Characteristics And Motivations Of Outbound Tourism Of New Zealand

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An Analytical Report The Thesis of Major Research Project - MBA

Compiled By: Lalith Siriwardena

Table of Contents LIST OF TABLES: ................................................................................................................................ 4 LIST OF FIGURES & GRAPHS ......................................................................................................... 5 ACKNOWLEDGEMENTS ................................................................................................................... 6 EXECUTIVE SUMMARY .................................................................................................................... 7 1. INTRODUCTION ............................................................................................................................. 9 1.1 New Zealand Economy........................................................................................................... 10 1.2 Research Methodology ........................................................................................................... 10 1.3 Scope ........................................................................................................................................ 11 1.4 Assumptions ............................................................................................................................. 11 2. DEFINITIONS ................................................................................................................................. 12 3. LITERATURE REVIEW ................................................................................................................ 14 PART 1 - New Zealand Outbound Tourism ................................................................................... 17 4. CHARACTERISTICS OF NZ OUTBOUND TOURISM ............................................................ 18 4.1 Number of Outbound Trips: ................................................................................................... 19 4.2 Destination of New Zealand Outbound Tourism ................................................................. 21 4.3 Purpose of Travel: ................................................................................................................... 24 4.4 Trends of Outbound Tourism: ................................................................................................ 26 4.4.1 Seasonality of New Zealand Outbound Travel ............................................................ 26 4.4.2 Trend of Outbound travel to Asia ................................................................................... 27 4.4.3 Trends of Outbound travel to Pacific Islands: .............................................................. 27 4.5 Age Distribution of New Zealand Travellers: ....................................................................... 28 4.6 Number of Visitor Nights: ....................................................................................................... 30 5 TRAVEL MOTIVATIONAL FACOTRS ......................................................................................... 32 5.1 Push & Pull Factors of outbound Tourism: .......................................................................... 33 5.1.1 Maslow’s Hierarchy of Needs ......................................................................................... 33 Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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5.1.2 Push and Pull Factors: .................................................................................................... 34 6. EFFECTS OF EXCHANGE RATE ON OUTBOUND TOURISM ........................................... 36 7. FUTURE OF NEW ZEALAND’S OUTBOUND TOURISM ...................................................... 37 PART 2 - New Zealanders Travelling to Sri-Lanka ....................................................................... 39 8. INBOUND TOURISM OF SRI-LANKA: ...................................................................................... 40 8.1 New Zealanders Travelling to Sri-Lanka .............................................................................. 41 PART 3 - A Profile of New Zealand Outbound Travellers............................................................ 43 9. AN OVERVIEW OF TRAVEL SURVEY ON BEHAVIOUR ..................................................... 44 10. SURVEY DATA ANALYSIS AND DISCUSSION .................................................................... 45 10.1 Whether they have travelled overseas in last 12 months? ............................................. 45 10.2 How do they normally book air ticket? ............................................................................... 45 10.3 How frequently do they travel? ............................................................................................ 45 10.4 How long do they spend in an overseas holiday? ............................................................ 46 10.5 What do they consider important for a perfect holiday? .................................................. 47 10.6 How important is the Cost for selection of holiday destination?..................................... 47 10.7 How far following a budget is important for them in planning a holiday? ..................... 49 10.8 How much do they spend on an overseas holiday? ........................................................ 49 10.9 What factors influence to choose Asia as a holiday destination? .................................. 50 10.10 Their likelihood of visiting specific Asian countries ........................................................ 51 10.11 How important is given categories in selection of Asian travel destination?.............. 52 10.12 What comes into their mind, when thinking of Sri-Lanka?............................................ 52 10.13 What kind of accommodation is preferred, if they travel to Sri-Lanka? ...................... 53 11. CONCLUSION ............................................................................................................................. 54 REFERENCES: .................................................................................................................................. 56 APPENDICES ..................................................................................................................................... 59

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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List of Tables: Table 1: Forecasts of Outbound Trips by NZ Residents

20

Table 2: Trips Abroad by NZ residents

21

Table: 3 NZ Resident Departures Ranked by Country of Main Destination (2006- 1996) 23 Table 4: Outbound Travel by Purpose

24

Table 5: New Zealand Outbound Travel to Sri-Lanka

42

Table 6: Distribution of Income of the Sample

44

Table 7: Overseas holiday in past 12 months

45

Table 8: Frequency of Travelling

45

Table 9: Relationship of Income and Frequency of Travel

46

Table 10: What is important for a Perfect Holiday

47

Table 11: Perception on Travel Cost

47

Table 12: Relationship of Income and Cost of Travel

48

Table 13: Perception on following a Budget

49

Table 14: Overseas Holiday Expenses

49

Table 15: Analysis of Holiday Expenditure Gender-wise

49

Table 16: Influential Factors for choice of Asian Holiday Destination

50

Table 17: New Zealand travellers’ Choices of Asian Holiday Destinations

51

Table 18: Analysis of Preferential Asian Holiday Destinations Gender-wise

51

Table 19: Factors Influencing the Selection of Asian Travel Destinations

52

Table 20: Sri-Lanka – the order of recollection

52

Table 21: Preferred Accommodation in Sri-Lanka

53

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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List of Figures & Graphs Figures: Figure 1: New Zealand Resident Departures to All Countries

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Figure 2: Outbound Travel of NZ Residents

19

Figure 3: Resident Departure by Reason

24

Figure 4: Age Distribution of New Zealand Resident Travellers (2007)

28

Figure 5: Age Distribution of New Zealand Resident Travellers (1991 – 2007)

29

Figure 6 & 7: Number of Nights Spent Overseas

30

Figure 8: Typology of Motivators in Tourism

32

Figure 9: Illustration of Maslow’s Hierarchy of Needs

33

Figure 10: Motivational Factors of Outbound Tourism

34

Figure 11: Trend of New Zealand Outbound Travel to Sri-Lanka

41

Graphs: Graphs 1 & 6: NZ Outbound Travel Trends

22

Graph 7 & 8: Purpose of Travel all Countries

25

Graph 9: Outbound Travel of NZ Residents – all countries

26

Graph 10: Outbound Travel of NZ Residents to Asia

27

Graphs 11 & 12: Outbound Travel Trend to Fiji & Cook Island

28

Graph 13: Tourist Arrival by year (1966 – 2007)

40

Graph 14: Duration of Overseas Holiday

46

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AUTHORSHIP This research report has been prepared by Lalith Siriwardena, as the Major Research Project of MBA programme at the Waikato University – New Zealand and reviewed by Dr. Tim Lockyer.

ACKNOWLEDGEMENTS I acknowledge and thank several people who have contributed either directly or indirectly to the creation of this report. Many people have helped me by discussing the issues surrounding the topic and providing information for the report. Sri-Lankan and New Zealand friends, academic colleagues and passing acquaintances; I have met in town and country; they all have over the years taught me many things about New Zealand, its people and its changes. An enormous debt of gratitude goes to; Dr. Tim Lockyer, the Associate Professor and Chairperson of Tourism Hospitality Management of the Waikato University and my supervisor for the guidance through the process. I could not have gone through this far, without his patience and help; and next more specifically, two of my friends; James Foster and Dr. Namal Wijesinghe, for giving me inspiration and support. I am also extremely grateful to all those people who have been generous with their time and information in helping me to prepare this report: Jayantha Samarathunga and his wife Janadissani, Catherine Breeuwer, Pradeep Kumara, Janaki Bandara. The acknowledgements certainly have to include the enormous support of my wife Gayana and daughter Janani too. Acknowledgement would not be complete without thanking authors of the texts mentioned in the reference list.

