New Zealand Tipped for Smart Travel

Favourable exchange rates, good value holiday deals and a government cash injection for marketing are all helping to keep New Zealand in the minds of would-be international travellers during the credit crunch.

The New Zealand government last week announced NZ$2.5 million in extra funding for Tourism New Zealand to be matched with another NZ$2.5 million from Air New Zealand. The cash injection will be used to boost marketing in the Australian market, which accounts for 40 per cent of visitors to New Zealand.

Meanwhile, British currency experts have named New Zealand as one of three countries in the world that represent "excellent value for money" for travellers.

Good Reasons to visit
The less dramatic fall of the pound against the New Zealand dollar and the fact that New Zealand isn’t in the thick of a recession to the same extent as the UK and US, are good reasons for British travellers to visit Commonwealth countries like New Zealand, according to foreign exchange experts.

FC Exchange managing director Nick Fullerton says that while the pound dropped a dramatic 33.3 per cent against the euro and 36.2 per cent against the American dollar in the two-year period between March 2007 and March 2009, it fell by a less painful 19 per cent against the New Zealand dollar.

Cheaper Flights
Attractive low cost flights are also helping to attract travellers and Air New Zealand says its campaign to help revive international visitor numbers to New Zealand is beginning to show signs of success.

Ed Sims, Air New Zealand’s Group General Manager, credits an innovative marketing programme in the US, combined with aggressive pricing, for the improvement in bookings in recent weeks.

"At this stage, with bookings up week-on-week, indications are we’ve stemmed the short-term demand fall which is good news for tourism operators," says Ed Sims.

Clean Green Value
While bookings have been well below last year’s, Air New Zealand says it is feeling more confident that it would not have to reduce capacity further than the nine per cent already in place for the next four months.

"It certainly is encouraging to see that in the face of an economic crisis in the world’s largest economy, US consumers are still prepared to spend when they spot a great product at bargain prices.

"New Zealand’s appeal as a clean, green and safe destination has never been more valued," says Ed Sims.

Australian Market
Additional government funding to encourage Australian tourists to visit New Zealand has prompted Air New Zealand to offer a unique deal to people wanting to cross the Tasman.

The airline says that in the next month it is planning to give away more than NZ$2m in free domestic travel to any of its 27 New Zealand ports when travellers buy a trans-Tasman fare in Australia.

Air New Zealand is also offering up to 100 free return airfares to regional tourism organisations to attract Australian media to visit their regions.

"We want to see a huge number of travel stories in Australian media over this time telling Australians about all the fantastic places there are to visit in New Zealand," says Air New Zealand Group General Manager Short-Haul Airlines Bruce Parton.

Boost to NZ Economy
Prime Minister and Minister of Tourism, John Key, says the additional NZ$2.5m for Tourism New Zealand’s promotion in Australia is expected to contribute around NZ$64m to the New Zealand economy.

He says the impact of the global recession is likely to result in New Zealand becoming a more attractive holiday option as Australian consumers tighten their spending and look at holidaying closer to home.