Aial asia summit-gw

1 Auckland Airport | Asia Summit

NZ-Asia 2.0 Enduring Friends in an Asian Century


What’s HOT Global GDP Forecasts 2013

HOT “High Opportunity Targets” Markets

France

United Kingdom

North America

Latin America

ASEAN - 5

India

7-8% 5-6% 3-4% 0-2%

0.6% 0.3% 2% 3.6% 5.9% 8.2% 5.5%

Germany

1.2% 1%

Japan

China


Asia = NZ Second Largest Market

Our Ambition 2020 Target of 4+ Million.

Asia Second largest Market at 27% of total arrivals.

1.07 Million visitors from Asia = 9.98% CAGR.

China at 14% share or 572,000 arrivals.

Australia 41%

USA 6%

Canada 2%

South America 2%

UK 6%

Germany 2%

France 1%

Other 14%

China 14%

Japan 2% Korea

2% Singapore 1% Malaysia

1% India 2% Hong Kong

1% Taiwan 1% Thailand

1%

Indonesia 1%

Philippines 1%

Asia 27%

NZ Potential Visitor Arrivals 2020


Asia = NZ Second Largest Market

Our Ambition 2020 Target Growth of 1.5 Million or 58.1%.

Asia Largest Growth Market at 39% or 572,000.

China to provide 25% by growing 191% by 2020.

Australia 34%

USA 5%

Canada 1%

South America 4%

UK 3%

Germany 1%

France 1%

Other 13%

China 25%

Korea 2% Japan

2% Singapore

1% Malaysia 1% India

3% Hong Kong 1%

Taiwan 0%

Thailand 0%

Indonesia 2%

Philippines 1%

Asia 39%

Potential Arrivals Growth NZ 2012-2020


China highlights potential step change

74671

65287

82151

97923

140416

0

20000

40000

60000

80000

100000

120000

140000

160000

YE Dec 2008 YE Dec 2009 YE Dec 2010 YE Dec 2011 YE Dec 2012

China Arrivals -Holiday

Direct Capacity

Grown

Airfares Declined

in Real Value -14% Since 2008

CAGR +17.1%


Need to Capture Lost Value

109,936 112,658 113,908 112,005 111,361 99,453

79,061

52,921

67,309

52,787 52,896

189,700

207,200 211,800

250,500 260,900

253,200

218,300

181,000

214,000

198,000 196,800

YR 2002 YR 2003 YR 2004 YR 2005 YR 2006 YR 2007 YR 2008 YR 2009 YR 2010 YR 2011 YR 2012

Korean Arrivals NZ v Australia 2002-12 NZ Australia

Arrivals to NZ 52% Decline

3.7% Growth Aus

NZD $177M lost Value to NZTourism

Industry

Korean Outbound

Travel Hits Record

13.7M in 2012


Asia Most Confident Consumers

Latest Consumer Confidence Survey shows Asia has 6 out of top 10 countries.

India & South East Asia leading the index.

By comparison New Zealand is 15 positions lower and Greece is worst on index.

121 119 117 115 113 112 111 108 103 102

94

35

Nielsen Global Survey of Consumer Confidence & Spending Q4 2012


Global Aviation Lead by Asia

Amadeus Air Traffic Travel Intelligence found that air traffic in Asia grew 9% in 2012 versus a global average of 5%.

Eight of the Worlds Top 10 „Super Routes‟ are in Asia/Pacific –Jeju to Seoul 10.2 million passengers.

831 Million new passengers in next five years with 380 million (45%) from Asia/Pacific – IATA

2013 Airline Net Profit Margins Forecast to be 1.3% -IATA


Aviation Shaping Supply to Asia

Asia Pacific Profitability Versus Ultra-Long Haul Europe German market to Auckland Economics:

63,000 Flights or 31,500 Arrivals

Average Fare USD $1577

Total Revenue USD $99 M

Flight is 18,200-19,000 KM

Average Yield is = US cents/KM 8.7-8.4

Economy fare USD $1130 = USC/KM 6.2

Cost = US cents per KM 7.0-7.8

Yields in Asia/Pacific look attractive

Country USD Ave Fare KM USC per KM

India 1170 12495 0.094

Japan 1210 8806 0.137

Malaysia 1044 8703 0.120

Indonesia 1129 7665 0.147

Korea 1108 9630 0.115

China 1137 9750 0.117


We Need to Provide a Premium

RASK Quick Comparison Data source: Sabre ADI

Highest Lowest

This Month: Jan-13 Avg Rolling 12 Months

US Cents / KM AKL SYD MEL BNE PER ADL DRW AKL SYD MEL BNE PER ADL DRW

CAN CZ 7.25 7.73 7.48 6.04 5.87 6.45 6.07 6.48 5.29 4.33

PVG NZ 11.57 10.65

QF 6.89 6.59

CA 7.97 5.68 6.37 5.27

MU 7.40 6.17

FM / MU 6.07 4.58

ICN KE 9.16 10.69 11.62 11.47 9.13 9.87 8.46 10.62

KUL MH 9.88 7.50 7.18 6.53 6.77 7.79 7.91 5.74 5.88 6.04 6.01 6.93

D7 8.20 7.76 11.84 6.56 6.83 9.51

BKK TG 10.19 12.64 10.38 9.69 13.21 8.00 9.33 8.04 8.05 10.91

SIN SQ 11.24 10.67 8.94 8.39 11.09 8.91 10.56 9.68 8.47 7.74 11.37 8.40

JQ / 3K 7.22 10.04 13.56 5.88 7.64 7.96 10.58 10.89

SCL LA 20.25 17.25 Note: data excluded for Apr & May 2012 due to Sabre error

QF 17.83 15.03

EZE AR 14.34 11.43

HNL NZ 16.84 15.17

HA 10.91 10.90

QF 16.65 12.17

JQ 10.50 9.29


New Global Hubs & Golden Routes in Asia


Emerging Global Cities in Asia

GDP Globally will be Lead by Emerging Global „Power‟ Cities

440 Cities are to Deliver 47% of Global GDP Growth to 2025.

Other Emerging Cities will account for 27% of GDP Growth

.


Growth of Large Urban Clusters

Source :McKinsey


Fast Growth Creates Opportunities

Increasing Congestion & Pressure Will Drive Change.

Increased desire for Rest, Relaxation & Rejuvenation

Opportunity for Different Environment, Experience & Exploration

Social Drives Need to be Connected, Communication and Commerce


Asia Dominates Internet Use

7%

45%

21%

4%

11%

11%

1%

Internet Users June 2012

Africa

Asia

Europe

Middle East

North America

Latin America / Caribbean

Oceania / Australia


Asia Large & Offer Penetration

40.10%

78.10%

11.40%

79.50%

45.60% 47.70%

83.00%

22.10%

83.60% 79.60%

28.40%

36.50%

53.30%

82.50%

45.70%

58.40%

32.40%

67.20%

33.90% 35.60%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

Internet Users June 2012

Internet Users Latest Data Penetration (% Population)


Creating Enduring

Friendships


Enduring Industry Friends

Build Trade Programmes

New SIT/FIT Value Segments Awareness - Mono NZ


Industry Development with Friends

Auckland Airport announces new $200k tourism HOT marketing competition

A new $200,000 “High Opportunity Target” markets tourism marketing competition

Springboard to help foster innovation and development within the sector

Established to help innovative operators develop tourism initiatives, and with a focus on emerging Asian High Opportunity Target (HOT) markets such as China, Indonesia and India, Auckland Airport has created a $200,000 “HOT” markets marketing competition and is calling for submissions.

Auckland Airport announces new charter/seasonal capacity

funding programme

Offers up to $500,000 to support growth within the sector

In a move to continue stimulating demand within the tourism industry,

Auckland Airport is launching a new charter/seasonal capacity funding

programme as part of its Ambition 2020 initiative.

The programme offers up to $500,000 to tourism wholesalers/airline

partnerships that are looking to develop programmes that will create

new business opportunities with additional air capacity.


Asia 2.0 Reach & Brand


Building Premium Value


Building Proposition with Friends

Consumer & Industry Friends with Benefits

China

TV/Digital/Print

Build value, partners & seasonality - trusted

advice with supporting channel offers

TV/Film/Digital/Print

Build awareness , partners & NZ demand -

Preferred source of info & offers for China

Digital/PR Build awareness ,

partners & demand Premium Mkt- #1 Luxury

Source NZ

Other Asia

14% Pax Growth Indo - Facebook Pop = 47M India – Facebook Pop = 61M Malay- Facebook Pop = 18M

Website 100,000 page views and 3,500 Database

10,000 App Users

#1 Australasian Facebook Fanbase in

Indonesia 60K

Digital/PR Build awreness, partners

& demand FIT Mkt- #1 FIT Source NZ

New Zealand

Digital/PR Build awareness,

partners & demand Premium?FIT Mkt =

#1Source NZ India/Malaysia

Digital/Print/PR Build awareness ,

partners & demand Premium Mkt- #1

Luxury Source NZ Indonesia

Indonesia India/Malaysia

Social Media Fanbase 50,000 (TNZ 140,000) -

50% Growth in Premium Class Sales

Website 200,000 page views & 22M Impressions

Database 2000

18% Pax Growth #1 World Netizens 525M #1

Online Shoppers 228M #1Airport & Luxury Country

Offer Awareness 20-40% - Advertsing

Recall 7% with 34-48% Positive Impact

Website 20,000 page views and drove #1

Sales Promotion period for Airlines

45% Share of Sales 50% Growth Business Class

Partner Funding $750K

http://www.tripguide.co.nz/

http://www.destinationchina.co.nz/

http://www.xindaohualv.com/

http://www.xinxilanlvcheng.com/

https://www.facebook.com/luxuryNZ.Indonesia


Let’s Create NZ-Asia 2.0

Source: Indonesiainternetcities.png


Thank You

Aial asia summit-gw

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