Lalith Siriwardena Hamilton, New Zealand

April 2009

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EXECUTIVE SUMMARY The intention of this research is first to study New Zealand outbound travel in broad perspective and second to investigate the ways in which travellers choose holiday destinations. The research also examines the recent development of New Zealand outbound travel with emphasis on the selection of Sri-Lanka as a holiday destination. Over the last two decades, tourism has proved to be the world’s fastest growing economic sector. New Zealand tourism is no exception; as it contributes 5.1 percent to the GDP and has generated as much as 5.8 percent of total employment. New Zealand outbound

tourism has increased 448% in a period of two and half decades since 1983. According to the New Zealand Tourism Forecast 2008 – 2014, out bound travel will be in the doldrums through 2009, due to the global economic turmoil; but will revive gradually. In 2008, holiday travel has shared 42% of the total travel. While VFR and Business travel has accounted for 32% and 15% respectively; the other kinds of travel such as Education, Employment, in transit travel etc. have shared 12% of the total volume. Australia is the most popular travel destination of New Zealanders; close to 50% of out bound trips are made there. However, this share has declined lately, because travel to Australia has not grown at the same rate as the total market. The situation is similar with Fiji which has been the second popular choice. New Zealanders searching for a Pacific Island getaway then switched to other South Pacific nations such as Samoa and the Cook Islands. The outbound travel of any country is affected by the volatility of exchange rates; especially holiday travel where there is a nearly proportionate relationship between growth in departures and growth in the value of the currency. When the New Zealand dollar is relatively low against the USD, it is evident that travellers tend to stay at home and rely on domestic travel. It is the other way around when the New Zealand dollar appreciates, so that travellers enjoy the leverage in currency conversion. A survey was conducted on New Zealand travellers and the results are analysed in this report. The analysis reveals some relationships between various behaviours of travellers and

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it provides some useful data upon which to base further enquiry. It also provides some reliable empirical evidences for the subject. A majority of survey participants confirmed that they took holidays primarily for "sightseeing" rather than the expected "escape and relaxation.” Not unexpectedly, the cost is regarded as the most important factor in terms of overseas holiday travel by New Zealanders. Males on overseas holiday tend to spend more than females and females are more likely to budget, in planning a holiday. Moreover, New Zealand travellers have indicated that the cost is the key motivator for selecting an Asian country as a holiday destination. Singapore was the most popular Asian travel destination out of the given alternatives. Females show stronger preferences to travel to Singapore and India while males have favour Bangkok, Japan and China. In the case of Sri_Lanka, Male and Female have an equal preference to travel there, and it is the New Zealanders’ fourth chosen holiday destination in Asia. Surprisingly, the prevailing disturbances in Sri Lanka do not seriously discourage New Zealanders from wishing to visit the country.

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1. INTRODUCTION People travel for different reasons or needs (“Reason for travelling,” 2009). They include “sightseeing, relaxing, shopping, and visiting friends and relatives, adventure and education” (“Reason for travelling,” 2009). The 2007 Tourism Satellite Account figures show that international tourism brought $8.8 billion into the New Zealand economy in 2007 or 5.1 percent of GDP (Statistics NZ, 2007). The dairy industry contributed $6.6 billion, and meat products made it to $4.75 billion. Therefore, “tourism is clearly an important component of the New Zealand economy” (Hall & Kearsley, 2001, p.31) and it has been for some time the largest foreign exchange earner of New Zealand. It has been the industry that underpins New Zealand’s economic growth (“New Zealand Tourism Strategy – 2015”). The Tourism Satellite Account further shows that tourism now represents 18.3 percent of total exports of New Zealand. The number of New Zealand residents travelling abroad has been increasing over the last few decades (Refer: Appendix – g for departures in 1950 - 2000) and the forecast for the future is bright. However, the economic losses being experienced worldwide will be reflected in the form of reduced spending by potential travellers (NZ Tourism Forecast 2008 – 2014). This will have a significant impact on tourism globally, resulting in fewer outbound trips. At this stage, it is unclear when the full impact of the credit crisis will be realised or how long the economic recovery will take. In the circumstances, such forecasts are not likely to reflect actual tourism activity in the short-term (NZ Tourism Forecast 2008 – 2014). Optimistically, it is believed that the economic downturn would persist in short-term and as the tourism is a resilient industry, the long term forecasts will still be valid. The report consists of three parts. The first part explores the outbound tourism of New Zealand in great depth while the second part examines New Zealanders travelling to

Sri-

Lanka. The report is underpinned by the Travel Survey conducted in 2008, which looks at the recreational activities, travel habits and perceptions of NZ travellers. The survey provides detailed information on travellers’ preferred activities, type of accommodation, choice of an Asian country as a destination, travel motivators and degree of importance in following a travel budget. The results of the survey are analysed in the third part.

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There is much information available on inbound tourism, similar to the forecast on outbound tourism as a resource. “Accurate forecasts of tourism demand are [obviously] essential for planning” (Witt & Song, 2001) and investment in the tourism industry, characterised by large capital outlays and long lead times on key infrastructure developments, such as airports and hotels. However, there is much less information concerning the behaviour, perceptions and experiences of New Zealand outbound travellers. This report seeks to acquire an understanding of the market segment that includes the following: 

The amount likely to be spent on an overseas trip



The activities that travellers like to participate in, accommodation types used, and nature of intended experience



Demographic information about the tourists and their reasons for travelling,

Such information can be used with confidence by tourism service providers to tailor their marketing mix. In addition, this study will be useful to the Airlines, Hotels, Airport authorities, Travel Agents, Duty free shops, Insurers and many others related to the Travel Industry in preparing strategic plans. 1.1 New Zealand Economy Economic performance of New Zealand is expected to reach its lowest level in the year ending March 2009, with activity contracting 0.1 percent, according to data released by the New Zealand Institute of Economic Research (NZIER). NZIER's latest release of its Quarterly Predictions forecasts a modest growth for the four quarters of 2009, leading to 1.6 percent growth in the year ahead until March 2010, with a boost of 3.3 percent growth in the year ending March 2011. It is envisaged that the current recession will remain relatively shallow, and subsequent recovery of the economy will be gradual (NZIER, 2008). 1.2 Research Methodology In this study, two approaches have been initiated. In terms of NZ outbound travel, the research was based on literature and information gathered from the internet, text books, and from people involved in the industry; while to explore habits, attitudes and perceptions of NZ travellers a questionnaire was used on a convenience sample of 155 potential travellers in Hamilton and Auckland. The survey consisted of a personal interview and a mail back

