Demand for Cultural Tourism

Executive Summary

2.1 Summary of Main Findings

The following outlines key points arising from this review of available data relating to demand for cultural tourism. For further information, please refer to Section 3.0 Main Findings.

As background, there have been some significant changes in the nature and composition of New Zealand’s tourism market over the last five years. Overnight trips taken by domestic visitors within New Zealand have declined, while outbound travel has increased. In contrast, strong growth in the international inbound market has seen international visitor nights exceed domestic visitor nights over the last few years.
Since 2003, strongest growth has been apparent in international visitor arrivals from Australia and, more recently, from China. Strong growth from a number of ‘emerging markets’ has also been apparent: notably from India, South America and South Africa. Following a period of substantial growth, visitor arrivals from both the UK and Korea have declined slightly in recent years.
The age and gender profile of international visitors has remained relatively stable overall although the last few years have seen a gradual increase in the proportion of visitors aged 55 years or more and a corresponding reduction in the proportion of visitors aged less than 34 years.
Almost one in three international visitors travelled to New Zealand to visit friends or family in the year to March 2007. VFR travel appears to be increasing over time.
Independent travellers are also growing as a proportion of the international visitor mix as fewer visitors travel as part of tour groups or on pre-purchased packages.
The average length of stay of international visitors has declined slightly in recent years, after peaking in 2003/2004. Average length of stay in the most recent year (YE March 2007) was 20.6 days.
Average visitor expenditure has remained static over the last few years at around $2,800 per person per trip for all visitors. However, expenditure varies by length of stay and market of origin.
With regard to demand for cultural tourism products, our analysis suggests that cultural experiences are a factor in the travel decision-making of at least one-third of international visitors, but fewer than 10% of domestic visitors. In the international market segment, demand for cultural experiences is generally strongest amongst women, older visitors (45 years or more) and those originating from North America and Germany.
Tourism New Zealand’s Visitor Satisfaction research suggests that, amongst international visitors,
interest is highest overall in regard to Maori cultural experiences and major art/cultural events.
International visitor participation in arts/cultural/heritage experiences has increased since the original Demand for Cultural Tourism research was completed in 2003. However, the same cannot be said of domestic visitors, amongst whom participation rates are unchanged.
In the international market segment, and reflecting demand, participation in arts/cultural/heritage experiences is generally highest amongst women, those in older age groups (especially 55 years
or more) and those originating from North America, Germany and the United Kingdom. However, visitors from key Asian markets demonstrate a particular interest in Maori cultural experiences,
gardens and, to lesser extent, heritage attractions.
In the domestic market segment, participation in arts/cultural/heritage experiences is also highest amongst women. However, unlike their international counterparts, it is those in the younger age groups who most commonly participate in arts/cultural/heritage experiences.
Tourism New Zealand’s Visitor Satisfaction research indicates that, amongst international visitors, there is presently unsatisfied demand for experiences in the following areas: visits to traditional marae, Maori cultural performances, major art/cultural events, wine trails/vineyards and local arts and crafts.
RVM results indicate that visitors are only moderately impressed by the arts/cultural/heritage attributes of New Zealand’s six largest regions (vis a vis other attributes relating to the natural
environment, for example). However, satisfaction with experiences of individual cultural and heritage products is extremely high amongst both international and domestic visitors.
Furthermore, RVM results indicate that arts/cultural/heritage experiences contribute positively to the overall quality of visitors’ experiences, with net visitor satisfaction ratings being higher than
average amongst those visitors who participate in arts/cultural/heritage experiences during their visits to New Zealand’s regions.
For cultural organisations and businesses wishing to more effectively engage with international and domestic visitor markets, our analysis highlights considerable demand for pre-trip information on activities/attractions and a strong shift online in the search for this information. Websites are now the most popular resource used by domestic visitors seeking information ahead of their trips
and are second only to guide/travel books in the international market.
While comparatively few visitors book activities and attractions ahead of their arrival in New
Zealand’s regions, those who do so are also turning online in increasing numbers to complete
their transactions.

2.2 Conclusions

This report updates the original Demand for Cultural Tourism Research which was completed in 2003. It includes some interesting findings from which conclusions can be drawn both about recent progress and future strategy for the development of arts/cultural/heritage tourism.

