Annual Report - Tourism New Zealand

Transcription

G25
Annual Report
Tourism New Zealand
2014/2015
Miles Holden
$10.3 billion
24.4 million
injected into the nation’s
economy by international
visitors
visits to newzealand.com
– up 34 per cent
25,936
23 international
events won
– valued at over
online travel modules
completed
$27 million
Record year
for International Media
Programme with
22,000
stories generated about
New Zealand as a
destination
2.99 million
visitor arrivals
– up 7.4 per cent*
Visitor spend up
28 per cent
* This figure was reported incorrectly in the print version of
this document and has been amended for the digital version.
1,240
trade reps hosted in
NZ on familiarisation
trips
Miles Holden
Chinese reality show
‘Dad, Where are we
going?’ results in
150
Hobbit fans hosted
on Fan Fellowship
Competition
$178 million
in coverage value
$25.9 million
of incentive travel to
New Zealand secured
48
58
major trade events
attended by TNZ
conference bids supported
through the Conference
Assistance Programme
1,023
fully qualified NZ
specialists
Julian Apse
Contents
2.
Tourism New Zealand – Who We Are
4.
Chair and Chief Executive Report
10.Governance
12.
Board Members
13.
Core Leadership Team
14.
Strategic Priorities and Outcomes
24.
Statement of Performance
40.
Equal Employment Opportunities
43. Financial Statements
48.
Notes to the Financial Statements
74.
Independent Auditor’s Report
1
London
Seoul
Guangzhou
Mumbai
Tokyo
Shanghai
Bangkok
Singapore
Jakarta
Sydney
Tourism New Zealand – Who We Are
Tourism New Zealand is a Crown agency governed by the Crown Entities Act
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 visitors to New Zealand. Our statutory functions under the CEA
Act include:
▪▪ 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.
2
Tourism
New Zealand has fifteen
offices, two in New Zealand,
and approximately 157
full time staff
Los Angeles
Auckland
Wellington
São 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 15 years. The campaign was conceived in 1999 and
has evolved over the years to communicate the unique experiences available to people who visit New Zealand.
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 experience.
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 13 offshore offices, two in New Zealand, and 157 full-time staff members.
3
Chair and Chief Executive Report
Kerry Prendergast
Kevin Bowler
Tourism New Zealand Chair
Tourism New Zealand Chief Executive
On behalf of the Board and Leadership Team, it gives us
great pleasure to present Tourism New Zealand’s Annual
Report for the financial year ending June 2015.
million visits, up 34 per cent year-on-year. Our digital
marketing activity has also delivered 5.4 million referrals
that industry and international travel sellers can convert
into bookings, a 64 per cent year-on-year increase.
Executive summary
It has been an absolutely stunning year — one that ended
on a high of 28 per cent growth in visitor spend; 7.4 per
cent growth in total arrivals and 10.4 per cent growth in
holiday arrivals. As a result, the industry is well on track
to surpass the international targets for growth set out in
the Tourism 2025 industry strategy. The past summer was
our busiest yet with some regions experiencing significant
capacity constraints at the peak of the high season.
Tourism New Zealand has developed, and now launched,
a new 100% Pure New Zealand campaign. The new edition
of the sixteen-year-old campaign is a departure from the
Middle-earth theme of the past three years that has been
exceptionally successful in connecting New Zealand with
Middle-earth. The new campaign has two main features –
firstly the message focuses on the abundant and diverse
activities that are available for visitors in New Zealand and
how easy it is to get from one activity to another.
The tagline ‘Every day a different journey’ brings this
message to life. The second main feature is a new design
system that introduces a new typeface and 100% Pure
New Zealand logo design, carved from native timber, using
traditional Māori techniques. The new design system is
distinctive and uniquely New Zealand.
Over the past year, significant progress has been made
across the organisation’s digital platforms, that saw more
traffic to newzealand.com than ever before, with 24.4
4
Our international media programme hosted some 450
media outlets, achieving around $490 million in equivalent
advertising value while our trade team hosted more than
1,000 international travel trade over the year. All in all, it
has been a significant and successful 12 months.
Partnership work across major activities
Tourism New Zealand delivers its activity from 15 offices
internationally and they target specific sectors and markets
that offer the greatest potential for growth in visitor value.
However, it is by working in partnership that we are able to
deliver to the level we do. It also aligns our work with the
Tourism 2025 strategic framework.
Over the past year an additional $23.2 million was invested
alongside our marketing activity through joint venture
campaigns and other mutually agreed activity. We signed
a second Memorandum of Understanding (MOU) with
Air New Zealand, jointly indicating a desire to invest $20
million a year together, a three-year MOU with Auckland
International Airport for joint marketing in India and a new
two-year MOU with New Zealand Winegrowers Association.
We also delivered our second year of activity under two,
three-year MOUs, one with Singapore Airlines and the
other with China Southern Airlines.
Successful partnerships do not come any better than the
collaboration shown between Tourism New Zealand and
Julian Apse
Air New Zealand in our work to leverage the country’s connection
to Middle-earth. It was our final year of the Hobbit movie trilogy
and we saved the best for last. We jointly hosted 150 of the world’s
biggest Hobbit fans on the journey of a lifetime to New Zealand
in November. Then we built a full-sized Hobbit hole and garden
in a hotel room at Claridge’s in London as a key attraction for
international media covering the world-wide première of the
final film.
The resulting media coverage from these two activities was some
$35 million, generated from the 40 media outlets that journeyed
with the Hobbit Fan Fellowship and the 100 media that chose
our Hobbit room as the backdrop to their broadcasts during the
première.
We also worked in partnerships with NZ Inc agencies and the
country’s network of Regional Tourism Organisations (RTOs) to
leverage major events hosted here. The ICC Cricket World Cup
created a unique opportunity to promote New Zealand as a
visitor destination to an estimated cumulative one billion people
who watched the event, particularly those in India, the UK and
Australia, generating $4.3 million estimated advertising value.
Hard on its heels came the FIFA U-20 Football World Cup providing
a useful entry into the Latin American market. In both instances,
Tourism New Zealand worked closely with the RTOs to deliver a
diverse programme of activities and an exceptional media hosting
programme, generating $2.1 million equivalent advertising value.
Tier one markets: Australia, China and USA
A key strategic outcome for the organisation is to grow a portfolio
of markets that drives current opportunities and creates future
market positions. Our tier one markets have all delivered
exceptional growth over the past year.
Whilst Australia is undoubtedly a mature travel market for
New Zealand, we achieved a 4.0 per cent increase in total arrivals,
and holiday arrivals up 3.3 per cent. We continued and extended
the use of the highly successful joint venture ‘touring’ campaigns,
teaming up with key operators and RTOs the length of the country
to encourage visitors to explore the regions and thereby distribute
their time and spending more widely.
As part of our annual Australian ski marketing activity we took
the ‘selfie’ phenomenon to a whole new level with the #NZDronie
campaign where visitors were able to share a unique eight-second
video captured by the drone. The #NZDronie hit the slopes for
the 2014 ski season and was promoted across Australia. It was so
successful that we brought it back for the 2015 ski season.
We hosted more than 220 travel agents for six days and were
chosen as host of the Qantas Holidays and Viva! Holidays Global
Achievers Event, bringing a further 100 of Australia’s top selling
travel agents to the country.
Tourism New Zealand’s goal in China is to grow the higher-value
Free Independent Traveller (FIT) sector. Average length of holiday
stay has moved from 7.6 days to 8.1 and we have achieved 41 per
cent growth in the number of general visitor visas being issued,
representing the more independent, longer staying, higher value
traveller segment. We are achieving this with a 30.3 per cent
increase in total arrivals.
5
This was helped no doubt by our hosting of the world’s
most watched reality TV show when ‘Dad, where
are we going?’ selected New Zealand as its first ever
international destination. Season two was watched by
around 400 million Chinese and the 16-part season
ended with two episodes filmed in New Zealand.
Integrated marketing, PR and trade activity were used to
drive significant results.
The show screened 200 minutes of New Zealand
destination footage, resulting in 70 million New Zealand
impressions on Chinese social media and more than
$178 million in coverage value. In addition, Air New
Zealand recorded a significant increase in web traffic
and online sales in the month following the New Zealand
episodes going to air.
Tourism New Zealand’s tier two markets, Germany, the
UK and Japan, saw significant sport, Hobbit and youth
focused activity over the year. Growth out of these
markets is positive, with Germany showing 7.0 per cent
growth in total arrivals; the UK showing 1.9 per cent
growth in total arrivals and Japan delivering 11.8 per
cent growth in total arrivals.
In Germany and the UK we worked alongside global
travel seller STA travel to deliver youth-targeted activity
aimed at backpackers. We also hosted the STA Global
Famil bringing 53 STA travel agents to New Zealand in
support of campaign activity.
In the trade space, we held our largest ever 10-day
travel agent training and operator networking event in
China, with a record 44 New Zealand operators meeting
a total of 315 agents. This was followed by a ‘mega famil’
to New Zealand for 120 agents.
Tourism New Zealand also supported the filming of an
episode of Germany’s Next Top Model that featured
Auckland’s Skytower Jump, Māori Waka Experience,
Eco Zip Waiheke, and lunch at Mudbrick Winery on
Waiheke Island.
The third of our tier one markets, the USA, also
ended the year on a high with 10.2 per cent growth
in total arrivals and 12.2 per cent growth in holiday
arrivals. Our leverage of The Hobbit Trilogy has been
particularly focused in this market. Air New Zealand’s
announcement of a new Houston-Auckland route is an
extremely positive sign and provides significant growth
potential that Tourism New Zealand will be working hard
to maximise in the year ahead.
For potential travellers from the UK, it was a year of
sport with both the Cricket World Cup and FIFA U-20
World Cup providing motivation to consider travelling
to New Zealand. Tourism New Zealand is already
planning how it will leverage the British and Irish Lions
Tour in 2017. Then there was the visit by Britain’s Prince
Harry and the 19 international media that documented
his every move. Some $14 million in international media
coverage was achieved during the Prince’s week-long
stay thanks to our media team delivering compelling
stories and images of the Prince’s trip to visiting and
other international media outlets.
Of particular success over the past year has been our
use of influencers, including the engagement of New
Zealander, Phil Keoghan, well-known as host of hit TV
show The Amazing Race, as the face of Tourism New
Zealand’s cycling campaign in the USA.
6
Tier two markets: Germany, the UK
and Japan
While not exactly royalty, one of Japan’s most wellknown athletes, figure-skater Mao Asada, visited with
her sister Mai and their trip aired as a storytelling-type
documentary, viewed by an audience of 4.4 million.
The use of influencers has been highly successful in
Japan and Tourism New Zealand also worked alongside
Miles Holden
Auckland Tourism, Events and Economic Development
to leverage Japanese celebrity Naoyuki Shimizu, in his
role as an Auckland Ambassador. Naoyuki Shimizu is
a Japanese baseball star who retired last month to
Auckland.
Emerging markets: Indonesia, Latin
America and India
It is now two years since the establishment of Tourism
New Zealand’s emerging markets’ investment. Offices
and teams have been established in India, Indonesia
and Brazil, with activity now underway across the trade,
PR and marketing streams. The ICC Cricket World Cup
provided significant opportunity to raise New Zealand’s
profile in India, while the appointment of Indonesian
actor Joe Taslim as Tourism Ambassador has provided
positive inroads into Indonesia. The team in Brazil has
been given a significant boost for the year ahead with Air
New Zealand’s announcement of direct flights between
Buenos Aires and Auckland from December 2015. We are
working closely with Air New Zealand to maximise this
new opportunity.
By the end of the year, total arrivals from India were up
25.9 per cent, Indonesia up 5.7 per cent and Brazil up
11.9 per cent.
Sectors
Using the 100% Pure New Zealand – Naturally Beyond
Convention campaign, efforts to promote New Zealand
as an international business events destination have
gone from strength to strength. We have supported
58 international conference bids for FY15, valued at
$91.7 million to the economy. In addition, Tourism New
Zealand has supported 150 major incentive bids and
secured $25.6 million in incentive travel to New Zealand.
Data from the New Zealand Luxury Lodges Association
provides evidence of the progress made to attract high-
value premium visitors with spend up 20 per cent.
Tourism New Zealand also became the first national
tourism organisation to partner with the luxury travel
network Traveller Made which brings together 120
premium travel agencies. Partnership activity includes
online marketing, webinars, and a famil to New Zealand
led by the Traveller Made president.
Having upped our game in the premium sector, it was
rewarding to hear that New Zealand topped leading
US luxury travel agency Virtuoso’s annual ‘Hot List’,
winning the honour for the biggest year-on-year growth
in luxury travel.
A significant volume of new assets has been created
to support the promotion of special interest sectors
with new photography and video assets of the New
Zealand cycle trails, great walks and marquee golf
courses. The Golf Tourism New Zealand (GTNZ)
advisory group, formally established in July 2014, has
significantly increased our engagement with golf tour
operators, courses and RTOs. Our work to promote
New Zealand as a cycling destination was enhanced
when international mountain bike event “Crankworx”
was held in Rotorua (the first of three years for the
event) and attracted 750 of the world’s elite mountain
bikers. Tourism New Zealand’s activity focused on
showcasing New Zealand as a world class mountain
bike destination.
Organisational capability and culture
Tourism New Zealand has continued to support
the development of its people and culture through
a number of initiatives. Having cemented the
organisation’s mission, vision and values into the
everyday language of the business over the past
three years, we have completed this piece with the
identification of behaviours that represent how we act
when we are ‘at our best’. This work involved input from
all staff and was developed during the three regional
7
staff forums held around the world aimed at bringing
our people together for business planning, learning and
development.
A new internal communications platform has been
launched that will support how we collaborate and
engage globally and we have held two induction
programmes, bringing all new starters together in
New Zealand for an intensive period of learning and
development.
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’ as identified by the survey owner
IBM, assessed against all participating New Zealand
businesses.
Outlook
As we look forward to the new year, confidence is high
across the industry; the weakening of the New Zealand
dollar should help boost visitor expenditure further and
the three million annual arrivals milestone was achieved
in July 2015. With Tourism New Zealand’s current funding
and focus confirmed for another two years, we will
continue to deliver activity under our existing marketing
strategy.
One of the biggest challenges we face is the significant
peak seen over the summer months and resulting
capacity constraints. In response, Tourism New Zealand
has set itself a new objective to disproportionately drive
shoulder season arrivals. As well as moving most of
our media investment to drive shoulder season travel,
we have also increased our focus on those sectors and
markets that are well aligned with shoulder season travel
including cycling, ski, international business events and