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survey on a standard questionnaire. The surveyor approached the prospective participants in public areas at selected locations such as public libraries, private and government offices, so that a fairly large group was approached at each session. This method was used in the preliminary research to get a gross estimate, without incurring much cost and time. In addition, participants were contacted through friends and friends of friends. In technical terms, this is a non-probability sampling method, in which members are selected in a nonrandom manner combining the respondent-driven (RDS), and "snowball” sampling techniques. The sample consisted of a cross section of people in New Zealand. Conclusions from research of the literature combined with the findings of this questionnaire have been used to draw broad conclusions about New Zealand travelling abroad on holiday. 1.2.1 The Questionnaire The individuals, who agreed to participate for the survey, were given a questionnaire with fifteen questions; to mark what is important in choosing a destination for overseas holiday. The subject questionnaire is attached at Appendix – a. The appropriateness of the questions has been evaluated in a pilot survey on a sample of twenty five people; subsequently, the questionnaire was redesigned with the feedback received. Question number one is a screener question, which identifies whether the individual has travelled overseas for a holiday during the last twelve months; it offers an opportunity to opt out. 1.3 Scope The report includes all measurable forms of outbound tourism activity in New Zealand, including activities pursued by persons under 15 years of age and is therefore exhaustive. The research was limited to Hamilton and Auckland cities. 1.4 Assumptions The report is based on a series of assumptions, some of which have a major bearing on the projected levels of tourism activity. The based, economic and demographic data and trends for each market have been sourced directly from official compilers of relevant countries; thus very reliable. The economic models in such case are based on historical examples, but times change and the models may not be as reliable as they used to be. Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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2. DEFINITIONS 2.1 Tourism: The term tourism has a “very broad meaning” (Collier, 2008, p.3), because it “invariably [senses] different understandings to different people” (Collier & Harraway, 2003, p.3). The New Zealand Tourism Industry as defined by Collier & Harraway is “the study of man away from his usual habitat, of the industry which responds to his needs, and of the impacts that both he and the industry have on the hosts’ socio-cultural, economic and physical environments” (p.3). 2.2 Tourist: The term tourist is defined as a person who is travelling outside his or her usual country of residence and staying at least 24 hours away from home (Hall & Kearsley, 2001, p.4). 2.3 Travelling: For the purpose of this study travelling is defined as change in location of people on a trip or an act of going from one place to another. “The terms tourism and travel are sometimes used interchangeably. In this context, travel is considered as it has a similar definition to tourism, but implies a more purposeful journey” (“Travel and Tourism,” 2008). 2.4 International Tourism: “Occurs when people travel to a country/s other than that in which they normally reside. International tourism may be subdivided into two categories; inbound tourism and outbound Tourism” (Collier & Harraway, 2003, p.4). 2.5 Inbound Tourism: The term denotes that the “tourism which involves people coming into a country, for example people from overseas visiting New Zealand” (Collier & Harraway, 2003, p.4). 2.6 Outbound Tourism: Outbound tourism “involves people departing from a country, for example; New Zealanders leaving New Zealand to travel overseas” (Collier & Harraway, 2003, p.4). 2.7 International Excursionist: “An international excursionist is a visitor residing in a country who travels the same day to a country other than that in which he or she usually [residing], for less than 24 hours, without spending the night in the country visited” (Collier & Harraway, 2003, p.6).

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2.8 Heritage Tourism: “The National Trust defines heritage tourism as travelling to

experience the places, artefacts and activities that authentically represent the stories and people of the past and present” (“Heritage Tourism”, 2009). 2.9 Off-peak: The term describes a less expensive time to travel as result of lower consumer volume during these periods (Baum & Lundtorp, 1999). 2.10 Package Tours: This is a prepaid travel arrangement that includes transportation, accommodations, and at least one other component such as meals, transfers, sightseeing (Collier & Harraway, 2003, p.88).

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3. LITERATURE REVIEW “Tourism closely rivals the dairy industry as New Zealand’s largest export earner;” (Collier & Harraway, 2003, p.153). That signifies the importance of tourism in the New Zealand economy. Outbound travel is one of the popular leisure activities of New Zealanders. The New Zealand Outbound and Domestic Tourism Forecasts of McDermott Fairgray (2000) state that, the number of short term departures is expected to be increased by 4.8% per annum from 1.65 million trips from 2006. In a growing market “consumer behaviour is key to underpinning of all marketing activit[ies] which [are] carried out to develop, promote and sell tourism products” (Swarbrooke & Horner, 2007). Nevertheless, there is little research on outbound tourism in New Zealand and motivational factors of travellers in terms of selecting a destination experience, which is vital for travel planning. Moreover, the noted significant increase in outbound tours of recent years has been “driven mainly by a strong exchange rate and lower international airfares. The increases have been experienced across all purposes of travel, although the largest increases were in the holiday and [Visiting Friends and Relatives] VFR markets” (“New Zealand Domestic and Outbound Travel Patterns,”2008). Further, according to the Outbound Travel Commentary (October, 2008), outbound travel is up by 5,400 or 12.1% in 2008 over the previous year. Outbound holiday travel on holiday is also up by 5,100 or 6.9% in the same period, but there have been fewer business trips down by 1,300 or 4.9%. In total there have been 1.984 million trips undertaken during the year ended in October 2008; this has increased, by 25,000 or 1.3% from 2007. With regard to international tourists travel patterns; Collier and Harraway claim that such phenomenal growth has been influenced by factors such as a general increase in available leisure time, increasing disposable income, advances in transportation technology, an increase in education levels, an increase in urbanisation, the increasing influence and activities of the mass media, and an aging population (Collier & Harraway, 2003) etc. But where do New Zealanders travel overseas and what are the main motivations for travel to these destinations? [It has been observed that] much of travel is short haul in nature i.e. from New Zealand to Australia and the remainder is either medium haul i.e. to Asia or long Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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haul i.e. to Europe [from New Zealand]” (Page, 2003). “One of the explanations on the propensity for outbound travel among New Zealanders was made evident in a report; ‘The Tourism Competitiveness’ of the Tourism Council of Australia (October, 1998). It was considerably more cost effective for New Zealanders to take a holiday in Australia than to take a domestic holiday in New Zealand. The report examined an index of competitiveness, based on package of accommodations, food, beverages, transport and local tours. Information about characteristics of NZ travelers to different destinations is recorded by the statistical services of the Ministry of Tourism. The statistics indicate that, though the total number of outbound travel has been increased by 24,675 in the year 2008 over the previous year (Statistics NZ); there was a 2% negative growth in Australian outbound travel and the same has been compromised by Fiji and Asian outbound travels in the same period, which have shown a growth of 5% in each category (Ministry of Tourism NZ). Further, according to the WTO Tourism 2020 Vision (2000), South Asia is expected to acquire a 0.5% gain in global market share in the next decade. The other motivational factors for outbound tourism may be explained by high levels of disposable income and extended holidays (Swarbrooke & Horner, 2007, p.63). Apart from that, air travel cost [is also] an important factor in travel decisions (Crouch, 1994). Package holiday reduces travel risk (“Times Online”, 2009) and makes the overall cost cheaper (“The Evolving Role of Travel Agents”, 2009) by stimulating travellers. Similarly, research indicates that “exchange rate volatility is likely to cause tourists to abandon the idea of holidaying in a particular country. Secondly, changes in the exchange rate are likely to have the same impact on the tourist’s destination choice as relative price changes” (Webber, 2001). As noted above, it is a phenomenon that “outbound tour operators put together packages for outward travel from a specific destination. The packages presented will often be diverse in nature. The better-known outbound operators tend to cater for the mass market by offering package holidays to the more popular tourist destinations” (Collier & Harraway, 2003). Likewise, outbound tourism offered by New Zealand travel agencies in most cases, provides three pieces of headline information: countries visited, main form of activity, and price - with importance in reverse order where price is still a decisive factor.

