So, how to respond? Industry feedback suggests to generate higher returns and tap into increasing wealth - such as China - we need to tailor products to markets "segmented by country and culture, demographic, purpose of visit and visitor expectations".
No more treating markets generically, going out with "the New Zealand" product and hoping it works.
For Rotorua this "know your target" message is powerful and I'd add collaboration to that. I attended a recent Rotorua X event at Volcanic Hills Winery - now why would a wine maker set up at the bottom of Skyline here in Rotorua when there are no grapes grown locally? The reason: Market. It's easy to transport grapes to where they need to be - to where tourists arrive by the bus and car load. We've also a new venture (in conjunction with Skyline) being established on Mt Ngongotaha.
A final insight into knowing your target was gleaned from the same event from a representative for China UnionPay - probably the largest issuer of credit and debit cards around the globe. On average, each Chinese tourist carries two to three of these cards at any one time and understanding how they use these cards is a snapshot of the size of the potential market with Chinese tourists attracted to merchants carrying the UnionPay logo. Every business needs to position itself for the market.