incentive travel, backpackers, premium, golf and the
India market.
Alongside capacity constraints comes the question
of how many international visitors the country is able
to host before the impact on New Zealanders, our
infrastructure and our environment turns negative.
Tourism New Zealand is acutely aware of the need to
sustain what is unique about our offer while growing the
value of tourism to the economy.
We will continue to play an active role alongside the
industry to manage impacts as we have this past
year, particularly around the issue of visiting drivers
and sustainability. We have initiated a programme of
activity aimed at up-skilling travel sellers about the
unique conditions faced when driving in New Zealand,
and will be delivering more comprehensive content to
consumers, urging them to learn more about driving here
before committing to self-drive. We are also investigating
the option for revising the existing Qualmark programme
to target business sustainability.
8
Thanks and acknowledgements
This past year Tourism New Zealand bid farewell one of
its longest serving staff members Gregg Anderson who,
after 22 years, has taken a well-deserved sabbatical and
is experiencing what it means to be a tourist himself.
There has been no change to the Board this past year
and we welcome the re-appointment of Chair Kerry
Prendergast for a further three-year term.
On behalf of the Board and Leadership Team we would
like to thank all of our people for their exceptional work
over the past year and their ongoing commitment to
excellence. The year ahead holds great promise.
Chris McLennan
9
Governance
The Board
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 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 annual Statement of Intent.
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 tourism-related events such as
TRENZ and other industry events.
Conduct
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
10
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.
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 three times
a year. It reviews Tourism New Zealand’s internal
control framework, external audit relationships and
engagements, risk management and financial reporting,
including International Financial Reporting Standards
(IFRS).
The Remuneration Committee meets on an ad-hoc basis.
It reviews the performance and remuneration of the
Chief Executive and senior management. The committee
also approves proposed organisation-wide remuneration
policies.
Chris Sisarich
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 PBE IPSAS 6 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.
11
Board Members
Kerry Prendergast, Chair
Mike O’Donnell
Following a four-year term, Kerry
Prendergast was re-appointed as Chair
of the New Zealand Tourism Board on 15
August 2014 for a one-year term. She is the
former Mayor of Wellington and former
Vice-President 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.
Mike “MOD” O’Donnell is Executive Director
of G2G Knowhow.
Kerry is currently Chair of the Environmental
Protection Authority, the New Zealand
Festival and the Wellington Jazz Music
Festival Trust.
MOD was appointed to the New Zealand
Tourism Board on 15 October 2013 for a
three-year term.
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 boards of Cycling NZ, Snow
Sports New Zealand, New Zealand Post and
Education New Zealand and is chairman of
Waterfront Auckland.
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, Southern Response
Earthquake Services Limited.
Jenn was appointed to the New Zealand
Tourism Board on 7 August 2012 for a threeyear term.
12
He is also a director of online global music
company Serato, software company Raygun,
and online booking company Timely. MOD
is a weekly business columnist for Fairfax
Media. He was previously the chairman
of Positively Wellington Tourism and has
managed several online travel businesses.
Chris Parkin
Wellington businessman and patron of
the arts, 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.
Norm Thompson (ONZOM)
(CFIntD)
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,
Queenstown Airport Corporation and
Preno Limited, as well a trustee of the
Young Enterprise Trust Board. Norm is
also a Committee Member of the 2016
New Zealand Golf Open.
Norm was appointed to the New Zealand
Tourism Board in December 2013, with his
three-year term commencing in April 2014.
John Thorburn
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.
John is Chief Executive of InterCity Group
and was previously the Chief Executive
of Ngai Tahu Tourism. He has 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.
Chris was appointed to the New Zealand
Tourism Board in December 2013, with his
three-year term commencing in April 2014.
John was appointed to the New Zealand
Tourism Board on 7 August 2012 for a threeyear term.
Jacqui Spice
Jamie Tuuta
Jacqui Spice is the founder and CEO of
Touch of Spice, Curators of New Zealand’s
Finest Experiences – a luxury travel and
destination management company. Jacqui
has over two decades of experience working
in the luxury market, both in New Zealand
and offshore catering to the most discerning
clients in the world. The Touch of Spice
head office is located in Queenstown and
the team curates experiences, events
and itineraries throughout New Zealand.
They have amassed an extensive network
of suppliers, products, transport and
accommodation providers and customised
a number of supremely unique experiences.
Jamie is currently the Māori Trustee
and CEO of Te Tumu Paeroa. He is Ngāti
Mutunga, Ngati Tama, Ngati Maru, Te Ati
Awa and Taranaki iwi.
Jacqui was appointed to the New Zealand
Tourism Board on 17 December 2013, with
her three-year term commencing on 27
January 2014.
He has held a range of governance
positions in the health, iwi development,
fishing, agribusiness, education, Māori
development and investment sectors. He
is currently a director of Aotearoa Fisheries
Ltd, Te Ohu Kaimoana Trustee Ltd, Taranaki
Investment Management Ltd and Wools of
New Zealand. He is the former chairman
of both Te Runanga o Ngāti Mutunga and
Parininihi ki Waitotara Incorporation —
a Taranaki-based Māori agribusiness
organisation.
Jamie was appointed to the New Zealand
Tourism Board in March 2013 for a threeyear term.
Core Leadership Team
Kevin Bowler, Chief
Executive
Deborah Gray, General
Manager Corporate Affairs
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.
Deborah Gray joined Tourism New
Zealand in October 2011 and oversees
the relationships with key New Zealand
stakeholders, including Ministers,
Government agencies, media and the
New Zealand tourism industry. Reporting
to Deborah are two teams covering
communications and industry relations.
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 Qualmark, the
Tourism Industry Association, a member of
the New Zealand Screen Production Grant
Significant Economic Benefits Verification
Panel, a member of the NZ Major Events
Investment Panel, and a member of the
Tourism Growth Partnership Panel (as of
mid 2015).
Andrew Fraser, Director of
Marketing
Andrew Fraser manages the most visible
aspect of the 100% Pure New Zealand
marketing campaign: the 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.
Deborah has spent a number of years
working in primary sector communications,
including for the Ministry of Agriculture and
Forestry and the crown research institute
Scion.
Sue Parcell, General
Manager Finance, IT and
Strategy
Sue Parcell is responsible for managing
and leading the financial and accounting
functions of Tourism New Zealand, while
also managing the 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.
Sue is a member of the Qualmark Board.
Brighid Kelly, General
Manager People
Brighid Kelly 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
are aligned to our organisation’s direction.
This includes recruitment, capability
development, performance management,
remuneration and reward initiatives for
employees based in New Zealand and our
international offices.
Brighid brings a breadth of experience in
human resource management, organisation
development, change leadership and
project management which she has gained
working across a number of industry sectors
including ICT, forestry, and banking.*
Justin Watson, Director of
Trade, PR and Major Events
Justin Watson managed** 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 16 years, Justin has sound
strategic marketing and management
experience and a demonstrated track
record of successfully achieving marketing
and business outcomes.
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.
* Brighid was Acting General Manager People from May 2014 to May 2015 following which
time she was appointed to the role on a permanent basis.
** Justin resigned from his role as Director of Trade, PR and Major events and left Tourism
New Zealand in February 2015 to take up the role of Chief Commercial Officer — Aeronautical
at Christchurch International Airport.
13
Strategic Priorities and Outcomes
This section describes Tourism New Zealand’s strategic priorities that contribute to the Government’s broader economic
priorities and the performance of tourism outcomes that Tourism New Zealand contributes to. Tourism Zealand’s outputs
and activities are described in detail in the Statement of Performance starting on page 24 of this report.
Tourism New Zealand supports the objectives of the Business Growth Agenda (BGA) and plays an important role
contributing to the ‘building export markets’ work stream, working closely with other NZ Inc agencies to help achieve the
goal to increase the ratio of exports to GDP to 40 per cent by 2025.
Tourism New Zealand’s high level objective
Tourism New Zealand’s strategy and activities seek to contribute to the following high level goal:
►► To increase the value of international visitors to New Zealand
The activities delivered by Tourism New Zealand, as a key industry organisation, play a critical role in helping
New Zealand reach its goal to maximise the value from international visitors and contribute to the aspirational
Tourism 2025 growth target of six per cent average value growth per annum through until 2025.
Tourism New Zealand strategic priorities
The overarching objective of improving the value derived from the international tourism sector is an industry wide goal.
However, Tourism New Zealand contributes strongly to this objective through its five strategic priorities. All decisions on
resource allocation (money, people and time), market and sector prioritisation, and activities and channels are made
with the intention of delivering on these priorities.
Tourism New Zealand’s strategic priorities are summarised below.
▪▪ Strategic priority one: Grow a portfolio of markets that drives current opportunities and creates future market
positions — Tourism New Zealand will deliver activity to grow the value of international visitors to New Zealand from
a prioritised portfolio of visitor markets. A future-focused position will be adopted by investing in selected emerging
markets to assist these countries to realise potential value in the medium to long term.
▪▪ Strategic priority two: Drive preference for visiting New Zealand — Tourism New Zealand will deliver strong,
positive, emotive and inspiring messaging to drive greater preference for visiting New Zealand.
▪▪ Strategic priority three: Focus marketing activity on clearly defined higher value visitors — ensure campaign
messages match the needs of the segments and sectors targeted to drive increasing value from visitors by
encouraging them to stay longer and do more while in New Zealand.
▪▪ Strategic priority four: Partner widely to activate conversion and extend marketing reach — focus on commercial
partnerships with aviation and overseas travel sellers and continue our partnership activity with Regional Tourism
Organisations (RTOs) to drive preference and conversion-oriented activity. Tourism New Zealand will engage with the
New Zealand tourism industry and overseas travel sellers to enhance their ability to market New Zealand and drive
greater conversion.
▪▪ Strategic priority five: Optimise delivery capability — optimising the internal delivery capability of Tourism New
Zealand through employing the right staff and systems, and assisting with the capability of the industry in delivering
a superior experience through Qualmark, i-SITE and Tourism New Zealand’s China Market Development Unit.
Tourism New Zealand key activity
The following activity groupings illustrate how Tourism New Zealand’s services are delivered to collectively achieve the
strategic priorities.
▪▪ Activity one: Deliver key visitor messages through the 100% Pure New Zealand campaign activity.
▪▪ Activity two: Deliver key visitor messages through third parties such as media, opinion leaders, and broadcast
production.
▪▪ Activity three: Partner with the travel industry to convert interest in New Zealand into travel and to extend marketing
reach.
▪▪ Activity four: Inform and inspire global travel sellers to assist them to market New Zealand.
14
▪▪ Activity five: Deliver inspiring and informative information for potential visitors.
▪▪ Activity six: Communicate and engage with New Zealand’s tourism industry to align industry investment with
Tourism New Zealand areas of focus.
Tourism New Zealand’s performance against these activities is described in more detail in the Statement of Service
Performance section.
Strategic Priority
Primary related activities
1. Grow a portfolio of markets that drives current opportunities and
creates future market positions
Activities 1,2, 3, 4, 5
2. Drive preference for visiting New Zealand
Activities 1, 2, 5
3. Focus marketing activity on clearly defined higher value visitors
Activities 1, 2, 4
4. Partner widely to activate conversion and extend marketing reach
Activities 1, 2, 3, 4
5. Optimise delivery capability
Activity 6
Figure 1: Tourism New Zealand’s strategic objectives framework
High level objective — Tourism New Zealand’s end goal
To increase the value of international visitors to New Zealand
▼
Tourism New Zealand’s strategic priorities
How Tourism New Zealand will achieve their end goal
Grow a portfolio of
markets that drives
current opportunities
and creates future
market positions
Drive preference for
visiting New Zealand
Focus marketing
activity on clearly
defined higher value
visitors
Partner widely to
activate conversion and
extended marketing
reach
Optimise delivery
capability
▼
Tourism New Zealand’s activity
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 NZ’s
tourism industry
to align industry
investment with
TNZ areas of focus
15
International tourism is New Zealand’s second largest export
International tourism is currently 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 ($billion)
$18
$16
$14
$b
$12
$10
$8
$6
$4
$2
$0
YE March 2011
International tourism
YE March 2012
Dairy products, including casein
YE March 2013
Meat and meat products
YE March 2014
Wood and wood products
Seafood
Data is sourced from the annual Tourism Satellite Account (TSA) published by Statistics New Zealand. The TSA for the
year-end March 2015 is due to be published by Statistics New Zealand on 27 October 2015.
Increasing the value of international visitors to New Zealand
Tourism New Zealand works closely with the wider New Zealand tourism industry to ensure strong economic outcomes
for New Zealand. The outputs delivered by Tourism New Zealand contribute to this high level outcome; success is also
influenced by variables that are outside both Tourism New Zealand’s 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 (TSA). The most recent results for year ending March 2014 are
described in the following table which shows key indicators for the year to March 2014 moving in a positive direction.
Data from this table is sourced from the annual TSA published by Statistics New Zealand. The TSA for the year end March
2015 is due to be published by Statistics New Zealand on 27 October 2015.
16
Measure
YE March 2014
YE March 2013
YE March 2012
Trend
$10.311m
$9.602m
$9.781m
▲
Tourism direct contribution to GDP
4.1%
4.0%
4.1%
▲
International tourism as a per cent of total
exports
15.3%
15.3%
15.1%
―
Tourism full-time employees — direct
94,100 (4.7%)
92,400 (4.7%)
92,500 (4.7%)
▲
Tourism full-time employees — direct and
indirect
166,800 (8.3%)
161,400 (8.3%)
159,300 (8.2%)
▲
Total tourism expenditure (incl. domestic)
$23,753m
$22,625m
$22,559m
▲
Tourism's contribution to GST earnings
$1,756m
$1,668m
$1,663m
▲
International tourism expenditure in NZ
Strong growth in visitor arrivals and spend for the FY15 period (highlighted in the following sections) provide confidence
that a positive result will be reflected in the next TSA.
Strategic priority one: Grow a portfolio of markets that drives current opportunities
and creates future market positions
To ensure that international visitors deliver the maximum possible value for New Zealand, Tourism New Zealand takes a
market and segment portfolio approach that considers a number of global trends. As such, sustainably growing tourism
over time means targeting both mature and emerging markets, and establishing new higher value segments within the
traveller market.