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Australia stands as a cheaper travel destination for New Zealanders. “Clearly, Asia is [the world’s largest] continent which encompasses a wide variety of national tourism markets with very different characteristics” (Swarbrooke & Horner, 2007); therefore it has divided Asia into regions of more manageable size (Boniface & Cooper, 2005) such as; Central Asia, South East Asia, Western Asia etc. Among all Asian countries; China, Bangkok, Singapore, India and Sir-Lanka are popular destination choice of NZ travellers. According to the Annual Statistical Report of Sri-Lankan Tourism; 2627 of New Zealanders chose Sri-Lanka as a holiday destination in 2007. Sri Lanka is known as a tropical paradise to escape to. It has a diverse range of tourist attractions; among them; beaches, wildlife sanctuaries, and historic sites. Ancient ruins are popular among Tourists. ”Heritage tourism, as it name implies, tends to focus on the historical manifestations of human activities in the past. Buildings, historical sites, paintings, monuments and so on are all components of heritage tourism” (Collier, 2003). “Heritage tourism is grow[ing] rapidly in recent years as a result of higher levels of education, more income, growing awareness of the world [and] technology” (Dallen & Stephen, 2003). Thus Sri-Lanka should adopt a new approach in promoting inbound tourism to take the advantage of growing outbound tourism in New Zealand and other neighbouring countries, such as India and China etc.

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PART 1 New Zealand Outbound Tourism

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4. CHARACTERISTICS OF NZ OUTBOUND TOURISM Outbound tourism plays a significant component of the New Zealand tourism industry (Hall & Kearsley, 2001, p.40). “Thousands of New Zealanders travel off-shore each year, for holiday, business, visiting friends and relatives and for many other reasons. The Ministry of Tourism [New Zealand] is responsible for the provision of quality information, research and forecasts to meet the needs of a wide range of tourism sector users” (Ministry of tourism, 2009). The collection of data on outbound travel is one responsibility of the department. Along with Statistics New Zealand, the Ministry of Tourism uses data collected from Departure Cards to determine how many short term trips are taken each year, and the purpose for each, a copy of which has been attached at Appendix-b.

Figure 1: New Zealand Resident Departures to All Countries Number 2,500,000

2,000,000

1,500,000

1,000,000

500,000

0 1983

1985

1987

1989

1991 1993 1995 1997 Year ended December

1999

2001

2003

2005

2007

Source: Ministry of Tourism, 2008 The outbound tourism of New Zealand has shown a steady growth over the last 25 years (Refer Appendix – g for departures in 1950 - 2000). Figure 1 above, illustrates the twenty five years of outbound travel of New Zealand. It is noticeable in the graph that there are 3 spikes; one in 1988, next in 1996-97 and the other in 2004-05. Similarly, there have been times when there were slight slumps due to macro conditions which affected the growth. The attachment at the Appendix-c provides evidence for the massive increase of 1,619,422 outbound trips within twenty five years since 1983.

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Overseas travel by New Zealand residents during the last quarter of 2008 shows negative growth in comparison to the same period in 2007 (refer Appendix–d). The changed world’s economic situation has undoubtedly affected the tourism industry. It is a fact that when easy access to cheap credit is reduced, it leads to decreased spending on discretionary activities such as travel, which will inevitably be impacted. Apart from that, the recent economic turmoil has come on top of fuel price volatility which has forced up the cost of airline tickets and added, or increased, surcharges on many flights. 4.1 Number of Outbound Trips: As noted above, the number of outbound trips has been increasing. However, “New Zealand appears to be entering a period of economic difficulty caused by macro economic factors, common to most parts of the world. The conditions are expected to persist well into 2009. Therefore, it is likely that outbound [travel] activity will slow down in [2009] and domestic travel activity will increase” [as it is relatively better affordable] (NZ Tourism Forecast, 2008 – 2014). “Outbound trips by NZ residents are forecasted to remain flat in 2008 and 2009 at

1.99

million before gradually increasing to 2.3 million by 2014 [as shown in Figure 2 below]. This represents a total increase over the forecast period of 16.5% (326,000 trips) and an average increase of 2.2% per annum” (NZ Tourism forecast, 2008 – 2014).

Figure 2: Outbound Travel of NZ Residents

Source: NZ Tourism Forecast 2008 – 2014

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On the other hand, as far as the whole year is considered, NZ residents have made 1,979,490 trips by November 2008; which is an increase of 8502 trips or 0.4% on the previous year of the same period (Key tourism Statistics, 2009). Similarly, in holistic view, the global growth has now been projected to be around 2% in 2009 (WTO, 2008); considering the downward trend due to the grim economic outlook. That is a decrease of 2.8% from the original forecast of overall global tourism growth. Optimistically, such an adverse situation will be short term and the current trend will fall in line with the long term forecast. As far as outbound trips are concerned, Australia has been the popular destination choice of New Zealanders over many years. The attachment at appendix – e; indicates that 47.98% of New Zealanders have chosen Australia as their tour destination. The second choice was Fiji as 5.1% trips have been made there. Most of the Kiwis have chosen U.K. and U.S.A. as the third popular travel destination in 2008 with equal 4.75% share.

Table 1: Forecasts of Outbound Trips by NZ Residents (000’s)

Source: NZ Tourism Forecast 2008 – 2014.

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Table 1 indicates the number of trips that NZ residents have made during 2006 and 2008 and the forecast for the next six years. The forecast was made before the global economic down turn, it needs to be readjusted by making an allowance for the undesirable conditions. 4.2 Destination of New Zealand Outbound Tourism Table 2: Trips Abroad by NZ residents

Source: Ministry of Tourism 2008 As noted above, Australia has been by far the most popular destination of New Zealanders. Although Australia shared 49.87% of total number of trips in 2006, it has shown a downward trend during the period under review and recorded 47.98% in 2008; where there was an upward trend in overall outbound travel of New Zealand. It is a clear indicator that travellers in New Zealand have chosen destinations other than Australia. Graphs 1-6 further indicate the varied overseas travel of New Zealanders to six countries in 2006 - 2008. Travel to Fiji has shown a fluctuating trend due to the prevailing unrest in the country. It is apparent that Samoa, the Cook Islands and other Pacific islands have gained Fiji’s lost market share. New Zealand travel to China has increased steadily in the period of 2006 to 2008; which is 10.58% of increase in the three years period. Increased number of Chinese permanent residents and Beijing Olympic Games in 2008 may also have contributed to such positive growth. Similarly, departures to Canada have grown by an extraordinary 17.44% in the three year period with marginal increase for rest of the world.

