1. The German Tourist Year Ended April 2012 Produced by Tourism New Zealand, Insights – May 2012

2. Executive Summary German holiday arrivals have been relatively flat over the last decade with a slight dip since 2011. The age profile of the visitor to New Zealand has changed, a significant decrease in the 30 to 39 year old market offset by an increase in those aged 18 to 29 (more working holiday visitors). A high proportion of Germans are visiting New Zealand for the first time. Satisfaction with the experience in New Zealand is high driven by the outdoors and the activities they do here. Arrivals in NZ from Germany follow a very similar pattern to Australia – both NZ and Australia are showing negative growth from Germany in 2012 & 2011 German expenditure is worth NZD $ 213 million with an average spend per person of $3,500. German behaviour on newzealand.com shows they are tend more towards independent, lower cost travel options. They use newzealand.com to look for general information, likely as one information source to populate their own independent travel plans. There is a strong tendency towards non-commercial sights, attractions and travel elements, away from packaged tourist attractions and chain operators.

3. German Arrival Trends

4. German Arrivals German pure holiday arrivals* have been relatively flat over the last decade, where VFR arrivals and working holiday arrivals have been increasing. *Note: Pure holiday arrivals are holiday arrivals less working holiday arrivals Source: Statistics New Zealand – International Travel and Migration Annual Arrival Growth Pure Holida y Working HolidayVFR 2007-3.5%42.1%7.5% 20082.0%-3.6% - 0.5% 20093.8%25.2% - 6.3% 20104.1%3.7%7.1% 2011-4.1%10.1% - 1.1% 2012-5.1%2.3% 15.0 %

5. Working Holiday Of the 42,708 German holiday arrivals New Zealand received over the last year, 4,464 entered New Zealand on a working holiday visa. Not surprisingly these working holiday tourists stay in New Zealand for a much longer period of time (164 days on average) than pure holiday tourists. These working holiday tourists are all aged between 18 and 31 (in fact 60 per cent are aged between 18 and 20). Also there is a slight bias towards females (54 per cent). Source: International Travel and Migration – YE April 2012 Average Length of Stay Holiday 44.6 days Working Holiday 163.6 days Pure Holiday 30.7 days

6. Age The age profile of German tourists has changed considerably over the last decade. There has been a significant decrease in the 30 to 39 year old market from Germany offset by an increase in those aged 18 to 29. Source: Statistics New Zealand – International Travel and Migration Average Age 2002 201 2 Germany4036 All Markets3940 Note: 63 per cent of the 10-19 age group is aged 18 or 19 years

7. Repeat Visitation A large proportion of German arrivals are visiting New Zealand for the first time, although repeat visitation is seeing a slight increasing trend. Source: Ministry of Economic Development, International Visitor Survey, YE March 2012

8. Port of Embarkation Source: Statistics New Zealand – International Travel and Migration German tourists arrive in New Zealand via a range of different ports/ countries. Australia is the most common single country German tourists arrive from.

9. Satisfaction with the Holiday Experience OVERALL SATISFACTION Q1&2 FY109.4 Q1&2 FY119.2 Q1&2 FY129.1 NUMBER OF ACTIVITIES DONE Q1&2 FY1023.7 Q1&2 FY1121.3 Q1&2 FY1219.7 Overall Satisfaction Sample size113 Overall Satisfaction 8.8 Accommodation 17%8.3 Food and Beverage 10%7.9 Internal Transport 7%8.4 Activities 30%8.8 i-SITEs 12%8.6 Environment 14%8.9 Safety 10%8.7 Germany 8.1 7.7 8.4 9.0 8.8 8.9 9.1 German holiday visitors have high levels of satisfaction with their holiday in New Zealand Notes:1.Sample size n = 2,166 Significantly higher than average Significantly lower than average Aspect of Experience Q3–4 2011 Importance Satisfaction xx%x.x Key Total NZ Key Market Differences Total NZGermany Use of i-SITE40%71% Perceive NZ to have sever environmental issues14%36%

10. Australia vs NZ Arrivals German tourist arrivals follow extremely similar patterns in both New Zealand and Australia. In fact the correlation between Australian and New Zealand arrivals of German tourists is near perfect (correlation = 0.92). Source: Statistics New Zealand – International Travel and Migration Australia Bureau of Statistics Average Growth Austra lia New Zealand 200 82.5%3.7% 200 93.6%1.6% 201 03.5%6.6% 201 1-3.6%-2.6% 201 2-3.7%-1.3%

11. International Comparisons New Zealand has seen relatively comparable levels in growth of German arrivals compared to Australia, but has underperformed against the US. Source: Statistics New Zealand – International Travel and Migration Australia Bureau of Statistics Average Growth NZ Austra liaUS* Japan * 200 71%2%34%15% 200 84%6%55%8% 200 94%1%5%1% 201 00%-1%4%12% 201 1-1%-4%6%-55% Note: US and Japan are holiday/leisure arrivals only

12. German Travel Trends – IPK International Positive trend continues in the all-German travel market Germans took 321 million domestic and outbound trips in 2011, 4% up on the previous year – within that holiday rose 4% also and is now 45% of the market. This is made up of 92.9 million domestic trips (up 5%) and 52.7 million outbound trips (up 4%). “We’ve been noting this German trend of more domestic trips and fewer outbound trips for several years now,” affirmed IPK director Rolf Freitag. Source: IPK International, Global Travel Trends 2011/12

13. German Expenditure

14. Germany – Total Expenditure The graph above shows that total tourism expenditure from German tourists has been increasing in New Zealand dollars over the last decade. In converting this total expenditure to Euros a similar trend is evident. In the last two years the Euro has seen significant depreciation against the New Zealand dollar. This is clearly seen from 2009 to 2011 where expenditure in New Zealand dollars has decreased sharply where total expenditure in Euros has remained relatively positive. CAGR 2000 to 2011 NZ$EU€ Total Expenditure1.7%2.9% Source: Ministry of Economic Development, International Visitor Survey

15. Germany – Average Expenditure This graph shows how average expenditure by German tourists in both New Zealand dollars and Euros has seen an increasing trend over the last decade. CAGR 2000 to 2011 NZ$EU€ Avg Expenditure-0.3%0.9% Source: Ministry of Economic Development, International Visitor Survey