Tourism New Zealand delivers activity to grow the value to New Zealand from a prioritised portfolio of visitor markets. A
future-focused position is taken by investing in selected emerging markets to assist these countries to realise potential
value in the medium- to long-term.
Tourism New Zealand’s market prioritisation is outlined below and reflects the value of current opportunities and, in
the case of emerging markets, future opportunities. The portfolio developed seeks to maintain strong outcomes in the
present while preparing a long term position for New Zealand that reduces New Zealand’s reliance on Australia and
China.
Priority 1 core markets:
Australia, China and the USA
Priority 2 core markets:
UK, Germany and Japan
Priority emerging markets:
India, Indonesia, Latin
America
Priority 3 markets:
Peninsular South East Asia, France, Rest of Europe, Korea, Canada
Strong performance recorded in international visitor arrivals across Tourism New Zealand’s
priority markets.
Total international arrivals reached 2,991,854 for the year ending June 2015, an increase of 7.4 per cent compared to the
previous year. Growth was driven by holiday arrivals, which were up 10.4 per cent.
17
Importantly there was strong visitor arrival growth in Tourism New Zealand’s priority one core markets, particularly
China, with 30.3 per cent growth and the USA with 10.2 per cent growth. In China a focus on the free independent
traveller is not only increasing visitor numbers but also leading to a significant increase in Chinese visitor spend which
reached $1.3 billion in the year to June 20151. Priority emerging markets also grew strongly, particularly India which
grew visitor numbers by 25.9 per cent. The Cricket World Cup and associated marketing activity contributed to this
accelerated growth.
Total international visitor arrivals from Tourism New Zealand’s priority markets are set out in the table below:
Total international visitor arrivals by market
YE 30 June 2015
YE 30 June 2014
YE 30 June 2013
Change 2014/2015
(%)
1,285,632
1,235,808
1,183,856
4.0%
China
313,376
240,496
222,720
30.3%
USA
233,344
211,712
189,456
10.2%
UK
198,080
194,384
189,008
1.9%
Germany
81,088
75,808
65,040
7.0%
Japan
84,432
75,520
74,960
11.8%
LATAM*
26,096
25,008
24,144
4.4%
Indonesia
15,408
14,576
12,464
5.7%
India
42,672
33,904
29,936
25.9%
France
31,792
29,264
25,216
8.6%
Canada
50,512
48,432
46,960
4.3%
Singapore
47,280
44,704
37,696
5.8%
Malaysia
32,240
30,032
25,152
7.4%
Thailand
21,616
21,728
18,688
-0.5%
Korea
60,608
53,072
50,704
14.2%
Rest of world
467,678
452,378
440,896
3.4%
2,991,854
2,786,826
2,636,896
7.4%
Target market
Priority 1 core markets
Australia
Priority emerging markets
Priority 3 markets
Total — All markets
* LATAM includes: Brazil, Mexico, Argentina and Chile
Holiday international visitor arrivals reached 1,460,608 for the year ending June 2015, an increase of 10.4 per cent. This
growth has been solid across all of Tourism New Zealand’s priority markets. There has been particularly strong growth
in two of Tourism New Zealand’s core priority markets, with China increasing by 31.9 per cent and the USA by 12.2 per
cent. North-East Asia has performed well with Japan increasing by 14.1 per cent and Korea by 22.6 per cent. Growth in
the emerging markets portfolio has also been strong, with two of these markets achieving double digit growth. India
increased by 24.1 per cent, Indonesia by 11.5 per cent and Latin America 6.7 per cent.
The total number of holiday stay days for the year ending June 2015 was 23.16 million, an increase of 9.14 per cent
compared to the previous year.
1
18
International Visitor Survey, YE June 2015 MBIE.
Total international holiday arrivals from Tourism New Zealand’s priority markets are set out in the table below:
Holiday international arrivals by market
YE 30 June 2015
YE 30 June 2014
YE 30 June 2013
Change 2014/2015
(%)
Australia
493,488
477,568
541,088
3.3%
China
234,720
177,936
162,912
31.9%
USA
143,248
127,632
110,688
12.2%
UK
82,368
76,448
73,392
7.7%
Germany
58,256
53,760
44,224
8.4%
Japan
54,528
47,776
49,392
14.1%
LATAM*
15,024
14,080
14,0802
6.7%
Indonesia
10,432
9,360
7,888
11.5%
India
20,128
16,224
14,192
24.1%
France
20,288
18,736
15,872
8.3%
Canada
26,944
26,352
25,456
2.2%
Singapore
29,184
26,816
21,824
8.8%
Malaysia
20,608
18,640
15,392
10.6%
Thailand
11,520
10,704
8,848
7.6%
Korea
41,408
33,776
33,616
22.6%
Rest of world
176,400
187,488
198,464
5.9%
1,460,608
1,323,296
1,224,288
10.4%
Target market
Priority emerging markets
Priority 3 markets
Total — All markets
* LATAM includes: Brazil, Mexico, Argentina and Chile
Strategic priority two: Driving preference for visiting New Zealand
Active considerers’ preference for New Zealand as a holiday destination
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.
Tourism New Zealand utilises resources to target a group of consumers called ‘active considerers (of New Zealand)’.
By definition an active considerer thinks New Zealand is an appealing destination to visit, is seriously considering
New Zealand for their next holiday, 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).
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. Research indicates over 60 million active considerers exist across
the six tier one and two markets of Australia, China, USA, UK, Germany and Japan, 20 times the number who visit, which
supports the proposition that converting existing interest is a rational priority over growing the ‘pool’ of considerers.
19
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 FY15 is provided in the tables below:
Proportion of active considerers in key markets who consider
NZ their first or second preferred destination
Market
FY15 actual
FY15 target
FY14 actual
Australia
58%
59%
58%
China
83%
81%
80%
USA
63%
63%
60%
UK
71%
68%
67%
Germany
70%
64%
63%
Japan
65%
59%
58%
Preference for New Zealand grew significantly across all of Tourism New Zealand’s key markets except for Australia which
was stable. Record highs were achieved in several markets with targets for the year exceeded in all markets except
Australia. This strong performance was reflected in the positive visitor arrivals results from these markets.
Proportion of active considerers in emerging markets who consider NZ their first or second
preferred destination
Market
FY15 actual
FY15 target
FY14 actual
India
72% Apr FY15
62%
66%
Indonesia
83% May FY15
31%
n/a
Latin America (Brazil)
47% Feb FY15
34%
n/a
The Indian market exceeded target, with performance enhanced by an integrated Cricket World Cup campaign featuring
Stephen Fleming. This was a new measure for FY15 for Indonesia and Latin America, with both exceeding target.
Digital channels remain important 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.
Tourism New Zealand’s online channels continued to perform strongly in FY15, building on the previous year’s strong
performance. Most targets were exceeded at both a global and local market level. Continued strong preference for
New Zealand in priority markets has supported the effective acquisition of traffic to newzealand.com, both paid (search
engine marketing, on-line display advertising, etc.) and organic (natural or algorithm driven results).
Result/measure
2
20
FY15 actual
FY15 target
FY14 actual
Average number of total
visits to newzealand.com
per month
2,035,194
1,700,000
1,448,210
Average monthly ‘active
visits’ to newzealand.com2
839,792
754,000
623,292
Active visits: A visit where the visitor interacts with the site’s content or functionality.
Strategic priority three: Focus marketing activity on clearly defined high value
visitors
Tourism New Zealand’s mandate is to increase value from international visitors for the economic benefit of New Zealand.
It achieves this through strategies to specifically target high value visitors, and by ensuring campaign messages match
the needs of the segments and sectors targeted by encouraging them to stay longer and do more while in New Zealand.
Visitor value can take several forms. For example, staying in New Zealand for a long time, travelling widely through
New Zealand dispersing the economic benefit, spending strongly on a per night or per trip basis, travelling to
New Zealand in low seasons, or if they are likely to return to New Zealand in subsequent trips.
Research carried out by Tourism New Zealand has identified high value segments within New Zealand’s prioritised
markets and these segments are the basis of Tourism New Zealand’s targeted strategies.
As well as focusing on valuable segments within key markets, higher value visitors are also targeted through the business
events sector. Increasing market development, partnership and campaign activity has accelerated outcomes within this
sector. The importance of this sector will continue to increase as New Zealand’s convention infrastructure improves with
the confirmed New Zealand International Convention Centre in Auckland, and the facilities proposed for Christchurch and
Queenstown.
There has been a focus on targeting premium visitors as high value visitor spend injects significant revenue into the
economy. Through dedicated resources and focus, high net worth individuals have been targeted in North America,
Europe/UK, and Asia leveraging New Zealand’s best accommodation and attractions that appeal to this small but very
valuable segment of the market. Data from 31 Luxury Lodges of New Zealand member properties shows that in the
2014/15 season $50 million was spent by overseas visitors in luxury accommodation in these member properties. This
figure shows an increase in luxury lodges revenue of 19.7% from the 2013/14 season3. Total high value visitor spend in the
broader economy from those travellers staying in luxury lodges in the 2014/15 season is estimated to be $100 million.
Research has also shown that promoting special interest travel can attract visitors who spend more and stay longer
on average. Tourism New Zealand has identified special interests that present opportunities in key markets. Prioritised
special interests include ski/snow, golf, hiking/walking and cycling.
The Chinese market is important in regards to value, and it has delivered exceptional arrivals growth to become
New Zealand’s second most important market in terms of visitors and visitor expenditure. A key driver has been longer
lengths of stay, in particular more Chinese tourists visiting New Zealand on exclusive rather than dual New Zealand and
Australian itineraries.
Strong growth in international visitor spend and average spend per arrival
Total international visitor expenditure for the year end June 2015 was $8.7 billion, an increase of 28 per cent compared
to the previous year4. Holiday expenditure was $5.3 billion, an increase of 28 per cent on the previous year. Total median
spend per international visitor increased by 15 per cent and by 15 per cent for holiday international visitors, reflecting
both a volume and value improvement across the sector. Two of Tourism New Zealand’s top three priority markets,
Australia and China, contributed well over one billion dollars annual spend and the UK and USA also contributed nearly
one billion dollars annual spend, all growing very strongly.
3
Aggregated LLNZ revenue data, provided to Tourism New Zealand and LLNZ members.
4
International Visitor Survey results April – June 2015, Ministry of Business Innovation and Employment.
21
Total visitor expenditure for FY15 is set out by market/region in the table below5:
Total international visitor expenditure by market
Market
YE June 2015 ($m)
YE June 2014 ($m)
YE June 2013 ($m)
Change 2014/2015
Australia
2,295
2,096
2,195
9%
China
1,344
834
721
61%
UK
989
678
601
46%
USA
967
698
505
39%
Germany
482
364
229
32%
Japan
183
202
217
-9%
Korea
153
139
129
10%
Canada
223
168
136
33%
Rest of Asia
804
564
609
42%
Rest of Europe
807
727
537
11%
Rest of Americas
146
70
83
108%
Other
342
282
468
20%
Total
$8,735
$6,823
$6,431
28%
Total international visitor expenditure summary
YE June 2015
Total (NZ$m)
Median
Australia
2,295
1,400
China
1,344
3,500
UK
989
2,700
USA
967
1,400
Germany
482
1,700
Japan
183
3,800
Korea
153
4,800
Canada
223
3,400
Rest of Asia
804
3,000
Rest of Europe
807
3,300
Rest of Americas
146
3,600
Rest of Oceania
213
1,100
Africa and Middle East
129
2,300
$8,735
$2,010
Total
The number of targeted business events that specifically support the Government’s high priority sectors as defined by
the Business Growth Agenda grew from 20 in FY14 to 39 in FY15. This was achieved through a focus on conference and
incentive groups in the high priority sectors of marine, aviation, agri-business, health science, high value foods and
earth science. Other sector bids supported included tourism, indigenous culture, creative and digital, biosecurity and
conservation. Conference or incentive opportunities along with the New Zealand expertise in the sector combined to
result in growth in the number of relevant business events supported.
5
22
France and Malaysia results not available due to sample size issues.
Strategic priority 4: Partner widely to activate conversion and marketing reach
Tourism New Zealand has continued to focus on commercial partnerships with aviation, overseas travel sellers, and with
Regional Tourism Organisations (RTOs) to drive preference and conversion oriented activity. This includes engaging with the
New Zealand tourism industry and overseas travel sellers to enhance their ability to market New Zealand and drive greater
conversion.
Partnerships play an essential role within Tourism New Zealand’s activities. They provide opportunities to deliver coordinated
marketing activity packaged with a product that potential visitors can buy, thereby activating opportunities for conversion.
Partnerships also extend Tourism New Zealand’s marketing reach through attracting additional funding by way of cash and
in-kind support, and assist tourism industry partners by allowing them to leverage Tourism New Zealand’s 100% Pure
New Zealand marketing campaign, increasing their marketing effectiveness.
Partnerships with airlines and airports have provided essential foundations for building and sustaining supply-side capacity.
Tourism New Zealand partnerships deliver fully integrated joint venture campaign activity to support filling air capacity both in
long haul and trans-Tasman routes.
Partnerships with RTOs remain important with a view to promoting regional differentiation and maximising visitor value
outcomes for New Zealand. Partnerships range from high impact campaigns in Australia through to working together on
broadcast television production, the international media programme and visiting trade programmes.
Tourism New Zealand has developed a trade strategy that enables it to cater for the differences by market and has helped
identify the best partners to work with. Tourism New Zealand has integrated Māori culture and messages within the trade activity
in a way that demonstrates to visitors the diversity and availability of contemporary Māori tourism experiences in New Zealand.
Growth in the number of trade advocates to 1,345 in FY15 came from both the number of travel company advocates and also
the number of travel agents who are ‘100% Pure New Zealand Specialists’. The total value of partnership contributions has
grown in FY15 to $23.2m from $20.55m the previous year. Global agreements with airlines have contributed heavily, as well as
partnerships with travel sellers across the globe (e.g. Flight Centre, STA travel, Auckland International Airport).
Result/measure
Growth in the number of trade advocates
Growth in the value of partnership contributions
FY15 actual
FY15 target
FY14 actual
1,345
1,160
1,011
$23.2m
$21.0m
$20.55m
Strategic priority 5: Optimise delivery capability
Tourism New Zealand optimises internal delivery capability by ensuring that it has the right staff and systems, and assisting
with the capability of the industry in delivering a superior experience for visitors through Qualmark, i-SITE and Tourism New
Zealand’s China Market Development Unit.
Internally Tourism New Zealand has focused on building staff capability and adoption of technology to deliver productivity
and efficiency improvements.
Over the past twelve months the organisation has focused on developing its operational management capability, health and
safety management, and account management. A customer relationship management system has been implemented to
advance stakeholder relationship management.
The employee engagement survey result in FY15 was 78 per cent engaged, which is a very positive result. Ensuring that the
organisation has a work environment which supports employee engagement remains a priority for management.
Quality information was delivered through the 79-strong i-SITE visitor information network. Visitors who used the network had
a higher overall satisfaction rating of their holiday experience in New Zealand. New technology introduced through the year
improved productivity and allowed visitors to provide real time customer satisfaction feedback. The system uses the recognised
Net Promoter Score as a measurement — across 13 centres it is currently being used in, this sits at 81.9 after five months.
Result/measure
Improve employee engagement
Satisfaction of overall tourism experience for
i-SITE visitors exceeds that of non-i-SITE users
