Introduction to Tourism (TOUR501)

Posted: August 25th, 2021

Introduction to Tourism (TOUR501)

Semester One, 2019

Destination Analysis Report – New Zealand

Executive Summary

Tourism is one of the main areas of business with huge benefits to both the visitors and the hosts. Apparently, it incorporates many differentactivities as well as influences the economic conditions of the host country. As a result, most countries welcome tourism and protect related areas. New Zealand constitutes one of such countries. Itgains close to 11% of the gross domestic product from over 3.8 million annual visitors. Consequently, numerous other businesses and industries rely on tourismlike travel, hospitality, and transport sectors. Apparently, the country strives to ensure delivery of the tourists’ expectations. The good road networks, numerousairports, and marine ports demonstrate the existence of government policies in line with the demands. Apparently, the nation protects most of the attraction sites. Besides, the country invests heavily in marketing and promotion strategies. The “100 percentPURE New Zealand”branding and advertisement constitute one of the approaches embraced.People consider New Zealandas one of the best touristdestinations.

Table of Contents

1. Introduction. 1

2. Destination Analysis – New Zealand. 2

2.1. Destination description. 2

2.2. Demand for New Zealand. 2

2.3.New Zealand’s tourism product 3

2.4. Impacts of tourism on New Zealand. 6

2.5. New Zealand’s marketing activities 7

3. Conclusion. 9

4. References. 10

1. Introduction

The tourism industry plays a significant role both to the hosts and to the visitors. It contributes to economic growth, commercial development, supports industrial expansion, and creates employment opportunities in the visited country. It further opens a country to the public providing opportunities for recreation and enhances interactions between nations. As a result, citizens consider tourism destinations essential elements of current and future growth and source of revenue, which are the reasons for preserving areas of conservation attractive for tourists. Some of the tourist destinations act as the archives of memorable events associated with the region and are protected to inform and educate future generations all over the world. Equally, these places hold information on the culture of the societies of interest. Other tourism destinations act as conservations of important wild animals and shorelines. New Zealand is one of such destinations with a broad variety of sites to visit. Different country’s attractions portray specific sceneries whereas others combine several destination sites. New Zealand remains perhaps the most spectacular, informative, and educative tourism destination globally.

2. Destination Analysis (New Zealand)

2.1. Description of Destination

The country, New Zealand, lies42 degrees east of the Greenwich meridian and 172 degrees south of the equator deep into the Pacific Ocean.The country has a population of close to5 million people as indicated by Stats NZ (n.d.). Europeansform the majority of the ethnic groups whereas Maori, Asians, and Africans constitute another part of population. The country uses English, Maori, and sign language as official ones.The country comprises of two major Islands, North Island and South Island,and numerous minor islands. The over 1600 kilometers length and 400 kilometers width define New Zealand as the country with long narrow geographic orientation.Temperate maritime climate dominatein the country with an average annual temperatures of 50 to 61 F and annual mean rainfall of 640 millimeters.

2.2. Demand for New Zealand

New Zealand has numerous tourist destinations exhibiting varying features and sceneries ranging from educational to recreational places. As a result, the country receives a considerable number of visitors yearly. A report by the Ministry of Business Innovation and Employment (2019), New Zealand records over 3 million visitors annually. These guests are attracted from various destinations globally. According to Ministry of Business Innovation and Employment (2019), other countries like Australia, China, the U.S.,the U.K, Japan, and Germany constitute some of the prime sources of tourists to New Zealand. The report further documents that these six countries account for over 70% of foreigners visiting New Zealand (Ministry of Business Innovation and Employment, 2019). This data indicates that New Zealand attracts different people, which depicts the destination as attracting and fulfilling.

New Zealand has recorded an overwhelming growth in tourist influx in the recent years. In particular, Ministry of Business Innovation and Employment (2019), which shows statistical details of international tourists, suggests that the country had 3,822,000 visitors in 2018 with a projected growth of 4.6% per annum. The numbers indicate a continuous increase in the number of visitors since 2008 as depicted in Figure 1 below. Besides, domestic tourism accounts for a considerable share of total industry in the nation. According to Yeoman et al. (2015), the tourism department focuses not only on international visitors but also on domestic tourists. The high number of visitors contribute towards the high level of development, preservation of critical sites, and consideration of more social elements to attract visitors. Equally, the high numbers contribute towards the top ranking of New Zealand. Actually, the country ranked 12th best destination globally based on Travel and Tourism Competitive Index of 2013 (Yeoman et al., 2015). The country is leading as one of the most recently prioritized and preferred destinations for tourism globally asit owns numerous places that attract a vast number of visitors.

