Dsicuss about the New Zealand Inbound Tourism Market of Asia.
The overarching concept inbound tourism signifies a visit to a country by nonresidents in order to spend leisure or other business purposes. New Zealand is primarily recognized as the green adventurous destination surrounded with natural beauty such as Milford Sound, Abel Tasman National Park or the Tongariro Alpine Crossing. Visitors from different geographical backgrounds and attitudes like to enjoy the tourist destinations of New Zealand (Buhalis & Crotts, 2013). In 2017 of March, the total number of international visitors was at 8.9%. Bed nights were increased up to 3.2 % up to 2017 in the measures accommodation sector. Total $35.9 billion visitors spent their time in the various tourism destinations of New Zealand.
Figure 1: Rate of international visitors in New Zealand Tourism industry
(Source: stats.govt.nz, 2018)
After evaluating an overall annual growth of the visitors, New Zealand has drawn the attention of customers from Asian region. Around 12% visitors from Japan and 27.8% visitors from China likes to visit New Zealand every year. As per the current market position of New Zealand tourism is one of the most flourishing industries playing a most significant role in rendering the economic growth of this country. In addition, after the development of inbound tourism in the market of New Zealand, the employability opportunity has also been raised effectively (Dupeyras & MacCallum, 2013). The most important reasons of raising the number of visitors from Asia market is three specific reasons that includes business, education and holiday. 1.95% of the visitors from the market of Asia like to choose New Zealand due to educational purpose.
This particular country with the emergence of advanced technology has improved their education system more effectively than Asian country. As a result, in quest of higher education students enter in the market of New Zealand. On the other hand, it is also undeniable that business conference and meeting is one of the most important reasons for visiting New Zealand from Asian market (Nishio, 2013). Most of the rising business head of Asian countries such as Japan China likes to maintain their international business with New Zealand for grabbing the market. However, China being famous for one of the most prominent low cost consumer goods is highly wanted by most of the western developed countries. Therefore, 8.33% of the visitors in order to make their business and conference successful visit various destinations of New Zealand. The foremost reasons for enhancing the market of New Zealand in tourism industry from Asia is for spending leisure (Sun, Ryan & Pan, 2015). Around 51.9% of the visitors from Asia like to travel in New Zealand for spending their holidays. It is undeniable that the natural beauty and tourism destination attracts the attention of international customers. Asia is considered as one of the most promising markets for developing inbound tourism sector of New Zealand.
Figure 2: Reason for travelling to New Zealand
(Source:stats.govt.nz, 2018)
Before 1980 tourism business scenario, New Zealand was very much restricted to regional geographic boundaries. Around 90% of the visitors of New Zealand were from local and regional markets (Simmons, 2014)). As a result, the business experts did not have enough scope of enhancing their economic strength. However, in quest of expanding the entire business process Tourism Chairperson of New Zealand Kerry Prendergast has taken major initiatives both in tourism sector and in tourism board. The business experts have developed their strategies and policies for drawing the attention of international customers. After the development of hotels and restaurants, the international visitors have shown their interest for visiting various places of New Zealand. The travel operators have rendered a major change in their way of customer services (Genç, 2013). They have been accustomed with multi-lingual flexibility with the help of which people belonging to different geographical areas do not face difficulties in communicating with travel operators. On the other hand, the promotional activities for tourism business of New Zealand have been increased. People of multi-national countries can get an in-depth overview about the destinations before visiting to that place.
In current business scenario of 2017, China is considered as the second largest market for New Zealand for developing their inbound tourism sector (Gössling, 2013). Around 222,000 visitors, every year arrives at New Zealand for various purposes of business, spending holidays and education. The raise of China’s visit to New Zealand has been raised with the visit of Yao Chen who was married in Queenstown in the year 2012.
Figure 3: Growth in tourism passengers from 2013 to 2015
(Source: tourismnewzealand.com, 2018)
In addition, most of the Asian countries are considered as developing countries both in terms of economically as well as technologically. As a result, the business experts in order to expand their organization in the international market intended to choose New Zealand as their most effective soil (Yang & Wong, 2013). New Zealand on the other hand, by using their emergence of advanced technology has rendered immense growth on the tourism sector so that international customers show their level of interest for using the services of New Zealand business tourism sector.
