What We Know of the Youth Market Analysis of Core Tourism Statistics Produced by Tourism New Zealand, Insights – March 2012

Key Findings The youth sector generates $1.8 billion in tourism expenditure 60 per cent of the NZs youth market originate from Australia as either Australians or visitors to Australia. Youth travellers do more activities in New Zealand than all tourists Over half of all youth tourists do some form of adventure tourism while in New Zealand Youth tourists stay for longer periods of time in New Zealand than other tourists Almost 80 per cent of youth are not backpackers

The Value of the Youth Market

Total Expenditure $1.8 billion1 Sample: 1,708 For the year ended March 2012 the youth market* generated $1.8 billion in tourism expenditure. This represents 32% of total international tourism expenditure in New Zealand. Average Expenditure In the year ended March 2012 the youth market* spent an average of $2,877 per trip to New Zealand. The average for all tourists is $2,360 or $517 less per trip than the youth market. Length of Stay For the year ended June 2012 the youth market* stayed for an average of 29.2 days in New Zealand. The average for all visitors to New Zealand is 19.4 days. $1.8 billion1 Sample: 1,708 $2,877 per trip1 Sample: 1,708 29.2 days2 *Includes 15 to 29 year olds 1International Visitor Survey – YE Mar 2012 2International Travel and Migration Statistics – YE Jun 2012

Holiday Expenditure $2,593 per trip1 Sample: 2,758 25.3 days2 21 days2 Average Expenditure Over the last three years the youth holiday market* spent an average of $2,593 per trip to New Zealand. The average for all tourists over this period of time is $2,846, or $253 more per trip than the youth holiday segment. Length of Stay For the year ended June 2012 the youth holiday market* stayed for an average of 25.3 days in New Zealand. The average for all holiday visitors to New Zealand is 16.1 days. Length of Stay – Less Working Holiday Visa Tourists For the year ended June 2012 the youth holiday market* less working holiday visa tourists stayed for an average of 21 days in New Zealand. The average for all holiday visitors less working holiday visas is 16 days. $2,593 per trip1 Sample: 2,758 25.3 days2 21 days2 *Includes 15 to 29 year olds 1International Visitor Survey – Average of YE Mar 2010 to 2012 2International Travel and Migration Statistics – YE Jun 2012

Holiday Interaction Average Number of Regions Visited Youth 4.9 All 4.2 Average Number of Activities Done Youth 11.9 All 10.5 International Visitor Survey – YE Dec 2009 - 2011 (15 – 29 year olds)

Which Youth Markets Are The Most Valuable?

Youth Arrivals International Travel and Migration Statistics – YE Dec 2011 (18 – 29 year olds)

Youth Total Stay Days International Travel and Migration Statistics – YE Jun 2012 (18 – 29 year olds)

Pure Holiday Visitors The graph above shows total stay days for the youth segment for pure holiday visitors. This is holiday visitors with all those arriving on a work visa removed from the data series. *Australians do not need a visa to enter New Zealand so are not included within this segment International Travel and Migration Statistics – YE Jun 2012 (18 – 29 year olds)

Growth The graph above shows the long term growth of major youth markets. Markets that have seen strong annual growth over the last three years include Australia, Germany, France, Malaysia and China. International Travel and Migration Statistics (15 – 29 year olds)

Major Youth Markets #1 Australia #2 UK #3 Germany #4 USA France The top four youth markets based on arrivals and total stay days include: #1 Australia #2 UK #3 Germany #4 USA Following this are: France Netherlands Switzerland Canada Israel Ireland Sweden

Youth Profile

Purpose of Visit - Arrivals The Youth segment has a higher share of holiday visitors than New Zealand’s average. Not surprisingly the youth segment is made up of less business and conference arrivals than average and more education arrivals. Taking holiday arrivals only, the youth segment makes up 23% of New Zealand’s holiday arrivals. International Travel and Migration Statistics – YE Jun 2012 (18 – 29 year olds)

Purpose of Visit – Total Stay Days Holiday accounts for 45% of the youth segments days spent in New Zealand, which is more than the New Zealand average (39%). The youth segment makes up 36% of New Zealand’s holiday total stay days. The youth holiday segment generates 7.1 million total stay days, which as a comparison is more than Australia which generates 5.1 million holiday total stay days. International Travel and Migration Statistics – YE Jun 2012 (18 – 29 year olds)

Gender Interestingly the Youth market is made up of slightly more females than males at present. This is the opposite to the New Zealand average which is slightly weighted in favour of male arrivals. International Travel and Migration Statistics – YE Jun 2012 (18 – 29 year olds)

