- Tourism New Zealand conducted activities were driven by insights on the domestic consumer.
- In July TNZ unveiled a virtual reality game ‘PLAY NZ’ and invited the world to experience some of the country’s most significant attractions.
- As per its June Update, THL has been given commitment by its banking partners for debt funding of around $225 million.
After the novel coronavirus pandemic outbreak, New Zealand had closed its borders in the month of March to most of the international travellers, which resulted in a considerable impact on the tourism industry.
In the month of April, the tourism industry resorted to kick start the sector, reviving domestic tourism and eventually help restart New Zealand’s economy.
Tourism New Zealand (TNZ) did extensive research to find valuable insights. It launched a consumer marketing campaign, which was highly effective. TNZ also conducted industry related and further activities to make sure that internal tourism sector was on its way to recovery.
Before coronavirus hit New Zealand, $23.7 billion or about 60 per cent tourism related spending arrived from natives exploring the Kiwiland. The Kiwis formerly spent nearly $9b on travel abroad per year.
So, with the closing of the borders, Tourism New Zealand tried to divert Kiwis to domestic travel, which is considered critical now to recover the sector from losses.
TNZ conducted activities were driven by insights on the domestic consumer. Following which Kiwis showed a tremendous response. The number of travellers peaked on Sunday 11 July, with about 550k individuals travelling outside their home regions. During the first and last Sundays of the holiday break, smaller peaks were recorded.
On Queen’s birthday weekend 520k people travelled outside their home region. This number was about 1 in 10 New Zealanders, which provided a much-needed economic boost to the areas.
Recently in July, TNZ launched a virtual reality game ‘PLAY NZ’ and invited the world to experience some of the country’s most significant attractions in a very different way. TNZ believes that travel enthusiasts, who have not been able to travel anywhere are craving for fun and adventure while staying at home. Gaming and travel complement each other in a way, as both entail similar characteristics like exploration, wonder and adventure.
PLAY NZ would attract travel buffs and satisfy their travel craving, while inspiring them to travel to New Zealand once borders reopen.
Given the recovery prospects in the New Zealand tourism industry with the boost coming from domestic travel, let us look at the players from the NZX market:
Tourism Holdings Limited (NZX:THL)
Tourism Holdings is a global tourism service provider. It provides RVs for rent and sale across Australia, New Zealand, and North America.
Due to the pandemic crisis leaving the tourism industry on its knees, THL had to suffer major blow as well. As per its June update, the sales number were low in March and April, but some recovery was recorded across three regions in the month of May and June. THL also announced its discussion with its bank collaborators, who provided the commitment for debt funding of approximately $225m.
On 3 August 2020, THL last traded at $1.86, declining by 1.06% from its previous close.
Air New Zealand Limited (NZX:AIR)
On 28 July, Air New Zealand announced to put hold on new bookings to Australia until August 2020.
The airline said that the decision was taken after the restrictions came from the Australian Government because the airline has a firm footing in domestic air travel. The Company increased its local operations for the month of August to about 70% of pre-coronavirus period.
The airline would function around 55 per cent to its normal domestic capability in August. AIR General Manager Networks Scott Carr mentioned that the airline was pleasingly amazed with the requirement from domestic travellers. With increased demand, the airline upgraded more than 400 one-way air travels in August, further to 408 one-way air travels and 18 trips, which have been put into a bigger aircraft.
On 3 August 2020, AIR last traded at $1.32, declining by 1.49% from its previous close.
Auckland International Airport Limited (NZX:AIA)
On 16 July, AIA reported that its total passenger volumes decreased by 94.7% in May 2020 as compared to last year’s numbers, due to travel restrictions imposed by the NZ Government. International visitors’ numbers were also down by 98.0%, and domestic travellers were down by 91.1%.
The decrease in the number of travellers in June this year demonstrates the effect of travel constraints levied by NZ government because of coronavirus pandemic as well. Total travellers numbers for June plunged by 84.9% and international and local travellers numbers went down by 97% and 70.9%, respectively.
On 3 August 2020, AIA last traded at $6.333, declining by 0.39% from its previous close.