The closure of New Zealand’s borders due to COVID-19 has been a knife which cuts both ways, shredding the inbound tourism economy literally overnight while simultaneously slicing through our international travel plans for the foreseeable future.
Just how our domestic tourism market in this new era might look has been the basis of a recent survey commissioned by business consultants, Rutherford.
Head of insights and experimentation Gregg Franco says the results from its 2020 Domestic Tourism Survey have been very revealing, including that Kiwis are worried about contracting COVID-19 while holidaying in New Zealand.
"A staggering 72 per cent of respondents indicated that they would be trading in their international holidays for domestic itineraries over the next six to twelve months," he notes, "and a similar percentage of respondents who were planning to holiday both in New Zealand and abroad have indicated that they expect to spend more money on their New Zealand holidays while overseas travel is banned."
However, just over 80 per cent of those surveyed said that they were ‘slightly to completely worried’ about contracting COVID-19 while holidaying within New Zealand. Although concerns around domestic travel are lower than for international travel (which sits at almost 85 per cent by comparison), this fear of a second wave of COVID-19, particularly for those aged 35-plus, could prove to be the fly in the ointment for the domestic tourism industry in New Zealand.
Rutherford CEO, Graham Richie, says it is therefore vital that tourism and hospitality operators pay careful consideration to the ‘cost of confidence’ when strategising their approach to attracting domestic tourists.
"Previously, tourists had to weigh up risk as a factor in the more adventurous activities that New Zealand was popular for – sky-diving, bungy jumping, ziplining, etc. But now, simply choosing to go on a holiday has risk attached. Businesses will need to demonstrate that every possible step has been taken to protect their guests’ or customers’ safety and wellbeing, if they are to succeed."
Graham says he expects that tourism and hospitality operators will start to field many more queries about how their businesses are ensuring their customers' health and safety.
"It will be important to communicate these measures over digital channels and quickly train staff to adhere to them. You can guarantee that through social media and word of mouth, those who are doing it well – and those who aren’t – will quickly be identified and publicised," he says.
Rutherford’s research also revealed that when holidaying in New Zealand, currently around one-third are mostly visiting friends and relatives. Gregg says that around 16 per cent prefer to camp or stay in a bach and close to 40 per cent choose to holiday like overseas tourists, staying in hotel- or motel-style accommodation and engaging in a range of tourist activities.
"We were somewhat surprised to discover that, contrary to popular belief, our respondents were already taking holidays almost twice as often in New Zealand as overseas – even before COVID-19.
"However, the number of Kiwis behaving like international tourists has the potential to increase significantly – if the price is right," says Gregg.
In other words, there is an expectation (or at least an anticipation of) what Franco describes as a "Kiwi discount".
"Kiwis have indicated that they are happy to behave like tourists if the price is right – they are both motivated and limited by price, and more importantly, by perceived value. Our research indicates that ‘mates’ rates’ will play an important role over the next six to twelve months in encouraging New Zealanders to spend up on domestic tourism versus their previous behaviour of staying at a familiar destination and engaging in familiar activities," he says.
So, which domestic destinations are on the radar for New Zealanders this year?
Gregg says respondents indicated the most popular destinations so far are the same ones that have traditionally been favoured by international visitors. Auckland, Wellington, Queenstown, and the South Island in general were the top four destinations for those who had already made the decision.
"Interestingly, almost half of the respondents who were planning to go abroad are still undecided on where to go in New Zealand, which represents a massive opportunity for local operators and tourism bodies to capture their imagination," he adds. "As a nation, Kiwis pride themselves on their willingness to get off the beaten track and seek out those hidden gems, favouring meaningful interaction over pre-packaged, one-size-fits-all experiences.
"But remember, the real winners will be those tourism and hospitality operators that place safety and customer confidence first and foremost."
