ANNU T - Tourism New Zealand

Transcription

G25
ANNUAL REPORT
Tourism New Zealand
2013/2014
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A walk on the wild side — Miles Holden
574
2.4
trade reps hosted in
NZ on familiarisation
trips
million referrals to
tourism businesses from
newzealand.com
$7.1 billion
injected into the nation’s
economy by international
visitors
39
conference bids
supported through the
Conference Assistance
Programme
39
major trade events
attended by TNZ
NZ online
travel modules
completed
2
new international
offices
18.2 million
visits to
newzealand.com
2
21,781
200
2.78 million
total visitor
arrivals
international media
attend Book of
New Zealand event
in LA
130
international media
hosted in NZ for the
Royal visit
792
fully qualified
NZ Specialists
35%
increase in
Government funding
3
20
editions of
newzealand.com
in nine languages
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Sara Orme
Contents
02/
Tourism New Zealand – Who We Are
04/
Chair and Chief Executive Report
10/Governance
1
Miles Holden
12/
Board Members
13/
Core Leadership Team
14/
Tourism Outcomes
22/
Statement of Service Performance
34/
Equal Employment Opportunities
37/
Financial Statements
71/
Audit Report
JAKARTA
Tourism New Zealand is a Crown Agent governed by the Crown Entities Act CEA 2004.
We were established by the New Zealand Tourism Board Act 1991, to market our country
as an international visitor destination for the long-term benefit of New Zealand.
We aim to improve tourism’s contribution to economic growth by growing the value of
international visitors to New Zealand. Our statutory functions under the CEA Act include to:
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•
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Develop, implement and promote strategies for tourism.
Advise the Government and the New Zealand tourism industry on matters relating to
the development, implementation and promotion of those strategies.
Tourism
New Zealand has
fourteen offices, two
in New Zealand, and
approximately 157
full time staff
SAO PAULO
As New Zealand’s National Tourism Organisation, we are the only entity within our country with the
mandate and resources to promote ‘destination New Zealand’ to potential visitors. Our work has
been carried out under the umbrella of the ‘100% Pure New Zealand’ campaign for over a decade.
The campaign was originally conceived in 1999 and has evolved over the years to tell the story of
how the people, landscapes and activities combine to deliver a uniquely New Zealand experience.
While advertising and promotion activity is where we focus many of our resources, our marketing also
extends to partnering with international travel sellers and airlines, engaging with New Zealand tourism
operators, providing information for visitors, and providing assurance of the quality of New Zealand’s
tourism product and experiences.
Tourism New Zealand is governed by a Board of Directors, which delegates day-to-day management
of the organisation to the Chief Executive.
Tourism New Zealand has 12 off-shore offices, two in New Zealand, and 157 staff.
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Chair and Chief Executive Report
KERRY PRENDERGAST
KEVIN BOWLER
On behalf of the Board and the Executive team
of Tourism New Zealand, we are pleased to present
the Annual Report for the 2013/14 year.
A number of factors have contributed to this overall
picture of growth, including improving economic
conditions and changes in air capacity. However,
it is clear that Tourism New Zealand has also played
a significant role.
Tourism New Zealand Chair
Tourism New Zealand began the period with
a new three-year marketing strategy providing
clear strategic direction for the organisation, and an
additional $123 million in Government funding
across four years. This enabled significant
expansion of our activity to market New Zealand
as a visitor destination.
The period concluded with international arrivals
growing at a level not seen in a decade. For the
year ending June, total arrivals were up 5.7 per
cent, driven by the growth in holiday arrivals, up 8.1
per cent. The result was increased value to the
industry, with total holiday stay days up 12.9 per cent
and expenditure from holiday visitors up 23.0 per
cent. In short, they are staying longer and spending
more, despite a relatively strong New Zealand dollar.
Importantly, the long-staying Western markets
of the UK, Germany and USA returned to growth,
accompanied by a continued steady increase from
our largest visitor market Australia.
There were ongoing positive shifts towards a higherquality visitor from China, helped significantly by the
introduction of the China Travel Law in October 2013.
While growth in numbers slowed, average length of
stay was up by 16.9 per cent year-on-year, increasing
from 6.5 days to 7.6 days for the year ending
June 2014.
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Tourism New Zealand Chief Executive
Research commissioned from the New Zealand
Institute of Economic Research (NZIER) found that
marketing factors had a significant and quantifiable
impact on visitor arrivals, with the strongest of these
factors being the impact of New Zealand’s association
with Middle-earth and the Hobbit films. Connecting
New Zealand with Middle-earth has been the main
priority of Tourism New Zealand’s marketing since
late 2012. The research showed that the increase
in arrivals had outstripped key markets’ economic
recovery and growth in outbound tourism, and that
New Zealand attracted more international visitors
than economic factors alone could account for.
It is rare to have such clear verification of the impact
of Tourism New Zealand’s work. The findings were
further backed up by the International Visitor Survey,
showing that 13 per cent of holiday arrivals for the
year ending June said The Hobbit Trilogy was a factor
in influencing their decision to choose New Zealand.
The ‘100% Middle-earth, 100% Pure New Zealand’
campaign was once again award winning,
acknowledged as the Grand Award winner at the
Pacific Asia Travel Association Gold Awards 2014. 100% Middle-earth will continue to be a core element of our
activity in FY15 as we fully leverage the powerful hook it
offers to influence the decision to choose New Zealand as a
destination. This provides effective cut-through in all markets
but is particularly powerful in the US, Germany and the UK.
This year the leverage campaign will start to make a subtle
shift, with a focus on journeying through New Zealand, as
we prepare for the next evolution of the campaign post
Middle-earth in FY16.
Core business progress
Working in partnership with others continues to deliver
significant benefit, extending the reach and effectiveness
of Tourism New Zealand’s marketing efforts. During the year
the Memorandum of Understanding (MOU) with Air New
Zealand was renewed, with a $20 million extension to the
marketing partnership. A three-year agreement with China
Southern Airlines and a three-year agreement with Singapore
Airlines were also signed, both critical to sustaining strong air
connectivity to New Zealand.
Other partnerships were formalised with America’s largest
incentive travel management company MARITZ Travel, and
US premium travel consortium Virtuoso, supporting work to
target high-value travellers through the lucrative conference
and events sector.
Activity to ensure travel sellers are knowledgeable about
New Zealand and able to sell it effectively as a holiday
destination is critical in realising the potential of target
markets. In March a revised trade website was released
which, together with our 100% Pure New Zealand Specialist
programme, is a core element of Tourism New Zealand’s
work with travel professionals to build in-depth destination
knowledge, get the latest product updates, and in turn,
grow their New Zealand sales.
Also in March, more than 50 agents from South and
South East Asia (SSEA) were welcomed on the first SSEA
mega-famil, coinciding with the completion of their 100%
Pure New Zealand Specialist training. A total of 427 travel
professionals became fully qualified 100% Pure New Zealand
Specialists during the year.
The year was another significant one for international media
exposure, which provides much greater reach than can be
achieved through paid campaign activity alone.
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Fraser Clements
A total of 298 media files were secured delivering
approximately $197 million in equivalent advertising
value. This included large-scale broadcasts; among
them were: Australia’s top-rating breakfast show
Sunrise, America’s The Bachelor, Korea’s Dad! Where
are we going?, and the UK’s action reality show RV
Rampage plus James Nesbitt’s River Deep, Mountain
High Christmas Day broadcast. All delivered extensive
coverage and exposure of New Zealand to excite and
motivate potential travellers to visit.
Leveraging off the 130 media here to follow the Royal
visit resulted in significant media coverage showing
New Zealand as a welcoming, hospitable visitor
destination. It coincided with the country becoming
the UK’s top dream destination in TripAdvisor’s
biannual trip barometer study. Combining this event
with the media coverage achieved through the
interactive display ‘The Book of New Zealand’, in
place for the Los Angeles premiere of the second
Hobbit movie, and the articles published by
attendees at the US Travel Classics writers’
association conference in May, an additional
$112 million of coverage was delivered.
Significant progress was made with the organisation’s
digital presence. Over the last year work has made
newzealand.com more accessible in priority markets,
with new language editions developed for Indonesia,
Argentina and Brazil. There are now 20 editions of
newzealand.com in nine languages.
Travellers are increasingly engaging with digital media
throughout their planning and travel process. In FY14
we saw more traffic to newzealand.com than ever
before, with 18.2 million visits, up 30 per cent yearon-year. As well as growing visits, 2.4 million referrals
were driven to industry and international travel sellers
to convert. More than 5.1 million visits originated from
mobile, tablet and smartphone devices, reinforcing
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the growing importance of mobile-digital in engaging
with target audiences.
The release of Tourism New Zealand’s first mobile
app, Essential New Zealand, also proved to be
very popular. With 90,000 downloads and 60,000
referrals generated to industry, the app is effectively
capitalising on the increased use of mobile devices
by visitors while in the country.
Developing people
Tourism New Zealand’s people have continued to be
developed through a number of new initiatives.
Over the year successful regional forums were
rolled-out to bring our people together for business
planning, learning and development. New Business
Leaders and Emerging Leaders programmes were
introduced, and an online learning channel and
Share and Learn programme were implemented
to support the global development needs of the
organisation and encourage knowledge sharing.
Courses were provided in the areas of presentation
skills, Māori tikanga and te reo, career development
and performance management. The annual employee
engagement survey saw the organisation surpass the
state service benchmark once again, with the 78.2 per
cent engagement score positioning the organisation
strongly among the ‘best places to work’.
With the increase in funding received for the financial
year, from 1 July Tourism New Zealand dedicated itself
to quickly getting the people and infrastructure in
place to deliver on the expectations of stakeholders.
Since then the organisation has grown from 110 to
157 Full Time Equivalents with the expansion of the
Business Events and India teams, the establishment of
offices and teams in Indonesia and Latin America, and
a new team established to focus on the premium sector.
Delivering on strategic priorities
The significant increase in investment received from
Government led to a review of Tourism New Zealand’s
strategic priorities, with funding allocated to four
key areas of the business: scaling up activity in core
markets, emerging markets, international business
events, and high-value premium travel.
Emerging markets
Tourism New Zealand’s new, stronger presence in
the priority ‘emerging markets’ of India, Indonesia and
Latin America, has allowed the organisation to rapidly
gear-up and maximise the potential they show as a
source of visitors. Building strong trade relationships
has been central to in-market activity, with more than
1,000 of the trade completing training modules and 40
key trade attending New Zealand’s annual travel expo
TRENZ, New Zealand famils and new trade shows.
Focus has been placed on building New Zealand’s
image, launching 100% Pure New Zealand campaign
activity in each market, translating newzealand.com
and engaging with key media through the international
media programme. Over the year 15 files from
Latin America, 12 from Indonesia and a further
16 from India were hosted.
International business events
Strong momentum has been achieved in the
convention and incentive market, with activity helping
to secure 39 bids under the Conference Assistance
Programme and a further 50 incentive groups.
‘100% Pure New Zealand - Beyond Convention’ was
launched alongside a dedicated website and industry
resource toolbox.
In May, 43 international buyers were brought to
New Zealand for the industry’s key annual trade event,
MEETINGS; a three-fold increase on the previous year.
Success has been seen in partnering with industry
throughout New Zealand and with key incentive
bodies offshore. Formal MOUs are now in place
with the Australian Society of Association Executives,
US incentive house ITA Group and Conventions and
Incentives New Zealand to support activity.
With new infrastructure set to be opened in Auckland,
Wellington, Christchurch and Queenstown in coming
years, the sector will be well placed to attract bigger
events and grow its value even further.
High-value premium travel
Since January a dedicated global premium team has
been in place. Establishing a Premium Strategy to
guide activity and work with premium operators and
product providers, has seen strong partnerships form
with luxury associations, including NZ Lodges, and
Virtuoso in the USA.
Across the year 28 premium media files and 40
premium travel trade famils were hosted and ten
international trade shows were attended including the
International Luxury Travel Mart (ILTM in both Cannes
and Asia), Pure Life in Marrakesh and Luxperience in
Australia. Additionally, the team has developed new
imagery, marketing assets and launched premium
campaign activity targeting high-value sectors.
This has been achieved through a market-bymarket approach to activity in prioritised regions.
In September the business events-specific campaign
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The establishment of the Destination New Zealand
Superyacht Attraction Initiative formalised a
partnership with New Zealand Trade and Enterprise,
Auckland Tourism Events and Economic Development
and New Zealand Marine, to promote and grow the
superyacht offering - a sector that is currently worth
more than $39 million to the New Zealand economy
each year.
Work to target high-value visitors was complemented
by a new focus on special interest travel sectors,
including youth travellers, walking and hiking, golf
and, of course, people wanting to see the country by
bike using the new New Zealand Cycle Trail. Research
confirms that these visitors tend to stay longer and
travel more widely, in turn spreading economic value.
Updated content hubs on newzealand.com, as well
as digital and print campaigns and new imagery and
video content, are successfully driving awareness of
the country’s unique product offering, inspiring highvalue special interest travellers to put New Zealand
at the top of their holiday list.
The establishment of Golf Tourism New Zealand in
May, made up of key players from the golf industry
who first came together as part of the Golf Working
Group in 2013, confirmed the advisory group’s
ongoing role to support the growth of high-value
visitor arrivals. The group now provides business
development support to the New Zealand golf tourism
industry which in turn is supporting Tourism
New Zealand’s activity to lift the current estimated
annual expenditure by international golf tourists
to $223 million by 2017.
Supporting Tourism 2025
Tourism New Zealand welcomed the release of
‘Tourism 2025 - Growing Value Together/Whakatipu
Uara Ngatahi’ by the Tourism Industry Association
in March 2014, with its aspirational goal to reach
$41 billion value by 2025. The framework sees the
industry come together with a shared vision for where
we want to get to and how, with a collective focus,
we can get there.
Tourism New Zealand’s current three-year marketing
strategy fits closely with the framework, supporting the
core focus of Tourism 2025 for the industry to move
in the same direction and target the same areas to
deliver the greatest economic returns for the country.
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Its theme ‘targeting for value’ is perfectly aligned with
Tourism New Zealand’s strategic priority to ‘focus
on higher-value visitors’. The objective is supported
directly by the increased investment in international
business events, premium visitor segments and
special interest travel sectors, as outlined above.
Via the strategic priority to ‘partner to extend reach’
Tourism New Zealand will continue to work closely
with airlines and airports to encourage growth in
airline services and ‘grow sustainable air connectivity’.
Activity to identify and attract people that visit New
Zealand in the shoulder and off seasons, particularly
from emerging markets like India and Indonesia,
assists the industry improve ‘productivity for profit’.
The strategic priorities to ‘drive preference to visit
New Zealand’ and to ‘grow a portfolio of markets and
segments’ underline Tourism New Zealand’s activities
supporting these themes.
The organisations’ involvement with the i-SITE network,
Qualmark and the China market through the Approved
Destination Status (ADS) and Premier Kiwi Partnership
programmes, contributes to the theme ‘drive value
through outstanding visitor experience’ under the
strategic priority to ‘optimise delivery capability’.
Also under this strategic focus, the framework’s
final theme of ‘insight’ is supported by
distribution of research analysis to the industry on
tourismnewzealand.com, through webinars, the
regular engagement via regional Roadshows, and
attendance at industry events and conferences.
The year ahead
With the knowledge that the association of New
Zealand and Middle-earth is such a powerful driver
of demand for travel to New Zealand, Tourism New
Zealand will maximise the opportunity to amplify the
association across the release period of the third and
final film from December 2014. This will see increased
investment in the Western long-haul markets,
while investment in the emerging markets of India,
Indonesia and Latin America will work to broaden the
organisations geographical portfolio.
Activity in the international business events, premium
and special interest sectors will create new value in
selected segments to drive disproportionate value
to the wider industry. Leverage of up-coming major
events including the ICC Cricket World Cup and FIFA
U-20 World Cup, both being held in
2015, will drive additional visitors
to New Zealand and increase
New Zealand’s profile.
Two significant projects that touch on all
our activity and will impact the industry
will also be delivered. The refresh of the
100% Pure New Zealand campaign will
provide greater differentiation of
New Zealand in an increasingly
competitive market, while work to
consider the need for a more sustainable
tourism sector, and a potential action
plan for how to achieve this, is something
that will feature heavily in Tourism
New Zealand’s work with industry.
Thanks and acknowledgements
The last year has seen a number of
changes to the New Zealand Tourism
Board. On behalf of everyone at
Tourism New Zealand we farewelled
Board members Jennie Langley,
Henry van Ash and Malcom Johns and
thanked them for their contribution and
commitment throughout their tenures.
We welcomed Norm Thompson, Mike
O’Donnell (MOD), Jacqui Spice and
Chris Parkin, whose respective insight
and industry knowledge will provide
significant value to the organisation in
the coming years. We also welcomed the
reappointment of Kerry Prendergast as
Chair of the New Zealand Tourism Board
for a further one-year term.
Our thanks go to the entire board, the
executive, and to the global whanau at
Tourism New Zealand for their dedication
and commitment. We believe we have
strong foundations in place to deliver
another record year of results to the
tourism industry and the wider
New Zealand economy.
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Fraser Clements
Governance
The Board
Conduct
The New Zealand Tourism Board (trading as
Tourism New Zealand) is a Crown entity established
under the New Zealand Tourism Board Act 1991 and
is a Crown agency for the purposes of the Crown
Entities Act 2004.
Tourism New Zealand expects all its employees
and board members to maintain the highest ethical
standards. Tourism New Zealand has in place an
employee code of conduct which all staff sign on
joining the organisation. Tourism New Zealand also
has a formal code of conduct for its board members,
which is consistent with the code released by the
State Services Commission.
Tourism New Zealand is governed by a Board
appointed by the Minister of Tourism. All decisions
relating to the operation of Tourism New Zealand
are made by, or under the authority of, the Board
in accordance with the New Zealand Tourism Board
Act 1991, and the Crown Entities Act 2004.
In accordance with the New Zealand Tourism Board
Act 1991, the Board must have no fewer than five,
and no more than nine, members.
The Minister’s formal line of accountability with
Tourism New Zealand is through the Board’s Chair.
Board appointments are generally for two or three
years, with reappointment possible. The composition
of the Board reflects a balance of tourism industry
and commercial expertise.
The Board meets at least six times a year, including
a two-day meeting to review the organisation’s
ongoing strategic direction. This strategy meeting
initiates the business planning process and informs
the preparation of the Statement of Intent 2013-2016.
Delegation
The Board delegates day-to-day management of
Tourism New Zealand to the Chief Executive who is
directly accountable to the Board through the Chair.
Tourism New Zealand’s Delegated Authorities Policy
is set by the Board and reviewed annually.
Appropriate formal processes are in place for
reporting back to the Board.
Induction and Development
Tourism New Zealand introduces each new board
member to the organisation through an induction
process which includes time spent with senior
executives and their teams. Members are also
encouraged, where appropriate, to attend tourismrelated events such as TRENZ and other
industry events.
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Disclosure of Interests
The Board is conscious of its obligations to ensure
that board members avoid any conflicts of interest in
their decision-making process. The Board ensures
that proper process is followed and that members’
interests are formally recorded, with any changes or
additions being disclosed at the start of each meeting.
Members excuse themselves from any discussions in
which their duty as a member could be compromised.
Risk Management
Tourism New Zealand manages its risks through a risk
management framework; a process that requires it to
identify legislative and business risks arising from its
strategic direction and operating environment.
Tourism New Zealand’s risk management policy is
reviewed annually by the Audit Committee. The Chief
Executive reports to the Board on the matter of new or
escalated risks and the processes in place to manage
these appropriately.
Tourism New Zealand conducts its own internal audits,
often with the involvement of its external auditors.