Figure 1. Annual visitor arrivals, New Zealand (Stats NZ, 2018).

2.3. Tourism Products in New Zealand

New Zealand tourism attractions include education and research centers and sites, recreation sceneries, and cultural practices. These locations collectively but independently attract a massive number of visitors who appreciate the landscape, natural and human-made features of New Zealand. In essence, natural features appeal to the highest number of tourists (Yeoman, Palomino-Schalscha, & McMahon-Beattie, 2015). However, a considerable amount of attraction sites is only one element interesting for several categories of visitors. Research centers offer many activitiesfor learning and recreation. Equally, those visiting families and friends find time to enjoy attractive landscapes. Entertainment variety does not limit the number of visitors as anyone can satisfy their specific interests. However, the nation receives a vast number of visitors with the intent to achieve some of the aims highlighted.

The country provides several elements that attract researchers and academicians in an attempt to unearth and understand nature. According to Smale and Wiser (2015), Taupo Volcanic Zone is one of the unique active volcanic areas in the world whose activity dates back to over two million years. The area surrounding thiszone remains natural with little human influence enhancing research and accuracy of findings as suggested by Smale and Wiser (2015). New Zealand protects most of the educational sites, which enhances the efficiency of the results  highly attracting researchers. Volcanic valleys, rivers, and lakes interest the scientists and provide information on processes of formation and evolution. For instance, Waimangu, Waikite, and Waiotapu have remained the only active geothermal globally formed valleys in the recent past. These unique features have made New Zealand a leading destination for scientific activity and research. 

Preservation of natural sites is necessary for researchers’ work. Yeoman et al. (2015) indicate natural resources as the prime area of tourist attraction in the nation. Through legal provisions and necessary decrees, the country provides the infrastructure required to overcome any challenges that influence the natural status of these attraction sites to enhance their location convenience and proximity to the necessary facilities. According to El Kahtani, Xia, and Veenendaal (2011), accessibility to destination sites plays a significant role in enhancing tourism. The authors highlight the road network as one of the essential elements that tourists consider (El Kahtani et al., 2011). However, accommodation, safety, and attractions’ accessibility contribute to the tourism infrastructure.

New Zealand has a well-organized infrastructure for easy access to the major attraction points. Five international airports well distributed in the entire country act as the reception points for the foreign and domestic tourists (Tsui, Balli, Tan, Lau, & Hasan, 2018). Consequently, many smaller local airports offer swift movement to and from the various sites. Indeed, most of the cities in New Zealand host an airport with high tourist capacity.Well-structured roads connect different areas to major airports. The number of airports and seaports enhance the travel experience of the visitors encouraging more tourists as well as their loyalty.

The surrounding water bodies serve as entry and exit routes for tourists who admire using marine transport. Auckland, Lyttelton, Wellington, and Napier constitute some of the major seaports in the country. These ports act as a haven for tourists from various parts of the world. The development of the port of Auckland has provided an opportunity to host mega cruise ships with a big number of tourists as discussed by London, Moyle, & Lohmann (2017). The port infrastructure is an alternative avenue for receiving more visitors and the nation’s strategy to impress and attract tourists. However, land transport is still a very convenient way of travelling. A study by New Zealand transport agency indicated that in 2014, tourists rated the roads as easy to navigate, safe, and modern as discussed by Thomas et al. (2018). The road network in the country connects major towns, smaller towns, villages, and sites of interest to tourists. However, some of the tourist destinations, such as interior areas of the volcanic zone of Taupo and Waimangu valley,are hard to reach because of poor road network. The excellent road network, numerous international and domestic airports, and marine ports demonstrate a country with great infrastructure interested in more tourists.

