SkyCity announces five star hotel as part of expanded entertainment

PO Box 1464, Paraparaumu Beach
Kapiti 5252, New Zealand
Nigel
Coventry
Phone: 64-4-2973131
nigel@insidetourism.com
w w w. i n s i d e t o u r i s m .c o m
Supporting the industry since 1982
ISSUE 990
August 14th, 2014
Member: PATA, TIA, Skal
ISSN 1179-2418
Tourism Brand Index + 64.2
SkyCity announces five star hotel
as part of expanded entertainment
precinct - and designs for NZICC
THE SkyCity Entertainment Group has announced it is expanding its entertainment
precinct to include a five star hotel and pedestrian lane containing bars, restaurants
and boutique shops. This will cover three blocks, says CEO Nigel Morrison.
“The hotel and pedestrian laneway form part of our master plan for the development
of the Hobson and Nelson Streets block and will be built as part of the New Zealand
International Convention Centre (NZICC) complex.
“This master plan will further contribute to the rejuvenation of the central city’s
western edge and create an enhanced contemporary and dynamic space for
Aucklanders and tourists alike.”
Approved concept designs for the convention centre have also been announced.
INSIDE
NZICC will be BIG - pg3
TIA pleased - pg4
Foreign Exchange - pg6
NZAEP lifetime achievement
award - pg7
Global growth continues - pg8
Tide still rising for cruise - pg9
“We believe our new SkyCity hotel will be an important addition to Auckland’s tourism
infrastructure. This new 300-bed hotel is a major New Zealand tourism project and
it will complement other hotels being built in downtown Auckland. Taken together,
these developments are a major vote of confidence in Auckland’s future as a vibrant,
evolving city of international standing,” Mr Morrison says.
“SkyCity has every confidence in the ongoing growth of Auckland. Our SkyCity Hotel
and SkyCity Grand already have 90 percent occupancy and, through the combined
work of TNZ and ATEED, we know that projected visitation to Auckland is expected to
have strong growth.”
The new hotel will take the number of beds available within the precinct to nearly
1,000. It will be linked by an air bridge to the rest of the complex.
Wealthy Chinese market latest
- pg10
“We are also creating a pedestrian laneway adjacent to the new SkyCity hotel,” Mr
Morrison says. “This laneway will be a contemporary version of the historic Vulcan
Lane with bars, restaurants and boutique shopping at street level.”
Standards keep crims at bay
- pg12
The new hotel is a landmark opportunity to create an international modern hotel
within the central city.
Integrity key to good leadership
- pg14
“In Auckland, most of our current four and five star hotels are from a previous era,”
Mr Morrison says. “They are constructed of very solid brick masonry or concrete,
and while they may have been successfully upgraded, still reflect the past. With a
completely new build hotel, we have an opportunity to use modern technologies
and contemporary design and planning methods in the room and fixture design. In a
beautifully integrated project, we will create lightness in the way the space feels and
capitalise on beautiful views towards the harbour and urban landscape.”
Gov’ts behave like Sheriff of
Nottingham - pg16
Big growth seen in India - pg17
* See also pg3
IT990 August 14th, 2014
Pages Past
20 years ago in IT...
A year ago Auckland hoteliers were saying demand didn’t justify another
major property in the city for five years. With occupancies in the high 90s this
summer TIA CEO Paul Winter wonders why the predictions were so far out
and what message that brings for the aviation sector.
Little attempt is made to understand factors that affect the market. An
“order taker’s” view of demand dominates.
At a guess he says the domestic market is probably 5.4 million passengers.
Opportunities are created by understanding the different rates of growth.
While 1.2 million visitors arrived in the May year, a rise of 11 percent, this
disguises the fact that the Asian market, which uses more air travel than
others, grew 45 percent to more than 200,000.
TIA regional divisional chairman Paul Watkins says it is RTOs and not Colenso
that is initiating the domestic campaign. No budget has been fixed. Mr Winter
says it is up to Colenso to generate the money to fuel it.
Wonderful Wairarapa is the catchy slogan that’s been hijacked by other areas.
So new Masterton-based RTO Rob McIntyre is asking his members to think
up an alternative.
15 years ago in IT...
NEW Zealanders have to move fast if they are to make the most of their ADS
status just approved by China. CNTA vice-chairman Sun Gang tells IT other
nations are seeking ADS. Korea’s application has been approved. So has
Japan’s, in principle. Also keen are France, Switzerland, the UK, South Africa
and Hawaii.
Continental Development Corporation owner Zhang Shijun told IT in China
he has a three year contract with China South West Airlines to fly charters
between Shanghai/Beijing and Auckland. Plans are to increase flights to
twice a week by October.
Conferencing?
HEAD TO THE
He said he had been ripped off by New Zealand business entrepreneurs,
losing US$4 million, but he has confidence in Shanghai-born Christchurch
MP Pansy Wong.
When Yangtze International Travel Service GM Li Weiping tried to take a
group of 27 potential investors to New Zealand everyone was given a visa
except himself. He found this embarrassing.
Quality control expert Li Ren Zhi said Chinese visitors are likely to be upper
middle-class, aged 27-35, married with two incomes and childless.
A complete
conferencing venue
in the heart of the
Wairarapa!
0 8 0 0 S O LW AY
New Zealand ambassador to China Peter Adams told IT the granting of ADS
to Australia ahead of us was probably due to a “bureaucratic accident”.
JTB has become the first travel company to ban group travel on January 1,
2000. It is refusing to sell packages straddling flights on 00.00 GMT.
10 years ago in IT...
LATEST tourism forecasts indicate total arrivals will reach 3.12 million in
2010, an average increase of 5.8 percent.
w w w. s o l w a y. c o . n z
IT990 August 14th, 2014
Proposed NZICC big enough for two
Dreamliners to sit side by side!