Audits are agreed by the Audit Committee and
programmes of work are developed with input by the
external auditors. The results are reported back to the
Audit Committee.
Board Committees
Committees of the Board are convened to deal
with specific matters and currently include the Audit
Committee and Remuneration Committee.
The Audit Committee meets at least twice a year.
It reviews Tourism New Zealand’s internal control
framework, external audit relationships and
engagements, health and safety, risk management
and financial reporting, including International
Financial Reporting Standards (IFRS).
The Remuneration Committee meets
on an adhoc basis. It reviews the
performance and remuneration of the
Chief Executive and senior management.
The committee also approves proposed
organisation-wide remuneration policies.
Subsidiary Companies
Tourism New Zealand has a controlling
interest in two subsidiary companies:
a 60 per cent shareholding in Qualmark
New Zealand Limited, and, (through the
terms and conditions of a relationship
agreement that meets the criteria
determined in NZ IAS 27 for consolidating
investments in subsidiaries), the Visitor
Information Network Incorporated,
trading as i-SITE New Zealand.
Three of Tourism New Zealand’s
Executive Team, including the Chief
Executive, are directors of Qualmark.
Tourism New Zealand appoints three
members to the i-SITE New Zealand
Board, including one Tourism
New Zealand executive member.
The Board of Tourism New Zealand is
provided with financial information from
each organisation at each board meeting,
as well as commentary on performance
and significant issues.
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Chris Sisarich
Board Members
KERRY PRENDERGAST Chair
JOHN THORBURN
Following a three-year term, Kerry Prendergast was re-appointed as
Chair of the New Zealand Tourism Board on 26 June 2014 for a oneyear term. She is the former Mayor of Wellington and former VicePresident of Local Government New Zealand. She holds an MBA
from Victoria University where she is also a Distinguished Alumni. She received a CNZM in 2011 for services to local government.
John is Chief Executive of InterCity and was most recently the
Chief Executive of Ngai Tahu Tourism. He has previously held senior
positions in a range of industries, including manufacturing, marketing
and telecommunications. John has also held recent Board positions
with the New Zealand Tourism Industry Association and the
New Zealand Conservation Authority. John was appointed to the
New Zealand Tourism Board on 7 August 2012 for a three-year term.
Kerry is currently Chair of the Environmental Protection Authority,
the New Zealand Festival and the Wellington Jazz Music Festival
Trust. She is also a Director of WorkSafe New Zealand, Kirkcaldie &
Stains, Phoenix Football Club and is a Trustee of the New Zealand
Community Trust, Victoria University and Motu Foundation.
RICHARD LEGGAT Deputy Chair
Richard has a varied background across business, marketing and
e-commerce. He is now a full time director.
Richard is the chairman of NZ Cycle Trail Inc, the entity charged
with ensuring the success and sustainability of the government’s
national cycle trail initiative. He is also on the Board Snow Sports NZ,
New Zealand Post and Education NZ. He is a founding committee
member of the Eating Disorder Association of New Zealand.
Richard, who was first appointed to the New Zealand Tourism Board
on 1 February 2010, was reappointed for a second term that expires
in February 2016 and appointed Deputy Chair in December 2013.
JENN BESTWICK
Jenn Bestwick’s professional career has been largely in strategy and
business development having worked extensively in both the public
and private sectors. Jenn has recently been working with Local
Authorities, Iwi and the primary and hydro-generation sectors on
fresh water management in the Canterbury region.
Jenn is the current Chair of Christchurch Polytechnic Institute of
Technology and board member of New Zealand Qualifications
Authority.
Jenn was appointed to the New Zealand Tourism Board on 7 August
2012 for a three-year term.
MIKE O’DONNELL
Mike, “MOD”, O’Donnell is Chief Operating Officer of Trade Me,
New Zealand’s largest online marketplace. MOD is a Director of
online global music company Serato, Director of Raygun, Member
of the MBIE Business Insight Board and a business columnist for
Fairfax Media.
He was previously the chairman of Positively Wellington Tourism and
has managed several online travel businesses. MOD was appointed
to the New Zealand Tourism Board on 15 October 2013 for a three
year term.
CHRIS PARKIN
Chris Parkin, is the owner of New Zealand’s only boutique art hotel,
Museum Art Hotel in Wellington. Formerly an investment banker, Chris
was a Wellington City Councillor for nine years before retiring in 2004.
Chris is Chairman of Wellington Venues Ltd and Chairman of Te Whaia
Services. In the 2011 Queen’s Birthday honours list he was awarded a
Companion of the New Zealand Order of Merit for services to the arts
and business.
Chris was appointed to the New Zealand Tourism Board in December
2013, with his three year term commencing in April 2014.
JACQUI SPICE
Jacqui Spice is the founder and CEO of Touch of Spice and has
over two decades of experience in luxury travel and tourism both
in New Zealand and internationally.
Touch of Spice has offices in both Queenstown and Auckland
specialising in luxury travel and destination management services
throughout New Zealand.
Jacqui was appointed to the New Zealand Tourism Board on
17 December 2013, with her three year term commencing on
27 January 2014.
NORM THOMPSON
Norm Thompson had a long career at Air New Zealand and held the
role of deputy CEO prior to his retirement at the end of 2013.
He is the current deputy Chair of ATEED (Auckland Tourism, Events
and Economic Development), Director of Dot Kiwi Ltd and a Trustee
on the Young Enterprise Trust Board. Norm Chairs Golf Tourism New
Zealand and is a Committee Member of the 2015 New Zealand Golf
Hope. In 2013 Norm was made an Officer of the New Zealand Order
of Merit for services to business and tourism.
Norm was appointed to the New Zealand Tourism Board in December
2013, with his three year term commencing in April 2014.
JAMIE TUUTA
Jamie is currently the Maori Trustee and CEO of Te Tumu Paeroa.
He is Ngāti Mutunga, Ngati Tama, Ngati Maru, Te Ati Awa and
Taranaki Iwi. He has held a range of governance positions in the
health, iwi development, fishing, agribusiness and investment sectors.
He is currently a director of Aotearoa Fisheries Ltd, Te Ohu Kaimoana
Trustee Ltd and Wools of New Zealand. Jamie is a recipient of the Sir
Peter Blake Emerging Leadership Award.
Jamie was appointed to the New Zealand Tourism Board in March
2013 for a three-year term.
NB: Malcom Johns was Deputy Chair of the New Zealand Tourism Board until his term expired in October 2013. He was replaced by Richard Leggat.
Henry Van Asch and Jennie Langley were members of the New Zealand Tourism Board until their terms expired in April 2014.
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Core Leadership Team
KEVIN BOWLER Chief Executive
Kevin Bowler joined Tourism New Zealand as Chief Executive in January 2010. He has marketing and business leadership experience
spanning consumer packaged goods, technology and media brands in New Zealand and internationally.
Before joining Tourism New Zealand, Kevin was inaugural CEO for start-up Yahoo!Xtra, a joint venture between Yahoo!7 and Telecom
New Zealand. Prior to that Kevin held a number of leadership roles with Telecom New Zealand including heading marketing across
all products for the consumer business. He also has extensive packaged goods marketing experience in New Zealand and the
United Kingdom.
Kevin is also on the Board of the Tourism Industry Association and the New Zealand Story.
JUSTIN WATSON Director of Trade, PR and Major Events
Justin Watson manages Tourism New Zealand’s global trade and PR activity including leading the offshore trade teams, the business
events and premium sectors, trade marketing and aviation along with international PR and major events. Justin joined Tourism New
Zealand in 2010 as General Manager - Marketing Communications.
With an extensive and successful marketing career spanning the last 16 years, Justin has sound strategic marketing and management
experience and a demonstrated track record of successfully achieving marketing and business outcomes.
ANDREW FRASER Director of Marketing
Andrew Fraser manages the most visible aspect of the 100% Pure New Zealand marketing campaign: consumer marketing and
advertising activity. This includes overseeing the communication strategy, creative development, planning, researching and
implementation of campaign and digital advertising activity across Tourism New Zealand’s key international markets.
Andrew is a seasoned senior executive and marketing leader with over 20 years experience. He has developed and launched one of
New Zealand’s most successful drink and youth brands in recent years, V Energy drink.
Prior to joining Tourism New Zealand, Andrew ran his own strategic consultancy business in Auckland. He has held senior marketing and
executive roles, gaining international experience with Cadbury/Kraft and Frucor Beverages/Danone.
SUE PARCELL General Manager Finance and IT
Sue Parcell is responsible for managing and leading the financial and accounting functions of Tourism New Zealand, while also managing
our IT infrastructure. She also oversees the strategic planning and reporting function.
Sue has had considerable experience in the tourism industry including senior finance and general management roles.
Prior to this she worked in finance roles in business services in New Zealand and overseas.
CHRIS ROBERTS General Manager Corporate Affairs
Chris Roberts joined Tourism New Zealand in July 2012 with responsibility for overseeing the relationships with key New Zealand
stakeholders, including Ministers, government agencies, media and the New Zealand tourism industry. Chris began his career as
a broadcast journalist before working at Parliament - including three years with the Minister of Tourism - which was followed by
management roles in the energy sector before joining Tourism New Zealand.
ROSE TUA General Manager People
Rose Tua is responsible for developing and implementing Tourism New Zealand’s human resources management strategy to ensure
that the leadership and management of all elements of the employee lifecycle is aligned to our organisation’s direction. This includes
recruitment, capability development and talent management, performance management and remuneration and reward initiatives for staff.
Rose joined Tourism New Zealand from senior HR and leadership roles at AXA New Zealand. Rose has an extensive and successful
human resources management career which has included a variety of HR leadership roles across financial services, telecommunications,
higher education, and health services in New Zealand and the UK.
13
Tourism Outcomes
This section describes the performance of tourism outcomes that outputs delivered by Tourism New Zealand contribute to.
Tourism New Zealand’s outputs are described later in the Statement of Service Performance starting page 22 in this report.
International tourism is New Zealand’s second largest export
International tourism is New Zealand’s second largest export (behind dairy), a comparison showing how international
tourism compares with other major export sectors is shown below.
International tourism compared with New Zealand’s other key exports
$14,000
$12,000
$10,000
$8,000
$6,000
$4,000
$2,000
$0
YE March
2006
YE March
2007
YE March
2008
YE March
2009
YE March
2010
YE March
2011
International tourism
Dairy products, including casein
Wood and wood products
Seafood
YE March
2012
YE March
2013*
Meat and meat products
*Note: YE March 2013 results are provisional
New Zealand level outcome: The value of international visitors to New Zealand is sustainably increased
Tourism New Zealand works closely with the wider New Zealand tourism industry to ensure strong economic outcomes
for New Zealand. In particular, Tourism New Zealand seeks to contribute to the New Zealand level outcome which is ‘the
value of international visitors to New Zealand is sustainably increased’. The outputs delivered by Tourism New Zealand
contribute to the high-level outcome; success is also influenced by variables that are outside both Tourism New Zealand
and the wider tourism industry’s control.
The number of visitors to New Zealand and the amount they spend depends on a range of variables, these include:
•
Tourism New Zealand’s marketing activities
•
The marketing activities of competing destinations and the efforts of other National Tourism Offices
•
The relative strength of the New Zealand brand
•
The impact of significant natural events both in New Zealand and in target markets
•
Exchange rates and the general economic conditions in countries of origin
•
Airline scheduling decisions, seat capacity on air routes and ticket pricing
•
Major events
High-level indicators describing the key economic contributions that international visitors made to the New Zealand
economy are contained in the Tourism Satellite Account. The most recent results for year ended March 20139 are
described in the table on the next page.
9
14
Source: Tourism Satellite Account 2013, Statistics New Zealand (Produced annually for YE March)
MEASURE
YE MARCH 2011
International tourism expenditure in NZ
YE MARCH 2012
YE MARCH 2013
$9,428m
$9,565m
$9.778m
Tourism direct contribution to GDP
3.6%
3.6%
3.7%
International tourism as a % of
total exports
15.9%
15.2%
16.1%
Tourism full-time employees - direct
104,900 (5.4%)
108,800 (5.6%)
110,800 (5.7%)
Tourism full-time employees - direct
& indirect
163,400 (8.5%)
169,500 (8.7%)
172,100 (8.8%)
$22,878m
$23,402m
$23,943m
$1,292m
$1,318m
$1,343m
Total tourism expenditure
(incl. domestic)
Tourism’s contribution to GST earnings
TREND
*
Note YE March 2013 results are provisional
The table above shows key indicators for year ended March 2013 all moving in a positive direction. Strong growth in visitor
arrivals and spend for the 2013/14 period (highlighted in the following sections) provide confidence that a positive result
will be reflected in the next Tourism Satellite Account, due to be published towards the end of 2014. STRONG PERFORMANCE RECORDED IN INTERNATIONAL VISITOR ARRIVALS ACROSS
TOURISM NEW ZEALAND’S PRIORITY MARKETS.
2013/14 delivered significant growth in international arrivals with total arrivals up 5.7 per cent, driven by holiday arrivals
which were up 8.1 per cent.
Importantly, the long-staying Western markets of the UK, Germany and USA returned to strong growth, accompanied by a
continued steady increase from New Zealand’s largest visitor market, Australia.
Significant changes occurred in the China market with positive shifts towards a higher-quality visitor from China, helped
significantly by the introduction of the China Travel Law in October 2013. This law change slowed visitor growth rates
for the year but also contributed to positive increases in the average length of stay, up by 16.9 per cent year-on-year,
increasing from 6.5 days to 7.6 days for the year ended June 2014.
Total and holiday arrivals from Tourism New Zealand’s priority markets are set out in the tables below:
TOTAL INTERNATIONAL VISITOR ARRIVALS BY MARKET
Target market
YE 30 June 2012
YE 30 June 2013
YE 30 June 2014
Change 2013/2014
(%)
Australia
1,175,296
1,183,856
1,235,808
4.39%
China
175,488
222,720
240,496
7.98%
USA
182,816
189,456
211,712
11.75%
UK
214,448
189,008
194,384
2.84%
Germany
62,992
65,040
75,808
16.56%
Japan
67,072
74,960
75,520
0.75%
LATAM*
29,360
24,144
25,008
3.58%
Indonesia
11,824
12,464
14,576
16.94%
India
29,648
29,936
33,904
13.25%
Priority 1 core
markets
Priority 2 core
markets
Priority emergigng
markets
15
Target market
YE 30 June 2012
YE 30 June 2013
YE 30 June 2014
Change 2013/2014 (%)
France
37,136
25,216
29,264
16.05%
Canada
49,296
46,960
48,432
3.13%
Singapore
38,736
37,696
44,704
18.59%
Malaysia
36,416
25,152
30,032
19.40%
Thailand
16,336
18,688
21,728
16.27%
501,536
480,496
501,248
4.32%
2,628,400
2,625,792
2,782,624
5.97%
Priority 3 markets
Rest of world
Total - All markets
HOLIDAY INTERNATIONAL VISITOR ARRIVALS BY MARKET
Target market
YE 30 June 2012
YE 30 June 2013
YE 30 June 2014
Change 2013/2014 (%)
Australia
459,984
451,088
477,568
5.87%
China
123,408
162,912
177,936
9.22%
USA
101,936
110,688
127,632
15.31%
UK
91,200
73,392
76,448
4.16%
Germany
42,736
44,224
53,760
21.56%
Japan
43,712
49,392
47,776
-3.27%
16,400
13,104
14,080
7.45%
7,152
7,888
9,360
18.66%
14,080
14,192
16,224
14.32%
France
24,688
15,872
18,736
18.04%
Canada
27,040
25,456
26,352
3.52%
Singapore
22,944
21,824
26,816
22.87%
Malaysia
24,960
15,392
18,640
21.10%
Thailand
7,568
8,848
10,704
20.98%
222,032
210,016
221,264
5.36%
1,229,840
1,224,288
1,323,296
8.09%
Priority 1 core
markets
Priority 2 core
markets
Priority emerging
markets
LATAM*
Indonesia
India
Priority 3 markets
Rest of world
Total - All markets
*LATAM includes: Brazil, Mexico, Argentina and Chile
Strong growth in international expenditure reflects improved visitor arrival performance
International visitor expenditure10 for the year ended 30 June 2014 was $7.150 billion, an increase of 11.2 pecent on 2012/13.
This significant increase in spend follows on from the strong performance in visitor arrivals and with total holiday stay
days up 12.9 per cent and expenditure from holiday visitors up 23.0 per cent, shows that international visitors are staying
longer and spending more, despite a relatively strong New Zealand dollar. Note: International visitor expenditure excludes
international airfares and international student expenditure.
10
Source: International Visitor Survey (IVS), Ministry of Business Innovation and Employment. Note: In 2012/13 the Ministry of Business Innovation and
Employment redeveloped the International Visitor Survey (IVS) as part of the Tourism Data Improvement Programme. As a result of this change, IVS expenditure
methodology changed which resulted in international visitor expenditure lifting. The IVS was back cast revising previous results in line with the new methodology.
16
International visitor expenditure for 2012/13 is set out by market/region in the table below11:
TOTAL INTERNATIONAL VISITOR EXPENDITURE BY MARKET
Market
YE 30 June 2012
(NZ$m)
YE 30 June 2013
(NZ$m)
YE 30 June 2014
(NZ$m)
Change 2013/2014
(%)
2,222
2,195
2,110
-3.9%
China
579
721
912
26.5%
UK
790
601
673
12.0%
USA
481
505
773
53.1%
Germany
215
229
375
63.8%
Japan
232
218
202
-7.3%
Korea
128
129
143
10.9%
Canada
150
136
283
108.1%
Rest of Asia
478
609
571
-6.2%
Rest of Europe
698
537
759
41.3%
Rest of Americas
61
83
70
-15.7%
Other
612
468
279
-40.4%
Total
6,646
6,431
7,150
11.2%
Australia
11
France and Malaysia results not available due to sample size too small to be representative.
17
Tourism New Zealand Outcomes
Tourism New Zealand’s output classes in 2013/2014 were carefully selected for the contribution they would make
to the achievement of the following organisation-specific outcomes:
Tourism New Zealand Outcome 1 – Preference: Tourism New Zealand’s marketing activity increases potential visitor
preference for New Zealand.
Tourism New Zealand Outcome 2 – Conversion: Tourism New Zealand’s activity converts international visitors’ preference
for New Zealand into travel.
Tourism New Zealand Outcome 3 - Visitor Experience: Tourism New Zealand’s activity enhances visitor experience
through access to information and encouraging quality product that meets specific visitor needs.
These outcomes, which are described in detail in Tourism New Zealand’s Statement of Intent 2013-2016, have been
developed to support the New Zealand Level Outcome.
Measures used to monitor the effect of Tourism New Zealand outputs on the outcomes are described below.
Tourism New Zealand Outcome 1 – Preference: Tourism New Zealand’s marketing activity increases potential visitor
preference for New Zealand.
There are many destinations competing to attract visitors. To achieve the government’s economic priorities and contribute
to achieving tourism industry outcomes, visitors need to choose New Zealand over other destinations. This means they
must have a preference for New Zealand as a destination and must be given an easy path to purchase.
Active Considerers’ preference for New Zealand as a holiday destination
Tourism New Zealand uses resources to target a group of consumers called ‘Active Considerers’. By definition an Active
Considerer considers New Zealand an appealing destination to visit, is seriously considering New Zealand for their next
destination, names New Zealand within their top five most preferred destinations and would be willing to spend above a
set threshold on their trip (differing by market). Research indicates over 60 million Active Considerers exist across the six
markets of Australia, China, USA, UK, Germany and Japan.
Tourism New Zealand’s focus is on increasing the number of Active Considerers who consider New Zealand their first
or second most preferred destination and to grow the incidence of Active Considerers in emerging markets where
New Zealand does not have such a strong presence.
