Campaign to counter drop in local tourists

Press, 7 October 1987, Page 13

Campaign to counter drop in local tourists

By

CLAIRE RAMSAY,

,'NZPA political reporter Wellington ; An 8 per cent drop In domestic tourism has prompted the tourist Industry to plan an extensive campaign encouraging New Zealanders to have a holiday. Ms Mary Anne Webber, the executive officer for the Tourist Industry Federation, said rather than position New Zealand against overseas holidays — which people were going to take anyway — the promotion would compete against items such as videos and microwaves, which people bought with their “discretionary” dollars. “It is time to start getting competitive, to start competing with everything else people spend their money on Instead,” she told NZPA. "When inflation is as high as it is, the first thing people abandon is a holi'day.” Ms Valerie Jeal, the •director of policy and research for New Zealand Tourism and Publicity, said there was no research that showed clearly the reason for the downturn. The state of the local economy was a possible factor, she agreed, but the downturn had been right across the board, affecting all socio-economic 'groups. There had been a large increase in the number of New Zealanders travelling 'overseas, partly due to the range of cheap fares available. “The overseas trip has 'appeal and it is increasingly easy to take,” she

said. “To combat that we need more information and perhaps more attractive packages of what isavailable here.” Overseas, New Zealand sold itself well, but the attitude to the domestic market was “oh well they’re going to come anyway,” Ms Webber said. Before the promotion began, the federation planned a series of regional marketing workshops in an effort to create a product to sell. “We want to make it easier for people to be able to purchase holidays. We’ll’ work on the distribution channels (travel agents) who often don’t sell the domestic product as well as they could. “We have to change the way the domestic product is marketed, packaged and distributed as well as changing the consumer’s perception of a holiday here,” she explained. Changing perceptions included encouraging New Zealanders to take short breaks of three or four days. An Auckland tourism consultant, Ms Glenys Coughlan, said short break, family-oriented week-ends had taken off in Britain. Often the packages were wrapped up with educational seminars or sporting events. Another criticism often heard from local holidaymakers was the unrealistic cost of holidaying at centres geared for the international market. Ms Webber said she would like to see prices become more competitive, but because the fed-

eratlon could only advise and encourage its members it was difficult to guarantee a change. Many operators worked on narrow margins, especially those in seasonal resorts, which made discounts difficult, Ms Coughlan said. Hawaiian operators worked a scheme where "locals” could negotiate discounts on hotel and attraction rates. If it was possible, it would be a good public relations gesture and the operators could say they were looking after New Zealanders, she said. The "softening” of the domestic market had been felt in the industry for some time, but it was only Tourism and Publicity Department figures released last month which quantified the problem. In the year ended March, 1987, nights spent away from home on holiday, on business or staying with friends and relatives dropped by 5.3 million to 55.33 million. The period did not include Easter, 1987 which fell in April and could have affected the figures. The number of trips away fell by 750,000 from 14.28 million to 13.57 million. Shorter trips away seemed to be increasing in favour of trips of eight days or more, which fell by 26 per cent. Ms Jeal said the department had begun a review of its work in response to the downturn and should report to the Minister next month with proposals for possible action. “We’re reviewing all the activities that touch on domestic tourism to

see if we are using our money and resources most effectively and to see how our activities relate to the federation and particularly regional tourist organisations.” The review would also consider the need for additional research on the domestic downturn. About 3 per cent — or $300,000 — of the department’s budget is marked for the domestic sector. But outside that vote there are a number of activities which assist regional tourism. There are 10 regional liaison officers throughout the country giving advice and assistance on development and marketing issues. The department is the “cornerstone” for the industry’s information and advice base, particularly the small operators. • Non-commercial organisations — such as local authorities and trusts — benefit from the department’s community and public sector grants scheme which helps set up new tourist activities. Ms Jeal said it was time for a review of work, although the downturn moved things along. Some of the department’s schemes had been in place for two or three years, and it was time to see if they were still meeting their objectives. In a speech in Auckland and last week the Minister of Tourism, Mr Goff, said the industry had earned $2 billion last year — more than the dairy industry. > He urged industry representatives to recognise the huge potential for growth. >