FY15 actual
FY15 target
FY14 actual
78%
79%
78%
9.0/10 for i-SITE
users
8.9/10 for non-i-SITE
users
Maintain i-SITE users
at or above 9/10 and
above satisfaction levels
of non-i-SITE users
i-SITE users: 9.0/10
non-i-SITE users:
9.1/10
23
Overview
This report covers the New Zealand Tourism Board’s (trading as Tourism New Zealand) performance for the year ending
30 June 2015 against the forecast statement of activities, performance measures and standards set out in Tourism
New Zealand’s Statement of Performance Expectations FY15.
Tourism New Zealand’s resource allocation decisions were based on the extent to which each proposed activity would
contribute towards the delivery of activities and outcomes described in the 2015-2018 Statement of Intent and Statement
of Performance Expectations FY15.
In FY15, Tourism New Zealand’s activities were funded primarily from one appropriation from within Vote Tourism.
FY15 Actual $000s
FY15 Budget $000s
FY14 Actual $000s
Appropriation 1: Marketing of New Zealand as a visitor destination
Crown Revenue
$113,350
$113,350
$113,350
Other Revenue6
$6,431
$2,264
$8,424
Total Expenses7
$120,214
$115,614
$121,987
Total Revenue
$119,781
$115,614
$122,154
Total Expenses
$120,214
$115,614
$122,367
Activity performance
In FY15 Tourism New Zealand delivered the following six activities:
1. Key visitor messages through the 100% Pure New Zealand campaign activity.
2. Key visitor messages through third parties such as media, opinion leaders and broadcast production.
3. Partnered with the travel industry to convert interest in New Zealand into travel and to extend marketing reach.
4. Informed and inspired global travel sellers to assist them to market New Zealand.
5. Inspiring and informative information for potential visitors.
6. Communicating and engaging with New Zealand’s tourism industry to align industry investment with Tourism
New Zealand areas of focus.
These activities were funded primarily through Appropriation 1: Marketing of New Zealand as a visitor destination.
6
Other revenue includes bank interest, partner revenue, excludes foreign exchange gains.
Total expense includes offset from foreign exchange reserve to protect the funding lines from adverse movements in foreign exchange during the year
on offshore expenditure. The total expense excludes other foreign exchange losses.
7
24
Activity Performance
FY15 Actual $000s
FY15 Budget $000s
Appropriation 1: Marketing of New Zealand as a visitor destination
Activity 1: Deliver key visitor messages through the 100%
Pure New Zealand campaign activity
$45,322
$44,220
Activity 2: Deliver key visitor messages through third
parties such as media, opinion leaders and broadcast
production
$9,031
$11,738
Activity 3: Partner with travel industry to convert interest
in New Zealand into travel and to extend marketing reach
$21,054
$18,784
Activity 4: Inform and inspire global travel sellers to assist
them to market New Zealand
$11,947
$10,090
Activity 5: Deliver inspiring and informative information to
potential visitors
$4,040
$3,874
Activity 6: Communicate and engage with New Zealand’s
tourism industry to align industry investment with
Tourism New Zealand areas of focus
$553
$604
New Zealand and offshore support costs8
$28,267
$26,304
Total
$120,214
$115,614
Activity 1: Deliver key visitor messages through the 100% Pure New Zealand
campaign activity
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.
Campaign
Tourism New Zealand’s target audiences are those who are already actively considering a visit to New Zealand. As
Tourism New Zealand’s understanding of active considerer markets has increased (a result of in-market experience and
investment in market research), it has become possible to more accurately target activity towards higher value segments
and special interest sectors within key visitor markets.
Tourism New Zealand activity focuses on reaching active considerers primarily via the use of advanced digital marketing
tools. Digital marketing allows more accurate audience selection and minimises media wastage. During FY15, activity
has focused on high value segments and delivering a programme of fully integrated campaign, PR and trade activity to
maximise the effectiveness of delivery. Key campaign activities included:
▪▪ ‘100% Pure New Zealand and 100% Middle-earth’; FY15 has seen the continuation of ‘Hobbit’ activity, to ensure
opportunities from the third and final Hobbit film were capitalised on.
▪▪ Through the delivery of Tourism New Zealand’s Māori culture and capability strategy, deeper integration of Māori
culture was built into marketing activity to leverage New Zealand’s unique cultural position through typography and
design elements.
8
New Zealand and offshore support costs support the delivery of all six outputs.
25
▪▪ Digital marketing — highly targeted and measurable activity included;
▫▫ Investing in paid search engine marketing, i.e. purchasing travel search terms utilised by active considerers to
draw them to newzealand.com.
▫▫ Investing in paid online digital display advertising, i.e. purchasing banner and rich media (video) advertisement
space on websites that reach active considerers.
▫▫ Search engine optimisation; optimising newzealand.com so that potential visitors are exposed to marketing
channels and content (and New Zealand content more generally) more often when they are researching travel
online.
▪▪ Promoting New Zealand as a compelling business events destination through campaigns in Australia, China, South
East Asia, North America, plus a global campaign targeting association decision makers.
▪▪ Specific sector campaign activity targeting special interest activities (walking/hiking, cycling, golf and fishing),
backpacker and working holiday visitors, and China mono-destination/FIT visitors.
▪▪ Highly targeted premium segment campaign activity.
▪▪ Using new teams in emerging markets to build promotional activity to grow New Zealand’s profile and desirability as
a destination.
Campaign activity has close alignment with the industry’s shared framework for growth, Tourism 2025, 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 higher value visitors through our investments in prioritised markets and segments.
Market insights
Tourism New Zealand supports the drive for increasing the value of international visitors by carrying out market research
to provide core intelligence and evaluation input into the development of marketing campaigns, providing insights on
growth in visitor numbers and value, and carrying out research into high value segments.
In line with the insights theme of the ‘Tourism 2025 industry framework – growing value together’, a focus for Tourism
New Zealand has been to share information and insights with the travel industry.
Key activity included:
▪▪ Increased industry stakeholder engagement/communication of insights through provision of market snapshots,
industry insight presentations and webinars.
▪▪ Active considerer research – regular surveying of target audiences across key and emerging markets to monitor
brand and campaign performance along with specific market issues. Bringing the active considerer segmentation to
life through reviewing and updating active considerer segment profiles.
▪▪ Analysis of core tourism datasets including international visitor arrivals and the International Visitor Survey for
market trends, intelligence and strategic insight.
▪▪ Digital analytics – active optimisation of newzealand.com and digital campaign through measurement and analysis of
digital activity around campaigns and newzealand.com.
Market insights activity is aligned with the Tourism 2025 framework, in particular the themes of:
▪▪ Develop market insight and formulating models for better industry access to information.
▪▪ Drive value through outstanding visitor experience through sharing market insight with industry.
26
Link to Tourism New Zealand’s strategic priorities
Tourism New Zealand’s campaign and market insights activity is a key vehicle for delivering the brand message in
its off-shore markets and delivers against four of the five strategic priorities from the three year marketing strategy:
▪▪ Grow a portfolio of markets that drives current opportunities and creates future market positions.
▪▪ Driving preference for New Zealand.
▪▪ Focusing marketing activity on clearly defined higher value visitors.
▪▪ Partnering widely to activate conversion and extend marketing reach.
Activity 1: Deliver key visitor messages through
the 100% New Zealand campaign activity
Performance
Status
Australia
Target: 4 brand campaigns, SEM always on
4 brand campaigns, SEM
always on
Achieved
China
1 brand campaign, SEM not
always on
Not achieved10
USA
always on
Achieved
UK
always on
Achieved
Germany
always on
Achieved
Japan
always on
Achieved
7 brand campaigns
Achieved
India
Target: 1 brand campaign, SEM always on
not always on
Not achieved11
Indonesia
not always on
Not achieved12
Latin America
always on
Achieved
Quantity
Brand campaign activity delivered — key markets
Business events campaign activity
Target: 5 brand campaigns
Brand campaign activity delivered — emerging markets
One large campaign was run in the first half of the year to capitalise on the opportunities provided by ‘Dad, Where Are We Going?’, rather than two
smaller campaigns as per the original plan. An unplanned hosting opportunity in June with a key opinion leader, Huang Lei, meant that Tourism
New Zealand reapportioned funds from paid SEM activity to pay for the costs of hosting Huang Lei in New Zealand. SEM was inactive for one month.
10
Search always on for India didn’t start until September 2014 as Tourism New Zealand needed to overhaul the search account structure to follow the
global direction as the previous account structure wasn’t optimised or aligned to Tourism New Zealand’s global setting.
11
Search always on for Indonesia didn’t start until September 2014 as Tourism New Zealand needed to overhaul the search account structure to follow
the global direction as the previous account structure wasn’t optimised or aligned to Tourism New Zealand’s global setting.
12
27
Activity 1: Deliver key visitor messages through
the 100% New Zealand campaign activity
Performance
Status
Australia
Target: $2.00-$2.50
$1.37
Achieved
China
Target: $1.20-$1.80
$0.12
Achieved
USA
Target: $1.20-$1.80
$0.09
Achieved
UK
Target: $1.50-$2.20
$0.32
Achieved
Germany
Target: $1.50-$2.20
$0.21
Achieved
Japan
Target: $2.50 – $3.00
$0.85
Achieved
Australia:
Target: $1.50-$2.00
$2.03
Not achieved
China:
Target: $0.50-$1.00
$0.62
Achieved
USA:
Target: $2.00-$2.50
$2.01
Achieved
UK
Target: $1.00-$1.50
$1.26
Achieved
Germany
Target: $1.00-$1.50
$1.33
Achieved
Japan
Target: $2.50-$3.00
$1.25
Achieved
Cost effectiveness
Cost per engagement from display13
Cost per acquisition from search14
13
Engagement: when an action is taken on an ad i.e. a click, a play of a TV commercial; some form of an 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.
14
28
Activity 2: Deliver key messages through third parties such as media, opinion
leaders and broadcast production
Public relations
Communication channels such as PR deliver brand messages through third parties (e.g. opinion leaders, independent
media), drive preference for visiting New Zealand and assist in strengthening conversion of potential visitors into actual
visitors.
During FY15, activity focused on high value segments and sectors and delivered a programme of integrated campaign, PR
and trade activity to maximise effectiveness. Activity included:
▪▪ Public relations activity to build preference levels with target audiences and support conversion of visitors.
▫▫ Hosting of international media, bloggers and opinion leaders.
▫▫ Providing support to targeted broadcast production projects that enabled Tourism New Zealand to communicate
its destination messages through existing broadcasters with good reach.
▫▫ Leveraging off the Hobbit through visiting media and opportunities associated with the film première of the third
movie.
▫▫ Proactively and reactively capitalised on the demand for high quality content and generated content to widen
the range of assets available to publishers.
▪▪ Developing and implementing media programmes to leverage the media opportunities associated with the ICC
Cricket World Cup 2015 and FIFA U-20 World Cup. ▪▪ Supporting and leveraging events both on and offshore that provided a vehicle to communicate Tourism
New Zealand’s destination messages.
▪▪ Seeking out and creating opportunities through third party channels to deliver activity that supports the Christchurch
recovery.
▪▪ Targeting, evaluating and securing key opinion leaders for use in PR and campaign activity to deliver the 100% Pure
New Zealand message and deliver marketing reach.
▪▪ Social media — growing engagement and reach with social media platforms (e.g. Facebook) that assist us to build,
engage and inspire active considerers.
Public relations activity is aligned with the Tourism 2025 framework, in particular the themes of:
▪▪ Targeting for value through 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.
Link with Tourism New Zealand strategic priorities
Tourism New Zealand’s PR activity is primarily aimed at achieving:
▪▪ Driving preference for New Zealand.
Due to Tourism New Zealand’s desire to integrate messages across multiple platforms this output was frequently part of
the following priorities as well:
▪▪ Partnering widely to activate conversion and extend marketing reach.
29
Activity 2: Deliver key messages through third parties such as media, opinion leaders and
broadcast production
Result/measure
Performance
Status
Total media hosted
Target: 220 media visits
Target: 250 media outlets
261
451
Achieved
Achieved
Media from emerging markets
Target: 30 media visits
42
84
Achieved
Achieved
Media from premium sector
53
Achieved
59%
Achieved
Quantity
International media hosted from key Tourism New Zealand markets
Hosted media visits that feature a cultural element
Target: (at least) 50%
Quality
Equivalent advertising value (EAV) of print, online and broadcast in Tourism New Zealand markets15
Total EAV all markets.
Target: $90.0m
EAV premium sector international media programme
Target: $2.5m
$157.2m
Achieved
$4.7m
Achieved
Activity 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 play an essential role within Tourism New Zealand’s activities. They provide an opportunity
to deliver Tourism New Zealand marketing activity co-ordinated with products that potential visitors can buy, thereby
activating opportunities for conversion. Partnerships extend Tourism New Zealand’s marketing reach through attracting
additional funding by way of cash and in-kind support as well as assisting tourism industry partners by allowing them to
leverage off Tourism New Zealand’s 100% Pure New Zealand campaign, thereby increasing their effectiveness in market.
Partnerships in FY15 included high impact campaigns in Australia, promoting New Zealand through significant television
broadcast productions, and visiting media and trade programmes.
Key activities included:
▪▪ Partnered campaigns; partnering with public and private organisations to deliver campaigns that enabled Tourism
New Zealand to pair advertising with a travel conversion partner’s offer.
Partnership activity with Regional Tourism Organisations
Partnerships with Regional Tourism Organisations (RTOs), predominantly in Australia for campaign work, remain
important, focusing on building regional stories (e.g. North Island touring, and ski holidays) 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.
15
30
Equivalent advertising value (EAV) results are not always available for all activity; so results will underestimate the actual value.
▪▪ 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 delivered fully integrated joint venture campaign activity to support filling
capacity both in long haul and trans-Tasman routes.
▪▪ Tourism New Zealand continued to work closely with airlines to support and increase in-bound seat capacity to New
Zealand.
Tourism New Zealand maintains agreements with aviation and airline partners, for example Air New Zealand, where they
are aligned with Tourism New Zealand’s international aviation strategy. Under these agreements partnered marketing
campaigns are carried out that support the aviation routes that are critical to developing tourism.
Working with the aviation sector activity aligns with the Tourism 2025 framework, in particular the theme of:
▪▪ Growing sustainable air connectivity through memorandums of understanding with Air New Zealand and other
airlines, cooperation with airports and with connection to other parts of Government and Ministers. Delivering fully
integrated joint venture campaigns allows flexible timing of activity to build non-peak travel to assist with airline load
factors with the long term aim of building sustainable airline connections to New Zealand.
Tourism New Zealand’s joint venture and aviation activity is primarily aimed at achieving partnerships to activate
conversion and extend marketing reach.
Activity 3: Partner with the travel industry to convert interest in New Zealand into travel and to
extend marketing reach
Result/measure
Performance
Status
Australia
Target: 8 partnered campaigns
23
Achieved