To help gauge the impact marketing spend is having on the level of preference Active Considerers have for New Zealand
over other competing destinations, Tourism New Zealand undertakes regular campaign tracking within key and emerging
markets and for certain special interest categories.
A summary of preference results for FY14 is provided in the tables below:
PROPORTION OF ACTIVE CONSIDERERS IN KEY MARKETS WHO CONSIDER NZ THEIR FIRST OR SECOND
PREFERRED DESTINATION (95% CONFIDENCE).
Market
2013/14 target
2013/14 Actual
2012/2013 Actual
Australia
53%
58%
52%
China
77%
80%
75%
USA
50%
60%
48%
UK
61%
67%
54%
Germany
53%
63%
53%
Japan
57%
58%
51%
Preference for New Zealand grew significantly across all of Tourism New Zealand’s key markets with record highs in
several markets and all targets for the year exceeded. This strong performance was reflected in the positive visitor arrivals
results from these markets.
18
PROPORTION OF ACTIVE CONSIDERERS IN EMERGING MARKETS WHO CONSIDER NZ THEIR
FIRST OR SECOND PREFERRED DESTINATION
Market
2013/14 target
2013/14 Actual
2012/2013 Actual
India
62%
66%
New measure
Indonesia
31%
n/a
New measure
Latin America (Brazil)
34%
52%
New measure
INCIDENCE OF ACTIVE CONSIDERERS IN EMERGING MARKETS INCREASES
Market
2013/14 target
2013/14 Actual
2012/2013 Actual
India
34%
32%
New measure
Indonesia
44%
n/a
New measure
Latin America (Brazil)
45%
n/a
New measure
With the implementation of Tourism New Zealand’s new three year marketing strategy, 2013/14 saw Tourism New Zealand
invest in emerging markets India, Indonesia and Latin America (Brazil). With the exception of India, these were new markets
for Tourism New Zealand to invest in and it has taken time to develop appropriate research practices consistent with other
markets that Tourism New Zealand monitors. As a result it has not been possible to obtain all information for all markets.
This has been particularly difficult when measuring the incidence of Active Considerers.
Where information has been obtained, it has been encouraging to see positive results, in particular the strong levels
of preference for New Zealand amongst Active Considerers.
PROPORTION OF ACTIVE CONSIDERERS WHO CONSIDER NZ THEIR FIRST OR SECOND PREFERRED
DESTINATION FOR SPECIAL INTEREST ACTIVITY IN SPECIFIED MARKETS
Market
2013/14 target
2013/14 Actual*
2012/2013 Actual
Walking/Hiking
33%
83%
New measure
Cycling
33%
77%
New measure
Golf
36%
69%
New measure
*Please note the targets stated in Tourism New Zealand’s Statement of Intent 2013-2016 reflected the proportion of
Active Considerers that consider NZ their ‘first’ preferred destination, not their ‘first and second’. The results reflect the
wording of the KPI.
Digital channels remain pivotal to driving preference for New Zealand as a destination
Digital channels including newzealand.com, digital brand campaigns and social media platforms all play a key role in
driving preference for New Zealand amongst Active Considerers. Tourism New Zealand monitors the levels of connection
with target audiences through a range of measures focused on engagement and interaction with Active Considerers.
19
Tourism New Zealand tracks progress towards digital outcomes through the following measures.
Result / Measure
2013/14 target
2013/14 Actual
2012/2013 Actual
Average number of total visits to
newzealand.com per month
1,177,000
1,448,210
1,172,607
Average monthly ‘active visits’ to
newzealand.com12
516,000
623,292
486,640
Website visits where intent to visit
New Zealand was maintained or increased (%)
75%
84%
72%
Impressions generated from owned social
platforms (Facebook and Weibo)
14,750,000
575,700,000
New measure
Size of TNZ social media fan base
1,350,000
1,680,315
1,099,089
65% message pull
through in key markets
Not Measured
86%
USA
At least 60%
60%
New measure
UK
At least 60%
75%
New measure
Germany
At least 55%
71%
New measure
China
At least 65%
66%
New measure
Japan
At least 55%
73%
New measure
Active considerers associate NZ with key
brand attributes
Campaign Effectiveness - proportion
of those seeing the ad that are more
motivated to visit NZ as a result
Tourism New Zealand’s online channels continued to perform strongly in 2013/2014, building on the previous year’s strong
performance. Most targets were exceeded at both a global and local market level. Tourism New Zealand’s approach to
social media evolved throughout the year with an increased investment in using paid media to drive focus visitors to social
media platforms resulting in an exponential growth in impressions generated from Tourism New Zealand owned social
media platforms (an impression occurs when a visitor interacts with a social media platform).
Tourism New Zealand Outcome 2 – Conversion: Tourism New Zealand’s activity converts international visitors
preference for New Zealand into travel.
To achieve the government’s economic priorities and contribute to achieving the industry’s outcomes of increasing the
value of visitors to New Zealand, high-value visitors need to be identified and persuaded to choose New Zealand over
other destinations.
Tourism New Zealand’s level of understanding of Active Considerers in key markets has increased over time through
experience and on-going investment in market research. This has allowed distinct target segments and special interest
sectors to be more readily identified and enables marketing activity to be more accurately directed towards higher-value
special interest segments of the markets. Special interests can be a strong incentive to attract visitors to New Zealand for
a variety of interests such as business events, golf, ski, walking, cycling, backpacking etc. Likewise the younger 18-29 year
old traveller presents significant opportunity.
Using this improved targeting within markets, Tourism New Zealand focuses on converting the pool of people ‘actively
considering’ a trip to New Zealand into actual visitors. This is achieved by drawing Active Considerers to newzealand.com,
inspiring them with engaging content, then drawing them down the path of purchase by referring onto partners’ sites
where a purchase (e.g. an airline ticket or experience) can be made. In some cases, engagement is more direct by sending
Active Considerers directly to campaign pages or partner sites where they may be able to make a purchase (e.g. an airline
fare-finder).
Joint venture partnerships provide the opportunity to deliver co-ordinated marketing activity in market and provide the
opportunity to package Tourism New Zealand’s activity with a product that potential visitors can buy, thereby activating
opportunities for conversion. Partnerships also extend Tourism New Zealand’s marketing reach through pooling funding
with partners and leveraging each other’s expertise and support systems, increasing their efficiency and effectiveness.
12
Active visits: A visit where the visitor interacts with the site’s content or functionality
20
Tourism New Zealand tracks progress towards this outcome through the following measures.
Result / Measure
Average monthly referrals to industry via
newzealand.com13
ROI of partner campaigns14
Value of partnership contributions
Annual referrals to industry via TNZ
mobile application
2013/14 target
2013/14 Actual
2012/2013 Actual
149,000
182,699
174,930
1:5
1:20
(Average across key
markets)
New measure
Total: $22.00m
$20.4m
New measure
Launch of app by end
quarter one 2013/14
Essential New Zealand
mobile app launched on
26 June 2013
56,011
New measure
36,000
New measure
Performance against measures for this outcome was generally positive through the year. Particularly strong results were
seen for referrals to industry from newzealand.com and the high return on investment from joint venture partnership
campaigns. Launching the Essential New Zealand mobile app was an important milestone and the referrals generated
from the app exceeded expectations.
The overall contribution from partners was $20.4m, this is below the target of $22m set for FY14. This result is influenced
by factors including; an aspirational target being set for FY14, some partnered campaigns being delayed or rescheduled at
the request of partners during the year, and the suspected under reporting of non-financial contributions for some projects.
The final result of $20.4m remains a substantial figure that considerably extends the reach and effectiveness of Tourism
New Zealand’s activity. Tourism New Zealand previously reported on this measure in FY12, when $16m in partnership
contributions were recorded.
Tourism New Zealand Outcome 3 - Visitor Experience: Tourism New Zealand’s activity enhances visitor experience
through access to information and encouraging quality product that meets specific visitor needs.
To maintain and grow value from visitors it is essential that they have a great experience while in New Zealand and as
a result, enhance New Zealand’s reputation as a visitor destination. Providing good information about the destination
and the experiences available prior to and during a visit is a vital part of ensuring this happens.
To facilitate a positive experience, visitors need to have access to quality information on the things they can do.
newzealand.com and the i-SITE network are both essential sources of information for Active Considerers and help visitors
make informed choices about the products and experiences they are purchasing.
Tourism New Zealand is also active in ensuring quality standards are evident in the market for visitors through Qualmark
(a joint venture with AA) and the activities delivered by the China Market Development Unit, including monitoring of the
Approved Destination Status (ADS) programme for Chinese tour operators and the Premier Kiwi Partnership
(PKP) programme.
Tourism New Zealand tracks progress towards this outcome through the following measures.
Result / Measure
Satisfaction of overall tourism experience
for all i-SITE visitors compared to those
who did not use an i-SITE
Number of Qualmark licenses held
Average number of total visits to
newzealand.com per month
Level of satisfaction of Chinese visitors
Chinese visitors increases
15
2013/14 target
2013/14 Actual
2012/2013 Actual
Maintain at or above
9.0/10 and above
satisfaction levels of
non i-SITE users
i-SITE users: 9.0/10
Non-i-SITE users: 9.1/10
i-SITE users: 9.1/10
Non-i-SITE users:
9.0/10
2,200
2,088
2,157
1,177,000
1,448,210
1,294,000
Increase from 2012/13
8.9
8.4/10
30%
28.8%
New measure
(baseline 24%)
The decrease in i-SITE user satisfaction relative to non i-SITE users may be attributed to the changing role of i-SITEs in
regards to bookings and information, and the wider options that are available to tourists through the use of internet and
smartphone applications. Tourism New Zealand will continue to monitor this shift in customer satisfaction carefully.
13
Referral rates from paid traffic measure the number of people who, once drawn to newzealand.com from paid search or display digital activity, are then
delivered to an operator or partner site where travel/experiences can be purchased.
14
ROI is calculated by: (passengers booked) x (average visitor spend for market)/campaign spend. This generates a ratio that shows for every dollar we spent
we generated ‘x’ amount of value. Note: ROI relates to campaign spend only and is not intended to represent a ROI for overall Tourism New Zealand activity.
15
Includes ADS: mono, dual south island, dual long stay, General group, General Visitor visa: independent holiday, conference delegate visa, PRC Other
Tourist Group.
21
Statement of Service Performance
Overview
This report covers the New Zealand Tourism Board’s (trading as Tourism New Zealand) service performance for the
year ending 30 June 2014 against the forecast statement of activities, performance measures and standards set out in
Tourism New Zealand’s Statement of Intent 2013-2016.
Tourism New Zealand’s resource allocation decisions were based on the extent to which each proposed activity would
contribute towards the delivery of outputs and outcomes described in the 2013-2016 Statement of Intent.
In 2013/2014, Tourism New Zealand’s activities were funded primarily from one appropriation from within Vote Tourism.
STATEMENT OF SERVICE PERFORMANCE
2014
Actual
$000s
2014
Budget
$000s
2013
Actual
$000s
Crown revenue
$113,350
$113,351
$83,851
Other revenue
$8,424
$5,870
$5,745
$121,987
$119,221
$89,607
Crown revenue
$380
$0
$316
Expenses
$380
$0
$316
Total revenue
$122,154
$119,221
$89,912
Total expenses
$122,367
$119,221
$89,923
Appropriation 1: Marketing of New Zealand as a Visitor Destination
1
Total expenses
2
Other Crown revenue: Conference Assistance Fund
OUTPUT CLASS PERFORMANCE
In 2013/2014, Tourism New Zealand delivered the following six categories of output classes:
1.
2.
3.
4.
5.
6.
Deliver key visitor messages through the 100% Pure New Zealand campaign activity
Deliver key visitor messages through third parties such as media, opinion leaders and broadcast production
Partner with the travel industry to convert interest in New Zealand into travel and to extend marketing reach
Inform and inspire global travel sellers to assist them to market New Zealand
Deliver inspiring and informative information for potential visitors
Communicate and engage with New Zealand’s tourism industry to align industry investment with
Tourism New Zealand areas of focus
These output classes were funded primarily through Appropriation 1: Marketing of New Zealand as a Visitor Destination.
Other revenue includes bank interest, partner revenue, excludes foreign exchange gains.
Total expenses include offset from foreign exchange reserve to protect the funding lines from adverse movements in foreign exchange during the year
on offshore expenditure. Total expended exclude other foreign exchange losses.
1
2
22
OUTPUT CLASS PERFORMANCE
2014
Actual
$000s
2014
Budget
$000s
Output Class 1: Deliver key visitor messages through the 100% Pure New Zealand
campaign activity
$51,3941
$54,428
Output Class 2: Deliver key messages through third parties such as media, opinion
leaders and broadcast production
$9,909
$9,227
Output Class 3: Partner with the travel industry to convert interest in New Zealand
into travel and to extend marketing reach
$19,925
$16,882
Output Class 4: Inform and inspire global travel sellers to assist them to market New Zealand
$9,655
$10,329
Output Class 5: Deliver inspiring and informative information for potential visitors
$4,551
$4,596
Output Class 6: Communicate and engage with New Zealand’s tourism industry to align
industry investment with Tourism New Zealand areas of focus
$593
$824
$380
$0
New Zealand and offshore support costs
$25,960
$22,935
Total
$122,367
$119,221
Appropriation 1: Marketing of New Zealand as a Visitor Destination
Other Crown revenue: Conference Assistance Fund — CAP Crown
Output Class 4: Inform and inspire global travel sellers to assist them to market New Zealand
2
OUTPUT CLASS 1: DELIVER KEY VISITOR MESSAGES THROUGH THE 100% PURE
NEW ZEALAND CAMPAIGN ACTIVITY
Marketing is Tourism New Zealand’s largest output expenditure. Tourism New Zealand delivers a range of marketing
outputs, which broadly fit into the categories of campaign and market research.
Campaign
New Zealand’s 100% Pure New Zealand campaign is held in high regard and consistent messaging of this proposition has
made it one of the most recognised and respected destination campaigns globally. Tourism New Zealand continues to
drive improvements in balancing the localisation of work with global insights and shared learning from previous work.
Tourism New Zealand’s target audiences are those that are already actively considering a visit to New Zealand. As Tourism
New Zealand’s understanding of Active Considerer markets has increased, it has become possible to more accurately
target activity towards higher-value segments, including Business Events and Premium campaign activity, visitors from
emerging markets, special interest sectors (walking/hiking, cycling, golf, fishing), backpacker and working holiday visitors,
and China mono/FIT (free, independent travellers) visitors.
Tourism New Zealand activity focuses on reaching Active Considerers primarily via the use of digital marketing tools, such
as search engine marketing (SEM) and developing online display advertising campaigns using a combination of standard
and rich media (video). The use of digital marketing tools enables Tourism New Zealand to minimise media wastage by
targeting more precisely and having up to-the-moment feedback on campaign performance.
Tourism New Zealand also invests significantly in joint venture marketing activity with industry partners. Joint venture
marketing enables Tourism New Zealand’s messaging to be packaged with something potential visitors can buy, extending
marketing reach through matched funding while expanding and filling available air capacity from key tourism markets.
Campaign activity has close alignment with the Tourism 2025 framework, in particular the themes of:
•
Productivity for profit: through driving demand for shoulder travel periods and regional dispersal.
•
Growing sustainable air connectivity: through joint venture partnership campaigns.
•
Targeting for value: through our campaign work in China, Australia and emerging markets in particular as well as
special interest campaign activity.
Differences between Actual and Budget spend in Output Class 1: Deliver key visitor messages through the 100% Pure New Zealand campaign activity and
output Class 3: Partner with the travel industry to convert interest in New Zealand into travel and to extend marketing reach, is largely due to the treatment of
the budgeted partnership revenue. Through the FY14 budget, $5.2m out of $5.9m partnership revenue was allocated primarily to Output Class 1, however this
should have been applied to Output Class 3 as it related primarily to partnership campaign activity.
1
2
New Zealand and offshore support costs support the delivery of all six outputs.
23
Market insights
Market research activities focus on providing core intelligence and evaluation input into the development of marketing
campaigns and to provide information and insights to the industry.
Market insights activity is aligned with the Tourism 2025 framework, in particular the themes of:
•
Insight through developing market insight and formulating models for better industry access to information.
•
Drive value through outstanding visitor experience: through sharing market insight with industry.
OUTPUT CLASS 1: DELIVER KEY VISITOR MESSAGES THROUGH THE 100% PURE NEW ZEALAND CAMPAIGN ACTIVITY
BRAND CAMPAIGN ACTIVITY DELIVERED – KEY MARKETS
Quantity measures
Performance
Status
Australia
Target: 4 brand campaigns
Full year result:
7 delivered
China
Full year result:
2 delivered
USA
Full year result:
10 delivered
(Includes 2 x Youth and 3 x
Premium campaigns)
UK
Full year result:
4 delivered
Achieved
Germaniy
Full year result:
4 delivered
Achieved
Japan
Full year result:
2 delivered
Achieved
Business events
Target: Implemented quarter three in: Australia, USA, China,
Peninsular South East Asia
Full year result:
4 delivered
Achieved
India
Full year result:
2 delivered
Achieved
Indonesia
Full year result:
2 delivered
Achieved
Latin America
Full year result:
1 delivered
Achieved
Cost effectiveness measures
Performance
Status
Cost per engagement : display
Target: Australia $2.00-$2.50
China $1.20-$1.80
USA $1.20-$1.80
UK $1.50-$2.20
Germany $1.50-$2.20
Japan $2.50-$3.00
Full year result:
Australia: $2.02
China $0.46
USA: $0.18
UK: $1.53
Germany: $0.47
Japan: $0.91
Cost per acquisition2: search
Target: Australia: $1.50-$2.00
China $0.50-$1.00
USA $2.50-$3.50
UK $1.00-$1.50
Germany $1.00-$1.50
Japan $2.00-$3.00
Full year result:
Australia: $1.87
China: $0.64
USA: $2.08
UK: $1.05
Germany: $1.22
Japan: $1.94
Achieved
(see comment 1
below)
Achieved
Achieved
(see comment 2
below)
Brand campaign activity delivered – emerging markets
1
1
2
Engagement: when an action is taken on an ad, i.e. a click, a play of a TV commercial; some form of interaction.
Acquisition: refers to someone who has been drawn to newzealand.com as a result of seeing and acting on advertising/search initiatives
delivered by Tourism New Zealand.
24
Achieved
(see comment 3)
Achieved
OUTPUT CLASS 2: DELIVER KEY MESSAGES THROUGH THIRD PARTIES SUCH AS MEDIA, OPINION
LEADERS AND BROADCAST PRODUCTION
Public Relations / International Media Programme
Tourism New Zealand leverages communication channels, such as international public relations (PR), to deliver
brand messages through third parties (e.g. opinion leaders, independent media). This activity contributes to building
New Zealand’s popularity and accessibility as a destination and strengthens conversion. During 2013/14, activity
focused on high-value segments and sectors, delivering a programme of integrated campaign, PR and trade activity
to maximise effectiveness.
Public relations activity is aligned with the Tourism 2025 framework, in particular the themes of:
•
Targeting for value: through our PR work focused on growing preference for New Zealand amongst Active Considerers in key and emerging markets in particular as well as special interest sectors.
•
Productivity for profit: through driving regional dispersal and shoulder season travel including through support
for and promotion of events.
