THL profits over the years seem to be negatively correlated to tourist numbers .... as tourist numbers go up their profits (losses) go down
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THL profits over the years seem to be negatively correlated to tourist numbers .... as tourist numbers go up their profits (losses) go down
Tourism Industry Monitor:
Expected change in demand and profitability in the next 3 months (Dec10-Feb11 vs. Dec09-Feb10)
Small businesses are expecting little change in demand and profitability in the next 3 months relative to the same period last year, while medium-sized businesses are expecting some uplift in demand. Large businesses are expecting an increase in both demand and profitability. Overall profitability for the industry is expected to increase by 1.5% in the next 3 months.
International Visitor Arrivals November 2010
Australia 84,625 0.1%
United Kingdom 21,175 -13.6%
United States 19,150 2.0%
China 14,875 34.5%
Japan 8,375 4.3%
Germany 8,025 -0.9%
South Korea 6,175 41.3%
Canada 5,050 2.6%
The growth is in the short stay, low value tourism and the contraction is in the high value Interactive Visitors that NZ most needs. The headline arrivals number is not too bad, but when you drill down a bit further you can see that the picture is much worse for general tourism than it is for the airlines and airports.
It's OK if you are an airline or airport, probably good if your in the business of coach tours for the short stay Asian visitors or supplying attractions or other services to these visitors. Not good for accommodation, rental cars, campervans and attractions that are slightly off the beaten track, I suspect the downturn is worse in the regions outside Auckland, Rotorua and Queenstown. Canterbury tourism has been badly affected by the quake.
Article on stuff:
China's largest airline has started a $10 million campaign using Queenstown imagery to attract tourists to New Zealand.
Earlier this month China Southern Airlines announced three direct flights between Guangzhou – a major transit hub 120km north-west of Hong Kong – to Auckland International Airport starting in April.
The airline is the largest in China, operating a fleet of more than 300 aircraft to 121 destinations worldwide.
Auckland Airport general manager aeronautical business development Glenn Wedlock said the inbound Chinese tourism market was emerging rapidly.
Auckland Airport was working with Chinese counterparts on the campaign, which includes TV ads, in-flight magazines and airport billboards.
Some New Zealand flights were already fully booked and the aim was to provide itineraries that included return Queenstown flights from Auckland, Mr Wedlock said.
"We already have programmes in place for Guangzhou, with onward flights to Queenstown," he said.
"Certainly in Guangzhou Tourism New Zealand is spending more money.''
With its fast-growing economy and increasing wealth China's urban classes were enjoying the benefits of disposable incomes.
The ad campaign extended from the major southern hubs to regional cities, such as Shenzhen, a city north of Hong Kong with an urban population of 4 million.
The city's airport, Shenzhen Bao'an International Airport, is the fifth busiest in China.
"Queenstown can offer contrasting imagery, different colours, experiences and destinations," Mr Wedlock said.
"Australia has its iconic destinations but we have four seasons and can offer mountains and glaciers in a short space of time."
Itineraries to Queenstown could include add-ons with, for example, visits to Fiordland and Southland.
Mr Wedlock said Tourism New Zealand forecast around 14 per cent of the visitor market was Chinese.
The hope was this market would grow to compare with the number of Japanese and South Korean visitors.
Most Chinese visitors arrived on tour groups but, increasingly, independent travellers were venturing to New Zealand from China, he said.
China Southern Airlines previously announced flights to Auckland via Melbourne but the latest direct flights bypassed Australia, offering a boost to the New Zealand market.
The three times a week service using 284-seater Airbus A330s is scheduled to start on April 8.
Ad Feedback - The Southland Times
It is good to see this market slowly shifting from tour groups to independent travellers. It will take a while, but over time we will see less and less emphasis on the "see everything in a 3-day bus trip" type holiday.
Interesting that from that increase quoted by fwu more than a third of the increase was related to people coming for conferences and conventions ..... those coming on holiday were only up 1.5%
Bak on this thread somewhere are some charts prepared for bull showing vistor numbers and THL revneues
How well this company has done is summed up -
Since 2000 vistor numbers are up 48% while THL revenues per share are down 27% - June years
And the shareprice has followed the revenues line ... although on a price sales basis the current shareprice is historically low but then the market may have woken up to what really happens in the land of campervan and tourist attractions