight on staff training. Jai ...
Here come the giants
Topshop has arrived in Auckland’s CBD, David Jones ...
From retail to e-tail
Ecommerce has become part of the way mainstream ...
Window shopping: A spotlight on social media
Sarah Dunn and Elly Strang look at how ...
Loyalty in the digital age
How are retailers maintaining loyalty? Sarah Dunn, Elly ...
The Innovators | In partnership with Spark Business
Technology is rapidly changing the retail industry as ...
 

Global recognition for instore innovation

  • Design
  • June 20, 2019
  • Courtney Devereux
Global recognition for instore innovation

The Global Innovation Awards (GIA) program was created by the IHA and International Home + Housewares Show to foster innovation and excellence in home and housewares retailing throughout the world. This year saw 30 national winners from 29 countries. The competition is structured on a two-tier level, evaluating national and global retailers across the following metrics: Overall mission statement, vision and strategy, store design and layout, visual merchandising, displays and window displays, marketing, advertising and promotions, customer service and staff training, innovation.

Read more
 
 
News

Trends analysed at Chicago's International Home + Housewares Show

Each new year for retailers is another question mark in guessing what to present to consumers. Luckily in the world of retail, trade shows can ...

 
News

Shoptalk 2019: The city of lights delivers

Juanita Neville-Te Rito shares a sprinkle of retail magic from Las Vegas retail conference Shoptalk.

 
Next page
Results for
Topics
Jobs
About us.

The Register provides essential industry news and intelligence, updated daily. And the digital newsletter delivers the latest news to your inbox twice a week — for free!

©2009–2015 Tangible Media. All rights reserved.
Use of this site constitutes acceptance of our Privacy policy.

Advertise
The Register

editor@theregister.co.nz

Content marketing/advertising? Email anita.hayhoe@icg.co.nz or call 022 639 3004

View Media Kit

}