OUTPUT CLASS 2: DELIVER KEY MESSAGES THROUGH THIRD PARTIES SUCH AS MEDIA,
OPINION LEADERS AND BROADCAST PRODUCTION
PUBLIC RELATIONS/INTERNATIONAL MEDIA PROGRAMME
Quality measures
International media hosted from key
Tourism New Zealand markets
Target:
Media visits: 245
Media outlets: 300
Contributing to total:
• Media from emerging markets: 20 visits, 25 outlets
• Media hosted from premium travel sector: 25 outlets
Hosted media visits that feature a cultural element
Target: 50%
Performance
Status
Full year result:
295 media visits
443 media outlets
Achieved
45 visits from emerging markets
45 outlets from emerging markets
35 visits from premium outlets
Full year result:
60%
Achieved
Full year result: $194,275,000
(see comment 4
below)
Equivalent advertising value (EAV) of print, online and
broadcast in Tourism New Zealand markets3
Total EAV all markets
Target: $70,000,000
Contributing to total EAV:
EAV premium sector international media programme
Achieved
Full year result: $3,675,000
(4) The International Media Programme delivered particularly strong performance during 2013/14. This was due in part to
several projects delivering well beyond expectations including the Korean reality TV show ‘Dad! Where Are We Going?’
which follows five celebrity fathers and their children on an adventure trip to a mystery destination. The show went to air
in November 2013 following six days filming throughout New Zealand in October, supported by Tourism New Zealand, and
key partners Auckland International Airport and Korean Air. This project alone generated $31.8m in equivalent advertising
value for New Zealand.
OUTPUT CLASS 3: PARTNER WITH THE TRAVEL INDUSTRY TO CONVERT INTEREST IN NEW
ZEALAND INTO TRAVEL AND TO EXTEND MARKETING REACH
Joint venture activity
Joint venture partnerships provide the opportunity to deliver coordinated marketing activity and package Tourism New
Zealand’s activity with a product that potential visitors can buy, activating opportunities for conversion. Partnerships help to
attract funding by way of cash and in-kind support and assist tourism industry partners to leverage Tourism New Zealand’s
100% Pure New Zealand campaign. Partnerships range from high impact campaigns in Australia to TV production,
International Media Programme and visiting trade programmes.
3
Equivalent advertising value (EAV) results are not always available for all activity, so results will underestimate the actual value.
25
Partnership activity with Regional Tourism Organisations
Partnerships with Regional Tourism Organisations (RTOs), predominantly in Australia, focus on building regional stories
(e.g. North Island touring, and Ski NZ) and delivering conversion activity to maximise visitor value outcomes for
New Zealand.
Joint venture and partnership activity aligns with the Tourism 2025 strategy, in particular the themes of:
•
Targeting for value: through our partnership campaigns that drive conversion of higher-value visitors across
our markets and sectors.
•
Productivity for profit: through driving regional dispersal and shoulder and off-season (ski) travel.
Working with the aviation sector
Partnerships with airlines and airports provide essential foundations for building and sustaining supply-side capacity.
•
Tourism New Zealand partnerships will deliver fully integrated joint venture campaign activity to support filling existing capacity both in long-haul and trans-Tasman routes.
•
Tourism New Zealand will continue to work closely with airlines to support and build in-bound seat capacity
to New Zealand.
•
Tourism New Zealand will maintain agreements that have been formed with aviation and airline partners, and
seek out new agreements where they are in accordance with Tourism New Zealand’s international aviation
strategy. Under these agreements partnered marketing campaigns will be carried out that support the aviation
routes critical to developing tourism.
Working with aviation sector activity aligns with the Tourism 2025 framework, in particular the theme of:
•
Growing sustainable air connectivity: through establishing MOUs with Air NZ and other airlines, partnering with
airports and facilitating top-level meetings connecting other parts of Government, Ministers and the aviation sector. In addition, delivering fully integrated joint venture campaigns encourages flexible timing of activity to build
non-peak travel to assist with airline load factors and encourage sustainable airline economics.
OUTPUT CLASS 3: PARTNER WITH THE TRAVEL INDUSTRY TO CONVERT INTEREST
IN NEW ZEALAND INTO TRAVEL AND TO EXTEND MARKETING REACH
JOINT VENTURE ACTIVITY / RTO PARTNERSHIPS / WORKING WITH AVIATION INTEREST
Quantity measures
Performance
Status
Full year result:
20 partnered campaigns
SEM always on
(see comment 5)
Key markets partnership4 campaign activity
Australia
Target:
8 partnered, search engine marketing (SEM) always on
Achieved
China
Target:
6 partnered, SEM always on
Full year result:
SEM always on
Achieved
USA
Target:
Full year result:
SEM always on
Achieved
UK
Target:
Full year result:
SEM always on
Achieved
(1, 2) During 2013/2014 Tourism New Zealand exceeded the target for Brand campaigns in most markets and in particular
the USA and Australia. In the USA this was in part due to the inclusion of youth and new premium focused brand campaign activity.
(3) Cost per engagement: display was lower (performed better) than the target for most markets, in particular the USA and Germany. This KPI measures the cost effectiveness of engagement in the digital media space (as opposed to through
newzealand.com). An engagement can take different forms depending on the advertising in question, e.g. it could be
a click on advertising or watching a video. The low result for North America and Germany may be influenced by some
‘auto play’ activity in the engagement result. Auto play is where a consumer has to watch advertising before being able
to proceed with their original task, e.g. advertising on Pandora in the US, due to the nature of this advertising the cost of
engagement is brought down. A second factor influencing these targets is that this KPI was a new measure for FY14, as
such less information was available to allow challenging targets to be set for the year.
4
26
Partnered campaigns link Tourism New Zealand activity with an offer through a partner, brand campaigns are not directly linked with a partner and typically
drive activity to newzealand.com.
Quantity measures
Performance
Status
Germany
Target:
Full year result:
SEM always on
Achieved
Japan
Target:
Full year result:
SEM always on
Achieved
India
Target:
Full year result:
SEM always on
Achieved
Indonesia
Target:
Full year result:
SEM always on
Achieved
Latin America
Target:
Full year result:
1 partnered campaign
SEM always on
Not achieved
Emerging markets partnership campaign activity delivered
MOUs in place with airlines and travel sellers
Target:
7 airlines, 2 travel retailers, 3 incentive houses
Full year result:
6 airlines, 3 travel retailers and
3 incentive houses
(see comment 6
below)
Achieved
(see comment 7
below)
Cost effectiveness
Campaign return on investment (ROI)5 ($Spend: $Value
generated)
Target:
Australia: 1:5
China 1:5
USA 1:5
UK 1:5
Germany 1:5
Japan 1:5
Full year result:
Australia: No results available from
partners for 2013/14.
China: 1:26
USA: 1:20
UK: 1:15
Germany: 1:11
Japan: 1:29
Achieved
(see comment 8
below)
Partnership funds committed to coordinated marketing activity
RTO partnerships
Target: $1:$1
Full year result: $0.50:$1
Not achieved
Aviation partnerships
Target: $1:$1
Full year result: $1.08:$1
Not achieved
Value of partnership contributions
Target: $22m
Full year result: $20.4m
Not achieved
(see comment 9
over)
(see comment 10
over)
(5) During 2013/2014 Tourism New Zealand delivered a large number of joint venture campaign activity with industry partners.
This resulted in the number of partnered campaigns targeted for the year either being met or exceeded in the key markets
of Australia, China, USA, UK, Germanic Europe and Japan. This was particularly evident in Australia, the US and the UK, with 20, 14 and 11 partnered campaigns delivered respectively.
In Australia the increased partnership activity was driven in part by Memorandum of Understandings established in 2012/13
with Air New Zealand and major Australian travel providers, including Flight Centre Group, Qantas and Jetstar.
(6) The result for Latin American partnered campaigns was impacted by a delay in getting resource in place to deliver activity.
(7) MOUs in place with airlines and travel sellers - Tourism New Zealand secured one less airline MOU than forecast and
achieved an agreement with an additional travel retailer.
(8) Calculation of ROI is dependent on receiving booking information from partners. This information was not able to be
obtained from partners in Australia for 2013/14.
5
ROI is calculated by: (passengers booked) x (average visitor spend for market)/campaign spend. This generates a ratio that shows for every dollar we spent
we generated ‘x’ amount of value. ROI can only be provided on partnered campaigns where Tourism New Zealand has a line of sight through to bookings.
ROI relates to campaign spend only and is not a measure for Tourism New Zealand activity at an outcome level.
27
(9) The ratio for partnered RTO campaign activity is below the 1:$1 ratio set for FY14. The starting position for Tourism
New Zealand is to match partnership campaign contributions from the partners we work with, however in some cases
Tourism New Zealand will invest a greater proportion of funds where the opportunity to deliver stronger campaign outcomes
is identified. In addition, in Australia, we have been able to more closely align Tourism New Zealand’s overall brand campaign
work with partnered campaign activity. This has shifted some brand campaign spend into the partnership space and has
enabled RTO campaigns to be brought in line with Tourism New Zealand’s brand work to ensure consistent messaging in
Australia and thereby creating a stronger presence.
(10) The overall contribution from partners was $20.4m, this is below target of $22m set for FY14, this result is influenced by
a range of factors including; an aspirational target being set for FY14, some partnered campaigns being delayed or
rescheduled at the request of partners during the year, and the suspected under reporting of non-financial contributions for
some projects. The total of $20.4m remains a substantial figure that considerably extends the reach and effectiveness of
Tourism New Zealand’s activity. Tourism New Zealand previously reported on this measure in FY12, when $16m in partnership
contributions were reported.
OUTPUT CLASS 4: INFORM AND INSPIRE GLOBAL TRAVEL SELLERS TO ASSIST THEM
TO MARKET NEW ZEALAND
Working with the travel trade
The overseas travel trade is an essential step for many people between considering a trip to New Zealand and deciding to
make a booking. Active Considerers use a multi-channel approach for researching and booking travel and the travel trade
is active in many of these channels.
Tourism New Zealand delivers a range of training outputs aimed at enabling overseas travel sellers to more effectively sell
‘destination New Zealand’ to potential visitors in their market. Training is provided using a variety of approaches, including:
providing face-to-face and online training to the travel trade through newzealand.com/travel/trade; providing familiarisation
experiences to overseas travel sellers; undertaking joint marketing and promotion initiatives; and maintaining and updating
Tourism New Zealand’s travel trade website.
Tourism New Zealand also organises travel trade events and coordinates participation by the New Zealand tourism sector
at international trade shows.
Growing the business events sector
The business events sector is a high-value market segment for New Zealand. In addition to delivering a direct contribution
to New Zealand’s export earnings through international delegate spend, holding international business events in
New Zealand acts as an economic development tool by facilitating new international business-to-business relationships,
encouraging knowledge transfer to New Zealand and creating new investment opportunities. Business events are also
an attractive way to bring visitors in the shoulder and low seasons to address the seasonality of visitor streams.
With significant new conference facilities being planned and expected to become available in 2017 to 2018, Tourism
New Zealand is focused on promoting New Zealand as an international business events destination and growing the
value of this important international visitor sector.
In the trade space this includes:
•
Increasing Tourism New Zealand’s presence at global trade shows and events.
•
Delivery of a business events familiarisation programme.
Business events activity aligns closely with the Tourism 2025 framework, in particular the themes of:
•
Targeting for value: through a focus on growing the volume and value from a higher spending visitor sector.
•
Productivity for profit: promoting regional dispersal and shoulder season travel though considering timing
of events when deciding on support for and promotion of events.
OUTPUT CLASS 4: INFORM AND INSPIRE GLOBAL TRAVEL SELLERS TO ASSIST
THEM TO MARKET NEW ZEALAND
TRAVEL TRADE
Quantity measures
Successful travel module completions
Target: 20,000 travel modules completed
Emerging market – India: 4,500
28
Performance
Status
Full year result:
21,781 travel modules
completed
Including: 4,122 travel
modules completed
Core target
achieved
Component
target partially
achieved
(see comment 11
Pg 30)
Trade on Tourism New Zealand hosted famils
Target: 400
Emerging markets: 80
Business events: 80
Premium sector: 508
Full year result:
574 hosted
Including: Emerging
markets 49, Business
events 72, Premium
sector 57
Achieved
(See comment 12
Pg 30)
Full year result:
77%
Achieved
Full year result:
39 attended
Including: 9 from Business
events, 6 from Premium
sector
Achieved
Full year result:
8 organised/facilitated
Achieved
Full year result:
219
Achieved
Full year result:
792
Including 77 from India
Achieved
Bids supported through the Conference Assistance Programme (CAP)
Fund (excluding. Australia)
Target: 35 bids supported through the CAP.
Full year result:
39
Achieved
Success rate for bids supported through CAP fund
Target: 60%
Full year result:
66%
Achieved
Estimated value of bids 7 supported through CAP fund
Target: $87.5m
Full year result:
$68.0m
Not Achieved
Full year result:
0
N/A
Trade famils that feature a cultural element
Target: 60%
Major trade events attended by Tourism New Zealand
Target: Minimum of 25
Business events: 8
Premium sector: 15
Major trade events organised and facilitated by Tourism New Zealand
Target: Minimum of 8
Number of NZ advocates6
Target: 140
Grow the number of travel agents who are ‘100% Pure New Zealand
Specialists’
Target: 550
Contributing to total: Emerging market – India: 60
(See comment 13
Pg 30)
Incentive bids supported (Tourism New Zealand only tracks incentive
bids for 50 pax or higher with an estimated value of more than
200,000 NZD excluding. air fare).
Australia (through CINZ)
Target: 20
Note: Tourism New Zealand’s
focus in Australia has shifted from
incentive to conference and the
target and results now refer to
number of conferences supported.
China
Target: 30
Full year result:
30
Achieved
USA
Target: 50
Full year result:
42
Not
achieved
Peninsular South east Asia (Note: includes India)
Target: 30
Full year result:
41
Achieved
Incentive bids conversion rate
Full year result:
86.6%
Achieved
Full year result:
$ 30,8m
Achieved
Target: 25%
Value of incentive bids converted
Target: Benchmark data collection
(see comment 14
below)
6
NZ Advocates are travel companies that have been assessed against a specific set of criteria and then prioritised as to the level of activity undertaken.
This allows for a tiered approach by market with a sliding scale of account management service that focuses both budgets and resource. Once identified, the
company must have a formal partnership agreement in place that outlines the key objectives of the partnership, KPIs and agreed activity that will take place in
the 12 month period.
7
Estimated value: Average bid value is $2.5m (based on average bid value over the last 2 years). Estimate will differ to the actual result, which is likely to be
realised several years later e.g. less/more delegates turn up.
8
The premium sector target in Tourism New Zealand’s Statement of Intent 2013-2016, the number 15 was a typing error, the target should have read 5.
29
(11, 12) Emerging markets famils – The overall target for travel trade famils was exceeded, however the sub target for
emerging markets was not met. This was largely due to the time required to establish new offices in emerging markets
with the resources able to deliver required activity.
(13) The estimated value of bids converted was lower than the target set. While the number of bids supported exceeded the
target, the value of bids was impacted by the inability to guarantee the availability of large-scale infrastructure to support
conference bids over 1200-1500 persons. With new large-scale conference facilities confirmed, it is anticipated that highervalue bids will be able to be supported in future years.
(14) Strong results in the incentives bids supported were achieved across most markets, the exception was the USA where
the result was impacted by a delay in getting resources in place to deliver activity.
OUTPUT CLASS 5: DELIVER INSPIRING AND INFORMATIVE INFORMATION FOR POTENTIAL VISITORS
Tourism New Zealand’s activities within this output class include utilising newzealand.com, Tourism New Zealand’s
consumer website, to connect and engage with potential visitors to New Zealand and ensuring that i-SITEs meet the
quality standards that are a membership requirement.
newzealand.com
Tourism New Zealand’s consumer website, newzealand.com performs a dual role. As a marketing tool the website is used
to convert Active Considerers preference for New Zealand into actual travel and secondly, the site has a role to enable
visitors to engage with one another and with travel sellers to source information and advice.
i-SITE New Zealand
Tourism New Zealand also supports the provision of information to visitors through the i-SITE network. i-SITE New
Zealand Visitor Centres (80 across New Zealand) provide an information and booking service for attractions, transport,
accommodation and events to international and domestic visitors.
i-SITE New Zealand is a subsidiary of Tourism New Zealand, governed by a Board of Directors. The subsidiary is the
owner of the i-SITE brand and livery. Tourism New Zealand provides staff, support services, business systems and
marketing, primarily via digital channels, to raise the profile of the i-SITE network. i-SITE New Zealand has established the
membership standards that individual centres must achieve to use the i-SITE brand, and become a part of the network
of centres. These standards are enforced by site inspections of the centres by Qualmark assessors.
newzealand.com and i-SITE New Zealand activity aligns with the Tourism 2025 framework, in particular the strategic theme:
•
Drive value through outstanding visitor experience: through providing high-quality and timely information for
international visitors to New Zealand
OUTPUT CLASS 5: DELIVER INSPIRING AND INFORMATIVE INFORMATION FOR POTENTIAL VISITORS
NEWZEALAND.COM / I-SITE
Quality measures
Average number of total visits to newzealand.com per month
Target: 1,177,000
9
Full year result:
1,448,210 average
monthly visits
(see comment
15 over)
Achieved
Full year result:
Achieved – Tourism New Zealand
‘Essential New Zealand mobile app
launched on 26 June 2013
Referrals from app for FY14: 56,011
(FY14 target: 36,000)
Achieved
i-SITE annual Business Plan and audited Annual Report
approved by i-SITE Board
Target: 2013/14 Business Plan in place 1 July 2013, 2013/14
Annual Report approved by 31 of August 2014
Full year result:
Business Plan approved by i-SITE
Board on 20 June 2013. Annual
report adopted 8 September 2014
Not
Achieved
Full year result:
i-SITE user satisfaction: 9.0/10
Achieved
i-SITE members satisfaction with VIN Inc. service
Target: Minimum 80%
9
Status
TNZ mobile app deployed
Target: Launch of app by end quarter one 2013/14
Level of user satisfaction with i-SITE maintained or increases
Target: At or above 9.0/10
30
Performance
Full year result:
79.4%
Achieved
(see comment 16)
Tourism New Zealand campaign activity seeks to drive visits to newzealand.com, which generates visits, active visits and referrals. Quarterly targets are set
to reflect the level of campaign activity in each quarter. Achieving the quarterly targets ensures that the annual target will be achieved.
(15) newzealand.com, Tourism New Zealand’s consumer website exceeded the target set for average monthly visits during
2013/14 and recorded an all-time record volume for a single year. This is a direct result of increased levels of preference
for New Zealand in Tourism New Zealand’s priority markets, a sustained search engine optimisation programme which has
increased the site’s visibility on Google, and more effective digital marketing initiatives to acquire traffic.
(16) The i-Site member staisfaction rate was 0.6% below target, the result is so close that the target was achieved in substance.
OUTPUT CLASS 6: COMMUNICATE AND ENGAGE WITH NEW ZEALAND’S TOURISM INDUSTRY
TO ALIGN INDUSTRY INVESTMENT WITH TOURISM NEW ZEALAND AREAS OF FOCUS
Industry communication, engagement and relationship building
It is important that Tourism New Zealand is completely connected with New Zealand’s tourism operators. This is achieved
by informing, engaging with and listening to the New Zealand tourism industry. The main goal of this engagement is
to ensure alignment between market needs, Tourism New Zealand’s marketing programmes, and what is offered in
New Zealand.
Tourism New Zealand achieves this by the frequent distribution of e-bulletins, webinars, Tourism New Zealand’s corporate
website and speaking engagements. These communication channels enable Tourism New Zealand to keep the industry
well informed on key topics such as how markets are changing, what higher-value visitors are looking for, Tourism
New Zealand’s strategy, and key opportunities around selling the New Zealand tourism product and brand effectively.
Tourism New Zealand also works with other parts of Government to streamline processes that facilitate travel for
international visitors and identify opportunities to work together in areas where interests overlap including working with
Education New Zealand to identify and leverage international education opportunities.