APPROVED concept designs have been announced for SkyCity’s New Zealand
International Convention Centre (NZICC).
“These key concepts are the first steps in establishing what the NZICC is going to look
like, not only in terms of the physical scale and appearance, but also the breadth and
complexity of what the building can offer,” says SkyCity CEO Nigel Morrison.
“Through a collaborative process with the government, we now have an approved
concept and vision that will inform our design team and enable them to produce a
compelling and considered design for the NZICC ahead of lodging resource consent
which is anticipated for the fourth quarter of 2014.”
“The design includes flexible, innovative convention and exhibition space,” says
SkyCity Group GM Simon Jamieson. “Spread over four levels the facility will contain a
public atrium entrance, multiple day meeting rooms and a dedicated multi-use plenary
theatre able to accommodate 3,000 people for convention and entertainment events.
The exhibition floor will be the size of Eden Park’s rugby pitch with a 9m stud and the
ability to accommodate two Dreamliner 787 aeroplanes side by side.”
Above: The new hotel.
Below: what NZICC may look
like.
The NZICC will enhance the rejuvenation of the western edge of the CBD and will
provide a catalyst for further visitor and entertainment development in Victoria
Quarter and SkyCity’s Federal Street. Auckland businesses of all sizes will benefit from
increased high-value visitation. It will reinforce Auckland’s reputation as a leading,
vibrant, international city.
With a floor area of 85,000 m2, the NZICC is said to be the biggest building project
undertaken in Auckland since 1997 when the Sky Tower was constructed.
Good growth across all businesses - Morrison
SKYCITY Entertainment Group yesterday (Wednesday) announced NPAT of $123.2
million and reported NPAT of $98.5 million for the year ended June 30.
The company’s largest business, SkyCity Auckland, had good growth across all
business segments, particularly in the second half with revenues up nine percent and
with momentum continuing into the first quarter FY15, says CEO Nigel Morrison.
“Auckland is seeing strong momentum in both gaming and non-gaming revenues.
This, combined with tight cost control has seen pleasing growth in Auckland’s EBITDA
and an improving margin. Auckland has continued to trade well into the FY15 year
(through to 10 August 2014) with nine percent revenue growth.”
SkyCity Grand Hotel and SkyCity Hotel continued to perform well with record
occupancy and increased average daily rates - with 85 percent and 93 percent
occupancy respectively for the year.
Federal Street has re-opened with building works completed in July. The general
amenity of Federal Street is much improved, with an open, boulevard feel, Mr Morrison
says.
Hamilton’s normalised revenue of $48 million was down 6.9 percent on FY13,
which benefited from strong table games performance. While still facing a tough
environment, some positive signs have emerged in the second half.
Queenstown saw positive normalised revenue growth of more than 50 percent on the
back of improving international business and the acquisition of The Wharf in July 2013.
“Total rest of New Zealand had normalised revenue growth of two percent.
Unfortunately this did not translate to normalised EBITDA growth, which was down 16
percent on FY13,” Mr Morrison says.
IT990 August 14th, 2014
TIA pleased Chch convention centre
consortium chosen and AirNZ/SQ
alliance approved
TIA CEO Chris Roberts is delighted a consortium has been chosen to build the
Christchurch Convention Centre and the go-ahead has been given for AirNZ and
Singapore Airlines to form an alliance.
“The convention centre is the cornerstone project that will attract accommodation,
hospitality and retail development into the CBD,” he says. “New Zealand has a huge
opportunity to attract more high spending convention and conference visitors. It is
important that Christchurch has a top-class facility as part of an expanded network of
centres around the country.
“”This improves the competitiveness of New Zealand tourism and targets value visitors
- both important aims recognised in the tourism industry’s Tourism 2025 growth
framework.” Accor has been named preferred hotel operator.
Approval of the alliance is also aligned with Tourism 2025. “Growing sustainable
air connections is crucial to growing the value of tourism. The alliance between Air
New Zealand and Singapore Airlines has immediate benefits in terms of additional
capacity and offers a sustainable partnership that should provide long-term gains and
opportunities,” Mr Roberts says.
“Singapore is a vital source of visitors to New Zealand with potential to increase. It is
also one of the world’s major aviation hubs and a vital pipeline to our growing visitor
markets throughout Asia and the Pacific Rim.”
Auckland Airport, TNZ and ATEED also welcome the alliance approval, which will add at
least 100,000 seats in the first year alone. This is calculated on the basis of AirNZ taking
over the five-flight-a-week service currently operated by SQ and replacing it with a
daily service, as well as Singapore Airlines deploying an Airbus A380 on its remaining
daily service between
(to pg5)
IT990 August 14th, 2014
(from pg4) Auckland and Singapore on a seasonal basis.
“Singapore is a critical hub airport, providing New Zealand with access to Southeast
Asia and in particular key emerging markets such as India and Indonesia. This new
alliance will help to support the impressive growth we have already seen from these
markets,” says airport acting GM aeronautical commercial Charles Spillane.
“Passenger arrivals from Singapore to New Zealand have grown by 19 percent in the
past 12 months. Also in the past year, visitor arrivals from India have increased by
13 percent and Indonesian arrivals have increased by 17 percent. The total growth in
passenger arrivals from Southeast Asia has likewise been strong, with an 18 percent
increase over the past 12 months.”
“The Auckland-Singapore route provides a vital connection into South East Asia, India
and the wider Asia region, as well as extending on to Europe, which supports our work
to target visitors from these regions and grow their arrivals to New Zealand,” says TNZ
CEO Kevin Bowler.
ATEED manager tourism Jason Hill says the increased capacity is often a catalyst to
grow demand.
The Christchurch convention centre is a significant step in the rebirth of the city and
Accor is delighted to work with the Crown and the preferred consortium to master plan
the precinct, says Accor senior VP Garth Simmons.