China
9
Achieved
USA
16
Achieved
UK
13
Achieved
Germany
8
Achieved
Japan
5
Achieved
India
5
Achieved
Indonesia
3
Achieved
Quantity
Key markets partnership campaign activity16
Emerging markets partnership campaign activity delivered
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.
16
31
Activity 3: Partner with the travel industry to convert interest in New Zealand into travel and to
extend marketing reach
Result/measure
Performance
Status
2
Achieved
4 airlines, 3 travel retailers,
15 incentive houses
Achieved17
Australia
Target 5:1
12:1
Achieved
China
Target 5:1
39:1
Achieved
USA
Target 5:1
24:1
Achieved
UK
Target 5:1
14:1
Achieved
Germany
Target 5:1
6:1
Achieved
Japan
Target 5:1
70:1
Achieved
Partnership funds committed to coordinated marketing
activity
Target: $1:$1
$1 : $1
Achieved
Value of partnership contributions
Target: $21.0m
$23.2m
Achieved19
Latin America
MOUs in place with airlines and travel sellers
Target: 7 airlines, 3 travel retailers, 3 incentive houses
Quality
Campaign return on investment. (ROI)18
Quality
17
Tourism New Zealand secured three fewer MOUs with airlines than forecast and achieved twelve more MOUs with incentive houses.
ROI is calculated by: (passengers booked) x (average visitor spend in NZ for market)/campaign spend. This generates a ratio that shows for every
dollar we spent we generated ‘x’ amount of visitor value. Note: ROI relates to campaign spend only and is not intended to represent a ROI for overall
Tourism New Zealand activity. It also does not attempt to calculate substitution or to estimate the level of incremental value.
18
The $23.2m of partnership contributions includes $5.4m of non-financial contributions from partners. These are contributions of a non-cash nature
made by partners to joint activity with Tourism New Zealand such as discounted airfares, accommodation and activity admission fees for a trade or
media familiarisation and inclusion of Tourism New Zealand provided content in partner distributed e-mail newsletters and on partner websites. The
equivalent dollar value of these contributions is estimated by Tourism New Zealand and Regional Tourism Organisation staff using their experience
and knowledge of the market, often with reference to external sources such as websites, pricelists published and communications with the partners
themselves.
19
32
Activity 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 has delivered activity to educate, connect and familiarise
global travel sellers to enable them to sell more high value New Zealand holidays. Activity was delivered to:
▪▪ Generate and convert consumer interest by fully integrating trade offers into partnered marketing campaigns.
▪▪ Educate trade to improve product knowledge and increase volume and value of conversions.
▪▪ Connect the New Zealand industry with the right trade partners.
▪▪ Lead product development (itineraries) in market and facilitate information flow with New Zealand industry.
▪▪ Trade familiarisations, e.g. familiarisation visits to New Zealand for travel company product managers and decision
makers.
▪▪ Online resources (primarily the 100% Pure New Zealand Specialist Programme) to increase the knowledge and sales
of travel sellers, including through region and product specific online training modules and product updates.
▪▪ Training the trade through such mediums as face to face trainings and virtual channels like webinars.
▪▪ Trade Events; organising trade events and co-ordinate participation by the New Zealand tourism sector at
international trade shows.
▪▪ Tourism New Zealand also attended international trade shows and facilitated New Zealand operator attendance.
Working with the travel trade aligns with the Tourism 2025 framework, in particular the theme of:
▪▪ Targeting for value through activity focused on growing ability of trade offshore and in New Zealand to sell
destination New Zealand.
Growing the business events sector
The business events sector is a high value market segment for New Zealand. In addition to delivering an incremental
direct contribution through international delegates spend, holding international business events in New Zealand acts as
an economic development tool by facilitating new 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 season 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.
Tourism New Zealand’s activity in working with the travel trade area is primarily aimed at achieving priority 4:
▪▪ Partner widely to activate conversion and extend marketing reach.
Tourism New Zealand’s activity in the business events space is primarily aimed at achieving priority 3:
33
Activity 4: Inform and inspire global travel sellers
to assist them to market New Zealand
Result/measure
Performance
Status
Total all markets
Target: 20,000 travel modules completed
25,936
Achieved
Emerging markets
Target: 5,000 travel modules completed
4,275
Not achieved
1,240
Achieved
Total emerging markets
Target: 80
85
Achieved
Business events
Target: 80
127
Achieved
Premium sector
Target: 50
82
Achieved
69%
Not achieved20
Total all Markets
Target: Minimum of 25
48
Achieved
Business events
Target: 8
11
Achieved
Premium sector events
Target: 7
14
Achieved
Major trade events organised and facilitated by Tourism
New Zealand
Target: Minimum of 8
11
Achieved
224
Achieved21
Quantity
Successful travel module completions
Trade on TNZ hosted famils
Total all markets
Target: 600
Trade famils that feature a cultural element
Target: at least 75%
Major trade events attended by Tourism New Zealand
Quality
Number of travel company advocates
Target: 160
Grow the number of travel agents who are ‘100% Pure New Zealand Specialists’
Total all Markets
Target: 1,000
Emerging markets
Target: 120
1,023
Achieved
98
Not achieved22
Regions of New Zealand that are commonly included in travel agent familiarisations (e.g. Wellington, Nelson, the West Coast and Queenstown)
having fewer products that feature Māori culture.
20
Two types of ‘advocates’ exist; travel agent advocates and travel company advocates. To qualify as a travel agent advocate they must have
successfully completed the 100% Pure New Zealand Specialist Programme. To qualify as a travel company advocate the company must have a formal
partnership agreement and a regular contact plan must be place and fulfil a set of criteria such as key staff on familiarisation, attendance at TRENZ or
have a certain amount of 100% Pure NZ Specialist in their company.
21
22
34
Thirty four 100% Pure New Zealand Travel specialists expired in the Indian market in June impacting on the FY15 result.
Activity 4: Inform and inspire global travel sellers
to assist them to market New Zealand
Result/measure
Performance
Status
58
Achieved23
Success rate for bids supported through CAP fund
Target: 60%
73%
Achieved
Estimated value of bids supported through CAP fund
Target: $85m
$97m
Achieved24
Performance
Status
Quantity
Bids supported through the Conference Assistance
Programme (CAP) Fund
Target: 50
Quality
Result/measure
Quantity
Incentive bids supported (Tourism New Zealand only tracks incentive bids for 50 pax or higher or with an estimated
value of more than 200,000 NZD (excl. air fare))
China
Target: 40
42 bids supported
Achieved
USA (North America)
Target: 50
55 bids supported
Achieved
Peninsular South East Asia
Target: 50
53 bids supported
Achieved
$25.9m
Achieved
Quality
Value of incentive bids converted
Target: $25.0m
Activity 5: Deliver inspiring and informative information for potential visitors
newzealand.com
Tourism New Zealand’s consumer website performs a dual role. One is as a marketing tool to convert active considerers’
preference for New Zealand into actual travel. The second is to enable visitors to engage with one another and with travel
sellers to source information and advice.
▪▪ Creation and delivery of an integrated content programme to ensure active considerers are reached and engaged.
▪▪ Review and enhancement of Essential New Zealand (mobile application).
newzealand.com activity aligns with the Tourism 2025 framework, in particular the strategic theme:
▪▪ Driving value through outstanding visitor experience through providing high quality and timely information for
international visitors to New Zealand.
23
Tourism New Zealand anticipate at least 15 (of 50) conferences supported to come from the Australasian region in FY15.
24
Estimated value: Estimate will differ to the actual result, which is likely to be realised several years later e.g. less/more delegates arrive.
35
i-SITE New Zealand
Tourism New Zealand also supports the provision of information to visitors through our role with the i-SITE network.
i-SITE New Zealand visitor centres (79 across New Zealand) provide information and a booking service for attractions,
transport, accommodation and events to international and domestic visitors in New Zealand.
Tourism New Zealand has no ownership stake in any i-SITE centres. 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 to raise the profile of the i-SITE network
among visitors.
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.
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 information and service for
Tourism New Zealand’s newzealand.com activity is primarily aimed at achieving priority 2:
▪▪ Drive preference for visiting New Zealand.
Activity associated with i-SITE is primarily aimed at achieving priority 5:
▪▪ Optimise delivery capability.
Activity 5: Inspiring and informative information for potential visitors
Result/measure
Performance
Status
2,035,194
Achieved
Average monthly ‘active visits’ to newzealand.com
Target: 754,000
839,792
Achieved25
Annual referrals via Essential New Zealand App
Target: 61,000
64,552
Achieved
Average monthly referrals to industry via newzealand.com
Target: 236,000
174,889
Not achieved26
8.4/10
Not achieved27
Quantity
Average number of total visits to newzealand.com per
month
Target: 1,700,000
Quality
Level of user satisfaction with i-SITE maintained or
increased
Target: at or above 9.0/10
25
Active visits: A visit where the visitor interacts with the site’s content or functionality.
Referrals: 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.
26
i-SITE user satisfaction is relatively high although below the aspirational target of 9.0. The introduction of a Net Promoter Score to measure user
advocacy will provide new insights and specific verbatim user feedback.
27
36
Tourism New Zealand’s consumer website, newzealand.com, achieved record volumes for a single year. This record
digital channel performance in FY15 was a result of increased digital marketing activity in Tourism New Zealand’s priority
markets, strong organic search performance and targeted user experience improvements.
Referrals (industry leads) from newzealand.com did not achieve the target due to two factors. Firstly, a change in
strategy which saw a greater proportion of paid digital advertising directing consumers to travel partner websites instead
of newzealand.com. Secondly, the increased proportion of mobile newzealand.com traffic which delivers a lower rate of
referral. The overall number of referrals to industry from Tourism New Zealand marketing activity (newzealand.com plus
direct-to-partner) has increased by 64% year on year and if combined, outperformed the referral target.
Activity 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 has
been to ensure alignment between market needs, Tourism New Zealand’s marketing programmes, and what is offered in
New Zealand. Key activities include:
▪▪ Publications, including the regular delivery of e-bulletins, webinars and the annual report.
▪▪ Tourism New Zealand’s corporate website (tourismnewzealand.com) which provides the industry with timely
information on recent activity, information on events as well as providing access to research and market analysis.
▪▪ Speaking engagements, including industry presentations at conferences and seminars that update industry members
on changes within the global industry and the specific consequences this will have within the New Zealand tourism
market. These speaking engagements also allow Tourism New Zealand to hear from the industry including any
challenges they are facing or opportunities they have identified.
▪▪ Working 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.
The tourism industry gained insight into changing market dynamics through a number of forums including workshops,
seminars and webinars, providing the industry with opportunities to identify new ways to improve the quality of the
visitor experience.
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
Tourism New Zealand owns 60 per cent of Qualmark New Zealand Ltd. The Automobile Association of New Zealand owns
the remaining 40 per cent. Tourism New Zealand provides funding, governance and some marketing and administration
support for Qualmark.
Qualmark currently issues 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, an assessment is undertaken by a trained assessor who measures the quality of operators’ facilities and
business practices. This includes health and safety systems and service systems relating to guest care. Businesses can
also be recognised for excellence in environmental business practices through Enviro accreditation.
Qualmark aligns with the Tourism 2025 framework through the theme:
▪▪ Drive value through outstanding visitor experience: through providing quality assurance for accommodation facilities
and an endorsement programme for activities, transport and services for international visitors.
37
China Market Development Unit
China continues to grow rapidly and has 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 have required attention. Tourism New Zealand, largely through its China Market Development Unit,
delivers the following activities to support Tourism New Zealand’s goal to grow the proportion of high quality visitors from
China:
▪▪ Administering the Approved Destination Status (ADS) programme. This programme licenses 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 also assesses new applicants, completes regular compliance monitoring and
assessments, and handles complaints and feedback from Chinese group tour visitors.
▪▪ Administering the Premier Kiwi Partnership (PKP) programme, which aims 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 to reduce the barriers for higher value mono
New Zealand product.
▪▪ Producing Chinese language visitor information designed to increase China visitor knowledge, including the rights
and protections they have if visiting on an ADS tour.
▪▪ Engagement with relevant regulatory bodies.
The China Market Development 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 high value 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.
Tourism New Zealand’s activity in this area is primarily aimed at achieving priority 5:
▪▪ Optimise delivery capability.
Due to Tourism New Zealand’s specific work in addressing the quality issues faced by the China market in the attempt to
attract a higher value visitor, the activity also contributes to the achievement of priority 3:
Activity 6: Communicate and engage with New Zealand’s tourism industry to align industry
investment with Tourism New Zealand areas of focus
Result/measure
Performance
Status
30,628
Achieved
Registrations for New Zealand tourism industry webinars
Target: 720 people registered for at least 1 webinar
630 people registered
Not achieved
Stakeholder engagement through presentations at both
industry and TNZ organised events
Target: Minimum of 30 presentations to New Zealand
tourism industry
34
Achieved28
Quantity
Tourism New Zealand corporate website maintains or
grows repeat visits to site
Target: 30,000
Includes roadshows delivered by the Chief Executive and/or Chair of Tourism New Zealand, presentations given by Executive Leadership Team to New
Zealand industry e.g. conferences.
28
38
Activity 6: Communicate and engage with New Zealand’s tourism industry to align industry
investment with Tourism New Zealand areas of focus
Result/measure
Performance
Status
85.75%
Achieved
Quality
Tourism New Zealand communications (website/enewsletter/webinars etc.) add value to Tourism industry
stakeholders’ activities
Target: 75% of surveyed stakeholders rate Tourism
New Zealand’s communications as very good or excellent
Qualmark and China Market Development Unit (administering the ADS programme and administering the PKP
programme)
Result/measure
Performance
Status
260 spot checks
Achieved
3 assessment visits
Not achieved29
Decrease to 52%
Not achieved
Nil assessments
Not achieved
Quantity
Number of ADS ‘spot checks’ and assessments of ADS
Inbound Tour Operators (ITOs)
Target: 100 spot checks
4 assessment visits to ADS Inbound Tour Operators
Increase the proportion of guest nights provided by
Qualmark commercial accommodation
Target: Increase from base of 55%
Quality
Compliance assessment of PKP Inbound Tour Operators
(ITOs)
Target: Assessment of 4 PKP ITOS
Additional monitoring of the China ADS Code of Conduct that governs ADS group tour was conducted during the year
with the aim of ensuring tour guides and operators delivered the best possible satisfaction levels to Chinese visitors.
More Chinese visitors chose longer staying premium style ADS tours during the year and an increasing proportion of