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Graphs 1 -6: NZ Outbound Travel Trends – Country wise Australia

Rest Of the World

Fiji

60.00%

30.00%

50.00%

25.00%

40.00%

20.00%

30.00%

15.00%

20.00%

10.00%

10.00%

5.00%

0.00%

0.00% 2006

2007

2008

Rest Of the World

2006

Australia Canada

Rest Of the World

China 30.00%

25.00%

25.00%

20.00%

20.00%

15.00%

15.00%

10.00%

10.00%

5.00%

5.00%

0.00%

0.00% 2007

2008

Rest Of the World

2006

Canada Samoa

2007

2008

China Rest Of the World

Cook Island

30.00%

30.00%

25.00%

25.00%

20.00%

20.00%

15.00%

15.00%

10.00%

10.00%

5.00%

5.00%

0.00%

0.00% 2006

2008

Fiji

30.00%

2006

2007

2007

Samoa

2008

2006

Rest Of the World

2007

2008

Cook Island

Source: Ministry of Tourism NZ Table 3 below illustrates the ranks of travel destinations by their popularity from 1996 to 2006, and variation of rank in the five year interval during the subject period. Australia is Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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well placed at number ‘One Position’ with a massive difference in the share percentage of ranked number two. The reasons why Australia is a popular choice of holiday destination of New Zealanders are that New Zealanders can travel there without applying for a visa before leaving and the travel cost is relatively low due to economies of scale. It is understood that outbound travel to Fiji has been erratic and as a result, Fiji's rank has been fluctuating too. There is a steady growth in New Zealand outbound travel to China, India, South Africa, France and Italy over the period. The travel to France has been boosted in 2007 by the Rugby World Cup held with total of 19,200 trips. Table: 3 NZ Resident Departures Ranked by Country of Main Destination - 2006, 2001 and 1996 Source – Statistics NZ Year ended December 2006 Country of main destination

Australia Fiji United Kingdom United States of America China, PR Cook Islands Samoa Thailand India Hong Kong (SAR) Japan Malaysia Singapore Canada Tonga Korea, Republic of South Africa France Italy Taiwan Indonesia Germany Vanuatu Norfolk Island New Caledonia Philippines Viet Nam Netherlands French Polynesia Ireland Other(1) Total(2)

Ranking

Share (percent)

929,361 106,246 89,332 87,012 51,202 45,181 31,327 29,080 23,516 18,934 17,086 16,823 16,712 16,421 15,025 14,919 12,616 11,648 11,625 11,320 10,843 10,403 9,204 7,308 7,050 6,960 6,730 6,008 5,436 4,902 231,098

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 …

49.9 5.7 4.8 4.7 2.8 2.4 1.7 1.6 1.3 1.0 0.9 0.9 0.9 0.9 0.8 0.8 0.7 0.6 0.6 0.6 0.6 0.6 0.5 0.4 0.4 0.4 0.4 0.3 0.3 0.3 12.4

1,863,784

…

100.0

Departures

Year ended December 2001 Ranking

Share (percent)

676,047 63,078 60,940 65,913 19,875 19,909 14,866 18,046 8,959 19,252 16,921 11,639 14,144 12,884 7,925 9,633 7,236 6,038 6,358 14,045 16,740 6,324 6,311 6,464 7,010 4,068 2,447 5,050 4,075 2,751 151,645

1 3 4 2 6 5 11 8 17 7 9 15 12 14 18 16 19 25 22 13 10 23 24 21 20 28 31 26 27 29 …

52.5 4.9 4.7 5.1 1.5 1.5 1.2 1.4 0.7 1.5 1.3 0.9 1.1 1.0 0.6 0.7 0.6 0.5 0.5 1.1 1.3 0.5 0.5 0.5 0.5 0.3 0.2 0.4 0.3 0.2 11.8

1,287,296

…

100.0

Departures

Year ended December 1996 Ranking

Share (percent)

587,488 59,044 60,053 83,259 6,469 12,725 14,400 9,212 5,747 25,065 17,882 12,964 11,516 11,263 6,467 9,909 7,018 3,516 3,338 15,362 18,816 4,875 5,019 6,642 6,021 3,394 1,399 4,866 4,153 1,866 73,131

1 4 3 2 18 11 9 15 21 5 7 10 12 13 19 14 16 26 28 8 6 23 22 17 20 27 33 24 25 30 …

53.8 5.4 5.5 7.6 0.6 1.2 1.3 0.8 0.5 2.3 1.6 1.2 1.1 1.0 0.6 0.9 0.6 0.3 0.3 1.4 1.7 0.4 0.5 0.6 0.6 0.3 0.1 0.4 0.4 0.2 6.7

1,092,879

…

100.0

Departures

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4.3 Purpose of Travel: Basically, people travel for three purposes; Holiday, Business and Visit Friends and Relatives (VFR). The Table 4 exhibits the distribution of New Zealand outbound travel on those three categories. Table 4: Outbound Travel by Purpose

Source: Ministry of Tourism 2008 Holiday Travel is the most significant. It was 42% in 2008. Similarly, VFR and Business account for 32% and 15% respectively. The other kinds of travel such as Education, Employment, in transit travel etc. share 12% of the total number. The analysis further reveals that holiday travel has gone down by 1% (3,500 trips) within two years since 2006 (Refer Figure 3), and at the same time VFR has increased in the subject period from 1% annually from 30% in 2006. “The VFR market has strong growth potential, since there are large immigrant and ethnic communities in many countries which will continue to stimulate family travel on a growing scale, both intra- and inter-regionally” (Paci, 1994). Contrary, “departures for business purpose (283,800) were down by 4500 (two percent) from the year ended November 2007” (Statistics New Zealand, 2009). Figure 3: Resident Departure by Reason – year ended November

Source: Statistics New Zealand,

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Similarly, the outbound travel statistics between 2005 and 2007 show a decline. On the other hand, the VFR share grew by two percent in the same period. The core of the outbound market is a short-stayed, high-spending holiday segment which excludes the VFR market, business visitors, and visitors in transit, people who come for educational or work purpose, and long stay visitors. Graph 7 & 8: Purpose of Travel all Countries

2007

2005

Visiting friends/ relatives Business

3% 1% 7% 15%

Holiday

Holiday 12%

42%

Conventions/ conferences Education

32%

15%

43%

Visiting friends/relatives Business

30%

Other/not stated

Other/not stated

Source: Ministry of Tourism As in Graphs 7 and 8, the VFR market has experienced a rapid growth since 2005 as it has over the past decade. On the other hand, business departures account for 15% of all departures in 2007. After a strong growth period between 1984 and 1996, business departures flattened off. The dampening economic growth in New Zealand is one of the causes for this. The industry went through a similar state in 1988–1991 and 1996–1999, due to a decline in the stock market that affected the New Zealand economy and those of its main trading partners. Further, the other segments, such as education, convention/conferences shrank at this time, because they were not able to grow in the light of expanded overall growth of outbound travel.

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4.4 Trends of Outbound Tourism: 4.4.1 Seasonality of New Zealand Outbound Travel The outbound tourism of New Zealand is predominantly seasonal. Graph 9 of overall outbound travel of the last three years shows that travel escalates between mid December and January of each year and in October. The School holidays contribute to the higher number of departures in those months. The Christmas and New Year holidays -a popular time for people to visit friends and relatives (VFR) - have also contributed to high departures in December. The Travel declines in February onwards and gradually picks up in late August and September. Holiday departures are normally low in February, with business the main purpose of travel in that month. The total New Zealand resident departures in January and February were about half those of the highest months, with New Zealanders preferring to holiday within New Zealand in the summer. Graph 9: Outbound Travel of NZ Residents – all countries

250

All countries

(000)

200 150 100 50 0 28 Sep 12 Oct 26 Oct

9 Nov

23 Nov

7 Dec

21 Dec

4 Jan

18 Jan

1 Feb

Four weeks ended 2006/07

2007/08

2008/09

Source - Key Statistics, 2009, Ministry of Tourism NZ

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4.4.2 Trend of Outbound travel to Asia Similar to what has been noted above, there is no exemption in the case of outbound travel to Asia. Graph - 10 below represents the trend of the last three years. The trend lines of all three years in the graph run close together, indicating the trend is typical of New Zealand outbound travel to Asia. Unlike in the above case, the trends spike at the end of December and plummet down in the first week of January. By the end of January the trend touches the lowest for the year. When trends of three year are examined as in the Graph 10, it is observed that the trends peak in the end of December, after a gradual increase in early November. There is a sharp decline after December and the trend line hits its lowest level in late January. Graph 10: Outbound Travel of NZ Residents to Asia