“Accor continues to play an important role in the revitalisation of Christchurch and
we are proud to be selected as the preferred operator to manage the Christchurch
Convention Centre for the master-planning and development stage,” says Mr.
Simmons.
“The convention centre will become an iconic infrastructure asset for New Zealand and
a major catalyst for the continuing rebuild of Christchurch.
“We are not just local hotel operators, but have the strength of being a global
hospitality company and experience in operating convention centres across the globe.
We are confident this world-class convention facility, supported by our strong network
of hotels, will drive visitor growth to Christchurch, create jobs, support local businesses
and deliver broader economic benefits to the Canterbury region and New Zealand.”
“We’re thrilled to have confirmation of the development and operation of
Christchurch’s new Convention Centre, set to open in 2017,” says Christchurch and
Canterbury Tourism CEO Tim Hunter.
Plenary Conventions New Zealand, a consortium of international infrastructure
firm Plenary Group, and local firms Ngai Tahu Property and Carter Group, has been
selected as the preferred development consortium for this very large project.
Christchurch and Canterbury Convention Bureau manager Caroline Blanchfield says
the announcement means the bureau can now actively pursue large international
conferences for Christchurch.
“We already have significant interest in events wanting to book at least three years
out. Now we have the certainty to go out and sell Christchurch on this scale.”
TNZ international business events manager Bjoern Spreitzer says the centre will
attract more high-value visitors to the South Island in the off-peak season and boost
the country’s reputation abroad.
“With an outstanding venue in a lively central city precinct, Christchurch is helping put
New Zealand on the map as a world-class business events destination,” she says.
IT990 August 14th, 2014
F O R E I G N
EXCHANGE
newzealand.com and its growing
role in a digital world
TRAVELLERS are now engaging with digital media prior to and throughout the travel
process. With people checking their mobile phones an average of 150 times a day,
mobile is an increasingly important channel for operators.
In 2014 this was seen reinforced by our own digital channels, with visits to newzealand.
com from mobile devices, tablet and smartphone accounting for 5.1 million or 29
percent of total visits.
We are seeing a continued uptake across our key markets. In Australia the use of
mobile devices grew 22 percent during the year, while almost one in four UK visitors
uses a tablet to access newzealand.com
All this information reinforces the importance of our 2015 focus on the mobile
consumer, and we are already working on ways to further our digital presence,
increasing the value of newzealand.com content and usability on mobile devices.
We’re also dedicated to improving the usability and effectiveness of the site for New
Zealand operators and offshore travel sellers. It is critical newzealand.com works well
for you, because making it easier to keep your business details updated and fresh
ensures good-quality content is delivered to visitors to the consumer site - increasing
engagement levels and the delivery of qualified, high-value consumer leads to your
business.
By
TNZ marketing director
Andrew Fraser.
Just last week changes to the operator database went live that address the most
common barriers in delivering a better user experience. Based on feedback received
directly from industry, the enhancements were made to creating and editing a business
listing including improved on-screen instructions and a new image and logo upload
function. If you have any feedback or questions on the changes please contact us at
register@tnz.govt.nz.
This development builds on the successes seen during the 2013-2014 financial year,
with our digital channels delivering record performance to the New Zealand tourism
industry.
In the 12-month period we saw more traffic to our consumer site, newzealand.com,
than ever before, with 18.2 million visits representing growth of 30 percent year-onyear.
However, what is arguably more important is that the site delivered almost 2.4 million
referrals to businesses listed on the site. Of these, more than 300,000 were to New
Zealand-based operators, up 32 percent.
Sitting at the heart of our marketing activity, the site is effectively achieving its
purpose to engage with visitors, increase their desire and preference for a holiday to
New Zealand and connect them with industry and travel sellers to convert that interest
into travel. This is supported by a solid year of international arrivals, up 5.7 percent for
the year ending June, and expenditure up nine percent to the end of March.
Our development of newzealand.com is continuing, with changes focused on
enhancing the user experience for potential travellers and those industry and tourism
businesses with listings.
In the past year we have made newzealand.com more accessible in our target markets,
with language editions developed for the emerging markets of Indonesia, Argentina
and Brazil, bringing us to a total of 20 editions in nine languages.
We also released our first mobile app, Essential New Zealand. This marked a significant
addition to our suite of digital marketing channels. With 90,000 downloads and 60,000
referrals generated to industry, we are confident the app is effectively capitalising on
the increased use of mobile devices by visitors while in the country.
IT990 August 14th, 2014
NZAEP lifetime achievement award for Dame Suzie
WORLD of WearableArt Awards Show founder Dame Suzie Moncrieff received a
lifetime achievement award at the NZAEP annual conference last week. She is seen
(left) with WOW competition director Heather Palmer.
Young Event Professional went to Rumble in the Rubble producer Kelly Barry.
Best Event Professional was won by Sue Paterson of the NZ Festival and Wellington
Jazz Festival. Best Emerging Event was named as ENZED V8 Jetsprints at ASB Park:
Round 2 NZ Jetsprint National Championship Series 2014. The Best Established
Community Event was TSB Bank Festival of Lights. Best Established Regional
Event - Visa Wellington On a Plate. Best New Zealand owned major event - World of
WearableArt Awards Show. Best New Zealand hosted major event was Ironman New
Zealand and Best Partnership for an Event was Visa Wellington On a Plate
The best One-Off Event award went to The Hobbit an Unexpected Journey, World
Premiere, and the People’s Choice Award was won by Alicia Gainsford of the New
Zealand Racing Board.
h e tangata , h e tangata , h e tangata
TE Arawa Group Holdings Limited has appointed Lori Keller GM of Waiotapu
Thermal Wonderland, effective from September 24.