Industry communication, engagement and relationship building activity aligns with the Tourism 2025 framework,
in particular the themes:
•
Drive value through outstanding visitor experience: through working with government to improve visitor
facilitation e.g. visa and border processes.
•
Insight through providing channels to distribute and receive market insight with and from the wider industry.
Qualmark
Qualmark is the New Zealand tourism industry’s official quality assurance agency. It is a Government-backed initiative
supported by Tourism New Zealand (60% share) and the New Zealand Automobile Association (40% share), and endorsed
by other leading tourism industry organisations. The role of Qualmark is to help achieve the tourism industry’s overall goal
to enhance New Zealand’s reputation as a world-class visitor destination.
Qualmark currently provides approximately 2,100 quality licences annually, by offering a star grading system for
accommodation facilities and an endorsement programme for activities, transport and services. To obtain a Qualmark
quality licence, Qualmark undertakes onsite assessments with trained assessors in order to measure the quality of
operators’ facilities and business practices. This includes health and safety systems and service systems relating to guest
care. Qualmark also gives recognition for excellence in environmental business practice through Enviro accreditation.
China Market Development Unit
China has rapidly grown to become New Zealand’s second largest visitor market. However, the Chinese visitor market is
subject to a number of constraints in terms of realising its potential value to New Zealand with particular quality issues that
require attention. The China Market Development Unit (the Unit) operated by Tourism New Zealand licenses, through the
Approved Destination Status (ADS) scheme, New Zealand-based inbound tour operators and tour guides that cater for
the Chinese market, and monitors their conduct, performance and quality standards. The Unit assesses new applicants,
completes regular compliance monitoring and assessments, and handles complaints and feedback from Chinese group
tour visitors.
The Unit administers the Premier Kiwi Partnership (PKP) programme which seeks to increase the proportion of quality
visitors from the China market through providing product development and marketing promotion support to selected
Chinese Travel Sellers and New Zealand inbound tour operators in order to reduce the barriers for higher-value mono
New Zealand product.
The Unit also produces Chinese language visitor information designed to increase China visitor knowledge, including
the rights and protections they have if visiting on an ADS tour.
31
The Unit aligns with the Tourism 2025 framework, in particular through the themes of:
•
Targeting for value: through the PKP programme which is focused on growing the proportion of quality visitors
from the China market.
•
Drive value through outstanding visitor experience: through ensuring minimum quality standards for visitors from
the China market visiting on an ADS approved tour.
OUTPUT CLASS 6: COMMUNICATE AND ENGAGE WITH NEW ZEALAND’S TOURISM INDUSTRY
TO ALIGN INDUSTRY INVESTMENT WITH TOURISM NEW ZEALAND AREAS OF FOCUS
NZ INDUSTRY / QUALMARK / CHINA MARKET DEVELOPMENT UNIT
Quality measures
Tourism New Zealand corporate website maintains or grows
repeat visits to site
Target: At least 110,000 repeat visits in 2013/14
Registrations for New Zealand industry webinars
Target: 720 people registered for at least 1 webinar
Industry road shows by CE and Chair
Target: 2 per annum
Tourism New Zealand communications (website/e-newsletter/
webinars etc.) add value to Tourism industry stakeholders’ activities
Target: Surveyed stakeholders rate the value of TNZ
communications an average of 4.0 or greater on a 5 point scale.
Number of ADS ‘spot checks’ and assessments of Inbound
Tour Operators
Target: 100 spot checks
4 assessment visits to ADS Inbound Tour Operators
Grow number of Premier Kiwi Partnership (PKP) tours delivered
by ITO partners
Target: Benchmarking year
Qualmark licensees’ satisfaction with Qualmark service/
programme
Target: Qualmark licensees’ satisfaction: 55%
Performance
Status
Full year result:
125, 643 repeat visits
Achieved
Full year result:
677
Not achieved
(See comment 16
below)
Full year result:
1 roadshow
Note: 2nd roadshow delivered in
July 2014 (2014/15 year) to avoid
conflicts.
Achieved
Full year result:
Average rating 4.0/5.0
Achieved
Full year result:
192 spot checks
Achieved
6 assessment visits
Full year result:
1019 PKP tours delivered
by ITO partners
Full year result:
Measure is no longer monitored.
N/A
(benchmarking
year)
N/A
(see comment 17
below)
Full year result:
Satisfaction of International tourists
that did use Qualmark: 8.9/10
Satisfaction of international tourists
that did not use Qualmark: 9.1/10
Not achieved
Compliance assessment of PKP Inbound Tour Operators (ITOs)
Target: Assessment of 4 PKP ITOs
Full year result:
4 ITOs assessed
Achieved
New ADS applications and applications for ADS renewals
processed within timeframes (within 90 working days for new
ADS applications and 30 working days for applications for ADS
renewals)
Target: 100% of new applications and renewals processed
within timeframes (on receipt of all necessary information)
Full year result:
100% of new applications and
renewals processed within
timeframes.
Achieved
Satisfaction of visitors who used Qualmark services compared
to non-Qualmark services
Target: Maintain at or above 9.0/10 and above satisfaction levels
of non-Qualmark users
(see comment 18
below)
(17) While the target for webinars was not met, the number of total registrations for the year (1135) demonstrated that a
significant number of people attended multiple webinars. During 2014/15 Tourism New Zealand is intending to extend the
reach of the webinars to a wider audience of stakeholders.
(18) Licensee’s satisfaction with Qualmark programme – this measure is no longer reported on and has been replaced with
‘Likelihood to recommend Qualmark’. The result from the 2014 annual survey was: 78% of licensee’s likely to recommend
Qualmark.
32
(19) Satisfaction for visitors that used Qualmark services was recorded as lower than for non-Qualmark users through
the International Visitor Survey. This is a reverse of previous results and coincides with a change in survey provider and
methodology. Qualmark and Tourism New Zealand will monitor this to see if it’s a consistent change.
Limitations with the current survey question have also been identified. At present, visitors who use Qualmark rated services
during their visit are included in the Qualmark satisfaction score, even if a visitor only stays one night in Qualmark rated
accommodation over a multi week visit. This means that visitor satisfaction is not solely based on Qualmark services.
Options to better compare Qualmark rated services with non-Qualmark services will be considered in 2014/15.
Fraser Clements
33
Equal Employment Opportunities
Under Section 151 (1)(g) of the Crown Entities Act, Tourism New Zealand is required to provide information about
compliance with obligations to be a good employer, including our Equal Employment Opportunities (EEO) Programme.
Set out below is a work place profile for Tourism New Zealand as at 30 June 2014.
Executive
Management
Direct Reports to
Executive Managers
or Staff with
Responsibility for
Specific Output Areas
Other Managers with
Staff Responsibility
(4th Tier)
Professional and
Support Staff
% of Group
% of Group
% of Group
% of Group
Male
50%
23%
17%
8%
Female
50%
33%
50%
44%
Male
0%
5%
0%
1%
Female
0%
3%
0%
3%
Male
0%
0%
0%
0%
Female
0%
3%
0%
1%
Male
0%
18%
17%
4%
Female
0%
5%
0%
23%
Male
0%
3%
0%
1%
Female
0%
8%
17%
16%
Organisation
7%
24%
4%
65%
NZ European
Māori
Pacific Peoples
Asian (incl. South
Asian)
Other nationalities
Women and people of Asian descent continue to be well represented at all levels of the organisation.
People with disabilities, aged people, and people of Māori and Pacific descent are represented in the organisation.
Tourism New Zealand operates in 12 offshore markets and employs people of different nationalities, race and ethnicity.
Tourism New Zealand continues to support the development and growth of all of our people and in order to facilitate
this, has undertaken the following:
•
Providing on-going training for our people on communicating effectively with Māori and understanding
tikanga and Te Reo.
•
Tools and information on Māori culture and language are made available on the intranet and form part
of the induction.
•
The continuation of our global community initiative ‘Global Whanau’ which has helped celebrate the diversity
of our employees, improve communication and connectedness between onshore and offshore offices.
Culture and Accountability
Tourism New Zealand remains committed to being a good employer and as such, to managing and leading all employees
fairly and properly in all aspects of their employment. This includes people in our offshore offices where there are different
jurisdictional requirements and statutory minima in the areas of Equal Employment Opportunities (EEO).
Tourism New Zealand has a strong mission, vision and values. The vision and values are part of our induction and have
been integrated into the reward and recognition programmes.
Tourism New Zealand has for the fourth year sought employees’ feedback and input through an annual engagement
survey to assist in maintaining an environment where employees are motivated and supported.
Our Core Leadership Team and broader management group is committed to demonstrating leadership and accountability
34 in all areas of EEO and this means a commitment to the following areas.
1.
Recruitment, Selection and Induction
Our recruitment and selection procedure has been developed to ensure that all prospective employees are given
the opportunity to participate equally in the recruitment process. Our selection process typically involves a structured
competency and behaviourally based interview, reference checking, a screening tool, and for senior positions,
psychometric assessment, all of which are validated and support EEO principles. Tourism New Zealand also provides
appropriate support for Māori and Pacific peoples and people with English as a second language during the recruitment
and selection process.
2.
Leadership, Learning and Development
Tourism New Zealand has leadership development programmes for emerging and business leaders which includes
facilitated learning, online learning, mentoring, coaching, 360º development and on the job learning. In terms of
organisational capability, effective leadership including understanding and knowledge of kaupapa and tikanga Māori
continue to be areas of focus. Te Wiki o Te Reo Māori and Matariki are also actively supported by Tourism New Zealand
through a programme to provide additional skills training and learning opportunities.
Tourism New Zealand measures leadership and management effectiveness as part of its annual engagement survey.
These measures are integrated with the performance management framework.
We also have a talent management programme, focussing on developing a depth and breadth of talent in the organisation.
Other training and development needs are identified on an individual basis through the development planning process,
and are agreed between the manager and employee. Development needs are aligned with agreed key performance
indicators.
3.
Flexibility and Work Design
Tourism New Zealand has an active organisational wide programme of supporting flexible working arrangements and
job design to assist employees to manage different aspects of work life balance. Where it is possible to accommodate
we continue to:
4.
•
Support employees with disabilities or special requirements through work place design changes and
accommodating individual needs in the work place.
•
Support parents in their return to work by offering part-time and gradual return to full-time arrangements
and flexitime to accommodate child care needs.
•
Support expectant parents by granting additional paid time away from work to attend appointments associated
with the pregnancy.
•
Support employees with responsibilities for child and eldercare by offering flexible working arrangements.
Remuneration, Recognition and Rewards
Tourism New Zealand differentiates remuneration based on performance and is committed to compensating employees
competitively and equitably with attention to affordability and within the scope of available resources. The Tourism
New Zealand remuneration practice is supported by use of independent job evaluation and market remuneration
information to set salary ranges.
Individuals identified as not meeting the requirements of their role are provided with support, training and development
where required to assist them to achieve role objectives.
5.
Harassment and Bullying Prevention
Tourism New Zealand adheres to its policy and procedures for addressing work place harassment and bullying. During the
year the Human Resources team have attended legislative updates and workshops discussing best practice on adhering
to the new WorkSafe New Zealand guidelines on preventing and responding to Workplace Bullying.
6.
Safety, Health and Wellbeing
Tourism New Zealand is committed to maintaining a healthy, and safe work environment for its employees and contractors
in undertaking its activities. Tourism New Zealand has established a Health, Safety and Wellness Committee, which
represents the employees. The Committee is progressively working to identify and address initiatives which support
maintaining employee health, safety and wellness.
Over the last 12 months, additional support for people has included specialist work place assessments and the provision
of special equipment to ensure that employees are able to contribute effectively in all aspects of their working life.
35
36 36
Mike Heydon
FINANCIAL STATEMENTS
Statement of Responsibility
In terms of the Crown Entities Act 2004, the Board is responsible
for the preparation of the New Zealand Tourism Board’s financial
statements and statement of service performance, and for the
judgments made in them.
The Board of New Zealand Tourism Board has the responsibility
for establishing, and has established, a system of internal control
designed to provide reasonable assurance as to the integrity and
reliability of financial reporting.
In the Board’s opinion, these financial statements and statement of
service performance give a true and fair view of the financial position
and operation of the New Zealand Tourism Board Group for the year
ended 30 June 2014.
The Members of the New Zealand Tourism Board and Group
authorised these financial statements for issue on 6 October 2014.
Signed on behalf of the Board:
K. Prendergast
Chairman
6 October 2014
R. Leggat
Deputy Chair
6 October 2014
37
STATEMENT OF COMPREHENSIVE INCOME
for the year ended 30 June 2014
GROUP
PARENT
Notes
2014
Actual
$000s
2014
Budget
$000s
2013
Actual
$000s
2014
Actual
$000s
2014
Budget
$000s
2013
Actual
$000s
2
113,730
113,862
84,167
113,730
113,862
84,167
46
103
115
46
100
114
Income
Revenue from Crown
Interest income
Other revenue
3
9,916
7,274
7,420
8,349
5,259
5,631
Share of associate's surplus
8
-
-
10
-
-
-
123,692
121,239
91,712
122,125
119,221
89,912
4
123,740
120,355
90,860
122,190
118,355
89,124
12,13
1,028
884
823
1,012
866
799
Total Income
Expenditure
Other expenses
Depreciation and amortisation
Share of associate's deficit
8
11
-
-
-
-
-
Total Expenditure
5
124,779
121,239
91,683
123,202
119,221
89,923
(1,087)
-
29
(1,077)
-
(11)
6
(1,909)
-
295
(1,909)
-
295
21
-
-
-
-
-
-
(2,996)
-
324
(2,986)
-
284
Other comprehensive income/(expense)
-
-
-
-
-
-
Total comprehensive income/(expense)
for the year
(2,996)
-
324
(2,986)
-
284
890
-
394
890
-
394
(2,106)
-
718
(2,096)
-
678
21
-
27
-
-
-
(3,017)
-
691
(2,986)
-
678
(2,996)
-
718
(2,986)
-
678
21
-
27
-
-
-
-
678
-
678
Net Operating Surplus/(Deficit) before
Foreign Exchange and Taxation
Foreign Exchange
Unrealised Foreign exchange gains/
(losses) on derivative financial instruments
held at year end
Income tax expense
Net Surplus/(Deficit) for the year
Benefit of foreign exchange reserve
transfer
6
after foreign exchange transfer
Net Surplus/(Deficit) for the year is
attributable to:
Non-controlling interest
7
Owners of the parent
for the year is attributable to:
Non-controlling interest
Owners of the parent
38
7
(3,017)
-
691
(2,986)
(2,996)
-
718
(2,986)
The notes and accounting policies on pages 42 to 68 form part of and are to be read in conjunction with these financial statements
STATEMENT OF CHANGES IN EQUITY
PARENT
Notes
Balance at 1 July
Net surplus for the year
Transfer from Retained Earnings to Foreign
Exchange Reserve
Total comprehensive income for the year
Balance at 30 June
18
Shareholders
Equity $000s
1,805
Foreign Exchange
Retained
Reserve $000s Earnings $000s
5,007
688
Total
$000s
-
-
(2,986)
7,500
(2,986)
-
(890)
890
-
-
(890)
1,805
4,117
(2,096)
(1,408)
(2,986)
4,514
GROUP
Notes
Balance at 1 July
Net surplus/(deficit) for the year
Transfer to Retained Earnings from Foreign
Exchange Reserve
Total comprehensive income for the year
18
Balance at 30 June
Shareholders
Equity $000s
Foreign
Exchange
Reserve
$000s
Retained
Earnings
$000s
NonControlling
Interest
$000s
Total
$000s
1,805
-
5,007
-
742
(3,017)
206
21
7,760
(2,996)
-
(890)
890
-
(890)
(2,127)
21
(2,996)
1,805
4,117
(1,385)
227
4,764
- -
STATEMENT OF CHANGES IN EQUITY
PARENT
Notes
Balance at 1 July
Exchange Reserve
Total comprehensive income/(expense) for
the year
Balance at 30 June
18
Shareholders
Equity $000s
1,805
-
Foreign Exchange
Reserve $000s
4,613
394
Retained
Earnings $000s
404
678
(394)
Total
$000s
6,822
678
-
-
394
284
678
1,805
5,007
688
7,500
GROUP
Notes
Balance at 1 July
Exchange Reserve
for the year
Balance at 30 June
18
Shareholders
Foreign
Equity Exchange
$000s
Reserve
$000s
1,805
4,613
394
Retained
Earnings
$000s
Total
$000s
445
691
(394)
NonControlling
Interest
$000s
179
27
-
7,042
718
-
-
394
297
27
718
1,805
5,007
742
206
7,760
39
STATEMENT OF FINANCIAL POSITION
as at 30 June 2014
GROUP
PARENT
Notes
2014
Actual
$000s
2014
Budget
$000s
2013
Actual
$000s
2014
Actual
$000s
2014
Budget
$000s
2013
Actual
$000s
9
4,213
6,242
5,851
3,970
6,000
5,768
10
2,075
1,509
1,976
1,868
1,299
1,439
936
-
1,188
928
934
1,188
921
-
143
-
-
143
7,224
8,939
8,898
6,772
8,487
8,271
Current Assets
Cash
Receivables
Prepayments and other current assets
Derivative financial instruments
11
Non-current Assets
Property, plant and equipment
12
1,943
1,727
2,037
1,929
1,707
2,020
Intangible assets
13
1,371
11
1,120
1,264
-
1,054
Investment in associate
8
-
1
11
-
-
-
Accommodation bonds
14
257
342
292
257
342
292
3,571
2,081
3,460
3,450
2,049
3,366
10,795
11,020
12,358
10,222 10,536
11,637
Total Assets
Current Liabilities
Creditors and other payables
15
3,177
3,046
3,274
3,001
2,910
3,171
Employee entitlements
16
683
522
563
655
472
534
139
150
488
20
-
159
Invoiced in advance
Provisions
17
20
-
24
20
-
24
11
1,520
152
-
1,520
152
-
5,539
3,870
4,349
5,216
3,534
3,888
Non-current Liabilities
Provisions
17
246
288
249
246
288
249
11
246
-
-
246
-
-
492
288
249
492
288
249
Total Liabilities
6,031
4,158
4,598
5,708
3,822
4,137
Net Assets
4,764
6,862
7,760
4,514
6,714
7,500
1,805
1,805
1,805
1,805
1,805
1,805
(1,385)
347
742
(1,408)
296
688
Equity
Equity attributable to equity
holders of the parent
Shareholder's Equity
Retained Earnings
Foreign Exchange Reserve
18
Parent interests
Non-controlling interests
Total Equity
40
7
4,117
4,613
5,007
4,117
4,613
5,007
4,537
6,765
7,554
4,514
6,714
7,500
227
97
206
-
-
-
4,764
6,862
7,760
4,514
6,714
7,500
STATEMENT OF CASH FLOWS
GROUP
Notes
2014
Actual
$000s
PARENT
2014
Budget
$000s
2013
Actual
$000s
2014
Actual
$000s
2014
Budget
$000s
2013
Actual
$000s
113,730
113,351
84,167
113,730
113,351
84,167
46
103
132
46
100
132
10,090
7,785
6,983
8,403
5,770
5,193
(122,822) (120,360)
(91,657)
(121,392)
(118,342)
(89,760)
Cash flows from operating activities
Crown revenue
Interest received
Other revenue
Payments to suppliers and employees
Goods and services tax (net)
(1,024)
-
95
(1,000)
-
47
20
879
(280)
(213)
879
(221)
Sale of property, plant and equipment
-
-
3
-
-
3
Repayment of accommodation bonds
8
-
-
8
-
-
Purchase of property, plant and
equipment
(706)
(879)
(555)
(702)
(879)
(545)
Purchase of intangible assets
(691)
-
(797)
(622)
-
(797)
(13)
-
(8)
(13)
-
(8)
Net cash outflow from investing
activities
(1,402)
(879)
(1,357)
(1,329)
(879)
(1,347)
Net decrease in cash held
(1,382)
-
(1,637)
(1,542)
-
(1,568)
Effect of exchange rates on foreign
currency balances
(256)
-
183
(256)
-
183
Opening cash brought forward
5,851
6,242
7,305
5,768
6,000
7,153
4,213
6,242
5,851
3,970
6,000
5,768
Net cash outflow from operating
activities
19
Cash flows from investing activities
Payments for accommodation bonds
Cash at end of year
9
41
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1
STATEMENT OF ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2014
(A) Basis of preparation
Tourism New Zealand is a Crown entity as defined by the Crown Entities Act 2004 and is domiciled in New Zealand.