Outbound Travel to Asia

(000) 40 35 30 25 20 15 10 5 0 28 Sep

12 Oct

26 Oct

9 Nov

2006/07

23 Nov

7 Dec

2007/08

21 Dec

4 Jan

18 Jan

1 Feb

2008/09

Source - Key Statistics, 2009, Ministry of Tourism NZ 4.4.3 Trends of Outbound travel to Pacific Islands: Fiji, Samoa and the Cook Islands are popular pacific holiday destinations of New Zealanders. Graphs 11 and 12 below of Fiji and the Cook Islands show that the trends peak in September and gradually decline towards early December and again pick up slightly in late December and early January. It is interesting to note that both countries have an identical pattern of inbound travel. Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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Graphs 11 & 12: Outbound Travel Trend to Fiji & Cook Island Fiji

(000)

(000)

14

Cook Islands

6.0

12

5.0

10 4.0 8 3.0 6 2.0 4 1.0

2 0

0.0

28 Sep 12 Oct 26 Oct 9 Nov 23 Nov 7 Dec 21 Dec 4 Jan 18 Jan 1 Feb

28 Sep 12 Oct 26 Oct 9 Nov 23 Nov 7 Dec 21 Dec 4 Jan 18 Jan 1 Feb

Four weeks ended

Two years ago

Four weeks ended

One year ago

Current year

Source: Ministry Tourism NZ - Provisional Four-weekly New Zealand Resident Departures 4.5 Age Distribution of New Zealand Travellers: Figure 4 below is an illustration of the age distribution of New Zealand outbound travellers in 2007. It exemplifies “how the pattern has changed over the last 17 years. The following analysis highlights the reasons for this shift, driven by demographic and travel propensity changes in the New Zealand population” (TAANZ, 2008). Figure 4: Age Distribution of New Zealand Resident Travellers to All Countries-2007 Percent 12

10

8

6

4

2

0 0–4

5–9

10–14 15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65–69 70–74

75+

Age group (years)

Source: Ministry of Tourism, 2008

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“Over the last fifteen years (1991-2006) the population of New Zealand increased by 20% (from 3.5 to 4.2 million), while the number of overseas trips undertaken by residents have jumped by 139%. New Zealand residents’ propensity for overseas travel has doubled over this period, from 22 trips per 100 people in 1991 to 44 trips per 100 people in 2006. (Note that these propensities measure the ratio of trips relative to population, or travel per capita. They do not strictly represent the proportion of the population that undertook overseas trips, because they include multiple trips undertaken by some travellers)” (TAANZ, 2008). The average length of stay and median length of stay for the years ending December, 2004, 2005 and 2006, broken down by both purpose of travel as well as outbound markets, are outlined in the Appendix- h. The table therein indicates that the median age of travellers of New Zealand remained at 42.1 years during 2004 – 2006; while Auckland and Northland represent lower and highest age brackets respectively in the subject period. “Propensity for overseas travel increases with age, and peaking around their 50s age group, and then declines as age increases (refer Figure 4). Those in their 50s are the most prolific travellers, taking 69 overseas trips per 100 people in 2006. Travel propensity has increased in all ages over the last fifteen years although the age of peak propensity shifted from the 45-49 years age group in 1991 to those in their 50s in 2006. Figure 5: Age Distribution of New Zealand Resident Travellers 1991 - 2007

1996

1991

Age Group

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Source: TAANZ – Travel Statistics This shift reflects the age progression over time by the baby boomers (born during 19461965, now in their 40s-50s), and that baby boomers have a higher travel propensity than in previous generations. However, each later generation coming through will have even higher travel propensity than the previous ones as indicated by the vertical shifts in the Figure 5” (TAANZ, 2008). “Over the last fifteen years the population of New Zealand grew at an average of 1.2% per year. The population is also aging gradually with the highest proportion now in the 35-49 age group (22.5%). This group will enter the 50-59 age group over the next two decades. They have the highest propensity for overseas travel as many are at a more affluent stage of their lives with children no longer dependent, greater discretionary income and more leisure time” (TAANZ, 2008). 4.6 Number of Visitor Nights: Figures 6 and 7 set out the number of nights that travellers have spent in the overseas. Thirty Seven percent of outbound trips in 2007 have been short and confined to

“one –

seven” days. The 8 – 14 category accounts for next highest; while 5% of travellers spend 22 -28 days overseas. It is significant that the 1 - 7 days category has been growing since 2003, while the 8-14 days category has been decreasing. Figure 6 and 7: Number of Nights Spent Overseas Percent

2007

Percent

40

40

35

35

30

30

25

25

20

20

15

15

10

10

5

5

2003

0

0 1–7

8–14 15–21 22–28 Length of absence (days)

29+

1-7

8-14 15-21 22-28 Length of Absence (days)

29+

Source: Ministry of Tourism Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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In 2006, New Zealand travellers spent an average 19.6 days out of the country (refer Attachment- h). The decrease in average length of stay, as mentioned above, can be explained by the changing composition of New Zealand’s outbound travel as per the attachment at Appendix – e. The decline in Travel to Australia has affected length of stay, although the overall drop in outbound trips has been taken over by new destinations, such as; China and India. This meant that the average length of stay of visitors to all markets subsequently declined.

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5. TRAVEL MOTIVATIONAL FACTORS Most often, assumptions regarding New Zealand outbound tourism are determined by the number of outbound trips. However, this ignores the complexity of the issue. For instance, it is not only the income of the traveller that impacts on travel behaviour; but what motivates his or her decision. Figure 8: Typology of Motivators in Tourism

Physical relaxation, sun tan, health, sex Cultural

Emotinal nostalgia, romance, adventure, spiritual fulfilment

Sightseeing, experiencing new cultures

Tourist Status exclusivity, fashionability, obtaining good deal

Personal Development

Personal VFR, making friends, stisfying others, serch for economy

Increasing knowledge, learning new skills Source: Adopted from Consumer Behaviour in Tourism (Swarbrooke & Horner, 2007, p.54) “Motivating factors in tourism can be split into two groups: 1. Those which motivate a person to take a holiday 2. Those which motivate a person to take a particular holiday to a specific destination at a particular time.

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There are many potential motivators that could relate to either or both of these factors. Furthermore, there are a number of potential variations on a theme for each individual motivator, and myriad ways in which they can be combined” (Swarbrooke & Horner, 2007). Some of the major motivational factors are outlined in Figure 8. In general, tourists are attracted not by one factor mentioned above, but by multiple factors. However travellers tend to compromise between those multiple motivators when the final decision is made (Swarbrooke & Horner, 2007). In such case, the holiday travel represents by one dominant motivation with other motivational factors are partly satisfied. 5.1 Push & Pull Factors of outbound Tourism: 5.1.1 Maslow’s Hierarchy of Needs Maslow’s Hierarchy of Needs is based on the assumption that people are motivated by a series of five broad unsatisfied needs (“Maslow's Hierarchy of Needs,” 2009). These needs are ranked according to order in which they influence human behaviour, as per Figure 9 below.