Ms Keller has had more than 15 years’ tourism and management experience, having
owned and operated Kiwi Kayaks and Water Taxis in Abel Tasman National Park.
More recently she has held high-level management positions within Ngai Tahu
Tourism attractions in the South Island and Rotorua. Outgoing GMs are Alex and
Cheryl Leinhardt.
Ian Elliott.
Ian Elliott has been appointed marketing manager for Tourism Waitaki. He has
had a wealth of experience in marketing, communications and business growth,
including establishing a mountain biking business in Naseby and managing an IT
academy in Auckland. Mr Elliott holds a tourism qualification from the University of
Otago. He and his family have returned to live on the farm in the Waitaki Valley his
grandfather bought in 1920.
Waikato University Tourism Management student Brielle Gillovic, 22, is the
recipient of a $4,300 Thrifty Scholarship in Tourism.
“Her work will undoubtedly add to the New Zealand tourism experience of the
future,” says Thrifty Car Rental GM Emma Gardiner. “We are interested in Brielle’s
findings in relation to rental cars to identify any areas that we can adapt to offer a
service or product enhancement.”
Brielle Gillovic.
Anna McGeorge has joined TIA as events and sponsorship executive. She has had
several years as events manager at the Motor Trade Association and has worked in
the UK as a venue finder for multi-national and international companies, and locally
at Victoria University of Wellington.
Katie Lee has joined Hertz as business development manager - travel distribution,
based in Auckland. She previously worked with Qantas Vacations in the US, Orient
Express in Australia and Hilton in New Zealand.
Anna McGeorge.
Turkish born Australian Mine Konakci will be in New Zealand from January 18-24 to
photograph up to four descendants of Kiwis who took part in the Gallipoli landing
in April 1915. She is coming under the auspices of Skal to show the world the close
personal ties New Zealand, Australia and Turkey have. Skål is looking for Auckland
and Wellington members with relations who fought in the campaign.
IT990 August 14th, 2014
Airscapades in a DC3
AIRSCAPADES is the description given to a 14-day
3,000ft tour of New Zealand aboard a DC3.
Te Anau-based NZ Voyages Ltd is offering to take guests
on morning flights to 10 destinations with time to explore
on the ground before dinner and luxury accommodation
at night. Transfers are by mini bus.
Departures are November 28, January 26 and March 2.
Rates are $14,000 with a single supplement of $2,100.
The company’s glossy brochure (left) shows the DC3 appearing to be parked in
the water at Milford Sound - with Mitre Peak in the background. Contact: info@
airscapade-affairs.com or 03-2497477.
Tourism’s global growth continues
TOURISM was worth nine percent of global GDP last year, providing one in 11 jobs
globally and at US$1.4 trillion, representing six percent of global exports, according to
the latest UNWTO Tourism Highlights. Arrivals have increased from 25 million in 1950 to
1,087 million last year. About 1,800 million are expected to travel in 2030. UNWTO says
there are also up to 6,000 million domestic travellers a year, too.
France remained the most popular country, followed by the US, Spain, China, Italy,
Turkey, Germany, the UK, Russia and Thailand. For tourism receipts the US is top at
US$139.6 million followed by Spain at less than half that, then France, China, Macau
- alone US$43,700 million - Italy, Thailand, Germany, the UK and Hong Kong.
Biggest spenders remain the Chinese at US$128,600 million followed by Americans
US$86,200 million, then Germans, Russians, Brits, French, Canadians, Aussies, Italians
and Brazilians.
Alps Travel off ADS books
QUALMARK has told TNZ Alps Travel Co. Ltd no longer holds its endorsement.
Therefore the company may no longer be used as a transport provider for ADS
tours, says TNZ acting China market development manager Cici Huang.
World heritage status sought for Chathams
A Moriori conservationist plans to seek world heritage status for a park on the Chatham
Islands. The Hapupu Reserve is one of only two historic national parks in New Zealand,
the other being the Tongariro National Park, reports RNZ.
The reserve is regarded as a “living museum” to indigenous Moriori because it is where
their ancient rakau, the momori tree carvings, can be found. But the trees are in grave
danger of being completely lost due to vandalism and natural diseases.
Hokotehi Trust GM Maui Solomon wants to elevate the status of the reserve, which
could give it more protection and is considering applying for heritage status.
Mr Solomon admits that it’s not an issue widely debated, but it is an idea that has come
about in recent times to promote the park’s significance.
He says whether it is successful or not it will be a decision for the island community and
trustees to make.
IT990 August 14th, 2014
Rising tide continues for cruise
THE cruise sector is looking forward to a record season in 2015/16 but is warning effort
is needed to cement New Zealand’s place as a cruise destination.
Outgoing Cruise New Zealand chairman Graeme Marshall says there is still opportunity
to increase the market, with double-digit growth forecast.
Port bookings for the coming season indicated New Zealand can expect almost
250,000 passengers to arrive, up from 203,000 in 2013/14.
“If cruise was a country it would now rank third, behind China among New Zealand’s
sources of international visitors. Even more significant is that these numbers are
distributed across more than 10 destinations in this country,” Mr Marshall says.
“However, New Zealand is a high-cost destination for cruise lines. We need to
continually look at costs and ensure that we remain easy to do business with. We
are competing in a global marketplace and we risk losing market share to other
international destinations.”
There are big challenges in providing infrastructure to enable increasingly larger ships
to use New Zealand ports, he said. The widening of the Panama Canal will allow larger
ships to sail into this part of the world. The deployment of large vessels into Asia,
particularly China, to satisfy huge market growth there will see these ships potentially
brought in to Australasia during the northern winter.
“Failure to plan ahead could severely restrict New Zealand’s future as a cruise
destination,” Mr Marshall says.
Graeme Marshall.