visitors chose free, independent travel style options.
The number of licensed Qualmark businesses remained steady with over 52 per cent of all nights spent in commercial
accommodation spent in Qualmark rated properties. At the beginning of FY15 Qualmark had 2067 licences, and over the
year experienced 192 acquisitions and 189 withdrawals to end FY15 with 2070 licences, less than the target of 2,200.
29
Resources to undertake the final check were reallocated to conduct additional spot checks as this was deemed to be of a higher priority.
39
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 its Equal Employment Opportunities (EEO) Programme.
Set out below is a work place profile for Tourism New Zealand as at 30 June 2015.
Senior Management
Direct Reports to
Senior 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
44%
44%
17%
45%
15%
31%
3%
40%
NZ European
Male
Female
Māori
Male
Female
Pacific Peoples
Male
Female
Asian (inc. South Asian)
Male
Female
Other
Male
Female
% of Group of Total
Organisation
4%
2%
2%
3%
2%
12%
5.5%
15%
15%
24%
5%
29%
4%
11%
15%
5%
13%
32.9%
8.0%
53.6%
Tourism New Zealand operates in 12 offshore markets and employs people of different nationalities, race and ethnicity. The
organisation recognises the value of a diverse workforce and the importance of working together to deliver on outcomes. This is
illustrated through its core organisational values namely; actions speak louder, global whānau and unwavering belief in New Zealand.
Women and people of Asian descent continue to be well represented at all levels of the organisation. Aged people, individuals with
disabilities and people of Māori and Pacific descent are represented in the organisation. Tourism New Zealand continues to support
the development and growth of all of its people and in order to facilitate this, has undertaken the following:
▪▪
Provided tools and information on Māori culture and language via Kōhanga, the intranet, and as part of the induction workshop.
▪▪
The continuation of the Global Community initiative ‘Global Whānau’ which celebrates the diversity of the cultures represented at
Tourism New Zealand and improves communication and connectedness between offices.
▪▪
Provided a forum for discussing cultural differences and expectations with the purpose of improving communication.
▪▪
Celebrated the achievements of its people through the Whētu (Star) recognition programme.
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-market, where there are different jurisdictional requirements and
statutory minima in the areas of Equal Employment Opportunities (EEO). Tourism New Zealand has an Equal Employment Opportunity
Policy.
Tourism New Zealand has a well-defined mission, vision and set of values. The vision and values are part of the induction programme
and have been integrated into the reward and recognition programmes. The organisation has recently defined the ‘actions’ which are
demonstrated when employees are working at their best or most successfully together. The suite of actions will be integrated into
people practices in 2015.
Tourism New Zealand has for the fifth year sought employee feedback and input through an annual engagement survey to assist in
maintaining an environment where employees are motivated and supported. Development initiatives have been undertaken to ensure
employees maintain their high level of engagement in the organisation.
40
The leadership team and broader management group are committed to demonstrating leadership and accountability in all areas of
EEO and, from an EEO perspective, this means a commitment to, and activity in, the following areas.
1. Recruitment, selection and induction
The recruitment and selection procedure has been developed to ensure that all prospective employees are given the opportunity to
participate equally in the recruitment process. The selection process typically involves a structured competency and behaviourallybased interview, reference checking, a screening tool, and for senior positions, psychometric assessment, all of which are validated
and support the principles of EEO. 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. Learning and development
Tourism New Zealand has an accelerated development programme and organisation management programme which includes
facilitated learning, online learning, mentoring, coaching, 360 development and on the job learning. Appreciation and management of
diversity is integrated into the agenda for each programme to ensure participates further develop capability in this area.
Tourism New Zealand measures leadership and management effectiveness as part of its annual engagement survey. These measures
are integrated with the performance management framework and people managers are accountable for these two areas of capability.
The organisation also has a succession and progression management programme for the purpose of ensuring there is the required
depth and breadth of capabilities in the organisation in order to deliver on organisational outcomes. Learning and development needs
are identified through this and on an individual basis through the development planning process. Development needs are aligned with
and agreed as part of the annual performance management process.
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. The organisation continues to:
▪▪
Support employees with disabilities or special requirements through work place assessments, 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.
4. 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 establish salary ranges.
Individuals identified as not meeting the requirements of their role are provided with support, learning 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 which adhere to the
WorkSafe New Zealand guidelines on preventing and responding to workplace bullying.
6. Safety 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 revised and refined the suite of related guidelines and policy to support safety
and wellbeing. The Safety and Wellness Committee, which represents the employees is progressively working to identify and
address initiatives which support maintaining employee health, safety and wellness. A learning programme has been established
for committee members. Aspects of the programme have been used more widely across the organisation in support of the risk
management programme. The risk management programme has focused on ensuring that the two key risks of driving and hosting are
appropriately managed. Measures indicate this programme has been very successful and our employees feel increasingly that safety
and wellness are well managed.
Work place assessments and the provision of special equipment continue to be undertaken and provided to ensure that employees are
able to contribute effectively in all aspects of their working life.
41
Chris Sisarich
42
Financial Statements
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 2015.
The Members of the New Zealand Tourism Board and Group
authorised these financial statements for issue on 6 October 2015.
Signed on behalf of the Board:
K. Prendergast
Chairman
6 October 2015
R. Leggat
Deputy Chair
6 October 2015
43
Statement of Comprehensive Revenue And Expense
for the year ended 30 June 2015
Group
Parent
Notes
2015
Actual
$000s
2015
Budget
$000s
2014
Actual
$000s
2015
Actual
$000s
2015
Budget
$000s
2014
Actual
$000s
Revenue from Crown
2
113,350
113,350
113,730
113,350
113,350
113,730
Other revenue
3
1,102
-
852
1,102
-
852
49
103
46
48
100
46
Revenue from non-exchange transactions
Revenue from exchange transactions
Interest income
Other revenue
3
6,870
4,179
9,064
5,276
2,164
7,497
Share of associate's surplus
8
-
-
-
-
-
-
121,371
117,632
123,692
119,776
115,614
122,125
120,778
116,981
123,740
119,114
114,979
122,190
994
651
1,028
968
635
1,012
Total Revenue
Expenditure
Other expenses
Depreciation and amortisation
4
12,13
Share of associate's deficit
8
-
-
11
-
-
-
Total Expenditure
5
121,772
117,632
124,779
120,082
115,614
123,202
(401)
-
(1,087)
(306)
-
(1,077)
Net Operating Surplus/(Deficit) before Foreign
Exchange and Taxation
Foreign Exchange
Unrealised Foreign exchange gains/(losses) on
derivative financial instruments held at year end
6
8,536
-
(1,909)
8,536
-
(1,909)
Income tax expense
21
-
-
-
-
-
-
Net Surplus/(Deficit) for the year
8,135
-
(2,996)
8,230
-
(2,986)
Total comprehensive revenue/(expense) for the
year
8,135
-
(2,996)
8,230
-
(2,986)
(527)
-
890
(527)
-
890
7,608
-
(2,106)
7,703
-
(2,096)
(46)
-
21
-
-
-
8,181
-
(3,017)
8,230
-
(2,986)
8,135
-
(2,996)
8,230
-
(2,986)
(46)
-
21
-
-
-
Benefit of foreign exchange reserve transfer
6
Net Operating Surplus/(Deficit) after Foreign
Exchange transfer
Net Surplus/(Deficit) for the year is attributable
to:
Non-controlling interest
7
Owners of the parent
Total comprehensive revenue/(expense) for the
year is attributable to:
Non-controlling interest
Owners of the parent
7
8,181
-
(3,017)
8,230
-
(2,986)
8,135
-
(2,996)
8,230
-
(2,986)
The notes and accounting policies on pages 48 to 71 form part of and are to be read in conjunction with these financial statements.
44
Statement of Changes In Equity
Parent
Notes
Balance at 1 July
Net surplus for the year
Transfer from Retained Earnings to Foreign
Exchange Reserve
18
Total comprehensive revenue for the year
Balance at 30 June
Shareholders
Equity $000s
Foreign Exchange
Reserve $000s
Retained
Earnings $000s
Total $000s
1,805
4,117
(1,408)
4,514
-
-
8,230
8,230
-
527
(527)
-
-
527
7,703
8,230
1,805
4,644
6,295
12,744
Group
Notes
Balance at 1 July
Net surplus / (deficit) for the year
Transfer from Retained Earnings to Foreign
Exchange Reserve
18
Total comprehensive revenue / (deficit) for the year
Balance at 30 June
Shareholders
Equity $000s
Foreign
Exchange
Reserve
$000s
Retained
Earnings
$000s
NonControlling
Interest
$000s
Total
$000s
1,805
4,117
(1,385)
227
4,764
-
-
8,181
(46)
8,135
-
527
(527)
-
-
-
527
7,654
(46)
8,135
1,805
4,644
6,269
181
12,899
Statement of Changes in Equity
Parent
Notes
Balance at 1 July
Net deficit for the year
Transfer to Retained Earnings from Foreign
Exchange Reserve
18
Total comprehensive expense for the year
Balance at 30 June
Shareholders
Equity $000s
Foreign Exchange
Reserve $000s
Retained
Earnings $000s
Total $000s
1,805
5,007
688
7,500
-
-
(2,986)
(2,986)
-
(890)
890
-
-
(890)
(2,096)
(2,986)
1,805
4,117
(1,408)
4,514
Group
Notes
Balance at 1 July
Net surplus / (deficit) for the year
Transfer to Retained Earnings from Foreign
Exchange Reserve
Total comprehensive revenue / (deficit) for the year
Balance at 30 June
18
Shareholders
Equity $000s
Foreign
Exchange
Reserve
$000s
Retained
Earnings
$000s
NonControlling
Interest
$000s
Total
$000s
1,805
5,007
742
206
7,760
-
-
(3,017)
21
(2,996)
-
(890)
890
-
-
-
(890)
(2,127)
21
(2,996)
1,805
4,117
(1,385)
227
4,764
45
Statement of Financial Position
Group
Parent
2015
Actual
$000s
2015
Budget
$000s
2014
Actual
$000s
2015
Actual
$000s
2015
Budget
$000s
2014
Actual
$000s
9
6,365
6,242
4,213
6,206
6,000
3,970
Receivables from non-exchange transactions
10
62
-
155
62
-
155
Receivables from exchange transactions
10
2,008
1,509
1,920
1,873
1,299
1,713
1,547
1,188
936
1,545
1,188
934
Notes
Current Assets
Cash
Prepayments and other current assets
Derivative financial instruments
11
5,716
-
-
5,716
-
-
15,698
8,939
7,224
15,402
8,487
6,772
Non-current Assets
Property, plant and equipment
12
1,706
1,227
1,943
1,699
1,222
1,929
Intangible assets
13
1,653
4
1,371
1,554
-
1,264
Investment in associate
8
-
1
-
-
-
-
Accommodation bonds
14
280
342
257
280
342
257
11
1,054
-
-
1,054
-
-
4,693
1,574
3,571
4,587
1,564
3,450
20,391
10,513
10,795
19,989
10,051
10,222
Total Assets
Current Liabilities
Creditors and other payables
15
5,808
2,539
3,177
5,705
2,425
3,001
Employee entitlements
16
801
522
683
772
472
655
Invoiced in advance
617
150
139
502
-
20
Provisions
17
96
20
20
96
20
20
11
-
152
1,520
-
152
1,520
7,322
3,383
5,539
7,075
3,069
5,216
Non-current Liabilities
Provisions
17
170
268
246
170
268
246
11
-
-
246
-
-
246
170
268
492
170
268
492
7,492
3,651
6,031
7,245
3,337
5,708
12,899
6,862
4,764
12,744
6,714
4,514
1,805
1,805
1,805
1,805
1,805
1,805
Total Liabilities
Net Assets
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
46
7
6,269
347
(1,385)
6,295
296
(1,408)
4,644
4,613
4,117
4,644
4,613
4,117
12,718
6,765
4,537
12,744
6,714
4,514
181
97
227
-
-
-
12,899
6,862
4,764
12,744
6,714
4,514
Statement of Cash Flows
Group
Notes
Parent
2015
Actual
$000s
2015
Budget
$000s
2014
Actual
$000s
2015
Actual
$000s
2015
Budget
$000s
2014
Actual
$000s
113,350
113,350
113,730
113,350
113,350
113,730
49
103
46
48
100
46
1,196
-
686
1,196
-
686
Cash flows from operating activities
Crown revenue
Interest received
Other revenue from non-exchange transactions
Other revenue from exchange transactions
6,818
4,179
9,404
5,211
2,164
7,717
(119,169)
(117,482)
(122,822)
(117,511)
(115,464)
(121,392)
148
-
(1,024)
170
-
(1,000)
2,392
150
20
2,464
150
(213)
32
-
8
32
-
8
Purchase of property, plant and equipment
(444)
(150)
(706)
(501)
(150)
(702)
Purchase of intangible assets
(691)
-
(691)
(622)
-
(622)
Payments to suppliers and employees
Goods and services tax (net)
Net cash outflow from operating activities
19
Cash flows from investing activities
Repayment of accommodation bonds
Payments for accommodation bonds
Net cash outflow from investing activities
Net decrease in cash held
Effect of exchange rates on foreign currency
balances
Opening cash brought forward
Cash at end of year
9
(25)
-
(13)
(25)
-
(13)
(1,128)
(150)
(1,402)
(1,116)
(150)
(1,329)
1,264
-
(1,382)
1,348
-
(1,542)
888
-
(256)
888
-
(256)
4,213
6,242
5,851
3,970
6,000
5,768
6,365
6,242
4,213
6,206
6,000
3,970
47
Notes to the Financial Statements
Note 1
(d) Basis of consolidation
Statement of accounting policies for the year ended 30 June 2015
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).
(a) Reporting Entity
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 primary objective is to improve tourism’s
contribution to economic growth by increasing the value of
Subsidiaries are combined using the acquisition method of
combination. The financial statements of subsidiaries are
prepared for the same reporting period as the parent entity,
using consistent accounting policies.
Tourism New Zealand does not operate to make a financial return.
Adjustments are made to bring into line any dissimilar accounting
policies that may exist.
For the purposes of financial reporting, Tourism New Zealand is
classified as a Public Benefit Entity.
The financial statements for Tourism New Zealand are for the
year ended 30 June 2015, and were approved by the Board on
6 October 2015.
(b) Basis of preparation
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.
The financial statements have been prepared on a going concern
basis, and the accounting policies have been applied consistently
throughout the period.
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.
Statement of compliance
(e) Investment in associate
The financial statements have been prepared in accordance with
the requirements of the Crown Entities Act 2004, which includes
the requirement to comply with generally accepted accounting
practice in New Zealand (NZ GAAP). The financial statements
have been prepared in accordance with Tier 1 PBE accounting
standards.
The Group’s investment in associate is accounted for under
the equity method of accounting in the consolidated financial
statements.
Measurement base
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.
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.
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) Accounting standards and interpretations
issued but not yet effective
In May 2013, the External Reporting Board issued a new suite of
PBE accounting standards for application by public sector entities
for reporting periods beginning on or after 1 July 2014. Tourism
New Zealand has applied these standards in preparing the 30
June 2015 financial statements.
In October 2014, the PBE suite of accounting standards was
updated to incorporate requirements and guidance for the notfor-profit sector. These updated standards apply to PBEs with
reporting periods beginning on or after 1 April 2015. Tourism
New Zealand will apply these standards in preparing its 30
June 2016 financial statements. Tourism New Zealand expects
there will be minimal or no change in applying these updated
accounting standards.
48
All intercompany balances and transactions, including unrealised
profits arising from intra-group transactions, have been
eliminated in full.
An associate is an entity in which the Group has significant
influence and which is not a subsidiary nor a joint venture.
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.
(f) Foreign currency
Transactions denominated in foreign currency are recorded in
NZ Dollars by applying exchange rates that approximate rates
prevailing at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the balance sheet
date.
Exchange gains and losses are recognised in the Statement of
comprehensive revenue and expense.
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.
For the purposes of the Statement of Cash Flows, cash and cash
equivalents consist of cash and cash equivalents as defined
above.
(g) Property, plant and equipment
