Tourism Market Update – July 2018 Current situation International market - forecasts Domestic market What are we up to? Hurunui Tourism Hanmer Springs Thermal Pools & Spa Christian asked me to come along tonight and give a short presentation on the tourism market. I will cover the current situation, international market forecasts, the domestic market, and some of the key initiatives that HT and HSTPS are working on. If you have questions, please just ask as we move through the presentation. Most of the figures are for either the Hurunui district as a whole, or from the pools. Unfortunately, there is no current measure of the tourism market in Hanmer Springs. MBIE measure the Hurunui District as it is a District Tourism Organisation; and at the pools we obviously have our own measurements.

5.9% (RTE YE April) 5.1% (CAM YTD) 12.4% (CAM Int’l) -0.8% (HSTPS YTD) Current Situation 5.9% (RTE YE April) 5.1% (CAM YTD) 12.4% (CAM Int’l) -0.8% (HSTPS YTD) Hurunui District: 5.9% growth in Regional Tourism Estimates YE April. RTEs measure electronic transactions and provide an estimate of total tourism spend. For the last 8 year-end measures this has been between 5.9% and 10.1% - in 7 of those 8 measures, above the national average. 5.1% growth in International CAM stats YTD (July – April) Comparatively: Canterbury 9.9%, McKenzie 9.2%, West Coast 2.3%, Marlborough 1.9%, Nelson-Tasman 0.9% Of this, 12.4% growth in International HSTPS YTD (July – May): We are down 0.8% in visitors. 11.7% decrease in International visitors (probably displacement from Kaikoura) 2.5% increase in Canterbury visitors (great to see!) -11.7% (HSTPS Int’l) 2.5% (HSTPS Canty)

International Market – MBIE Forecasts The tourism industry is forecast to continue what has been a period of significant growth. (CLICK) Here are forecast visitor numbers to 2024: All of NZ’s key markets are forecast to grow. In the case of NZ’s two biggest markets (Australia and China), there is significant growth. And likewise with expenditure, all key markets are forecast to grow. China is still predicted to overtake Australia as NZ’s largest market by spend. Importantly for Hanmer Springs, there is forecast growth from the long-haul markets. Visitors from the UK, Europe and US spend longer in NZ and therefore are more likely to visit places like Hanmer Springs. It is also great to see that one of the key strategies of Tourism NZ, the Tourism Industry Association, and the Christchurch International Airport is to encourage and promote regional dispersal. They are concerned at the visitor experience in chokepoints in NZ, like Rotorua and Queenstown, and are actively trying to encourage visits to the regions. This can only be good for us.

65k (HSTPS website – AK, WG) Domestic Market 3.7% (TIA Objective) 2.5% (HSTPS YTD) 65k (HSTPS website – AK, WG) Nationally, there is not a lot of data on the domestic market. The Tourism Industry Association is aiming for a 3.7% increase in domestic tourism year on year through to 2025. For Hanmer Springs, there are some challenges: We had a plateau in domestic visitors 2013-2015 (post-Christchurch earthquakes) Significant dip following Kaikoura earthquake There is also more to do in Christchurch And it is also easy and cheap for Cantabrians to fly overseas However, there are signs of recovery (CLICK) – as mentioned before, HSTPS visitors from Canterbury are up 2.5% There are a number of opportunities for us Still maintain that there are opportunities in small to medium conferences and events We can grow the school group / camps market in Hanmer Springs and we are doing some work around this The Auckland and Wellington markets have significant potential for the village – the pools website has received 65,109 visits from Auckland / Wellington this year. That is 25% of our traffic.

What are we up to? Hurunui Tourism Hanmer Springs Thermal Pools & Spa Strategy 2017-2022 Destination Development Sales & Digital focus APT, OAS touring routes Hanmer Springs Thermal Pools & Spa Budget Continue International, Christchurch, North Island marketing - digital New website Database development Hurunui Tourism 5-year strategy… about to start second year Destination development… Graeme’s role Sales & Digital focus APT… been relaunched; trade, website… OAS… in development Hanmer Springs Thermal Pools & Spa Budgeting 1.7% growth in visitors Continue International, Christchurch, North Island marketing New website Database development