He urges cruise destinations to work more closely to shape attractive itineraries
for cruise lines and their passengers. Passengers booked cruises based on their
perceptions of the destinations, as well as the on-board experiences, so it is vital New
Zealand continues to be effectively marketed in their home regions.
* Mr Marshall is being replaced by Environment Southland maritime manager Kevin
O’Sullivan.
Guest nights down
GUEST nights fell 4.4 percent in June, after a rise of 2.3 percent in May. Domestic guest
nights were down 8.1 percent, while international guest nights dropped 2.3 percent.
They fell for all four accommodation
types.
Goldfield go-ahead
DOC has given New Talisman Mines
approval to enter and operate
the Hauraki goldfield 90 minutes’
southwest of Auckland for one year.
Jetpacks to take off?
RECREATIONAL Jetpacks should be
in pre-production this year and will be
available for sale at about $180,000
from the Martin Aircraft Co, which
appears to want to list on the Australian
and New Zealand stock exchanges. The
12th prototype Jetpack has a V4 200
horsepower engine that drives two fans.
It has been flown up to 3,000ft and is
said to be able to travel at up to 75km/h.
IT990 August 14th, 2014
Wealthy China market continues to
expand, latest Hurun report shows
TOURISM is still the most popular leisure pursuit among China’s high net worth
individuals (HNWIs) according to the latest Hurun report on the Chinese luxury
traveller.
HNWIs travel frequently for business, spending more than 25 percent of their time on
the road.
Online social media has become the most important source of information. The report
also says China’ s super tourists spent 18 days abroad on average last year spending
RMB150,000 ($29,000) a year.
“There are 300
individuals with
CNY 10,000
million or more in
assets.”
More than half select their travel destination themselves, a high proportion design
their own tours, with 66 percent considering medical tourism while tours to the north
and south poles have become the new “darling” of luxury travel, while the preferred
destination for cruise tourism is the Caribbean.
There are about 8,300 individuals with CNY 1,000 million or more in assets in China, up
200 on last year. Some 2,800 have been identified by the Hurun Research Institute and
a further 5,500 have been missed, the so-called “hidden” wealth.
There are 300 individuals with CNY 10,000 million or more in assets, up 20 or seven
percent on last year. Among them, 140 individuals have been unearthed by the
institute and 160 individuals classified as having “hidden” wealth.
There are about 67,000 individuals with personal wealth of over CNY100 million in
China, up 2,500 or four percent on last year.
The institute forecasts that the number of individuals with personal wealth of over
CNY100 million in China could reach 73,000 in the next three years.
There are 2.9 million individuals with personal wealth of over CNY 6 million in China, up
100,000 or 3.6 percent on last year. The number of individuals with personal wealth of
over CNY 6 million in China could reach 3.35 million in the next three years.
Dollar millionaires have an average age of 38 with 60 percent male. The average annual
income is more than US$500,000.
They take 18.5 days on holiday each year and enjoy travelling, reading and tea tasting.
The internet is still the main information source, especially WeChat, followed by print
media.
Hurun also found 70 percent take regular physical examinations, 60 percent do not
smoke, while 60 percent consume alcohol, of which 40 prefer red wine. On average
they own three cars and four watches. ROI and business ownership/sale are the main
sources of wealth.
Tourism remains supreme as the number one leisure pursuit for China’s wealthy, with
56 percent of surveyed HNWIs listing travel as their preferred form of leisure activity,
despite dropping seven percentage points from last year.
Reading is still the second most popular, but drops three percentage points to 39
percent. Tea tasting, family life and driving remain steady in third to fifth places, but
their popularity declines in varying degrees, showing a diversifying trend among the
wealthy when choosing leisure activities.
Another group, the Chinese Super-Rich, take 22 days’ holiday a year. Travel, reading
and tea tasting are also their preferred leisure activities.
The internet is still the main information source, especially WeChat,
(to pg11)
IT990 August 14th, 2014
10
(from pg10) followed by print media. Only 40 percent smoke, 70 percent drink alcohol
and on average own four cars and five watches. ROI and business ownership/sale are
the main sources of wealth.
HNWIs prefer swimming (37 percent), golf (23 percent), yoga (22 percent), jogging
(20 percent), mountaineering (15 percent), badminton (13 percent), scuba diving (13
percent), tennis (10 percent), horse riding (nine percent) and skiing (seven percent).
Preferred sources of information are social media (53 percent), TV (44 percent),
newspapers (43 percent), word-of-mouth (35 percent) and magazines (33 percent).
“On average, each
has visited 40
countries.”
Of luxury travellers who spend more than US$10,000 per trip 58 percent stay away 5-8
nights, 37 percent 8-15 nights and the rest up to five nights. About 25 percent fly first
class while 50 percent prefer the business cabin and the rest economy.
Sightseeing is the purpose of 64 percent travelling abroad, followed by shopping (52
percent), business (48 percent), VFR (16 percent), medical treatment (12 percent) and
leisure (four percent).
For overseas education at high school or lower the UK is top followed by the US,
Canada, Australia and Switzerland. New Zealand is sixth with 3.6 percent of the total.
The Australian percentage is 9.4 percent.
Preferred immigration destination are: Los Angeles, San Francisco, Vancouver, New
York, Toronto, Seattle, Boston, Melbourne, New Zealand and then Sydney.
Most preferred destination for holidays are Australia, followed by France, Dubai and
Switzerland. New Zealand is up from 15th in 2012 to 10th last year.
Most popular gifts for males are red wine, watches, spirits, electronic products and
tobacco while for women it is jewellery, clothing, watches, travel and electronic
products.
The 203 super tourists surveyed have travelled on average 22 times, on each occasion
visiting 2-2.5 countries. On average, each has visited 40 countries.
Super tourists tend to experience the travel itself, rather than just go shopping, dining
or visiting landmark tourist spots. The future tourist destinations will become broader,
deeper and more scattered, says Hurun.
