Tourism operators optimistic in the face of capacity restraints

TRENZ conference in full swing. Photo / RNZ

By Sharon Brettkelly of RNZ

New Zealand’s travel bonanza event is being held in Rotorua this week, but the thousands of business meetings being held can’t hide the fact that our airline capacity is still underdone.

Tourism operators have been putting their best feet forward in Rotorua this week, with international buyers circling the city’s Energy Centre to see what we have to offer their tourists.

But industry representatives have also heard that despite the beauty, adventure and delights on offer here, getting tourists on to planes is being hampered by capacity issues.

We’re not yet back to the numbers we had before Covid, and in the meantime, the huge Chinese market has changed thanks largely to its poor performing economy. The days of busloads of middle-class Chinese visitors coming here on shopping tours are over – possibly for good. Now, free independent travellers (FITs) are getting all their information, including price comparisons, online. Poor reviews, high prices, crime reports, even the weather conditions, will put them off.

One expert at the conference believes the Chinese market will take a long time to recover.

Prime Minister Christopher Luxon and Tourism and Hospitality Minister Louise Upston at Trenz in Rotorua on Wednesday. Photo / Laura Smith

Tourism Minister Louise Upston made the announcement at Trenz that Chinese visa applicants will no longer have to have their documents certified by a qualified translator, a bone of contention there because of the hassle and cost. However, they will still need a visa – despite the fact that New Zealanders don’t need a visa to visit China, and Chinese tourists have a choice of 20 other countries that don’t require one.

It’s not all bad – of the 340 buyers at the conference from 26 different countries, there are 67 from China. They represent large travel sellers who will go back and sell trips here to their customers.

Still, Rebecca Ingram, the chief executive of Tourism Industry Aotearoa, describes the Covid years as the earthquake that hit the tourism industry.

“We always anticipated that it was going to be two to three years before we found our new normal.

“We’re sitting at about 86% of our previous pre-Covid arrives level.”

Every international market is different and has specific reasons behind the drop.

“What is important,” says Ingram, “is that we don’t take for granted the fact that people around the world are thinking about a holiday in New Zealand. We have to compete for it. And we have to show them that a holiday in New Zealand makes sense right now, and that what we’ve got to offer them is world-class.”

Trenz will pump an estimated $3 million into Rotorua’s economy.

Ingram says the 16,000 business meetings held over the week will have multiple benefits.

“We estimate that about 14% of all of the tourism businesses that are here from New Zealand will generate more than a million dollars’ worth of turnover as a result of TRENZ this year.

“And that is really consequential because it means that they can hire more people, it means their business is going to be really healthy, they’ve got a lot of confidence to invest because they’ve done these deals ... and it also ensures that New Zealand is top of mind for all of these international travel buyers that we’ve brought to the country - that’s really important.”

Also on The Detail today we talk to some of the delegates at the conference about what they hope to achieve. Most tell us that the expense of buying a booth here will be recouped through additional business and continuing contacts in the industry.

And Auckland Airport’s Mick Cottrell gives us the numbers on capacity – which regions are well under the pre-Covid numbers, why New Zealand is at the bottom of the list for new routes, and why it is taking airlines 10 years to get the new planes they’ve ordered.

• You can find out how to listen to and follow The Detail here.

-RNZ