Travel Style Sample: 1,685 Sample: 5,194 The youth segment has fewer package and tour group travellers (7%) than the average for New Zealand (10%). International Visitor Survey – YE Jun 2012 (15 – 29 year olds)

i-SITE Sample: 1,685 Sample: 5,194 Youth travellers (40%) are more likely to visit an i-SITE than the average for New Zealand (34%). International Visitor Survey – YE Jun 2012 (15 – 29 year olds)

Backpackers Sample: 1,685 Sample: 5,194 Not surprisingly the youth segment has a higher ratio of backpackers (19%) than the average for New Zealand (8%). Despite this difference between the groups, non-backpackers still make up the vast majority (81%) of the youth segment. International Visitor Survey – YE Jun 2012 (15 – 29 year olds)

Accommodation Sample: 1,685 Sample: 5,194 The youth segment stays in less hotels and motels (29%) than the average for New Zealand (40%), and stays in more backpacker accommodation. However in terms of value, the youth segment also stays in less privately owned dwellings than the average for New Zealand. Privately owned dwellings (26%) are the most common form of accommodation for youth to stay in, followed by hotels (19%) and backpackers (17%). International Visitor Survey – YE Jun 2012 (15 – 29 year olds)

Dual Destination Sample: 1,685 Sample: 5,194 The youth segment has a very similar number of dual destination arrivals as the New Zealand average. International Visitor Survey – YE Mar 2012 (15 – 29 year olds)

People Travelled With Sample: 1,685 Sample: 5,194 Slightly more youth travel by themselves than the New Zealand average. Also youth are much more likely to travel with friends than the New Zealand average. Half of all youth travellers travel by themselves, with the addition of 14 per cent that are travelling with friends this mean around 64 percent of youth are singles. International Visitor Survey – YE Mar 2012 (15 – 29 year olds)

Activities and Attractions This index shows firstly which activities youth travellers over index on compared to all tourists, and secondly the percent of youth travellers that undertake particular activities (see percent in brackets on y axis). Youth travellers over index on a wide range of activities due to their propensity to do more activities while in New Zealand compared to all tourists. Youth travellers do 14.1 activities on average while in New Zealand vs. 13.7 activities on average for all tourists. Of particular interest is the fact that youth travellers over index on adventure activities. Youth are almost three times more likely to go sky diving and bungy jumping than regular tourists, and are twice as likely to do snow sports, caving, rafting, horse trekking and climbing. 50.3 per cent of youth travellers do some form of adventure tourism while in New Zealand where only 32.9 per cent of all tourists do some form of adventure tourism. Sample: 5,350 International Visitor Survey – YE Mar 2010 - 2012 (15 – 29 year olds)

Regional Visitation Sample: 1,685 The youth market generally has a similar regional visitation profile as all visitors. Two clear differences are that youth generally visit more regions than average and also youth are slightly less likely to visit Auckland than all visitors. International Visitor Survey – YE Mar 2012 (15 – 29 year olds)

Queenstown As part of a separate analysis it was found international tourists that visit Queenstown were highly over-represented by youth travellers. International Visitor Survey – YE Dec 2011 International Travel and Migration Survey – YE Dec 2011

Age of Australian Ski Market The ski market is much younger than the total of all Australian holiday tourists. Almost two thirds of the Australian ski market are aged between 15 and 34. Source: International Visitor Survey: YE March 09 to 12

Australia as a Source Market

Arrive in New Zealand after visiting and spending time in Australia Australia As A Source Market 532,869 Total Youth Arrivals - 2011 311,223 221,646 Non Australian Residents Australian Residents* 95,234 Arrive in New Zealand after visiting and spending time in Australia 60% of the youth market originate from Australia as either Australians or visitors to Australia. *Australian Residents are classed in NZ arrivals as people that have lived in Australia for 12 months or more

Australia as a Source Market 532,869 Total Youth Arrivals - 2011 Australian Residents* 221,646 42% of total youth 123,645 70,320 28,061 Australian Residents and Australian Citizens Australian Residents but NZ Citizens Australian Residents but not Aust or NZ Citizens 23% of total youth 13% of total youth 5% of total youth *Australian Residents are classed in NZ arrivals as people that have lived in Australia for 12 months or more

Australia as a Source Market Growth in Australian arrivals over the last two years has been largely driven by New Zealanders returning home to New Zealand. In 2011 there was a 15.3% increase in New Zealand citizens returning to New Zealand. In comparison there was a 0.9% decrease in Australian citizens visiting New Zealand. *Australian Residents are classed in NZ arrivals as people that have lived in Australia for 12 months or more