In the first instance, it is apparent that there is significant demand for cultural tourism experiences amongst international visitors to New Zealand. It is also apparent that this demand has grown over time – to the point that cultural considerations can be said to be a factor in the decision-making of at least one-third of all international visitors as far as individual destinations within New Zealand are concerned.

However, participation in arts/cultural/heritage experiences remains lower than might be expected given the extent of demand that is apparent and there is clear evidence of unmet demand in a number of areas (Maori cultural experiences and major art/cultural events in particular). Indeed, aside from a handful of activities in which around a quarter of all visitors participate – visiting geothermal attractions, visiting museums, visiting botanical or private gardens – rates of patronage are comparatively low both on a whole-of-visit and region-by-region basis. Whether this stems from lack of awareness, failure to communicate a compelling-enough proposition, or simply competition for limited time and expenditure is unclear.

What is clear is the benefits that accrue if visitors are encouraged to participate in an arts/cultural/heritage experience. Despite the fact that international visitors would appear to value New Zealand’s scenic beauty (and other factors) more explicitly than the uniqueness of its history/heritage or the authenticity of its culture, the satisfaction of visitors who participate in arts/cultural/heritage experiences is very high – both in the context of each individual experience and the visitor’s overall
experience of New Zealand and its regions.

This suggests that there is much to be gained in boosting international visitor participation in arts/cultural/heritage experiences, both by the tourism industry and by individual cultural businesses and organisations. A collaborative approach might see cultural tourism organisations/businesses
working more closely with their counterparts in the tourism sector, and with established tourism marketing organisations and channels of distribution, to develop and promote product which is appropriate/ desirable on a regional basis.

However, the changing profile of New Zealand’s international visitor base suggests some challenges may lie ahead. Key current growth markets for New Zealand tourism – Australia and China – are characterized by a much shorter average length of stay than other markets. This means that visitors
have limited time available to participate in activities and attractions during their visit and competition for this time may be intense. Importantly, interest in arts/cultural/heritage experiences is also less pronounced in the Australian market than it is in other markets, and this is reflected in lower levels of participation in arts/cultural/heritage activities overall.

In contrast, markets which have to date shown a strong interest in New Zealand’s arts/cultural/heritage offerings, and high levels of participation, are presently static or even declining. These include the UK and USA, both of which may be sluggish for some time given present global economic conditions.

For this reason, immediate priority might be given to showcasing the arts/cultural/heritage activities/attractions of greatest interest to the Australian and Chinese markets. Using satisfaction levels as an indicator, this would suggest a particular emphasis on the development and promotion of Maori cultural tourism products and concerts theatre/performing arts (for the Australian market), heritage product (for the Chinese market) and garden/floral product for both markets.

In the slightly longer term, visitor satisfaction results suggest there is greatest opportunity to improve visitor experiences of art galleries/local arts and crafts, local cuisine and heritage product.

The situation in the domestic market is quite different to that of the international market. In this market, there appears to be comparatively little demand for arts/cultural/heritage experiences and – aside from visits to art galleries and museums – very little participation overall. Furthermore, there are strong hints of “cultural cringe” in the attitudes expressed by domestic visitors as far as the cultural/heritage (and other) attributes of the RVM regions are concerned.

While high levels of satisfaction amongst those who do participate in arts/cultural/heritage experiences, and higher than average levels of participation by young New Zealanders, both bode well for the future, the present situation is problematic. Domestic visitors represent an important audience for the arts/cultural/heritage sector at times of the year (and for more extended periods) when international visitor arrivals may be slow.

Furthermore, and as discussed in the original 2003 research, New Zealanders do influence the attitudes and behaviour of international visitors. Almost 30% of international visitors arrive in New Zealand to visit friends or family and these friends/family can influence (positively or negatively) their
visitors’ participation in arts/cultural/heritage activities while they’re here. Of course the influence of New Zealanders extends well beyond this as well – to advice given (or not) in everyday encounters to recommendations made by those working in retail, hospitality and other sectors which interact with
international visitors.

For these reasons, the domestic market should be an important focus in the strategy for development of cultural tourism, and in the product development and marketing plans of individual arts/cultural/heritage organisations. However, the mix of activity required to successfully engage the domestic market may require further investigation and development – perhaps building on the idea of making the familiar new and compelling, as in the initial AA-led domestic tourism marketing campaign ‘101 Must-Dos’.