Figure 9: Illustration of Maslow’s Hierarchy of Needs (College of Charleston, 2007)

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5.1.2 Push and Pull Factors: As noted above, Maslow’s Hierarchy of Needs can be useful in identifying the order of satisfying human needs, which in the end leads to purchase of holidays by travellers. It is assumed that “people travel because they are pushed and pulled to do so” (Seyhmus & Muzaffer, 1996) by the travellers’ motivational factors. The push factors stimulate the desire to travel and influence travellers to make the decision, in the mean time the pull factors in reality create the destination choice. Figure 10: Motivational Factors of Outbound Tourism

Push Factors escape, experience, prestige, VFR, hobbies, sightseeing, shopping

Outbound Travel

Pull Factors Travel Cost, Culture, Heritage

Adopted from: (Baloglu & Uysal, 1996) More elaborately, “the push factors are considered to be socio-psychological motivations that predispose the individual to travel, while the pull factors are those that attract the individual to a specific destination once the decision to travel has been made. Most of the push factors which are origin - related are intangible or intrinsic desires of the individual travellers such as the desire for escape, rest and relaxation, health and fitness, adventure, prestige, and social interaction. [On the other hand, the] pull factors are those that emerge

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as a result of the attractiveness of a destination as it is perceived by the traveller. They include tangible resources such as beaches, recreation facilities and historic resources as well as travellers’ perception and expectation such as novelty, benefit expectation and marketed image of the destination” (Baloglu & Uysal, 1996). “These different reasons or motivations to travel can result in very different product and service needs. Understanding the motivations behind a [traveller’s] trip can go a long way in helping tourism operators truly understand their client and in so doing, help them to provide a product or service that will meet the client’s needs” (Collier, 2008, p.107). Due to the diverse nature of tourism, the travellers’ motivational factors may become complex and vary country to country, region to region. Figures 10, illustrates the push and pull motivational factors of the outbound travellers. The topic will be discussed in detail with regard to local condition in Part 3 of the thesis.

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6. EFFECTS OF EXCHANGE RATE ON OUTBOUND TOURISM In 1985, New Zealand's currency was allowed to float, after the pegging regime. In June 2007, for the first time, the Reserve Bank of New Zealand (RBNZ) had to intervene in the currency market - to control the rising kiwi dollar. During the past 22 years, New Zealand's interest rates remained higher than other developed nations. In terms of the exchange rate, high volatility has been a consistent issue. While many of New Zealand’s export industries experience large absolute reductions in returns when the New Zealand dollar appreciates, this is not necessarily so for tourism. In the long term, the exchange rate is not a determinant of tourism growth but the growth of disposable income. According to the research done on the subject by the New Zealand Institute of Economic Research (NZIER); the tourism industry as a whole is less exposed to the adverse impacts of an appreciating NZ dollar than other sectors. However, deeper analysis reveals that some market segments are more likely to suffer than others. Inbound holiday makers are typically much more sensitive to movements in exchange rates than other types of travellers. At an aggregate level holiday arrivals go down by 0.2% when the New Zealand dollar goes up in value by 1%. That impact is 10 times greater than the impact that exchange rates have on other categories of travellers at an aggregate level (NZIR, Authoritative Analyse, 2007). In contrast, “outbound travel is highly sensitive to exchange rates, especially holiday travel where there is a nearly proportionate relationship between growth in departures and growth in the value of the New Zealand dollar. That suggests that tourism operators who rely on domestic tourism as well as overseas visitors will find that returns get squeezed not only by a reduction in spending by international visitors, but also by an increase in outbound travel from New Zealand when the dollar appreciates” (NZIR, Authoritative Analyse, 2007). Research has been revealed that a 1% variation in the value of the NZ dollar yields an approximate 0.9% increase or decrease in holiday departures.

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7. FUTURE OF NEW ZEALAND’S OUTBOUND TOURISM It has been observed that the outbound tourism of New Zealand has been setting new market trends, such as a declining share of larger destinations, such as Australia, a growth in smaller, less familiar destinations like Samoa, and a wider variety in tourist demand and destination choices. “There is no doubt that distribution of tourism by the year 2020 will be different from that of the early years of this century. The countries of East Asia and the Pacific (EAP) region are emerging as important generators of tourism and as major tourist destinations. China in particular will become a major generator of both [inbound] and outbound tourism, changing the nature of travel across the globe” (Worldwide Destinations, 2005, p.478). The growth of the market as a whole is influenced by factors, such as aging population, search for authenticity, change of peoples’ life style such as increasing stress of work and other causes. Contrary, “in the short term, the potentially drastic impact of wars and further terrorist incidents, other factors such as relative price [economic factors] and exchange rate affecting the cost of travel” (Oppermann & Cooper, 1999) yield a negative growth. “Although forecasters say that long haul travel will continue to increase, short – haul travel – especially to neighbouring countries – will still account for a very high proportion of international trips. Similarly, business tourism will remain an important segment of the market; but it is probable that developments in communications such as video conferencing and videophones may reduce the need” (Worldwide Destinations, 2005, p.478). In terms of New Zealand outbound tourism, the trend is expected to be slowing down in the next two years due to the current economic crisis. As per Table 1 in page20, on Forecasts of Outbound Trips by NZ Residents 2008-2014, the trend is expected to remain flat in 2009, as in 2008, before it picks up in early 2010. After that, there will be an annual growth of 2.2%. “A study conducted by the Ministry of Tourism suggests that on average each New Zealander spends around 21 nights away from home each year. When the economy is strong and international travel becomes more affordable, a higher percentage of these nights

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are spent overseas, and when the economy is weak and international travel becomes less affordable the converse is true. This implies a high degree of substitution between outbound and domestic travel” (Ministry of tourism, New Zealand Tourism Forecast 2008 – 2014, 2009). As such the domestic tourism is expected to be increase in next few years. The continued growth of New Zealand outbound tourism is dependent on understanding the end customer which encompasses the factors that drive their demand for tourism and delivering quality and value by the service providers.

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PART 2 New Zealanders Travelling to Sri-Lanka

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8. INBOUND TOURISM OF SRI-LANKA: Sri Lanka is an island in the Indian Ocean; which is located to the south of the Indian subcontinent. It was formally known as Ceylon and Serendib. Tourism is one of the main industries in Sri-Lanka. There are many tourist attractions, such as; white sandy beaches located in the southern and eastern parts of the country, wildlife sanctuaries and world heritage sites located in the central north part of the country. Tourism in Sri-Lanka has a seasonal trend; November, December and January are peak months for arrivals with a mini peak start in July that lasts two months. The top ten inbound tourist markets of Sri-Lanka are India, U.K., Germany, Maldives, Australia, Netherlands, U.S.A., Japan, Russia and China. Graph 13: Tourist Arrival by year – 1966 to 2007

Source: Annual Statistical Report of Sri-Lanka (2007) The inbound tourism of Sri-Lanka has been going through a roller coaster ride as it was adversely affected by the civil war in the northern part of the country. According to the Annual Statistical Report of Sri-Lanka (2007); the number of tourists visiting the country plunged in 2007 by 13.27 percent from a year earlier; that is a drop of arrivals by 65,595 from 559,603 a year earlier. Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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The fall was mainly from countries like Belgium, Netherlands, and Norway. The situation has become worse by January 2009, as there has been a drop of 32.4%, (Sri-Lanka Tourism Development Authority, 2009). It has been observed that the drop was mainly the result of heightened defensive action of the Humanitarian Armed Forces of Sri-Lanka and a terrorist group called Tamil Tigers. Optimistically, the war will end in the coming months and the tourism of Sri-Lanka will once again have a golden era! 8.1 New Zealanders Travelling to Sri-Lanka