Island holidays appeal followed by self drive trips, food and shopping, visits to the
North and South Poles, nature adventure, art and culture, outdoor exploring, romantic
cruises, mountain climbing, celebrations and races and finally sailing.
Mobile survey app launched
GET Smart this week launched a mobile survey app to complement its industry-leading
online survey software. Also released was a feature that enables clients to run open
surveys from their website, Facebook page, through a QR code or Twitter link.
“With the new features, clients can survey their customers literally anywhere,
anytime,” says sales and marketing executive Josie Fenwicke.
“All results are available to clients in real time through the Gets Smart web interface.
Results can also be viewed by source. So you can compare responses received through
your website and Facebook page, for example, and alerts can be set on individual
responses so you’ll be emailed the moment you receive negative feedback.”
The survey system is already used by more than 480 New Zealand and Australian
organisations to gather customer feedback and other marketing insights in a range of
languages, such as simplified Chinese, Japanese, German and Spanish. It is also used
extensively for B2B research, including sector-based benchmarking programmes. In
the plast three years alone more than 270,000 people have completed surveys for
clients using the system. Contact: info@getsmartglobal.com or 04-4992210.
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MANZ standards keep crims at bay,
Police tell conference
MANZ-member motels attract fewer incidents than properties run by non-members,
Det Insp Rob Duindam told the association’s annual conference.
“It’s about standards, attitudes and who they are attracting,” he told delegates. “We
are talking through the crime reporting data with your association and asking what can
be done about what crime there is.”
He warned members to look out for scenes of family violence, prostitution, sudden
deaths, the possibility of P labs being set up and guests using or selling psychoactive
substances, as well as fraud, suspicious travellers from overseas, and government
departments placing people with mental health issues in units. Then there are the
usual burglars and thieves plus cyber-crime and cyber-enabled crime that could affect
their businesses. Overall crime manifests similarly in the accommodation sector as it
does in wider society.
Mr Duindam holds a senior position at the Police National Criminal Investigations
Group and works with MANZ through a national crime prevention partnership forum.
“In the old days we would let crime happen and then respond. Now we work smarter,
deploy more quickly, work with people and try to cut crime off at the pass, rather than
let it happen. This helps to reduce demand for service and lessen the severity of crimes
for victims. We now have staff more acutely focused on the problems at the time.
Det Insp Rob
Duindam.
“The crime rate is falling in a number of categories but not in electronic - enabled
crime. It’s like having a super-highway called technology and everyone is on it.
Technology has a lot of benefits for the wider society but can also create “party time”
for criminals. Crimes occurring in real time showed up as a dirt road in comparison.
They both run the same course and we have to manage both at the same time. They
impact everyone.”
Criminal activity in motels can cause problems for owners and managers. While there
is no epidemic, surveys show crimes range from small to large and involve a multitude
of types. But the bulk involves dishonesty, theft and burglary.
“When you have a cluster of motels in a particular location you can get hot spots where
offenders, who come through several towns, see motels they like and then target them
one after the other. This can create spikes of unwelcome activity. It’s a matter of trying
to find the offender early and close them down so we don’t cause a pandemic across
the rest of the motels,” Mr Duindam said.
Family violence at home can be carried over to motel stays. Reported incidents (about
90,000 a year) have increased significantly in the past few years due to wider publicity
surrounding the problem. Far more go unreported.
“It is manifested in many ways and severity. It often starts in the home so, when
travelling, you have an continuance of this violence triggered by drugs, alcohol and
stress. Reducing the problem is all about intervention.
“There are risks,” he said. “If you are a motel owner you have to make judgement about
what is happening and whether it is impacting on people in the next unit, you, your
business or your own family. It is in your domain. Intervention choices include feeling
brave enough to personally intervene but not overblowing a response by just knocking
on the door and asking if there is a problem. You will know if you want to be there.
If things appear more serious ring Police straight away. We will come and do the door
knock.”
Issues around prostitution include drug use, dishonesty and danger to health through
blood and needles and the possibility of criminal minders controlling visits on your
premises.
(to pg13)
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(from pg12) Sudden death can also be an issue for moteliers, he said. “It could shut
your business for a while because if it is serious we will be doing scene examinations.”
A guideline has been produced for association members to help manage sudden
deaths. This is available from MANZ.
Methamphetamine, or P, involves volatile chemicals and huge sums of money. Some
criminals like to find quiet country motels near main roads to set up their laboratories.
But there have been police busts in city apartments too.
“You don’t want these in your motel,” he said. “It will cost you a lot of money if not your
entire business if it happens to you. It is also incredibly dangerous. Once you have it you
have to clean it all out. It is all contaminated.”
One bust discovered $800,000 in cash hidden in a beanbag. But the money was
contaminated. “Not even the Reserve Bank wanted it.”
Mr Duindam said to look out for guests who appear quiet and considerate but
sneaky. They may try to sneak boxes, chilly bins - possibly containing chemicals - and
equipment such as Bunsen burners into units at any time.
“The biggest
risk is fire and
explosions.”
“It is about vigilance. So if you have suspicions ring us. There may be strong chemical
smells with P labs taking several hours to set up and several days to go through the
manufacturing process.”
Criminals used one Auckland motel unit for only three hours but the room was
contaminated and cost the motelier $30,000 to clean up.
“The biggest risk is fire and explosions. You hear of garages blowing up when, basically,
they are P labs.”
The chemical residue can have multiple effects on people in the long-term and
contaminates everything in the room.
Undertakers are not allowed to cremate P addicts “because they can’t allow the stuff
to go up into the atmosphere. That is how lethal it is,” one delegate said from the floor.
Drug detection agencies can test to see if rooms are contaminated, Mr Duindam said.