(l) Provisions
Plant and equipment is stated at cost less accumulated
depreciation and any impairment in value.
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.
Depreciation is calculated on a straight-line basis over the
estimated useful life of the asset as follows:
Office equipment
5 years
Motor vehicles
4 – 5 years
Furniture and fittings
5 – 8 years
Computer equipment
3 years
Leasehold improvements
Up to term of the lease
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
revenue and expense net of any reimbursement.
Realised gains and losses arising from the disposal of property,
plant and equipment are recognised in the Statement of
comprehensive revenue and expense in the period in which the
transaction occurs.
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.
Impairment
Where discounting is used, the increase in the provision due to
the passage of time is recognised as a finance cost.
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.
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 revenue and
expense.
(h) Intangible assets
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 useful life of Intangible assets are estimated at between 3
and 8 years.
Research costs are expensed as incurred.
(i) Inventories
Inventories are valued at the lower of cost and net realisable
value.
(j) Trade and other receivables
Trade receivables are recognised and carried at original invoice
amount less an allowance for any uncollectible amounts.
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
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.
(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 revenue and expense on a
straight-line basis over the lease term.
The Group does not enter into finance leases.
(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 specific recognition criteria described
below must also be met before revenue is recognised.
Revenue from non-exchange transactions
Grants received from the Crown
Grants received from the Crown are recognised as revenue on
receipt.
Sales and other revenue
Revenue includes fees received to attend offshore trade events
and familiarisations in New Zealand, and fees received to become
part of an Approved Destination Status programme. The revenue
from such transactions does not approximately equal the value
of goods provided by Tourism New Zealand and are therefore
considered as non-exchange transactions.
Revenue is recognised at fair value of cash received or receivable
when the risks and rewards of ownership are transferred to the
buyer at the time of delivery of goods to the customer.
49
The services provided have a return obligation and therefore
the revenue from 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.
Revenue from exchange transactions
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.
Sales and partnership revenue
Revenue includes contributions from partners and recharges
to customers to recover full cost of expenses incurred on their
behalf. The revenue from the such 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.
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
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:
▪▪
▪▪
50
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.
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.
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 revenue and expense.
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 revenue and expense.
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 revenue and expense 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 revenue and expense 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.
51
Note 2
Revenue from Crown
Baseline Funding
Additional Crown Funding
Total revenue received from the Crown
Less GST
Net revenue received from the Crown
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
115,900
115,900
115,900
115,900
-
437
-
437
115,900
116,337
115,900
116,337
2,550
2,607
2,550
2,607
113,350
113,730
113,350
113,730
Note 3
Other revenue
Group
Parent
Sales and Partnership revenue from exchange transactions
6,870
9,064
5,276
7,497
Sales and other revenue from non-exchange transactions
1,102
852
1,102
852
Total Other revenue
7,972
9,916
6,378
8,349
Note 4
Other expenses include:
Personnel expenses
Parent
2015
2014
2015
2014
168
163
161
156
2015
$000s
2014
$000s
2015
$000s
2014
$000s
16,269
15,187
15,584
14,508
Employer superannuation contributions
674
396
656
378
Increase/(decrease) in employee entitlements (note 16)
118
120
117
121
Number of permanent and fixed term staff
Salaries and wages
Other personnel expenses
1,399
929
1,383
906
18,459
16,632
17,740
15,913
Personnel costs for New Zealand and offshore staff were:
2015
$000s
2014
$000s
2015
$000s
2014
$000s
New Zealand Personnel Expenses — Tourism New Zealand
10,413
9,608
10,413
9,608
719
719
-
-
7,327
6,305
7,327
6,305
18,459
16,632
17,740
15,913
2015
2014
2015
2014
2
-
1
-
2015
$000s
2014
$000s
2015
$000s
2014
$000s
31
-
25
-
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
52
Group
Note 4 continued
Other expenses include:
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
81
88
72
79
81
88
72
79
8
8
-
-
18
19
17
18
107
115
89
97
Other expenses
2015
$000s
2014
$000s
2015
$000s
2014
$000s
Lease expense
2,076
2,182
2,069
2,177
209
190
209
190
Auditor's remuneration
Amounts received or due and receivable by Ernst & Young for:
The audit of the financial report
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 assurance services
Remuneration of board members of Parent (See also note 31)
Note 5
Total expenditure of parent
Parent
2015
$000s
2014
$000s
18,078
20,360
Total expenditure by geographic region:
Australia
North America
14,517
14,501
United Kingdom and Europe
13,027
10,884
5,131
6,836
23,629
23,898
2,822
1,869
42,878
44,854
120,082
123,202
Japan
Asia
Other markets
New Zealand (a)
Total Expenditure of Parent
(a) New Zealand expenditure includes costs that apply to all markets and across a number of campaigns including the spend on the
new 100% Pure New Zealand Campaign video and brand development, Hobbit event leverage and continued development of the
newzealand.com website.
Note 6
Foreign exchange gains/(losses)
Group
2015
$000s
Parent
2014
$000s
(1,909)
2015
$000s
8,536
2014
$000s
Foreign exchange gains/(losses) on derivative financial instruments
8,536
(1,909)
Other foreign exchange gains/(losses)
(527)
890
(527)
890
Total foreign exchange gains/(losses)
8,009
(1,019)
8,009
(1,019)
53
Note 7
Subsidiary companies
Group
2015
Parent
2014
2015
2014
Qualmark New Zealand Limited
60%
60%
60%
60%
Visitor Information Network Incorporated (trading as i-SITE NZ)
0%
0%
0%
0%
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 PBE IPSAS 6 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
Associate company
The New Zealand Way Limited
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
-
-
-
-
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. 54
Note 8 continued
The following table illustrates summarised information of the investment in The New Zealand Way Limited:
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
Current assets
1
16
-
-
Current liabilities
1
16
-
-
Net assets
-
-
-
-
Revenue
-
31
-
-
Net (deficit)/surplus
-
(11)
-
-
Carrying amount at beginning of year
-
11
-
-
Carrying amount at end of year
-
-
-
-
Share of associate’s balance sheet:
Share of associate's revenue and (deficit)/surplus:
Note 9
Cash
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
Cash at bank and in hand
1,892
2,387
1,869
2,160
Call accounts — foreign currencies
4,336
1,808
4,336
1,808
138
18
2
2
6,366
4,213
6,207
3,970
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
2015
$000s
2014
$000s
2015
$000s
2014
$000s
New Zealand Dollar
423
348
264
105
United States Dollar
263
533
263
533
British Pound
300
282
300
282
Australian Dollar
102
113
102
113
2,269
831
2,269
831
Japanese Yen
791
244
791
244
Singapore Dollar
624
378
624
378
Cash Holdings by Currency:
European Euro
Canadian Dollar
Indian Rupee
25
161
25
161
498
413
498
413
55
Note 9 continued
Group
Other Asian Currencies
Parent
1,070
910
1,070
910
6,365
4,213
6,206
3,970
Cash Holdings by Bank:
HSBC Bank
5,902
3,766
5,743
3,523
National Bank of New Zealand
319
299
319
299
ASB Bank
20
17
20
17
3
3
3
3
121
128
121
128
6,365
4,213
6,206
3,970
Bank of New Zealand
Tokyo Mitsubishi
The fair value of cash and cash equivalents is $6,366,000 (2014: $4,213,000).
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. The bank also provides a financial guarantee to Datacom Business
Services, Tourism New Zealand’s payroll processor for Australian payroll an amount of AUD 42,000. Further, a financial guarantee for
an amount of AUD 97,000 is also provided by HSBC bank for Sydney office rent until 26 August 2016.
Qualmark holds a stand by Letter of Credit with the bank for an amount of $26,000 to serve as security against any non-payment of
payroll. This letter of credit has no expiry date. A cheque encashment facility for $1000 also exists with the bank.
Note 10
Receivables
Group
Receivables from non-exchange transactions
Receivables
Less: Provision for impairment
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
62
155
62
155
-
-
-
-
62
155
62
155
Receivables from non-exchange transactions are non-interest bearing and are generally on 30-day terms. The carrying value of
receivables approximates their fair value. As at 30 June 2015 and 2014, all overdue receivables have been assessed for impairment and
appropriate provisions applied, as detailed below:
Parent
2015
Parent
Not past due
56
2014
Gross
$000s
Impairment
$000s
Net
$000s
Gross
$000s
Impairment
$000s
Net
$000s
57
-
57
119
-
119
Past due 1 – 30 days
-
-
-
-
-
-
-
-
-
13
-
13
-
-
-
-
-
-
Past due > 91 days
5
-
5
23
-
23
62
-
62
155
-
155
Note 10 continued
Group
2015
2014
Gross
$000s
Impairment
$000s
Net
$000s
Gross
$000s
Impairment
$000s
Net
$000s
57
-
57
119
-
119
-
-
-
-
-
-
-
-
-
13
-
13
Group
Not past due
-
-
-
-
-
-
Past due > 91 days
5
-
5
23
-
23
62
-
62
155
-
155
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.
Group
Receivables from exchange transactions
Receivables
Less: Provision for impairment
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
2,011
1,922
1,873
1,713
(3)
(2)
-
-
2,008
1,920
1,873
1,713
Receivables from exchange transactions are non-interest bearing and are generally on 30-day terms. The carrying value of receivables
approximates their fair value. As at 30 June 2015 and 2014, all overdue receivables have been assessed for impairment and
appropriate provisions applied, as detailed below:
Parent
2015
2014
Gross
$000s
Impairment
$000s
Net
$000s
Gross
$000s
Impairment
$000s
Net
$000s
1,835
-
1,835
1,502
-
1,502
38
-
38
50
-
50
-
-
-
-
-
-
-
-
-
111
-
111
-
-
-
50
-
50
1,873
-
1,873
1,713
-
1,713
Parent
Not past due
Past due > 91 days
Group
2015
2014
Gross
$000s
Impairment
$000s
Net
$000s
Gross
$000s
Impairment
$000s
Net
$000s
1,883
-
1,883
1,548
-
1,548
113
-
113
56
-
56
9
(1)
8
20
-
20
-
-
-
127
-
127
Group
Not past due
Past due > 91 days
6
(2)
4
171
(2)
169
2,011
(3)
2,008
1,922
(2)
1,920
57
Note 10 continued
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 from exchange transactions for the Group include GST/VAT refunds comprising 70% (65% in 2014) of total receivables as
follows:
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
GST Refund due from NZ Inland Revenue Department
781
GST Refund due from Australian Taxation Office
232
622
781
622
617
232
617
Consumption Tax Refund from Japan Tax Office
155
55
155
55
VAT Refund due from UK Revenue & Customs
275
53
275
53
1,443
1,347
1,443
1,347
Note 11
Derivative financial instrument
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 78 (2014: 112)
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.
Foreign currency forward exchange contracts:
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
70,470
105,830
70,470
105,830
6,770
(1,766)
6,770
(1,766)
77,240
104,064
77,240
104,064
United States Dollar
31,306
50,840
31,306
50,840
British Pound
4,680
6,168
4,680
6,168
Australian Dollar
33,441
31,978
33,441
31,978
-
6,680
-
6,680
4,746
5,107
4,746
5,107
404
-
404
-
2,664
2,629
2,664
2,629
-
662
-
662
77,241
104,064
77,241
104,064
Foreign exchange contracts at 30 June — Sell Value
Fair value Derivatives in Gain / (Loss)
Foreign exchange contracts at 30 June — Buy Value
Foreign exchange contracts by currency:
European Euro
Japanese Yen
Thai Baht
Singapore Dollar
Hong Kong Dollar
58
Note 12
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
9,475
8,990
9,422
8,929
(7,769)
(7,047)
(7,723)
(7,000)
1,706
1,943
1,699
1,929
All property, plant and equipment
At cost
Accumulated depreciation
Net carrying amount
Property, plant and equipment for each class:
At cost
Net carrying amount of furniture and fittings
1,266
1,209
1,233
1,174
(1,109)
(1,010)
(1,082)
(985)
157
199
151
189
2,643
2,595
2,643
2,595
(1,943)
(1,813)
(1,943)
(1,813)
700
782
700
782
741
707
741
707
(704)
(677)
(704)
(677)
37
30
37
30
At cost
Net carrying amount of leasehold improvements
Office equipment
At cost
Net carrying amount of office equipment
Motor vehicles
At cost
Net carrying amount of motor vehicles
61
61
61
61
(61)
(61)
(61)
(61)
-
-
-
-
4,764
4,418
4,744
4,392
(3,952)
(3,486)
(3,933)
(3,464)
Computer equipment
At cost
Net carrying amount of computer equipment
812
932
811
928
1,706
1,943
1,699
1,929
1,943
2,038
1,929
2,020
492
769
492
766
-
-
-
-
Depreciation charge for the year
(729)
(864)
(722)
(857)
At 30 June, net of accumulated depreciation
1,706
1,943
1,699
1,929
108
112
104
109
130
148
130
148
Office equipment
20
27
20
27
Computer equipment
471
577
468
573
729
864
722
857
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:
Total Depreciation
59
Note 13
Intangible assets
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
At cost
2,082
1,818
1,955
1,419
Accumulated amortisation
(429)
(447)
(401)
(155)
Net carrying amount
1,653
1,371
1,554
1,264
1,371
1,119
1,264
1,054
546
434
535
365
Impairment of Intangible assets
-
(18)
-
-
Amortisation charge for the year
(264)
(164)
(245)
(155)
At 30 June, net of accumulated amortisation
1,653
1,371
1,554
1,264
Intangible assets
Intangible assets reconciliation
At 1 July, net of accumulated amortisation
Additions
Intangible asset additions during the year include investment into redevelopment of Tourism New Zealand’s corporate website and
intranet, and further enhancements made to Tourism New Zealand’s and Qualmark’s new finance and HR system implemented on 1
July 2013. The corporate website went online in June 2015 and the intranet went live in July 2015.
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. It’s remaining assets relate to the Public campaign website.
Note 14
Accommodation bonds
Accommodation bonds are refundable deposits or key money paid for the lease of office and housing premises.
Group
Japan
North America
Asia
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
146
137
146
137
18
-
18
-
116
120
116
120
280
257
280
257
Note 15
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.
Group
60
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
Creditors
1,387
941
1,358
875
Accrued expenses
4,421
2,236
4,347
2,126
5,808
3,177
5,705
3,001
Note 16
Annual Leave
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
801
683
772
655
801
683
772
655
Note 17
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 four
Tourism New Zealand offices and is expected to be incurred over the next eight years.
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
Lease make-good
266
266
266
266
Total Provisions
266
266
266
266
96
20
96
20
170
246
170
246
266
266
266
266
266
273
266
273
Additional provisions made
-
-
-
-
Amounts used
-
(7)
-
(7)
Unused amounts reversed
-
-
-
-
266
266
266
266
Provisions are represented by:
Current provision
Non-current provision
Movements in provisions are as follows:
Balance at 1 July
Balance at 30 June
Note 18
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.
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
4,117
5,007
4,117
5,007
527
(890)
527
(890)
4,644
4,117
4,644
4,117
Movements in reserve is as follows:
Balance at 1 July
Transfer to Retained Earnings from Foreign Exchange Reserve
Balance at 30 June
61
Note 19
Reconciliation of surplus to net cash from operating activities
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
8,135
(2,106)
8,230
(2,096)
995
1,028
968
1,012
Provisions
-
(7)
-
(7)
Share of associate's surplus
-
11
-
-
(8,536)
1,909
(8,536)
1,909
Net surplus/(deficit)
Add/(less) non-cash items
Depreciation and amortisation
Net (gains)/losses on derivative financial instruments
Net foreign exchange (gains)/losses
(527)
(916)
(527)
(916)
(8,068)
2,025
(8,095)
1,998
-
18
-
-
Movement in foreign currency accommodation bonds
(30)
30
(30)
30
Total items classified as investing or financing activities
(30)
48
(30)
30
5
194
(67)
(136)
Prepayments
(611)
(8)
(611)
(13)
Payables and accruals
Total non-cash items
Add/(less) items classified as investing or financing activities
Net Loss/(Gain) on disposal of assets
Add/(less) movements in working capital items
Debtors and other receivables
2,365
99
2,438
22
Invoiced in advance
478
(352)
482
(139)
118
120
117
121
Net movements in working capital items
2,355
53
2,359
(145)
Net cash from operating activities