Tourism New Zealand’s financial statements have been prepared in accordance with New Zealand generally accepted
accounting practice and the requirements of the Crown Entities Act 2004. The financial statements have been prepared
on a historical cost basis modified by the revaluation of certain assets and liabilities as identified in this statement of
accounting policies.
For the purposes of financial reporting, Tourism New Zealand is classified as a Public Benefit Entity.
(B) Statement of compliance
The financial statements have been prepared in accordance with New Zealand equivalents to International Financial
Reporting Standards (NZ IFRS) and other applicable Financial Reporting Standards as appropriate for public benefit entities.
The financial statements are presented in New Zealand dollars and all values are rounded to the nearest thousand dollars
($000). The functional currency is New Zealand dollars.
(C) New accounting standards and interpretations
i) Changes in accounting policy and disclosure
The accounting standards and policies are consistent with those of the previous financial year.
(ii) Accounting standards and interpretations issued but not yet effective
Standards and interpretations that have recently been issued or amended but are not yet effective have not been adopted
by Tourism New Zealand for the annual reporting period ending 30 June 2014. These are outlined below.
PBE Standards for Tier 1 and Tier 2 Public Sector Entities
In March 2011, the Accounting Standards Review Board (the predecessor body to the External Reporting Board) announced
its decision to adopt a multi-standards approach to financial reporting in New Zealand. As a consequence, a package of PBE
Standards issued, applicable for Tier 1 and Tier 2 public sector PBEs and consists of the following standards:
•
Standard XRB A1 Accounting Standards Framework, which is the overarching standard that sets out the accounting
standards framework;
•
A suite of 39 PBE Standards; and
•
The Public Benefit Entities (conceptual) Framework.
The new PBE Standards are based on International Public Sector Accounting Standards, which are themselves based on
IFRS. Therefore major changes to accounting policies are not expected.
Nevertheless, there are some potentially significant differences and also a range of smaller differences between the PBE
Standards and NZ IFRS. Examples of potential significant differences could include:
42
•
PBE Standards with no equivalent NZ IFRS
•
PBE IPSAS 23 Revenue from Non-Exchange Transactions, which prescribes requirements for accounting for revenue
from non-exchange transactions;
•
PBE IPSAS 32 Service Concession Arrangements: Grantor, which prescribes the accounting for service concession
arrangements by the grantor
•
Differences between equivalent standards
•
PBE IPSAS 20 Related Party Disclosures, exempts all transactions between related parties (except key management
personnel remuneration) that occur on arm’s length terms and conditions from disclosure, and provides a potentially
wider definition of key management personnel compared to NZ IFRS 24 Related Party Disclosures.
Early adoption of PBE Standards by Tier 1 and Tier 2 public sector PBEs is not permitted.
Application date of standard: 1 July 2014
Impact on Group financial statements: The application of this standard will have an impact on certain disclosures in the
Group financial statements.
Application date for Group: 1 July 2014
NZ IFRS 9 (2010) Financial Instruments
NZ IFRS 9 (2010) supersedes NZ IFRS 9 (2009). The requirements for classifying and measuring financial liabilities were
added to NZ IFRS 9 as issued in 2009. The existing NZ IAS 39 Financial Instruments:
Recognition and Measurement requirements for the classification of financial liabilities and the ability to use the fair value
option have been retained. However, where the fair value option is used for financial liabilities, the change in fair value is
accounted for as follows:
The change attributable to changes in credit risk are presented in other comprehensive income (OCI)
The remaining change is presented in profit or loss
If this approach creates or enlarges an accounting mismatch in the profit or loss, the effect of the changes in credit risk are
also presented in profit or loss.
Application date of standard: 1 January 2015
Impact on Group financial statements: The initial application of this standard is not expected to have any impact on the
financial position or performance of the Group.
NZ IFRS 9 (2009) Financial Instruments
NZ IFRS 9 (2009) includes requirements for the classification and measurement of financial assets resulting from the first
part of Phase 1 of the IASB’s project to replace NZ IAS 39.
These requirements improve and simplify the approach for classification and measurement of financial assets compared
with the requirements of NZ IAS 39.
The revised Standard introduces a number of changes to the accounting for financial assets, the most significant of which
includes:
•
Two categories for financial assets being amortised cost or fair value
•
Removal of the requirement to separate embedded derivatives in financial assets
•
Strict requirements to determine which financial assets can be classified as amortised cost or fair value. Financial
assets can only be classified as amortised cost if (a) the contractual cash flows from the instrument represent
principal and interest and (b) the entity’s purpose for holding the instrument is to collect the contractual cash flows
•
An option for investments in equity instruments which are not held for trading to recognise fair value changes
through other comprehensive income with no impairment testing and no recycling through profit or loss on
derecognition
•
Reclassifications between amortised cost and fair value no longer permitted unless the entity’s business model for
holding the asset changes
•
Changes to the accounting and additional disclosures for equity instruments classified as fair value through other
comprehensive income.
Application date of standard: 1 January 2015
Impact on Group financial statements: The initial application of this standard is not expected to have any impact on the
financial position or performance of the Group.
43
(D) Basis of consolidation
The consolidated financial statements comprise the
financial statements of New Zealand Tourism Board trading
as Tourism New Zealand and its subsidiaries as at 30 June
each year (the Group). Non-monetary items that are measured in terms of historical
cost in a foreign currency are translated using the exchange
rate as at the date of the initial transaction.
Subsidiaries are combined using the purchase method of
combination. The financial statements of subsidiaries are
prepared for the same reporting period as the parent entity,
using consistent accounting policies.
(G) Property, plant and equipment
Adjustments are made to bring into line any dissimilar
accounting policies that may exist.
Depreciation is calculated on a straight-line basis over the
estimated useful life of the asset as follows:
All intercompany balances and transactions, including
unrealised profits arising from intra-group transactions, have
been eliminated in full.
Office equipment
Motor vehicles
Furniture and fittings
Computer equipment
Leasehold improvements
Subsidiaries are consolidated from the date on which
control is transferred to the Group and cease to be
consolidated from the date on which control is transferred
out of the Group. Where there is loss of control of a subsidiary, the
consolidated financial statements include the results for
the part of the reporting period during which Tourism New
Zealand has control.
Plant and equipment is stated at cost less accumulated
depreciation and any impairment in value.
5 years
4 – 5 years
5 – 8 years
3 years
Up to term of the lease
Realised gains and losses arising from the disposal of
property, plant and equipment are recognised in the
Statement
of Comprehensive Income in the period in which the
transaction occurs.
Impairment
Business combinations that occurred prior to the
date of transition to NZ IFRS have not been restated
retrospectively.
The carrying values of plant and equipment are reviewed
for impairment when events or changes in circumstances
indicate the carrying value may not be recoverable.
(E) Investment in associate
If any such indication exists and where the carrying values
exceed the estimated recoverable amount, the assets
are written down to their recoverable amount. Losses
resulting from impairment are reported in the Statement of
Comprehensive Income.
The Group’s investment in associate is accounted for under
the equity method of accounting in the consolidated
financial statements.
An associate is an entity in which the Group has significant
influence and which is not a subsidiary nor a joint venture.
(H) Intangible assets
The annual financial statements of the associate are used
by the Group to apply the equity method. The reporting
dates of the associate and the Group are identical and both
use consistent accounting policies.
Intangible assets are recorded at cost at acquisition. Where
there is no active market for these assets, or they are
determined to hold no future economic benefit, they are
written off in the year of acquisition. Tourism New Zealand
has no intangible assets with an infinite life.
The investment in the associate is carried in the balance
sheet at cost plus post-acquisition changes in the Group’s
share of net assets of the associate, less any impairment
in value. The consolidated income statement reflects the
Group’s share of the results of operations of the associate. Where there has been a change recognised directly in
the associate’s equity, the Group recognises its share of
any changes and discloses this, when applicable in the
consolidated statement of changes in equity.
44
Exchange gains and losses are recognised in the Statement
of Comprehensive Income.
The useful life of Intangible assets are estimated at between
3 and 8 years.
Research and development costs are expensed as incurred.
(I) Inventories
Inventories are valued at the lower of cost and net
realisable value.
(F) Foreign currency
(J) Trade and other receivables
Transactions denominated in foreign currency are recorded
in NZ Dollar/s by applying exchange rates that approximate
rates prevailing at the date of the transaction.
Trade receivables are recognised and carried at original
invoice amount less an allowance for any uncollectible
amounts.
Monetary assets and liabilities denominated in foreign
currencies are translated at the rate of exchange ruling at
the balance sheet date.
An estimate for doubtful debts is made when collection of
the full amount is no longer probable. Bad debts are written
off when identified.
(K) Cash and cash equivalents
Sale of goods and services
Cash and short-term deposits in the Statement of Financial
Position comprise cash at bank and in hand and short-term
deposits with an original maturity of three months or less.
Revenue from the supply of goods and services is
recognised when the significant risks and rewards of
ownership of the goods have passed to the buyer and can
be measured reliably. Risks and rewards are considered
passed to the buyer at the time of delivery of the goods to
the customer.
For the purposes of the Statement of Cash Flows, cash and
cash equivalents consist of cash and cash equivalents as
defined above.
(L) Provisions
Provisions are recognised when the Group has a present
obligation (legal or constructive) as a result of a past event,
and it is probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the
obligation.
Where the Group expects some or all of a provision to be
reimbursed, for example under an insurance contract, the
reimbursement is recognised as a separate asset but only
when the reimbursement is virtually certain. The expense
relating to any provision is presented in the Statement of
Comprehensive Income net of any reimbursement.
Revenue from the supply of services is recognised on a
straight line basis over the specified period for the service
unless an alternative method better represents the stage of
completion of the transaction.
Interest
Interest revenue is recognised as interest accrues using the
effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the
interest income over the relevant period using the effective
interest rate, which is the rate that exactly discounts
estimated future cash receipts through the expected life
of the financial asset to the net carrying amount of the
financial asset.
(O) Income tax
If the effect of the time value of money is material,
provisions are determined by discounting the expected
future cash flows at a rate that reflects current market
assessments of the time value of money and, where
appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.
(M) Leases
The determination of whether an arrangement is or
contains a lease is based on the substance of the
arrangement and requires an assessment of whether the
fulfilment of the arrangement is dependent on the use of
a specific asset or assets and the arrangement conveys a
right to use the asset.
Leases where the lessor retains substantially all the risks
and benefits of ownership of the asset are classified as
operating leases. Operating lease payments are recognised
as an expense in the Statement of Comprehensive Income
on a straight-line basis over the lease term.
The Group does not enter into finance leases.
Tourism New Zealand is exempt from income tax under
the New Zealand Tourism Board Act 1991. Tourism New
Zealand’s subsidiaries are subject to income tax.
Current tax assets and liabilities for the current and prior
periods are measured at the amount expected to be
recovered from or paid to the taxation authorities based
on the current period’s taxable income. The tax rates and
tax laws used to compute the amount are those that are
enacted or substantively enacted by the Statement of
Financial Position date.
Deferred income tax is provided on all temporary
differences at the Statement of Financial Position date
between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.
Deferred income tax liabilities are recognised for all taxable
temporary differences except:
•
when the deferred income tax liability arises from
the initial recognition of goodwill or of an asset
or liability in a transaction that is not a business
combination and that, at the time of the
transaction, affects neither the accounting profit
or loss nor taxable profit or loss; or
•
when the taxable temporary difference is
associated with investments in subsidiaries,
associates or interests in joint ventures, and the
timing of the reversal of the temporary difference
can be controlled and it is probable that the
temporary difference will not reverse in the
foreseeable future.
(N) Revenue
Revenue is recognised to the extent that it is probable
that the economic benefits will flow to the Group and the
revenue can be reliably measured. The following specific
recognition criteria must also be met before revenue is
recognised:
Grants received from the Crown
Grants received from the Crown are recognised as
revenue on receipt.
45
Deferred income tax assets are recognised for all
deductible temporary differences, carry-forward of unused
tax credits and unused tax losses, to the extent that it is
probable that taxable profit will be available against which
the deductible temporary differences and the carry-forward
of unused tax credits and unused tax losses can be utilised,
except:
•
•
when the deferred income tax asset relating to
the deductible temporary difference arises from
the initial recognition of an asset or liability in a
transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit or loss nor taxable profit
or loss; or
when the deductible temporary difference is
associated with investments in subsidiaries,
associates or interests in joint ventures, in which
case a deferred tax asset is only recognised to the
extent that it is probable that the temporary
difference will reverse in the foreseeable future
and taxable profit will be available against which
the temporary difference can be utilised.
The carrying amount of deferred income tax assets is
reviewed at each Statement of Financial Position date and
reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part
of the deferred income tax asset to be utilised.
Unrecognised deferred income tax assets are reassessed
at each Statement of Financial Position date and are
recognised to the extent that it has become probable that
future taxable profit will allow the deferred tax asset to be
recovered.
Deferred income tax assets and liabilities are measured at
the tax rates that are expected to apply to the year when
the asset is realised or the liability is settled, based on tax
rates (and tax laws) that have been enacted or substantively
enacted at the Statement of Financial Position date.
Deferred tax assets and deferred tax liabilities are offset
only if a legally enforceable right exists to set off current
tax assets against current tax liabilities and the deferred tax
assets and liabilities relate to the same taxable entity and
the same taxation authority.
(P) Other taxes
Revenues, expenses and assets are recognised net of the
amount of GST except:
•
where the GST incurred on a purchase of goods
and services is not recoverable from the taxation
authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as
part of the expense item as applicable; and
•
receivables and payables are stated with the
amount of GST included.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables in the Statement of Financial Position. 46
Cash flows are included in the Statement of Cash Flows
on a gross basis and the GST component of cash flows
arising from investing and financing activities, which is
recoverable from, or payable to, the taxation authority are
classified as operating cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to, the
taxation authority.
(Q) Financial instruments
Tourism New Zealand uses derivative financial
instruments such as foreign currency contracts to manage
its exposure to foreign exchange risk arising from its
operational activities. Tourism New Zealand does not hold
or issue these financial instruments for trading purposes.
Tourism New Zealand has not adopted hedge accounting.
Derivatives are initially recognised at fair value on
the date a derivative contract is entered into and are
subsequently remeasured to their fair value at each
balance date. Movements in the fair value of derivative
financial instruments are recognised in the Statement of
Comprehensive Income.
Foreign exchange gains and losses resulting from the
settlement of derivative financial instruments and from the
translation at year end exchange rates of monetary assets
and liabilities denominated in foreign currencies are
recognised in the Statement of Comprehensive Income.
Cash and cash equivalents include cash on hand, cash in
transit, bank accounts and deposits with a maturity of no
more than three months from date of acquisition.
The fair value of forward exchange contracts is calculated
by reference to current forward exchange rates for
contracts with similar maturity profiles.
(R) Employee benefits
Other Employee Entitlements: Employee entitlements
for salaries and wages, annual leave, long service leave,
retiring leave and other similar benefits are recognised
in the Statement of Comprehensive Income when they
accrue to employees. Employee entitlements to be
settled within 12 months are reported at the amount
expected to be paid. The liability for long-term employee
entitlements is reported as the present value of the
estimated future cash flows.
Termination Benefits: Termination benefits are
recognised in the Statement of Comprehensive Income
only where there is a demonstrable commitment to
either terminate employment prior to normal retirement
date or to provide such benefits as a result of an offer to
encourage voluntary redundancy. Termination benefits
settled within 12 months are reported at the amount
expected to be paid, otherwise they are reported as the
present value of the estimated future cash flows.
NOTE 2
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
115,900
85,738
115,900
85,738
437
365
437
365
-
-
-
-
116,337
86,103
116,337
86,103
Revenue from Crown
Baseline Funding
During the year, additional funding was provided by the Crown for the
following:
Additional Crown Funding
Qualmark New Zealand Ltd
Total revenue received from the Crown
Less GST
Net revenue received from the Crown
2,607
1,936
2,607
1,936
113,730
84,167
113,730
84,167
NOTE 3
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
9,916
7,419
8,349
5,630
Other revenue
Sales and Partnership income
Sale of property, plant and equipment
Total other revenue
-
1
-
1
9,916
7,420
8,349
5,631
NOTE 4
Other expenses include:
GROUP
PARENT
2014
2013
2014
2013
163
127
156
120
2014
$000s
2013
$000s
2014
$000s
2013
$000s
15,187
12,437
14,508
11,765
Employer superannuation contributions
396
289
378
277
Increase/(decrease) in employee entitlements (note 16)
120
95
121
95
Other personnel expenses
929
1,115
906
1,109
16,632
13,936
15,913
13,246
Personnel expenses
Number of permanent and fixed term staff
Salaries and wages
47
NOTE 4 CONTINUED
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
9,608
7,508
9,608
7,508
719
690
-
-
6,305
5,738
6,305
5,738
16,632
13,936
15,913
13,246
2014
2013
2014
2013
-
1
-
1
2014
$000s
2013
$000s
2014
$000s
2013
$000s
-
4
-
4
88
86
79
72
-
-
-
-
86
86
72
72
8
5
-
-
Personnel costs for New Zealand and offshore staff were:
New Zealand Personnel Expenses - Tourism New Zealand
New Zealand Personnel Expenses - Subsidiaries
Offshore Personnel Expenses
Number of ceased staff paid compensation or other benefits
Compensation or other benefits paid to ceased staff
Auditor’s remuneration
Amounts received or due and receivable by Ernst & Young for:
The audit of the financial report
Other services
Amounts received or due and receivable by auditors other than
Ernst & Young New Zealand for:
The audit of the financial report of subsidiary entities
Other services
19
17
18
17
113
108
90
89
Other expenses
Loss on disposal of property, plant and equipment
Lease expense
Remuneration of Board members of Parent (See also note 31)
48
-
3
-
4
2,182
1,844
2,177
1,844
190
181
190
181
NOTE 5
PARENT
2014
$000s
2013
$000s
20,360
17,884
North America
14,501
10,969
United Kingdom and Europe
10,884
10,530
6,836
4,169
23,898
17,016
1,869
44
Total expenditure of parent
Total expenditure by geographic region:
Australia
Japan
Asia
Other markets
New Zealand (a)
Total Expenditure of Parent
44,880
29,311
123,228
89,923
(a) New Zealand expenditure includes costs that apply to all markets and across a number of campaigns including the
New Zealand Story, Hobbit event leverage and continued development of the newzealand.com website.
NOTE 6
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
(1,909)
295
(1,909)
295
-
-
-
-
(1,909)
295
(1,909)
295
890
394
890
394
(1,019)
689
(1,019)
689
Foreign exchange gains/(losses)
Unrealised gains/(losses) on derivative financial instruments
Realised gains /(losses) on derivative financial instruments
Foreign exchange gains/(losses) on derivative financial instruments
Other foreign exchange gains/(losses)
Total foreign exchange gains/(losses)
NOTE 7
GROUP
PARENT
Interest Held
Interest Held
2014
2013
2014
2013
60%
60%
60%
60%
0%
0%
0%
0%
Subsidiary companies
Qualmark New Zealand Limited
Visitor Information Network Incorporated (trading as i-SITE NZ)
49
NOTE 7 CONTINUED
The financial year-end of both subsidiaries is 30 June.