2.4. How Tourism Affects New Zealand

Tourism plays a significant role in New Zealand with direct and indirect economic impacts. According to Tsui et al. (2018), generally, tourism contributes to the economic growth of the host nation through employment, increased revenue, sources of foreign exchange, business growth, and social growth. In its annual report, the Ministry of Business Innovation and Employment (2019) confirmed that international visitors spent 11 million dollars in New Zealand in 2018. Tourism further contributed 39.1 billion dollars to New Zealand’s economy. Indeed, according to the Ministry of Business Innovation and Employment (2019), tourism contributes 6.1% and 4.3% to the gross domestic product of New Zealand directly and indirectly respectively. These figures suggest that tourism acts as one of the significant contributors to the economy of the nationand fosters economic growth which propels business expansion.

Tourism relates to and relies on many businesses. Air transport, cargo transport, travel agencies, road network, hospitality, education, and research constitute some of the areas directly related to tourism. Agriculture and wine productionare some of the indirect business opportunities boosted by tourism in the country. The visitors use local-based travel agencies to deliver them to the intended local destinations, which leads to the growth of travel industry. With the intent to undertake research, academicians need the guide and research assistance of New Zealand professionals who understand the local peculiarities of such studies. On the other hand, all tourists need accommodation and food within the country, which spurs the growth of the related industries. Ministry of Business Innovation and Employment (2019) detailed that on average, every visitor spends about 2,000 dollars while staying in the island. The money from tourism aid in the growth of related industries and businesses.

The tourism sector contributes to increased employment in the country. The businesses and industries recruit national and international workforce to meet the demands of the significant number of tourists. Equally, the companies in transport industry such as New Zealand airlines get services from some of the local employees. Construction and maintenance of tourist sites as well as road networks require sufficient human resources. Most of the firms employ local members. Wine, agricultural, and food production require the input of locals. Ministry of Business Innovation and Employment (2019) suggests that in 2018, the industry employed 230,793 people directly, which accounts for about 8.4% of the total employment in the nation. Tourism acts as a critical source of job opportunities with a significant impact on New Zealand.

Growth of tourism sector has opened more opportunities in New Zealand both for locals and foreigners. According to Tsuiet al. (2018), raising the number of visitors contributes immensely to New Zealand’s tourism industry. This growth helps the country manage and protect some of the areas considered tourist destinations. It further helps the nation discover and research additional potential areas to attract more tourists as well as enhance their loyalty. These factors contribute to the growth of industrial tourism. Some of the investments include branding, strategizing, and marketing. New Zealand invests considerably in marketing and branding, which aid in enhancing and increasing tourists flow. According to Bell (2008), New Zealand’s branding is among the leading national brands globally. Consequently, the nation advertises the brand with the intent to reach maximum potential tourists.

2.5. How New Zealand Promotes its Tourist Sector to the Rest of the World

New Zealand values and identifies the “100% PURE New Zealand” brand. However, it relies on other terms such as “clean and green” as discussed by Bell (2008). In addition, Yeoman et al. (2015) highlight that“paradise”conceptis used by the nation as a brand to enhance popularity. The selection of the subjects related to tourism in the country refers to the current needs of most tourists. According to Rajesh (2013), environment, natural attractions, cleanness, rejuvenation, and heritage constitute some of the significant factors for tourists in the selection of preferred destinations. The branding strategy selected to primarily focus on these features to target travelling audience and  influence their decisions on visiting the nation.

3. Conclusion

New Zealand has retained a global presence as one of the main global tourist points. It offers a wide range of sub-destinations and sceneries with many attractions. These sceneries attract a considerable number of visitors from many countries to New Zealand annually. The number of tourists keeps increasing every year with high projected growth in the future. As a result, the country enhanced the capacity to handle and host numerous visitors through an increased number of airports as well as the construction of minor airstrips to aid in quick access to intended sites. Besides, the country focused on the creation and upgrade of marine ports that handle all sizes of ships. The development and maintenance of good road network enhance accessibility to the target areas. The country further markets the tourism industry through branding and advertisement which influence potential visitors. In return, the state gets a significant portion of the revenue from tourism. Equally, employment opportunities and business growth depend on the tourism sector. Tourism contributes positively to the host nation as well as the visitors.