“You don’t need to be paranoid. The number of labs located around the country could
be in excess of 50-60 in the past year. Most are in rural areas and derelict houses. But
we are also getting them in flash accommodation - even opposite Wellington police
station,” he said to laughter.
“P is incredibly debilitating on users. Behaviour varies. They can be very paranoid and
if still on it you will see something definitely wrong with them. If you suspect drug use
you have the right to say there are no units available. If it looks like a big problem then
ring us. We may even know them!”
Verifying a person’s ID is a good idea. Records kept by moteliers helped police trace
where the Rainbow Warrior bombers had stayed.
“A lot of internationals would not worry (about being asked for an ID) as in other parts
of the world you will not get accommodation unless you front up with your passport
and sometimes you even have to give them your passport,” he said. “We are lenient
in New Zealand. It’s a bit of a legacy relating to our hospitable and trusting nature I
suppose.”
Employee dishonesty is something else moteliers need to be aware of, he said. “It is
rampant around the country in all industries. Mostly because none of the employers
are sharing information about people being dishonest so they are allowed to be
dishonest again.” Guests also steal from rooms. “Prevention is about information
sharing and acting on gut feelings and suspicion.”
Mr Duindam said moteliers can report cyber-crime to www.theorb.org.nz, an online
incident reporting tool provided by internet safety group NetSafe, in association with
Police.
(to pg14)
IT990 August 14th, 2014
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(from pg13) There is a national cyber-crime centre that looks at new technology and
helps devise strategies to try and defuse any issues. But prosecution is not easy.
“We ended up talking to some guy late one night on-line as a part of another
investigation. He was part of a network but was also an international scammer.
“He told us he was a worker in the back of a café in a foreign country. He had four
laptops and three cellphones, was connected to 20 other people in 20 separate
locations and was part of a wider network to scam people. He was happy to tell us
because by the time the conversation finished, SIM cards were out of the phones
and he literally walked away from laptops. How do you investigate that? Then, what
jurisdiction overseas do you get to activate an investigation and then prosecute
someone? You are dreaming if you think a prosecution is going to be easy in those
circumstances. Those are the dynamics you are dealing with,” Mr Duindam said.
“That is why we are advocating awareness and education. If you are going to be stupid
or careless - and continue to be - you will attract a lot of this sort of stuff.
“If you are going to be gullible and you are a certain demographic, or elderly, you are
vulnerable. If you’re an unknowing or unaware child you will be vulnerable. Scammers
and E Crime offenders are experts at hunting out vulnerable people.
“So wrapping support around vulnerable people and ramping up education about
being safe and prudent online is invaluable.”
Integrity is key to good leadership
INTEGRITY is the main quality required of a great leader, New Zealand Shipping
Federation executive director Jim Doyle told the MANZ annual conference. The best
are “servant leaders” such as Nelson Mandela and Ernest Shackleton, who offered
support rather than simply gave orders.
“Next time you come across a person in a leadership position think if they are effective
leaders or just below the line type operators,” he told delegates.
Leadership has tended to equate with autocratic command with orders issued to
subordinates who eagerly obey. Their loyalty is largely determined by their leader’s
charisma.
But leadership is using personal power to win the hearts and minds of people to
achieve a common goal.
It is also the ability to influence, motivate and empower others to contribute towards
the effectiveness and success of a group or organisation.
Jim Doyle.
Leaders fail because they ignore the need to change, have the wrong vision, get too
close to their company or are arrogant and revert to old formulae.
Mr Doyle said the difference between leadership and management is that leaders finds
the right path to take. It is doing the right thing, establishing direction and motivates
and inspires people. It is also about taking the long term view.
Management is about following and doing things right, as well as planning and
budgeting, controlling and problem solving. Managers tend to take a short-term view
and to imitate, while leaders originate.
Apart from integrity leaders have maturity, energy, are good judges of people and
share information. They also listen, deliver on commitments, change orientation and
are decisive,
They have good judgement, a focus on results, are humble and always put the group’s
interests ahead of their own.
(to pg15)
IT990 August 14th, 2014
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(from pg14) Optimism and confidence are other leadership qualities, while they also
tend to be risk takers, accountable and lead by example.
Leaders fail when they see no need to change, they have the wrong vision, become too
close to an organisation and are arrogant, he said.
Successful leaders use personal power to win followers to a common purpose and their
strength comes from personal power and power which comes with their position in an
organisation.
Leadership lessons Mr Doyle highlighted were: not to lose sight of the big goal while
also focusing on short-term objectives; to instil optimism and self-confidence; to be
flexible; to lead by example; to reinforce the message “we succeed or fail together”; to
minimise status differences and promote courtesy and mutual respect; to be willing to
take risks; to find something to celebrate and laugh about.
Accountability is not about denying the problem, blaming someone else, claiming to
be a victim, covering your back, adopting a wait-and-see attitude and making excuses.
Excuses that do not cut it include:
“I can’t be accountable without full control.”
“We focus on processes assuming results will follow.”
“Promises are broken all the time. It’s no big deal.”
“I don’t know what my boss wants, so I can’t be accountable.”
“Don’t blame me. It was the boss’ idea.”
“That’s the way we’ve always done it.”
Mr Doyle cited the Oz principle: “Accountability is a personal choice to rise above one’s
circumstances, and all those excuses, and demonstrate the ownership necessary to
achieving desired results. To see it, own it, solve it - and do it.”
* Mr Doyle’s talk replaced one by Victoria University futurist Prof Ian Yeoman,
who was ill. “He never predicted that. So I am not sure as a futurologist he has any
credibility left,” joked MANZ CEO Michael Baines in introducing Mr Doyle.
Room service can be 20 percent of total turnover
MANY MANZ members were surprised to hear 15-20 percent
of a hotel’s turnover come from room service, according to
Bayview Wairakei Resort food and beverage manager Raj
Sharma.