Tourism New Zealand has a 60% shareholding in Qualmark New Zealand Limited with the other 40% held by the
New Zealand Automobile Association. Tourism New Zealand has control of Visitor Information Network Incorporated
(VIN Inc), trading as i-SITE New Zealand, effective 21 August 2002. Qualmark New Zealand Limited is New Zealand tourism’s official quality agency. It is a government - private sector
partnership between Tourism New Zealand and New Zealand Automobile Association. Qualmark licenses professional
and trustworthy New Zealand tourism businesses to use the Qualmark® - tourism’s official quality mark - to help
international and domestic travellers select places to stay, things to do and ways to get around.
Qualmark’s core activities are based around determining the eligibility of businesses to enter the licensing system.
This is achieved by way of assessment, promoting and working with Qualmark® licensees and working closely with other
organisations and sectors within the tourism industry. By doing so, quality standards are raised and New Zealand tourism
businesses improved based on best-practice.
Tourism New Zealand and i-SITE New Zealand have a relationship agreement that recognises the importance of
having an effective and high-quality network of visitor information centres, dedicated to delivering free, comprehensive
and objective information. The terms and conditions of the relationship agreement mean that Tourism New Zealand
meets the criteria determined in NZ IAS 27 for consolidating investments in subsidiaries. The i-SITE brand creates a distinctive look, which distinguishes the official network from other information centres.
The i-SITE Visitor Centres provide on-the-ground information to ensure the visitor experience is as enjoyable as possible.
NOTE 8
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
-
11
-
-
Associate company
The New Zealand Way Limited
The financial year-end of The New Zealand Way Limited is 30 June.
Tourism New Zealand has a 50% shareholding in The New Zealand Way Limited. This Company is the operating entity
of a joint venture between Tourism New Zealand and New Zealand Trade & Enterprise. The New Zealand Way Brand provides marketing opportunities to those companies which meet quality and environmental
standards. The Brand is promoted as a mark of outstanding quality, superior service and unique New Zealand characteristics.
There were no impairment losses relating to the investment in associate and no capital commitments or other
commitments relating to the associate.
The following table illustrates summarised information of the investment in The New Zealand Way Limited:
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Current assets
16
24
-
-
Current liabilities
16
13
-
-
-
11
-
-
Share of associate’s balance sheet:
Net assets
50
NOTE 8 CONTINUED
GROUP
2014
$000s
PARENT
2013
$000s
2014
$000s
2013
$000s
Share of associate's revenue and (deficit)/surplus:
Revenue
31
90
Net (deficit)/surplus
(11)
10
-
-
11
1
-
-
-
11
-
-
Carrying amount at beginning of year
Carrying amount at end of year
NOTE 9
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Cash at bank and in hand
2,387
1,702
2,160
1,635
Call accounts - foreign currencies
1,808
983
1,808
983
18
3,166
2
3,150
4,213
5,851
3,970
5,768
Cash
Cash Holdings:
Call accounts - New Zealand dollar
Cash at bank and in hand generally earns interest at floating rates based on daily bank deposit rates.
Call account deposits are made depending on the immediate cash requirements of the Group, and earn interest at the
respective money market call rates.
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
New Zealand Dollar
348
3,549
105
3,466
United States Dollar
533
186
533
186
British Pound
282
152
282
152
Australian Dollar
113
168
113
168
European Euro
831
508
831
508
Japanese Yen
244
107
244
107
Singapore Dollar
378
79
378
79
Cash Holdings by Currency:
51
NOTE 9 CONTINUED
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Canadian Dollar
161
355
161
355
Indian Rupee
413
463
413
463
Other Asian Currencies
910
284
910
284
4,213
5,851
3,970
5,768
3,766
2,288
3,523
2,205
299
504
299
504
ASB Bank
17
19
17
19
Bank of New Zealand
3
2,940
3
2,940
128
101
128
101
4,213
5,851
3,970
5,768
Cash Holdings by Bank:
HSBC Bank
National Bank of New Zealand
Tokyo Mitsubishi
The fair value of cash and cash equivalents is $4,213,000 (2013: $5,851,000).
Tourism New Zealand holds a stand by Letter of Credit with HSBC bank for an amount of $360,000 to serve as security
against any non-payment of payroll. This letter of credit has no expiry date. HSBC bank has also provided a financial
guarantee for an amount of AUD $97,000 for Sydney office rent until 26 August 2016.
NOTE 10
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
2,077
1,980
1,868
1,439
(2)
(4)
-
-
2,075
1,976
1,868
1,439
Receivables
Receivables
Less: Provision for impairment
Trade receivables are non-interest bearing and are generally on 30-day terms. The carrying value of receivables
approximates their fair value. As at 30 June 2014 and 2013, all overdue receivables have been assessed for impairment
and appropriate provisions applied, as detailed below:
PARENT
2014
Parent
Not past due
Gross Impairment
$000s
$000s
Net
$000s
Gross
$000s
Impairment
$000s
Net
$000s
1,605
-
1,605
1,015
-
1,015
Past due 1 - 30 days
54
-
54
53
-
53
13
-
13
58
-
58
123
-
123
12
-
12
73
-
73
300
-
300
1,868
-
1,868
1,439
-
1,439
Past due > 91 days
52
2013
NOTE 10 CONTINUED
GROUP
2014
Group
2013
Gross Impairment
$000s
$000s
Not past due
Net
$000s
Gross
$000s
Impairment
$000s
Net
$000s
1,651
-
1,651
1,404
-
1,404
60
-
60
125
-
125
33
-
33
109
-
109
139
-
139
20
(1)
19
Past due > 91 days
194
(2)
192
323
(3)
320
2,077
(2)
2,075
1,980
(4)
1,976
The provision for impairment has been calculated based on expected losses determined by an analysis of losses in
previous periods and a review of specific debtors.
Receivables for the Group include GST/VAT refunds comprising 65% (29% in 2013) of total receivables as follows:
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
622
428
622
428
GST Refund due from Australian Taxation Office
617
89
617
89
Consumption Tax Refund from Japan Tax Office
55
26
55
26
VAT Refund due from UK Revenue & Customs
53
36
53
36
1,347
579
1,347
579
GST Refund due from NZ Inland Revenue Department
NOTE 11
Tourism New Zealand uses foreign exchange instruments in order to manage its exposure to fluctuations in foreign
currency exchange rates on normal operating activities. The instruments are matched with anticipated future cash flows
in foreign currencies. Tourism New Zealand does not use financial instruments for speculative purposes. At balance
date Tourism New Zealand had 112 (2013: 96) foreign exchange contracts maturing at various dates over the next 24
months. The contracts are financial assets at fair value through profit or loss and designated as held for trading financial
instruments with fair value gains or losses recognised in the Statement of Comprehensive Income.
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
105,830
63,012
105,830
63,012
(1,766)
143
(1,766)
143
104,064
63,155
104,064
63,155
Foreign currency forward exchange contracts:
Foreign exchange contracts at 30 June - Sell Value
Fair value Derivatives in Gain/(Loss)
Foreign exchange contracts at 30 June - Buy Value
53
NOTE 11 CONTINUED
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
50,840
28,795
50,840
28,795
6,168
4,116
6,168
4,116
Australian Dollar
31,978
14,840
31,978
14,840
European Euro
6,680
5,472
6,680
5,472
Japanese Yen
5,107
5,431
5,107
5,431
-
298
-
298
2,629
2,511
2,629
2,511
662
1,692
662
1,692
104,064
63,155
104,064
63,155
Foreign exchange contracts by currency:
United States Dollar
British Pound
Thai Baht
Singapore Dollar
Hong Kong Dollar
NOTE 12
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
At cost
8,990
8,222
8,929
8,165
Accumulated depreciation
(7,047)
(6,185)
(7,000)
(6,145)
1,943
2,037
1,929
2,020
At cost
1,209
1,177
1,174
1,145
(1,010)
(898)
(985)
(877)
199
279
189
268
At cost
2,595
2,378
2,595
2,378
(1,813)
(1,665)
(1,813)
(1,665)
782
713
782
713
707
697
707
697
(677)
(651)
(677)
(651)
30
46
30
46
All property, plant and equipment
Net carrying amount
Property, plant and equipment for each class:
Net carrying amount of furniture and fittings
Net carrying amount of leasehold improvements
Office equipment
At cost
Net carrying amount of office equipment
54
NOTE 12 CONTINUED
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
61
61
61
61
(61)
(61)
(61)
(61)
-
-
-
-
4,418
3,909
4,392
3,884
(3,486)
(2,910)
(3,464)
(2,891)
932
999
928
993
1,943
2,037
1,929
2,020
2,038
2,330
2,020
2,311
769
582
766
573
-
(66)
-
(65)
Depreciation charge for the year
(864)
(809)
(857)
(799)
At 30 June, net of accumulated depreciation
1,943
2,037
1,929
2,020
112
120
109
114
148
158
148
158
27
26
27
26
-
-
-
-
577
505
573
501
864
809
857
799
Motor vehicles
At cost
Net carrying amount of motor vehicles
Computer equipment
At cost
Net carrying amount of computer equipment
Total property, plant and equipment
All property, plant and equipment reconciliation
At 1 July, net of accumulated depreciation
Additions
Disposals and write back of depreciation
Depreciation by asset class:
Office equipment
Motor vehicles
Computer equipment
Total Depreciation
NOTE 13
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
At cost
1,818
1,184
1,419
1,054
Accumulated amortisation
(447)
(64)
(155)
-
Net carrying amount
1,371
1,120
1,264
1,054
Intangible assets
55
NOTE 13 CONTINUED
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
At 1 July, net of accumulated amortisation
1,119
33
1,054
-
Additions
434
1,101
365
1,054
Impairment of Intangible assets
(18)
Amortisation charge for the year
(164)
(14)
(155)
-
At 30 June, net of accumulated amortisation
1,371
1,120
1,264
1,054
Intangible assets reconciliation
-
Intangible asset additions during the year relate to further enhancements made to Tourism New Zealand’s and Qualmark’s
new finance (AX) and HR systems, implemented on 1 July 2013.
Visitor Information Network Incorporated’s extranet software was assessed to be obsolete as of 31 August 2013 and an
investment was made into BookIt Software. This software was implemented on 1 July 2014. Its remaining assets relate to
the Public campaign website.
NOTE 14
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Japan
137
185
137
185
Asia
120
107
120
107
257
292
257
292
Accommodation bonds
Accommodation bonds are refundable deposits or key money paid for the
lease of office and housing premises.
NOTE 15
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
941
970
875
1,042
2,236
2,304
2,126
2,129
3,177
3,274
3,001
3,171
Payables are non-interest bearing and are normally settled on 30-day terms,
therefore the carrying value of creditors and other payables approximates
their fair value.
Creditors
Accrued expenses
56
NOTE 16
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
683
563
655
534
-
-
-
-
683
563
655
534
Annual Leave
Sick Leave
NOTE 17
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Lease make-good
266
273
266
273
Total Provisions
266
273
266
273
20
24
20
24
246
249
246
249
266
273
266
273
273
273
273
273
-
-
-
-
(7)
-
(7)
-
-
-
-
-
266
273
266
273
Provisions
Tourism New Zealand has a number of potential future restoration costs
relating to make good clauses on office rental leases. The provision
recognises the present value of expected future payments for amounts in
relation to make good. The provision relates to five Tourism New Zealand
offices and is expected to be incurred over the next eight years.
Provisions are represented by:
Current provision
Non-current provision
Movements in provisions are as follows:
Balance at 1 July
Additional provisions made
Amounts used
Unused amounts reversed
Balance at 30 June
57
NOTE 18
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Balance at 1 July
5,007
4,613
5,007
4,613
Transfer from Retained Earnings to Foreign Exchange Reserve
(890)
394
(890)
394
4,117
5,007
4,117
5,007
Tourism New Zealand funds its overseas offices and operations in the local
currency of that office or operation. Some of the surplus/(deficit) arising
from foreign currency movements are held in reserve to finance changes in
the New Zealand dollar cost of maintaining a consistent level of funding to
those overseas offices or operations. Only the realised gains or losses on
foreign currency transactions during the year are transferred to reserves,
and the unrealised gains or losses on mark to market revaluation of
derivatives held at year end are not transferred to reserves.
Movements in reserve is as follows:
Balance at 30 June
NOTE 19
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
(2,106)
718
(2,096)
678
1,028
823
1,012
799
(7)
-
(7)
-
11
(10)
-
-
1,909
(295)
1,909
(295)
(916)
(394)
(916)
(394)
2,025
124
1,998
110
Net Loss/(gain) on disposal of assets
18
3
-
4
Movement in foreign currency accommodation bonds
30
20
30
20
Total items classified as investing or financing activities
48
23
30
24
194
(560)
(136)
(341)
Prepayments
(8)
(122)
(13)
(123)
Payables and accruals
99
(838)
22
(701)
(352)
280
(139)
37
120
95
121
95
Net movements in working capital items
53
(1,145)
(145)
(1,033)
Net cash out flow from operating activities
20
(280)
(213)
(221)
Reconciliation of surplus to net cash from operating activities
Net surplus/(deficit)
Add/(less) non-cash items
Depreciation and amortisation
Provisions
Share of associate's surplus
Net (gains)/losses on derivative financial instruments
Net foreign exchange (gains)/losses
Total non-cash items
Add/(less) items classified as investing or financing activities
Add/(less) movements in working capital items
Debtors and other receivables
Invoiced in advance
58
NOTE 20
Contingencies
Uncalled Share Capital - Tourism New Zealand has provided a written undertaking to the Board of Qualmark New Zealand
Ltd to provide ongoing financial support sufficient to enable Qualmark to meet its obligations when they fall due. Tourism
New Zealand has assessed the likelihood of being required to significantly increase the level of funding to Qualmark as
low. Additionally Tourism New Zealand’s shareholding in Qualmark is uncalled. If called, Tourism New Zealand would be
liable to contribute $60,000.
NOTE 21
Income tax
Tourism New Zealand is exempt from income tax under the New Zealand Tourism Board Act 1991. Tourism New Zealand’s
subsidiaries are subject to income tax. The Group has tax losses unrecognised that can be used to offset future
assessable income of $338,208 (2013: $247,702).
NOTE 22
Management of risk
Tourism New Zealand has developed a risk management framework and has undertaken a full risk assessment of its
business. Management is required to sign off on a half yearly basis that no new exposures have arisen and that existing
risks are being properly managed. Written policies and procedures exist covering those aspects of business which have
the potential to generate risk for Tourism New Zealand. Adherence to these policies minimises potential risk to Tourism
New Zealand. Employees are required as part of employment contracts to adhere to Tourism New Zealand policies and
procedures.
Tourism New Zealand carries comprehensive insurance covering all normal business risks including Public Liability.
Tourism New Zealand has purchased insurance to provide Board members and Officers Liability, Employers Liability and
Professional Indemnity cover for Board members and employees. Tourism New Zealand also provides cover for its staff
for offshore travel. Insured values are reviewed annually and adjusted to reflect changes in business operations.
NOTE 23
Significant accounting judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that
affect the reported amounts in the financial statements. Management continually evaluates its judgements and estimates
in relation to assets, liabilities, contingent liabilities, revenue and expenses. These judgements and estimates are based
on historical experience and other factors that are reasonable under the circumstances and form the basis for the carrying
values of assets and liabilities. Actual results may differ from these estimates under different assumptions and conditions.
Management has identified the following critical accounting policies for which significant judgements, estimates and
assumptions have been made.
Make-good provision
A provision has been made for a number of potential future restoration costs relating to make-good clauses on seven
office rental leases. The calculation of this provision requires assumptions such as the extent, if any, that Landlords will
enforce the make good clauses in the leases and building and demolition cost estimates. These uncertainties may result
in future actual expenditure differing from the amounts currently provided. The provision recognised for each lease is
periodically reviewed and updated based on the facts and circumstances available at the time. Changes to the estimated
future costs for make-good are recognised in the balance sheet by adjusting both the expense or asset and provision.
The related carrying amounts are disclosed in note 17.
59
NOTE 24
Capital management
Tourism New Zealand’s capital is its equity, which comprises accumulated funds and other reserves. Equity is represented
by net assets.
Tourism New Zealand is subject to the financial management and accountability provisions of the Crown Entities Act 2004,
which imposes restrictions in relation to borrowings, acquisition of securities, issuing guarantees and indemnities and the
use of derivatives.
Tourism New Zealand manages its equity as a by-product of prudently managing revenues, expenses, assets, liabilities,
investments and general financial dealings to ensure that Tourism New Zealand effectively achieves its objectives and
purpose, whilst remaining a going concern.
Tourism New Zealand purchases a variety of foreign currencies to fund promotional activity offshore. As this is funded
in NZ Dollar/s, there is an exposure to foreign exchange risk through the movement of NZ Dollar/s against those foreign
currencies. To manage this risk and improve operational flexibility, a foreign exchange reserve was set up in 2009/10 that
comprised of the realised gains from that year to be used solely to offset future realised foreign exchange gains and losses.
NOTE 25
Categories of financial assets and liabilities
The carrying amounts of financial assets and liabilities in each of the NZ IAS 39 categories are as follows:
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
4,213
5,851
3,970
5,768
728
1,397
521
860
4,941
7,248
4,491
6,628
1,766
(143)
1,766
(143)
Creditors
941
970
875
1,042
Invoiced in advance
139
488
20
159
1,080
1,458
895
1,201
Financial assets:
Cash and cash equivalents
Debtors
Total loans and receivables
Fair value through profit and loss held for trading:
Derivative financial instrument (assets)/liabilities
Other financial liabilities:
Total other financial liabilities
NOTE 26
GROUP
Capital commitments
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
-
160
-
160
Total capital expenditure contracted for at balance
date but not provided for in the financial statements
The above commitment in the prior year was in relation to office fit out for the Tourism New Zealand office in Singapore.
60
NOTE 27
Operating commitments
Operating commitments include non-cancellable lease payments for premises, motor vehicles and office equipment and
non-cancellable contracts for services like equipment maintenance and public relations.
GROUP
PARENT
2014
$000s
2013
$000s
2014
$000s
2013
$000s
Up to One Year
1,604
1,790
1,604
1,790
One to Two Years
1,261
1,424
1,261
1,424
Two to Five Years
2,004
2,460
2,004
2,460
319
797
319
797
5,188
6,471
5,188
6,471
Up to One Year
92
92
91
87
One to Two Years
64
153
64
152
Two to Five Years
96
103
96
103
-
-
-
-
252
348
251
342
923
812
923
812
One to Two Years
-
27
-
27
Two to Five Years
-
-
-
-
Over Five Years
-
-
-
-
923
839
923
839
6,363
7,658
6,362
7,652
Operating commitments payable after balance date on:
Non-Cancellable Accommodation Leases
Over Five Years
Non-Cancellable Motor Vehicle and Equipment Leases
Over Five Years
Non-Cancellable Contracts for Goods and Services
Up to One Year
Total operating commitments
NOTE 28
Related party transactions
Tourism New Zealand is a wholly owned entity of the Crown which has the ability to significantly influence its role.
The Crown is Tourism New Zealand’s major source of revenue.
Tourism New Zealand enters into transactions with government departments, state-owned enterprises and other Crown
entities. Those transactions that occur within a normal supplier or client relationship on terms and conditions no more or
less favourable than those which it is reasonable to expect Tourism New Zealand would have adopted if dealing with that
entity at arm’s length in the same circumstances have not been disclosed as related party transactions.
