1. TNZ Strategic Update – TRENZ media Helping grow the New Zealand economy through international visitors May 2012

2. Agenda Importance of international visitors Current performance FY13 Business Plan Global focus Marketing approach Partnerships – trade, aviation, RTOs, operators Events Quality Conclusion - opportunities

3. International Tourism is a key Export Earner for New Zealand International tourism expenditure $9.7B Full-time jobs 179,800 GST earnings $1.71B Contribution to GDP 8.6%

4. Overall international visitor arrivals rising Top ten markets Visitor numbers Total (000s) Trend (YOY) Austral ia 1,168+5.1% UK 222+1.0% USA 184-3.1% China 160+23.7% Japan 65-23.8% Germany 63-1.3% Korea 53-19.2% Canada 490.0% Singapo re 39+28.8% Malaysi a 38+72.9% Total 2,618+4.4 Source: International Visitor Arrivals YE Mar 2012

5. But, total stay days have been flat since 2008

6. By country, its a much more interesting picture Top5: Au, UK, Ger, US, Fr

7. Three Year Strategy – FY13 focus 1.Prioritise markets and sectors for growth 2.Focus marketing on preference and conversion 3.Work with partners to Strengthen and grow travel trade sellers Expand inbound air capacity Increase marketing reach & effectiveness 4.Leverage events

8. Prioritise Markets and Sectors A tight focus is vital

9. A Portfolio Approach to Market Prioritisation Austra lia China USA UK Germany Japan SEA Canada France Scandinavi a India Hong Kong Taiwan Korea Eastern Europe South America Remainder of Western Europe

10. Prioritising Sectors that Span Geographies Specialist segments: Youth travel (pan Europe, plus US, Au) Cruise (USA, Au) Business Events (Asia, USA) Top interest areas: Travel styles:premium, honeymoon Sectors:guided hiking, skiing, cycling

11. FY13 Marketing Approach Highly targeted, integrated, and more inspiration

12. Segment and target active considerers with both inspirational creative and a call to action. Keep the ‘100% Pure You’ strategy, but drop ‘you’ from the end-line. Use highly targeted digital media for most paid media investments. Grow social media scale and engagement. Use PR to broaden channels – and deliver credible on-brand messaging. Leverage major events in marcomms and PR streams. Use newzealand.com to inspire, inform, and aid conversion. Drive traffic to third party sites to accelerate conversion.

13. Improving conversion on newzealand.com Net referra ls 18% up Activit ies & Tours 29% up

14. Partnerships Partnerships with overseas travel trade, airlines, NZ operators & RTOs expected to exceed $25M in additional funding FY12.

15. Partnerships are becoming more important Why so important? Partnerships are bringing $25M extra power to TNZ’s marketing in FY12. They improve advertising performance. They provide improved optics on campaign ROIs. And they provide access to marketing assets (e.g. high value customer databases). Aviation To protect, as well as grow, long haul connections to New Zealand. Travel Trade To strengthen and grow the capability to sell destination New Zealand.

16. Committed to an 18 month rolling events calendar sample of the shows/events MATTA ILTM NATAS CIBTM (Business) JATA SATTE TTAF Luxperience ILTM Vankantierberurs ITB IMEX Frankfurt/Vegas (Business) ITE (Business) Virtuoso WYSTC Top Resa PURE Life WTM

17. Leverage Events The Hobbit films represent a massive opportunity to elevate promotion of New Zealand

18. ‘100% Pure’ meets ‘the Hobbit’ Creative territory: New Zealand – where fantasy is reality – 100% Pure. Blends Hobbit themes with the visitor experience. New creative platform expected Q1 FY13

19. Quality Quality remains the key to growing passionate advocates

20. TNZ has an important role in quality i-SITEs A revitalised board, more aligned to i-SITE owners, developing a new strategy. Qualmark A new team working more closely than ever on providing a quality framework for the industry, with each sector. China ADS Programme Focus on fair treatment of Chinese group visitors tightening up control of service delivery. Market intelligence and feedback Improved market information – particularly from newer markets.

21. Conclusion – new opportunities Asia - in particular China - is a fast emerging opportunity. The Hobbit will help us elevate New Zealand’s message. Increased attention to yield across the board – particularly in business, special interest areas, and China – will help protect value. New and reinvigorated partnerships will drive more promotion of New Zealand and sustain air supply routes. Closer collaboration with Education NZ, Immigration NZ and other NZ Inc will ensure a stronger overall New Zealand message off-shore.