Figure 4: Contribution of Asian market for the change of inbound tourism in New Zealand
(Source: stats.govt.nz, 2018)
As per the above market scenario, it has been observed that after Ocenia Asia is the second largest contributor for expanding the business growth in inbound tourism of New Zealand. Changing policy in New Zealand regulatory body, developing hospitality sectors, rendering multi-lingual competency on the tourism operators are the specific reasons for which the entire tourism scenario has been changed since 1980.
Within 5 years the total numbers of Asian visitors have been reached NZ$139 billion. As a result, the annual revenue that New Zealand draws for inbound tourism sector is NZ$127 billion approximately. India is one of the most significant markets for New Zealand for drawing the attention of international customers in the tourism industry (Leung et al., 2013). The domestic tourism market of New Zealand is not sufficient enough for rendering economic growth. An effective strength of inbound tourism from Asia is tipped to offset long-term weakness on the domestic front, where only modest growth in overnight travel is expected.
Before entering in the new market of Asia, the business experts have made a proper STP analysis for selecting the target group for tourism business sector. As per geographic demographic and psychographic segmentation of market the target people of Asia has been selected. India, China, Japan are primarily involved in expanding their business wings in the international market. Therefore, the business experts of New Zealand have primarily targeted the geographic areas of those specific countries (Murdy & Pike, 2012). The business experts of New Zealand since 1980 have rendered immense innovations on their overall business process. In order to draw the attention of people from various psychological backgrounds and attitudes the business experts have rendered flexibility in their service management process. The travel operators have decided to grab multi-lingual flexibility. With the help of this specific competency the service providers can easily deal with the Asian customers belonging to various language as well as cultural backgrounds.
Most of the countries of Asian pacific regions are still considered as developing. As a result, people of these specific areas belong to average income level. Therefore, people having average income status can also avail tourism destinations of New Zealand. The holiday park of New Zealand has taken a constant data about the rate of increase of Asian visitors (Seetaram, 2012). It has been observed that 4.6% of the visitors are increased up to 2015uin comparison to 2014. The business experts have implemented the plan of showing equal respect and dignity to all the customers. As a result, people do not get hesitated in communicating with the service providers.
As per the current market trend infrastructure is the key pillar of tourism success as well as overall success of nation. With the dynamic progress of civilization and international customers’ trends the business experts have to develop their internal factors. In order to make inbound tourism sector effective for New Zealand, the country should decide in working on roads, toilet facilities, tourism sights and attractions and so many. International air connectivity, telecommunication factors, car parking facilities, airports and related services, visitor accommodation are the primary factors that can fulfill current trend of tourism industry.
As per the current market trends of inbound tourism industry, the visitors before entering in the place tend to get an in-depth overview about the pros and cons of various places. As a result, travel operators do not have to face difficulties in dealing with the visitors of different psychological backgrounds and attitudes (Simmons, 2014). In addition, in comparison to other industries this particular sector has stood as one of the most prominent business industry in the overall tourism market.
Air New Zealand leaves one of the most prominent impacts in terms of sharing passengers in 2013. Before visiting in a new tourism spot, the customers tend to focus on several factors, which are as follows:
Based on those specific factors the current market of New Zealand has achieved immense recognition and image in order to deal with the customers effectively. People from various geographical backgrounds and attitudes from Asian market have decided to entre in the market of New Zealand due to the affordability of above mentioned facilities. In November 2016, an effective survey was conducted in order to evaluate the business growth in past 12 months and the expected growth in upcoming 12 months. Total 100 respondents from the tourism industry were involved in order to evaluate the business situation of New Zealand inbound tourism industry (Seetaram, 2012). The result showed that more than 60% of the respondents believe in the improvement of inbound tourism industry in New Zealand. On the other hand, 10% of the respondents believe that business situation has been deteriorated. Similarly, in the expected future days, 62% of the respondents think that inbound tourism business will develop in next 12 months. On the other hand, 15% of the respondents believe that the business might deteriorate. However, based on the current market trend and response of the customers it can evaluated that inbound tourism sector of New Zealand is going to flourish more effectively.