Tourism New Zealand also enters into transactions with its subsidiaries and associate. These transactions occur within a
normal supplier or client relationship on terms and conditions no more or less favourable than those which it is reasonable
to expect Tourism New Zealand would have adopted if dealing with that entity at arm’s length. The following table provides
the total amount of transactions that were entered into with these related parties.
61
NOTE 28 CONTINUED
Transaction value YE
30 June
2014
$000s
Balance outstanding YE
30 June
2013
$000s
2014
$000s
2013
$000s
-
-
-
-
180
103
17
1
3
-
-
-
32
-
-
-
250
250
-
145
-
-
-
-
Recharges from Tourism New Zealand
10
-
-
-
Purchases from Tourism New Zealand
32
-
-
-
31
90
13
-
5
-
6
-
Related Party and Transaction
Subsidiary - Qualmark New Zealand Limited:
Shareholder income provided by Tourism New Zealand
Purchases from Tourism New Zealand
Sales to Tourism New Zealand
Sales to Visitor Information Network Inc
Subsidiary - Visitor Information Network Inc:
Sales to Tourism New Zealand
Associate - The New Zealand Way Limited:
Recharges from Tourism New Zealand
Tourism New Zealand also enters into transactions with board members and entities over which they have control or
significant influence. These transactions occur within a normal supplier or client relationship on terms and conditions no
more or less favourable than those which it is reasonable to expect Tourism New Zealand would have adopted if dealing
with that entity at arm’s length. The following table provides the total amount of transactions that were entered into with
these related parties.
Transaction value YE
30 June
Balance outstanding YE
30 June
2014
$000s
2013
$000s
2014
$000s
2013
$000s
R Leggat (Director): Education NZ - Income received by TNZ
for tourism related services.
10
40
-
-
J Thorburn (Director): Agrodome Rotorua, Ngai Tahu Tourism
Limited, Dart River Safaris Limited, Franz Josef Glacier Guides
Limited, Rainbow Springs Limited, Shotover Jet Limited,
Hukafalls Jet Limited - Income received by TNZ for tourism
related services.
25
27
-
-
M O'Donnell (Director): Ministry of Business, Innovation, and
Employment - Income received by TNZ for employee secondment.
46
-
11
-
N Thompson (Director): Auckland Tourism, Events & Economic
Development - Income received by TNZ for tourism related services.
18
-
14
-
8
7
-
-
Related Party and Transaction
Income has been received by Tourism New Zealand from:
M Johns (Chief Executive): Intercity Group (NZ) Limited - Income
received by TNZ for tourism related services.
62
NOTE 28 CONTINUED
Payments have been made by Tourism New Zealand to:
K Pendergast (25% owner (with husband)): Quality Hotel and
Comfort Hotel - Provision of services to TNZ.
1
2
-
-
R Leggat (Director): New Zealand Post Limited - Provision of
postal services to TNZ
3
11
-
-
50
14
-
-
J Spice (Director): Touch of Spice Ltd - Provision of tourism
related services to TNZ
4
-
-
-
C Parkin (Director): Museum Hotel - Provision of tourism related
services to TNZ
7
-
-
-
N Thompson (Director): Auckland Tourism, Events & Economic
Development - Provision of tourism related services to TNZ
11
-
-
-
-
15
-
-
K Bowler (Director): Pacific Asia Travel Association - Provision of
membership fees.
10
29
-
-
J Barrett (Managing Director): Kapiti Island Alive & Kapiti Nature
Lodge. (Director): Aviation/Tourism/Travel Training Organisation
(ATTTO) - Provision of tourism related services to TNZ
-
-
-
-
J Thorburn (Director): Agrodome Rotorua, Ngai Tahu Tourism
Limited, Dart River Safaris Limited, Franz Josef Galcier Guides
Limited, Rainbow Springs Limited, Shotover Jet Limited, Hukafalls
Jet Limited - Provision of tourism related services to TNZ.
M Johns (Chief Executive): Intercity Group (NZ) Limited - Provision
of travel services to TNZ.
GROUP
PARENT
2014
$000s
2013
$000s
2,677
2,612
Other long-term benefits
-
-
Termination benefits
-
-
2,677
2,612
Key management personnel compensation
Salaries and other short-term employee benefits
Total key management personnel compensation
Key management personnel includes all board members, the Chief Executive and 10 (2013: 8) members of the Executive Team.
NOTE 29
Financial instrument risks Tourism New Zealand’s activities expose it to a variety of financial instrument risks, including market risk, credit risk and
liquidity risk. Tourism New Zealand has a series of policies to manage the risks associated with financial instruments and
seeks to minimise exposure from financial instruments. These policies do not allow any transactions that are speculative
in nature.
Market Risk
Interest rate risk - Interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in interest
rates. Tourism New Zealand is exposed to interest rate risk on its cash balances. Refer to note 9 for cash balances exposed
to interest rate risk.
Interest rate risk sensitivity analysis - As at 30 June 2014, if interest rates on cash balances had increased/decreased by
0.5% (50 basis points) with all other variables held constant, the deficit/surplus and equity would have changed as follows:
63
NOTE 29 CONTINUED
Surplus/(deficit)
higher/(lower)
Group
2014
$000s
Equity
higher/(lower)
2013
$000s
2014
$000s
2013
$000s
+ 0.5% (50 basis points)
2
19
2
19
- 0.5% (50 basis points)
(2)
(19)
(2)
(19)
+ 0.5% (50 basis points)
1
19
1
19
- 0.5% (50 basis points)
(1)
(19)
(1)
(19)
Parent
Currency risk - Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in foreign exchange rates.
As a result of significant operations around the world, Tourism New Zealand is required to enter into transactions
denominated in foreign currencies. As a result of these activities, Tourism New Zealand is exposed to foreign currency risk
on its foreign denominated cash balances, receivables, creditors and other payables, and derivative instruments.
It is Tourism New Zealand’s policy to manage foreign currency risks arising from contractual commitments and liabilities by
entering into foreign exchange forward contracts to cover the foreign currency exposure.
Currency risk sensitivity analysis - Tourism New Zealand is subject to volatility in financial performance associated with foreign
currency rates. As at 30 June 2014, if the NZ Dollar/s had increased/decreased by 5 per cent against various foreign currencies
used by Tourism New Zealand with all other variables held constant, the deficit/surplus and equity would have changed as follows:
Surplus/(deficit)
higher/(lower)
2014
$000s
Equity
higher/(lower)
2013
$000s
2014
$000s
2013
$000s
Group
NZD to various currencies +5%
4,981
3,265
-
-
NZD to various currencies -5%
(5,505)
(3,604)
-
-
NZD to basket of currencies +5%
4,981
3,265
-
-
NZD to basket of currencies -5%
(5,505)
(3,604)
-
-
Parent
This movement is attributable to foreign exchange gains/losses on translation of forward foreign exchange contracts and
other foreign currency denominated assets and liabilities.
64
Credit risk
Credit risk is the risk that a third party will default on its obligations to Tourism New Zealand, causing Tourism New Zealand to
incur a loss.
Tourism New Zealand has no significant concentrations of credit risk, as it has a small number of credit customers and only
places funds with registered banks. With respect to foreign exchange instruments, Tourism New Zealand reduces its risk
by limiting the counter parties to major trading banks and does not expect to incur any significant losses as a result of non
performance by these counter parties.
Tourism New Zealand’s maximum credit exposure for each class of financial instrument is represented by the total carrying
amount of cash (note 9), net debtors (note 10) and derivative financial instruments (note 11). There is no collateral held as
security against these financial instruments, including those instruments that are overdue or impaired.
NOTE 29 CONTINUED
Liquidity risk
Liquidity risk is the risk that Tourism New Zealand will encounter difficulty raising liquid funds to meet commitments as they
fall due. Tourism New Zealand has no significant concentrations of liquidity risk. Tourism New Zealand annually agrees a funding
schedule with the Crown which matches the estimated timing of its commitments and close out of market positions.
The following liquidity risk disclosures reflect all contractually fixed pay-offs, repayments and interest resulting from
recognised financial and derivative financial instrument liabilities as of 30 June 2014. The timing of cash flows for liabilities is
based on the contractual terms of the underlying contract.
< 6months
$000s
6-12 months
$000s
< 1 year
$000s
Total
$000s
Group - Year end 30 June 2014
Financial liabilities
Creditors
(941)
-
-
(941)
35,491
29,391
35,882
100,764
(36,213)
(30,189)
(36,128)
(102,530)
(722)
(798)
(246)
(1,766)
(1,663)
(798)
(246)
(2,707)
Derivative financial instrument liabilities
- gross settled
Inflows
Outflows
Net outflow
< 6months
$000s
6-12 months
$000s
< 1 year
$000s
Total
$000s
Parent - Year end 30 June 2014
Creditors
(875)
-
-
(875)
35,491
29,391
35,882
100,764
(36,213)
(30,189)
(36,128)
(102,530)
(722)
(798)
(246)
(1,766)
(1,597)
(798)
(246)
(2,641)
- gross settled
Inflows
Outflows
Net outflow
65
NOTE 29 CONTINUED
< 6months
$000s
6-12 months
$000s
< 1 year
$000s
Total
$000s
Group - Year end 30 June 2013
Creditors
(970)
-
-
(970)
24,971
38,184
-
63,155
(24,890)
(38,122)
-
(63,012)
81
62
-
143
(889)
62
-
(827)
- gross settled
Inflows
Outflows
Net outflow
< 6months
$000s
6-12 months
$000s
< 1 year
$000s
Total
$000s
Parent - Year end 30 June 2013
Creditors
(1,042)
-
-
(1,042)
24,971
38,184
-
63,155
(24,890)
(38,122)
-
(63,012)
81
62
-
143
(961)
62
-
(899)
- gross settled
Inflows
Outflows
Net outflow
Fair value risk The Group can apply various methods in estimating the fair value of a financial instrument. The methods comprise:
a) Level 1 - the fair value is calculated using quoted prices in active markets:
b) Level 2 - the fair value is estimated using inputs other than quoted prices included in Level 1 that are observable for the
asset or liability, either directly (as prices) or indirectly (derived from prices); and
c) Level 3 - the fair value is estimated using inputs for the asset or liability that are not based on observable market data.
Derivative financial instruments are classified as Level 2 and are valued using observable market inputs.
There were no transfers between Level 1 and Level 2 during the year.
66
NOTE 30
Remuneration of employees
During 2013/2014 44 (2013: 24) employees received remuneration and benefits which exceeded $100,000 per annum as follows:
GROUP
$
PARENT
2014
2013
100,000 - 109,999
4
1
110,000 - 119,999
12
5
120,000 - 129,999
5
4
130,000 - 139,999
1
3
140,000 - 149,999
3
1
150,000 - 159,999
5
2
160,000 - 169,999
6
-
170,000 - 179,999
-
1
180,000 - 189,999
-
-
190,000 - 199,999
2
1
200,000 - 209,999
2
1
210,000 - 219,999
-
2
240,000 - 249,999
1
-
250,000 - 259,999
-
1
260,000 - 269,999
1
1
280,000 - 289,999
1
-
470,000 - 479,999
1
1
44
24
In 2013/2014 Tourism New Zealand expanded operations in the emerging markets of South America, Indonesia, and India. Additionally, Tourism New Zealand increased its commitment to the development of the Business Events and Premium
market segments. Development in these market areas, coupled with investing in higher levels of capability to meet
expectations in delivering on the Strategic Plan, has seen an increase in the number of employees remunerated above
NZD 100,000.
67
NOTE 31
Remuneration of Board members
Board members earned the following fees during the year:
GROUP
PARENT
2014
$000s
2013
$000s
K Prendergast (Chair)
42
42
R Leggat (Deputy Chair)
25
20
J Thorburn
18
16
J Bestwick
22
16
J Tuuta
20
5
5
-
J Spice
10
-
C Parkin
3
-
N Thompson
3
-
M Johns
10
25
H van Asch
16
20
J Langley
16
20
-
17
190
181
M O’Donnell
J Barrett
Changes in Board members:
M O’Donnell was appointed to the Board in December 2013, J Spice in January 2014, and C Parkin
and N Thompson in April 2014. M John’s term came to an end in November 2013 and H van Asch and J Langley’s
in April 2014.
68
FIVE YEAR FINANCIAL SUMMARY FOR PARENT
2010 Actual
$000s
2011 Actual
$000s
2012 Actual
$000s
2013 Actual
$000s
2014 Actual
$000s
Cash
6,254
10,473
7,153
5,768
3,970
Receivables
3,278
2,062
1,098
1,439
1,868
Prepayments and other current assets
1,378
729
798
921
934
-
-
-
143
-
10,910
13,264
9,049
8,271
6,772
1,683
2,404
2,311
2,020
1,929
-
-
-
1,054
1,264
482
390
320
292
257
2,165
2,794
2,631
3,366
3,450
13,075
16,058
11,680
11,637
10,222
4,998
8,120
3,872
3,171
3,001
577
450
439
534
655
Income in advance
168
108
122
159
20
Provisions
303
80
50
24
20
498
1,122
152
-
1,520
6,544
9,880
4,635
3,888
5,216
Provisions
-
223
223
249
246
-
-
-
-
246
-
223
223
249
492
Total Liabilities
6,544
10,103
4,858
4,137
5,708
Net Assets
6,531
5,955
6,822
7,500
4,514
1,805
1,805
1,805
1,805
1,805
(74)
(464)
404
688
(1,408)
4,800
4,614
4,613
5,007
4,117
Total Equity
6,531
5,955
6,822
7,500
4,514
Statement of Financial Position
Current Assets
Non-current Assets
Intangible Assets
Accommodation bonds
Total Assets
Current Liabilities
Non-current Liabilities
Equity
Shareholder's equity
Retained earnings
69
FIVE YEAR FINANCIAL SUMMARY FOR PARENT CONTINUED
2010 Actual
$000s
2011 Actual
$000s
2012 Actual
$000s
2013 Actual
$000s
2014 Actual
$000s
89,431
99,361
84,215
84,167
113,730
219
252
139
114
46
8,791
6,467
5,530
5,631
8,349
98,441
106,080
89,884
89,912
122,125
93,156
105,397
89,205
89,124
122,190
632
563
782
799
1,012
93,788
105,960
89,987
89,923
123,202
Unrealised Foreign exchange gains/
(losses) on derivative financial
instruments held at year end
1,469
(510)
970
295
(1,909)
Total comprehensive income/
(expense)
6,122
(390)
867
284
(2,986)
Transfer from/(to) Foreign exchange
reserve
(643)
(186)
-
394
890
5,479
(576)
867
678
(2,096)
Statement of Comprehensive Income
Income
Revenue from Crown
Interest
Other revenue
Expenditure
Other expenses
Depreciation, Amortisation and
Impairment
after foreign exchange transfer
70
INDEPENDENT AUDITOR’S REPORT
TO THE READERS OF NEW ZEALAND TOURISM BOARD AND GROUP’S
FINANCIAL STATEMENTS AND NON-FINANCIAL PERFORMANCE INFORMATION
FOR THE YEAR ENDED 30 JUNE 2014
The Auditor-General is the auditor of the New Zealand
Tourism Board (the “Board”) and group. The AuditorGeneral has appointed me, Stuart Mutch, using the staff
and resources of Ernst & Young, to carry out the audit of
the financial statements and non-financial performance
information of the Board and group on her behalf.
We have audited:
- the financial statements of the Board and group
on pages 38 to 68, that comprise the statement of
financial position as at 30 June 2014, the statement of
comprehensive income, statement of changes in equity
and statement of cash flows for the year ended on that
date and notes to the financial statements that include
accounting policies and other explanatory information;
and
- the non-financial performance information of the Board
and group that comprises the statement of service
performance on pages 22 to 33 and the report about
outcomes on pages 14 to 21.
Opinion
In our opinion:
- the financial statements of the Board and group on
pages 38 to 68:
- comply with generally accepted accounting practice in New Zealand; and
- fairly reflect the Board and group’s:
- financial position as at 30 June 2014; and
- financial performance and cash flows for the year ended on that date.
- the non-financial performance information of the Board
and group on pages 14 to 33:
- complies with generally accepted accounting practice in New Zealand; and
- airly reflects the Board’s and group’s service performance and outcomes for the year ended 30
June 2014, including for each class of outputs:
- the service performance compared with forecasts in the statement of forecast service performance at the start of the financial year; and
- the actual revenue and output expenses compared with the forecasts in the statement
of forecast service performance at the start of the financial year.
Our audit was completed on 6 October 2014. This is the
date at which our opinion is expressed.
The basis of our opinion is explained below. In addition, we
outline the responsibilities of the Board members and our
responsibilities, and we explain our independence.
Basis of opinion
We carried out our audit in accordance with the AuditorGeneral’s Auditing Standards, which incorporate the
International Standards on Auditing (New Zealand).
Those standards require that we comply with ethical
requirements and plan and carry out our audit to obtain
reasonable assurance about whether the financial
statements and non-financial performance information are
free from material misstatement.
Material misstatements are differences or omissions of
amounts and disclosures that, in our judgment, are likely
to influence readers’ overall understanding of the financial
statements and non-financial performance information.
If we had found material misstatements that were not
corrected, we would have referred to them in our opinion.
An audit involves carrying out procedures to obtain
audit evidence about the amounts and disclosures in
information. The procedures selected depend on our
judgment, including our assessment of risks of material
misstatement of the financial statements and non-financial
performance information, whether due to fraud or error.
In making those risk assessments, we consider internal
control relevant to the preparation of the Board and
group’s financial statements and non-financial performance
information that fairly reflect the matters to which they
relate. We consider internal control in order to design
audit procedures that are appropriate in the circumstances
but not for the purpose of expressing an opinion on the
effectiveness of the Board and group’s internal control.
An audit also involves evaluating:
- the appropriateness of accounting policies used and
whether they have been consistently applied;
- the reasonableness of the significant accounting
estimates and judgments made by the Board members;
- the appropriateness of the reported non-financial
performance information within the Board and group’s
framework for reporting performance;
- the adequacy of all disclosures in the financial
statements and non-financial performance information;
and
- the overall presentation of the financial statements and
non-financial performance information.
We did not examine every transaction, nor do we
guarantee complete accuracy of the financial statements
and non-financial performance information. Also we did
not evaluate the security and controls over the electronic
publication of the financial statements and non-financial
performance information.
71
INDEPENDENT AUDITOR’S REPORT CONTINUED
We have obtained all the information and explanations we
have required and we believe we have obtained sufficient
and appropriate audit evidence to provide a basis for our
audit opinion.
Responsibilities of the Board members
The Board members are responsible for preparing financial
statements and non-financial performance information that:
- comply with generally accepted accounting practice in
New Zealand;
- fairly reflect the Board and group’s financial position,
financial performance and cash flows; and
- fairly reflect the Board and group’s service performance
and outcomes.
The Board members are also responsible for such
internal control as is determined is necessary to enable
the preparation of financial statements and non-financial
performance information that are free from material
misstatement, whether due to fraud or error. The Board
members are also responsible for the publication of
information, whether in printed or electronic form.
The Board member’s responsibilities arise from the Crown
Entities Act 2004, the Financial Reporting Act 1993 and the
New Zealand Tourism Board Act 1991.
Responsibilities of the Auditor
We are responsible for expressing an independent opinion
on the financial statements and non-financial performance
information and reporting that opinion to you based on our
audit. Our responsibility arises from section 15 of the Public
Audit Act 2001 and the Crown Entities Act 2004.
Independence
When carrying out the audit, we followed the independence
requirements of the Auditor-General, which incorporate
the independence requirements of the External Reporting
Board.
Other than the audit, we have no relationship with or
interests in the Board or any of its subsidiaries.
Stuart Mutch
Ernst & Young
On behalf of the Auditor-General
Wellington, New Zealand
72
73
Fraser Clements
74

ANNU T - Tourism New Zealand

Transcription

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