4. References

Al Kahtani, S. J. H., Xia, J., & Bert, V. (2011). Measuring accessibility to tourist attractions. Geospatial Science Research Symposium2011. Melbourne, New Zealand. Retrieved from https://www.researchgate.net/publication/257603174_Measuring_accessibility_to_tourist_attractions

Bell, C. (2008). 100% PURE New Zealand: Branding for back-packers. Journal of Vacation Marketing, 14(4), 345-355. Retrieved from https://www.researchgate.net/publication/247764078_100_PURE_New_Zealand_Branding_for_back-packers

Higham, J., Haukeland, J. V., Hopkins, D., Vistad, O. I., Lindberg, K., & Daugstad, K. (2016). National parks policy and planning: A comparative analysis of friluftsliv (Norway) and the dual mandate (New Zealand). Journal of Policy Research in Tourism, Leisure and Events, 8(2), 146-175. Retrieved from https://www.academia.edu/30042876/National_Parks_policy_and_planning_A_comparative_analysis_of_friluftsliv_Norway_and_the_dual_mandate_New_Zealand_

Al  H.London, W. R., Moyle, B. D., & Lohmann, G. (2017). Cruise infrastructure development in Auckland, New Zealand: A media discourse analysis (2008–2016). Asia Pacific Journal of Tourism Research, 22(6), 615-633. Retrieved from https://www.researchgate.net/publication/315707350_Cruise_infrastructure_development_in_Auckland_New_Zealand_a_media_discourse_analysis_2008-2016

Ministry of Business Innovation and Employment. (2019). Key Tourism Statistics. Wellington: Ministry of Business Innovation and Employment. Retrieved from https://www.mbie.govt.nz/assets/eb398c3e84/key-tourism-statistics.pdf

Rajesh, R. (2013). Impact of tourist perceptions, destination image and tourist satisfaction on destination loyalty: A conceptual model. Revista de Turismo y Patrimonio Cultural, 11(3), 67-78. Retrieved from http://www.pasosonline.org/Publicados/11313special/PS0313_07.pdf

Smale, M. C., & Wiser, S. K. (2015). A classification of the geothermal vegetation of the Taupo Volcanic Zone, New Zealand. Proceedings from World Geothermal Congress of 2015. Melbourne, Australia. Retrieved from https://pangea.stanford.edu/ERE/db/WGC/papers/WGC/2015/02042.pdf

Stats NZ. (n.d.). Stats NZ. Retrieved from https://www.stats.govt.nz/

Stats NZ. (2018). International Visitor Arrivals to New Zealand: June 2018. Stats NZ. Retrieved from https://www.stats.govt.nz/assets/Uploads/International-visitor-arrivals-to-New-Zealand/International-visitor-arrivals-to-New-Zealand-June-2018-report/Download-data/international-visitor-arrivals-to-new-zealand-june-2018.pdf

Thomas, J. A., Balanovic, J., Davison, A., O’Donnell, K., Frith, B., & Fairgray, D. (2018). Great Kiwi road trips: Enhancing New Zealand’s tourism industry through better visitor journeys. Retrieved from https://www.nzta.govt.nz/assets/resources/research/reports/649/649-Great-Kiwi-road-trips.pdf

Tsui, W. H. K., Balli, F., Tan, D. T. W., Lau, O., & Hasan, M. (2018). New Zealand business tourism: Exploring the impact of economic policy uncertainties. Tourism Economics, 24(4), 386-417. Retrieved from https://www.researchgate.net/publication/320040637_New_Zealand_business_tourism_Exploring_the_impact_of_economic_policy_uncertainties

Yeoman, I., Andrade, A., Leguma, E., Wolf, N., Ezra, P., Tan, R.,&McMahon‐Beattie, U. (2015). 2050: New Zealand’s sustainable future. Journal of Tourism Futures, 1(2), 117-130. Retrieved from https://www.emeraldinsight.com/doi/full/10.1108/JTF-12-2014-0003

Yeoman, I., Palomino-Schalscha, M., & McMahon-Beattie, U. (2015). Keeping it pure: Could New Zealand be an eco-paradise? Journal of Tourism Futures, 1(1), 19-35. Retrieved from https://www.emeraldinsight.com/doi/full/10.1108/JTF-12-2014-0017