After evaluating the entire study is has been analyzed that New Zealand has already drawn the attention of Asian customers for flourishing their inbound tourism sector. Every year the Ministry of Business, Innovation and Employment produces an in-depth forecast on international tourism. Strong growth is forecast in the market of New Zealand driven by the Asian market especially in China. From 2016 to 2013, the approximate increase of the visitors will reach from $10.1 billion to $15.3 billion. The emergence of technological development in service system, effective transportation system, sufficient water supply, providing safety and security to the customers are specific reasons for this rapid growth of business. While analyzing the future analysis of market, it can be stated that New Zealand should focus on going the market of other regions of UK, Australia and US for rendering their inbound tourism business more effectively. As a result, the country would be able to render an effective economic growth. The business expansion process would be more effective and systematic after the flourish of inbound tourism in the global market. A brief overview is presented about the forecast of international tourism visitors from 2016 to 2023:
Conclusion:
The overall study has focused to provide in-depth overview on how New Zealand tourism industry has rendered changes within their inbound tourism sector since 1980. It has been observed that New Zealand at the very initial stage of their journey was very much restricted to regional market. Due to the lack of effective promotional activities and in competent facilities for international customers, New Zealand fails to grab the attention of global customers. With the high initiative of New Zealand, chain person the country has implemented innovative business strategies on tourism sector for developing the industry. As a result, in current market scenario people of Asian market leave major contribution for developing inbound tourism business of New Zealand.
While drawing the attention of international customers especially in the market of Asia, the business experts of inbound tourism sector have made effective STP analysis for segregating the target customers as per geographic, demographic and psychographic backgrounds. In addition, the overall market growth in tourism industry of New Zealand from 2005 to 2013 has been clearly presented in this very specific study. As per the statistical data, Asia is the second largest contributor for the development of inbound tourism business.
Reference List:
Buhalis, D., & Crotts, J. (2013). Global alliances in tourism and hospitality management. Routledge.
Dupeyras, A., & MacCallum, N. (2013). Indicators for measuring competitiveness in tourism.
Genç, M. (2013). Migration and tourism flows to New Zealand. In Quantitative methods in tourism economics (pp. 113-126). Physica, Heidelberg.
Gössling, S. (2013). National emissions from tourism: An overlooked policy challenge?. Energy Policy, 59, 433-442.
Leung, D., Law, R., Van Hoof, H., & Buhalis, D. (2013). Social media in tourism and hospitality: A literature review. Journal of Travel & Tourism Marketing, 30(1-2), 3-22.
mbie.govt.nz, (2018). Homepage | Ministry of Business, Innovation and Employment. (2018). Mbie.govt.nz. Retrieved 21 March 2018, from https://www.mbie.govt.nz
Murdy, S., & Pike, S. (2012). Perceptions of visitor relationship marketing opportunities by destination marketers: An importance-performance analysis. Tourism Management, 33(5), 1281-1285.
Nishio, T. (2013). The impact of sports events on inbound tourism in New Zealand. Asia Pacific journal of tourism research, 18(8), 934-946.
Seetaram, N. (2012). Estimating demand elasticities for Australia’s international outbound tourism. Tourism Economics, 18(5), 999-1017.
Simmons, D. G. (2014). Tourism and ecosystem services in New Zealand. Manaaki Whenua Press.
Stats.govt.nz (2018). New Zealand’s regional economies 2016 | Stats NZ. (2018). Stats.govt.nz. Retrieved 23 March 2018, from https://www.stats.govt.nz/infographics/new-zealands-regional-economies-2016
Sun, M., Ryan, C., & Pan, S. (2015). Using Chinese travel blogs to examine perceived destination image: The case of New Zealand. Journal of Travel Research, 54(4), 543-555.
Tourismnewzealand.com (2018). Tourismnewzealand.com. Retrieved 23 March 2018, from https://www.tourismnewzealand.com/about/about-the-industry/
Yang, Y. (2012). Agglomeration density and tourism development in China: An empirical research based on dynamic panel data model. Tourism Management, 33(6), 1347-1359.
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