2,392
20
2,464
(213)
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’s
shareholding in Qualmark however was fully called at the end of July 2015 with Tourism New Zealand’s contribution being $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 $471,226
(2014: $338,208).
62
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 four 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.
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
impose 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 Dollars,
there is an exposure to foreign exchange risk through the movement of NZ Dollars 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.
63
Note 25
Categories of financial assets and liabilities
The carrying amounts of financial assets and liabilities in each of the PBE IPSAS 29
categories are as follows:
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
6,366
4,213
6,207
3,970
565
728
430
521
6,931
4,941
6,637
4,491
6,770
(1,766)
6,770
(1,766)
1,387
941
1,358
875
617
139
502
20
2,004
1,080
1,860
895
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:
Creditors
Invoiced in advance
Total other financial liabilities
Note 26
Capital commitments
There is no capital expenditure contracted for at balance date but not provided for in the financial statements. (2014:Nil)
64
Note 27
Operating commitments
Operating commitments include non-cancellable lease payments for premises, motor vehicles and office equipment and noncancellable contracts for services like equipment maintenance and public relations.
Group
Parent
2015
$000s
2014
$000s
2015
$000s
2014
$000s
Up to One Year
1,307
1,604
1,307
1,604
One to Two Years
1,060
1,261
1,060
1,261
Two to Five Years
1,632
2,004
1,632
2,004
-
319
-
319
3,999
5,188
3,999
5,188
Up to One Year
94
92
88
91
One to Two Years
77
64
76
64
Two to Five Years
49
96
49
96
-
-
-
-
220
252
213
251
774
923
774
923
One to Two Years
7
-
7
-
Two to Five Years
-
-
-
-
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
Over Five Years
Total operating commitments
-
-
-
-
781
923
781
923
5,000
6,363
4,993
6,362
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.
65
Note 28 continued
Transaction value year ended
30 June
Related Party and Transaction
Balance outstanding year
ended 30 June
2015
$000s
2014
$000s
2015
$000s
2014
$000s
226
180
71
17
Subsidiary — Qualmark New Zealand Limited:
Purchases from Tourism New Zealand
Sales to Tourism New Zealand
3
3
-
-
34
32
-
-
250
250
-
-
Recharges from Tourism New Zealand
16
10
-
-
Purchases from Qualmark New Zealand Limited
34
32
-
-
Shareholder income provided by Tourism New Zealand
-
31
-
13
Recharges from Tourism New Zealand
5
5
-
6
Sales to Visitor Information Network Inc
Subsidiary — Visitor Information Network Inc:
Shareholder income provided by Tourism New Zealand
Associate — The New Zealand Way Limited:
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.
30 June
ended 30 June
2015
$000s
2014
$000s
2015
$000s
2014
$000s
-
10
-
-
The income received in 2014 financial year were from
Agrodome Rotorua, Ngai Tahu Tourism Limited, Dart River
Safaris Limited, Franz Josef Glacier Guides Limited, Rainbow
Springs Limited, Shotover Jet Limited and Hukafalls Jet
Limited.
8
25
2
-
M O'Donnell (Director): Ministry of Business, Innovation,
and Employment — Income received by TNZ for employee
secondment.
-
46
-
11
Income has been received by Tourism New Zealand from:
R Leggat (Director): Education NZ — Income received by
TNZ for tourism related services.
J Thorburn (Director): Intercity Group Limited — Income
received by TNZ for tourism related services.
N Thompson (Director): Auckland Tourism, Events &
Economic Development — Income received by TNZ for
tourism related services.
888
18
249
14
M Johns (Chief Executive): Intercity Group (NZ) Limited
— Income received by TNZ for tourism related services.
-
8
-
-
J Spice (Director): Touch of Spice Ltd — Income received
by TNZ for tourism related services.
7
-
-
-
K Pendergast (25% owner (with husband)): Quality Hotel
and Comfort Hotel — Provision of services to TNZ.
3
1
-
-
R Leggat (Director): New Zealand Post Limited — Provision
of postal services to TNZ.
3
3
-
-
Payments have been made by Tourism New Zealand to:
66
Note 28 continued
30 June
ended 30 June
2015
$000s
2014
$000s
2015
$000s
2014
$000s
6
50
-
-
J Spice (Director): Touch of Spice Ltd — Provision of tourism
related services to TNZ.
25
4
-
-
C Parkin (Director): Museum Hotel — Provision of tourism
related services to TNZ.
29
7
-
-
N Thompson (Director): Auckland Tourism, Events &
Economic Development — Provision of tourism related
services to TNZ.
10
11
-
-
3
10
-
-
J Thorburn (Director): Intercity Group Limited — Provision
of tourism related services to TNZ.
K Bowler (Director): Pacific Asia Travel Association
— Provision of membership fees.
Parent
Key management personnel compensation
2015
$000s
2014
$000s
209
190
Salaries and other short-term benefits
2,617
2,487
Total key management personnel compensation
2,826
2,677
Key management personnel includes all board members, the Chief Executive and 10 (2014:10)
members of the Executive Team.
Remuneration of the Board of Directors:
Salaries and other short-term benefits
Remuneration 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 2015, 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:
Surplus/(deficit) higher/(lower)
Equity higher/(lower)
2015
$000s
2014
$000s
2015
$000s
2014
$000s
+ 0.5% (50 basis points)
3
2
3
2
- 0.5% (50 basis points)
(3)
(2)
(3)
(2)
+ 0.5% (50 basis points)
2
1
2
1
- 0.5% (50 basis points)
(2)
(1)
(2)
(1)
Group
Parent
67
Note 29 continued
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 significantly reduce the foreign currency exposure. These forward exchange contracts are
entered into prior to the commencement of the financial year to cover the exposure on budgeted NZD spend in targeted markets based
on the market’s economic outlook and other factors that might have an impact on their currency. Refer to Note 11 Derivative financial
Instruments for details on the forward currency contracts held. Further exposures to foreign exchange risk through the movement of
NZ Dollars against those foreign currencies are also managed through the foreign exchange reserve as explained in Note 18.
The basket of currencies that Tourism New Zealand holds also reduces the risk from any single currency as all currencies are not
expected to move adversely against the NZD. Refer to Note 5 and 9 for currency exposures.
Currency risk sensitivity analysis — Tourism New Zealand is subject to volatility in financial performance associated with foreign
currency rates. As at 30 June 2015, if the NZ Dollar had increased/decreased by 5% 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)
2015
$000s
Equity higher/(lower)
2014
$000s
2015
$000s
2014
$000s
Group
NZD to various currencies +5%
10,096
4,981
-
-
NZD to various currencies -5%
(17,347)
(5,505)
-
-
NZD to basket of currencies +5%
10,096
4,981
-
-
NZD to basket of currencies -5%
(17,347)
(5,505)
-
-
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.
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.
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 2015. The timing of cash flows for liabilities is based on the
contractual terms of the underlying contract.
68
Note 29 continued
< 6months
$000s
6-12 months
$000s
> 1 year
$000s
Total
$000s
(1,387)
-
-
(1,387)
Group — Year end 30 June 2015
Financial liabilities
Creditors
Derivative financial instrument liabilities — gross settled
Inflows
Outflows
Net outflow
35,165
25,304
15,395
75,864
(32,082)
(22,671)
(14,341)
(69,094)
3,083
2,633
1,054
6,770
1,696
2,633
1,054
5,383
< 6months
$000s
6-12 months
$000s
> 1 year
$000s
Total
$000s
(1,358)
-
-
(1,358)
35,165
25,304
15,395
75,864
(32,082)
(22,671)
(14,341)
(69,094)
3,083
2,633
1,054
6,770
1,725
2,633
1,054
5,412
< 6months
$000s
6-12 months
$000s
> 1 year
$000s
Total
$000s
(941)
-
-
(941)
Parent — Year end 30 June 2015
Creditors
Inflows
Outflows
Net outflow
Group — Year end 30 June 2014
Creditors
Inflows
Outflows
Net outflow
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)
< 6months
$000s
6-12 months
$000s
> 1 year
$000s
Total
$000s
(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)
Parent — Year end 30 June 2014
Creditors
Inflows
Outflows
Net outflow
69
Note 29 continued
Fair value
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 mid values of the forward contracts as determined by the
New Zealand Debt Management Office based on inputs that are observable.
There were no transfers between Level 1 and Level 2 during the year.
Note 30
Remuneration of employees
During 2014/2015 55 (2014: 44) employees received remuneration and benefits which exceeded $100,000 per annum as follows:
Parent
2015
2014
100,000 – 109,999
11
4
110,000 – 119,999
7
12
120,000 – 129,999
9
5
$
130,000 – 139,999
5
1
140,000 – 149,999
3
3
150,000 – 159,999
2
5
160,000 – 169,999
4
6
170,000 – 179,999
1
-
180,000 – 189,999
2
-
190,000 – 199,999
2
2
200,000 – 209,999
1
2
210,000 – 219,999
2
-
220,000 – 229,999
1
-
240,000 – 249,999
-
1
250,000 – 259,999
1
-
260,000 – 269,999
-
1
270,000 – 279,999
2
-
280,000 – 289,999
-
1
310,000 – 319,999
1
-
470,000 – 479,999
1
1
55
44
In 2014/2015 Tourism New Zealand invested in higher levels of capability to meet expectations in delivering on the Strategic Plan. This,
coupled with the expansion of offshore Business Events and Premium capability has resulted in an increase in the number of employees
remunerated above NZ$100,000.
70
Note 31
Remuneration of board members
Parent
2015
$000s
2014
$000s
K Prendergast (Chair)
42
42
R Leggat (Deputy Chair)
25
25
J Thorburn
20
18
J Bestwick
20
22
J Tuuta
20
20
M O’Donnell
22
5
J Spice
20
10
C Parkin
20
3
N Thompson
20
3
M Johns
-
10
H van Asch
-
16
J Langley
-
16
209
190
Board members earned the following fees during the year:
There were no changes to the board members during 2014/2015.
Note 32
Subsequent Events
On 7 September 2015, Qualmark New Zealand became a wholly owned subsidiary of the New Zealand Tourism Board when
New Zealand Tourism Board acquired the remaining 40% shareholding from the New Zealand Automobile Association Inc.
71
Five Year Financial Summary for Parent
2011 Actual
$000s
2012 Actual
$000s
2013 Actual
$000s
2014 Actual
$000s
2015 Actual
$000s
10,473
7,153
5,768
3,970
6,206
2,062
1,098
1,439
1,868
1,935
729
798
921
934
1,545
-
-
143
-
5,716
13,264
9,049
8,271
6,772
15,402
2,404
2,311
2,020
1,929
1,699
-
-
1,054
1,264
1,554
390
320
292
257
280
-
-
-
-
1,054
2,794
2,631
3,366
3,450
4,587
16,058
11,680
11,637
10,222
19,989
8,120
3,872
3,171
3,001
5,705
450
439
534
655
772
Income in advance
108
122
159
20
502
80
50
24
20
96
1,122
152
-
1,520
-
9,880
4,635
3,888
5,216
7,075
223
223
249
246
170
-
-
-
246
-
223
223
249
492
170
10,103
4,858
4,137
5,708
7,245
5,955
6,822
7,500
4,514
12,744
Shareholder's equity
1,805
1,805
1,805
1,805
1,805
Retained earnings
(464)
404
688
(1,408)
6,295
4,614
4,613
5,007
4,117
4,644
Total Equity
5,955
6,822
7,500
4,514
12,744
Statement of Financial Position
Current Assets
Cash
Receivables
Prepayments and other current assets
Non-current Assets
Intangible Assets
Accommodation bonds
Total Assets
Current Liabilities
Provisions
Non-current Liabilities
Provisions
Total Liabilities
Net Assets
Equity
72
Five Year Financial Summary for Parent Continued
Statement of Comprehensive Income
2011 Actual
$000s
2012 Actual
$000s
2013 Actual
$000s
2014 Actual
$000s
2015 Actual
$000s
99,361
84,215
84,167
113,730
113,350
Income
Revenue from Crown
Interest
252
139
114
46
48
6,467
5,530
5,631
8,349
6,378
106,080
89,884
89,912
122,125
119,776
105,397
89,205
89,124
122,190
119,114
563
782
799
1,012
968
105,960
89,987
89,923
123,202
120,082
Unrealised Foreign exchange gains/(losses) on
derivative financial instruments held at year end
(510)
970
295
(1,909)
8,536
Total comprehensive income / (expense)
(390)
867
284
(2,986)
8,230
Transfer from / (to) Foreign exchange reserve
(186)
-
394
890
(527)
Total comprehensive income/(expense) after
foreign exchange transfer
(576)
867
678
(2,096)
7,703
Other revenue
Expenditure
Other expenses
Depreciation, Amortisation and Impairment
73
Independent Auditor’s Report
To the readers of New Zealand Tourism Board Group’s financial statements
and performance information for the year ended 30 June 2015.
The Auditor-General is the auditor of the New Zealand Tourism
Board (the “Board”) and group. The Auditor-General has
appointed me, Stuart Mutch, using the staff and resources of
Ernst & Young, to carry out the audit of the financial statements
and the performance information of the Board and group
(collectively referred to as “the Group”) on her behalf.
Opinion on the financial statements and the
performance information
We have audited:
▪▪
▪▪
the financial statements of the Group on pages 44 to 71,
that comprise the statement of financial position as at 30
June 2015, the statement of comprehensive revenue and
expense, statement of changes in equity and statement of
cash flows for the year ended on that date and the notes to
the financial statements that include accounting policies
and other explanatory information; and
the performance information of the Group on pages 14 to 39.
In our opinion:
▪▪
the financial statements of the Group:
▫▫
▫▫
▪▪
present fairly, in all material respects:
--
its financial position as at 30 June 2015; and
--
its financial performance and cash flows for the
year then ended; and
comply with generally accepted accounting practice in
New Zealand and have been prepared in accordance
with Tier 1 PBE accounting standards.
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
the 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 the 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 the
financial statements and the performance information. The
procedures selected depend on our judgment, including our
assessment of risks of material misstatement of the financial
statements and the performance information, whether
due to fraud or error. In making those risk assessments; we
consider internal control relevant to the preparation of the
Group’s financial statements and performance information
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 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 performance
information within the Group’s framework for reporting
performance;
▪▪
the adequacy of all disclosures in the financial
statements and the performance information; and
▪▪
the overall presentation of the financial statements and
the performance information.
the performance information of the Group:
▫▫
present fairly, in all material respects, the Group’s
performance for the year ended 30 June 2015,
including for each class of reportable outputs:
--
--
▫▫
its standards of performance achieved as
compared with forecasts included in the
statement of performance expectations for
the financial year; and
its actual revenue and output expenses as
compared with the forecasts included in the
statement of performance expectations for the
financial year.
complies with generally accepted accounting practice
in New Zealand.
Our audit was completed on 6 October 2015. 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.
74
Basis of opinion
We did not examine every transaction, nor do we guarantee
complete accuracy of the financial statements and the
performance information. Also we did not evaluate the
security and controls over the electronic publication of the
financial statements and the performance information.
We believe we have obtained sufficient and appropriate audit
evidence to provide a basis for our audit opinion.
Sara Orme
Responsibilities of the Board members
The Board members are responsible for preparing
financial statements and performance information that:
▪▪
comply with generally accepted accounting
practice in New Zealand;
▪▪
present fairly the Group’s financial position,
financial performance and cash flows; and
▪▪
present fairly the Group’s performance.
The Board member’s responsibilities arise from the
Crown Entities Act 2004 and the New Zealand Tourism
Board Act 1991.
The Board members are also responsible for such
internal control as is determined is necessary to
enable the preparation of financial statements and
performance information that are free from material
misstatement, whether due to fraud or error. The Board
members are also responsible for the publication of the
financial statements and the performance information,
whether in printed or electronic form.
Responsibilities of the Auditor
We are responsible for expressing an independent
opinion on the financial statements and the
performance information and reporting that opinion to
you based on our audit. Our responsibility arises from
the Public Audit Act 2001.
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 Group.
Stuart Mutch
Ernst & Young
On behalf of the Auditor-General
Wellington, New Zealand
75
76
Mike Heydon
77

Annual Report - Tourism New Zealand

Transcription

Similar documents

Georgia Tech`s Pacific Study Abroad Program

Trade A-chatter Over Webjet Ads

Home +Design - Sandra Nunnerley Inc.

Book details - Aries Publishing

Isaac Drought - Scholastic New Zealand

Garden bird guide - Landcare Research

New Solar Systems

Feeling good

Tourism program brochure

The Biesbosch Nationaal Park