Mr Sharma was advising MANZ annual conference delegates
how to jazz up their breakfast offerings by presenting them
to the delight of guests, when he asked: “How much of the
total business is room service?” He confirmed it was about 20
percent.
Some properties emphasise their restaurant but corporate
clients and conference delegates who have had a long day
often prefer to stay in their rooms and enjoy a glass of wine
and dinner there.
Mr Sharma is seen with an
impressive blow-up of a room
service breakfast tray for one
guest at his hotel.
“They don’t want to go out, but sit in their PJs and recap the day and this (room service)
is what makes the difference for them.
“If we are able to enhance that factor for them, they get wowed. If the toast is hot and
crispy this will make a difference. It comes with extra cost, usually a $5 delivery charge,
but room service is 15-20 percent of turnover - quite a substantial amount.”
IT990 August 14th, 2014
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Governments behave like Sheriff of
Nottingham not Robin Hood - PATA
GOVERNMENTS that levy passenger taxes see themselves as Robin Hoods when they
are more like the Sheriff of Nottingham, says PATA CEO Martin Craigs in the latest
Issues and Trends publication.
They rob the rich such as airlines - seen as large corporations, but often ones based
overseas - and those with high disposable incomes, because air travel is seen as
something the more affluent are predisposed to do to pay the poor - the general
revenue pool.
Occasionally governments link these payments to industry benefits such as
infrastructure, as part of the justification, or to alternative benefits such as
environmental issues.
“But the evidence suggests that taxes such as the APD and others such as Australia’s
Passenger Movement Charge (PMC) are actually more like the Sheriff of Nottingham
than Robin Hood. They are often disproportionate, create perverse incentives and
often actually disbenefit those they are designed to serve.”
PATA CEO Martin
Craigs.
Ways in which governments act like the Sheriff of Nottingham are: aviation and
tourism typically over-contribute to the economy relative to most other sectors so
adding further to their burden makes no sense.; taxes such as the APD have historically
risen disproportionately to any “costs” they are supposed to cover and well ahead of
CPI; most importantly, such taxes typically inhibit more government revenue than
they gain; they impact disproportionately on the economically disadvantaged - often
robbing the poor to pay the rich.
The perception is often that travel pays less tax than other industries. The most
common basis for this is that aviation fuel and a range of other aviation-related costs
are exempt from taxes.
“The implication is that somehow the industry does not pay its fair share. Policymakers in a number of countries, including the UK, have cited this as a justification for
passenger taxes as a way of ‘leveling the playing field’. In fact, the evidence is that the
industry over-contributes relative to other sectors,” Mr Craigs says.
In the US for example, WTTC estimates that, in 2012, travel and tourism overcontributed to the tax base by 15 percent when its share of taxes was compared to its
share of the tax base. In contrast, industries such as agriculture, manufacturing and
construction actually received a discount.
Taxes such as the APD are an ineffective way to raise revenue:. They fail to meet
best practice on revenue generation in terms of “first do no harm”. They undermine
government efforts to generate
sustainable economic advantage
Hotel Chathams
domestically and build a more
effective international community.
Accommodation, Airfares, Guided
They create perverse incentives that
Tours & Rentals, Fishing & Diving.
benefit competitor economies. They
Hotel Chathams – “Place to stay,
are a blunt instrument for dealing
people to meet, things to do,
food to enjoy”
with incremental benefits such as
PO Box 3, Waitangi,
environmental outcomes. Most
Chatham Islands
importantly they cost governments
Ph: 64 3 3050048
money,” Mr Craigs says.
Fax: 64 3 3050097
Email:hotelchatham@xtra.co.nz
* The report was compiled in
Web: www.hotelchatham.co.nz
association with My Travel Research.
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IT990 August 14th, 2014
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Big growth seen for NZ in India
TNZ expects double-digit growth from the India market over the next three years,
according to GM Asia David Craig.
“India is an exciting and fast changing market, being the 10th largest visitor source
market and one of TNZ’s priorities in the emerging markets sector in our three-year
marketing plan,” he tells local media. “In order to reinforce our long-term commitment
to the Indian market, TNZ has tripled its funding to $3.5 million a year for the next four
years. This is an increase of nearly 400 percent compared to funds allocated earlier.”
Capstone taking over Nugget Point
NEW Zealand-owned hospitality management company Capstone Hotels and
Resorts is taking over management of Queenstown’s Nugget Point Hotel on
December 1. “Nugget Point is a gorgeous hotel, at the doorstep of Coronet Peak,
and minutes away from the Shotover River, and all the other remarkable activities
that Queenstown has to offer,” says MD Clare Davies. “We believe that Nugget
Point has huge potential with its unique boutique offering of 36 luxurious suites, a
world-class spa facility, tennis and squash courts and fine dining restaurant.”
Fly to Singapore in world’s largest aircraft
SINGAPORE Airlines customers travelling to and from Auckland will be able to
experience the world’s largest aircraft, the 471-seat Airbus A380, from October 27.
Singapore Airlines operates 12 weekly flights to Auckland, including five others that
are operated with 777-200ERs. It also flies daily 777-200ER services to Christchurch.
Gov’t millions for Winter Games
THE government is to spend $1.5 million on Winter Games New Zealand in 2015
and $1.25 million on the same event in 2017. MBIE says the 2013 games generated
$7,804,146 in net economic benefit for New Zealand.
Barking Brits
BA claims that, as well as being entertaining, footage of cats, kittens, dogs and
puppies soothes and relaxes passengers.
“It might sound barking, but there’s lots of research to suggest that watching pets can
enhance overall wellbeing,” says in-flight entertainment manager Richard D’Cruze.
“We have sniffed out some fantastic content that is cute, comforting and sure to
appeal to travellers of all ages.”
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