Trend of NZ Outbound Travel 700

No of Trips

600 500 400 300 200 100

2007 2008

0

Figure 11: Trend of New Zealand Outbound Travel to Sri-Lanka Adopted From: Sri-Lanka Tourism Development Authority, 2009 New Zealanders travel to Sri-Lanka primarily for visiting friends and relatives, seeing sites, or to acquire a new life experience. The statistics provide evidence that Sri-Lanka is still not a popular holiday destination of New Zealanders since arrivals of New Zealanders contribute 0.54% of the total tourist arrivals in 2007 (Annual Statistical Report of Sri-Lanka Tourism, p.14). Such a fact is highlighted when the tourist arrival of Australia is reviewed, where Australians have contributed 4.10% (Annual Statistical Report of Sri-Lanka Tourism, p.14) of the total guest arrival in Sri-Lanka in the same year. The prevailing unrest in the country, unavailability of direct flights from New Zealand and focused marketing activities to promote local tourist attractions are noticeable reasons for such comparative, undesirable results.

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Table 5: New Zealand Outbound Travel to Sri-Lanka (Number of Trips)

Month

2007

2008

Change %

January

245

255

4.1

February

192

147

-23.4

March

153

171

11.8

April

162

192

18.5

May

96

129

34.4

June

171

108

-36.8

July

252

144

-42.9

August

234

135

-42.3

September

198

150

-24.2

October

105

123

17.1

November

240

189

-21.3

December

579

497

-14.2

Total

2627

2240

-14.7

Source: Sri-Lanka Tourism Development Authority, 2009 New Zealand travel to Sri-Lanka is predominantly seasonal; occurring mostly between December and January (Refer Figure: 10). The increased VFR travel market in July and August, due to availability of cheap flights, twists the trend up during the subject period. Table: 5 on New Zealand Outbound Travel to Sri-Lanka, illustrates a drop of 14.7% in 2008 as compared with the 2007 travel figures. It exceeds the overall drop of Sri Lanka's inbound travel by 1.43%. Likewise, the political settlement of the country is the key driver for growth in the tourism industry in the next 10 – 12 months.

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PART 3 A Profile of New Zealand Outbound Travelers’

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9. AN OVERVIEW OF TRAVEL SURVEY ON BEHAVIOUR, ATTITUDES AND PERCEPTIONS OF NEW ZEALAND TRAVELLERS Part three of the report is based on the Travel Attitude and Motivations Survey carried out by the researcher in 2008. In the survey, respondents were asked to indicate the importance on the given selections (very important, important, neither important or unimportant, unimportant, very unimportant) or ranking on the scale of 1 - 5 in choosing a destination for overseas holiday. The questionnaire is attached at Appendix – a. The survey provides detailed information of travellers’ attitudes, behaviours, travel motivators, type of accommodation preferred, desirable Asian holiday destinations, their impressions on SriLanka and demographics of the participants. Table 6: Distribution of Income of the Sample Annual income Category

Frequency

Percentage

$35,000 - $45,000

53

34.2%

$46,000 - $55,000

20

12.9%

$56,000 - $65,000

18

11.6%

$66,000 - $75,000

27

17.4%

$76,000 - $85,000

10

6.5%

$86,000 & over

27

17.4%

The participants for the survey were adults of 18 years and over. The sample comprised 155 usable surveys; of these, there were 76 Male (49 percent) and 79 Female (51 percent). Further, 34.2% of the participants in the sample were drawing an income of $35,000 $45,000 (Refer Table: 6) as the highest share, while participants in both “$66,000 - $75,000” and “$86,000 and over” categories were sharing 17.4% each. Throughout the report, a number of tables and graphs are included to assist in identifying differences in the travel behaviours, patterns and motivations of the travellers who are looking for accessible travel destinations. This report seeks to develop a profile of those travellers of New Zealand, who have stated prime motivational factors in choosing an overseas holiday destinations. By focusing on this group exclusively, the report endeavours to provide a more specific and actionable profile for this travel segment. This part of the report is more marketing oriented as the statistical analysis has been made to facilitate marketing decisions for the service providers in the travel sector. Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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10. SURVEY DATA ANALYSIS AND DISCUSSION 10.1 Whether they have travelled overseas in last 12 months? The first question in the survey asks the participants if they have travelled overseas for a holiday in the past 12 months, according to the Table: 7 shown below, the analysis indicates, that 88 persons (56.8 percent) have travelled overseas while 67 people (43.2 percent) have not. Table 7: Overseas holiday in past 12 months Particulars

Frequency

Percentage

Cumulative Percentage

Yes

88

56.8%

56.8%

No

67

43.2%

100%

Total

155

100%

10.2 How do they normally book air ticket? The next question asks how the participants normally book their air tickets; 88 people (56.8 percent) book through an agent while 67 persons (43.2 percent) book on line; indicating that travellers prefer a flexible personalized service and guidance in selection of travel destination.

10.3 How frequently do they travel? The participants were asked how often they travel overseas on holiday. As illustrated in Table 8, the highest number of times was “Twice in the past 3 years” with 29 percent of the respondents, while “Once in past 3 years” and “Three times in past 3 years” categories place second and third in the order. On the other hand 19.4% of participants have not travelled much in the recent past. The other significant fact that is evident in the analysis is that the sample has split into almost similar size in four categories given. Table 8: Frequency of Travelling Particulars

Frequency

Percentage

Once in past 3 years

42

27.1%

Twice in past 3 years

45

29.0%

Three times in past 3 years

38

24.5%

I didn't travel very much in past

30

19.4%

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The statistical mean of this question is 2.36; indicating that the actual highest frequency is slightly leaning towards “three times in past 3 years” category from “twice in past 3 years” category. It suggests that New Zealand travellers incline to go overseas more than twice in three years. Table 9: Relationship of Income and Frequency of Travel Income category

Mean

Standard Deviation

Travelling Frequency

$35,000 - $45,000

2.55

1.218

Three times in past 3 years

$46,000 - $55,000

2.55

1.050

Three times in past 3 years

$56,000 - $65,000

2.06

1.110

Twice in past 3 years

$66,000 - $75,000

2.52

0.935

Three times in past 3 years

$76,000 - $85,000

1.80

0.632

Twice in past 3 years

$86,000 & over

2.11

0.974

Twice in past 3 years

The statistical analysis in Table: 9 above, illustrates the relationship between income and frequency of overseas travel. It is evident that increased income does lower the occurrence of overseas travel. 10.4 How long do they spend in an overseas holiday? According to Graph 14, New Zealand travellers in general spend 11 to 15 days in an overseas holiday, as 31.6% of participants have confirmed. Similarly, the “more than 15 days category” is about the same. The smallest category is Less than 5 days. Graph 14: Duration of Overseas Holiday

31.6% 28.4%

31%

%

%

9%

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However; in the statistical analysis, the mean falls a small degree before the “11 – 15 days category” at 2.85 indicating that in an average the majority of respondents have spent their holidays between “6 - 10 days” and “11 – 15 days.” The standard deviation of 0.968; signifies that it is a strong choice with lower distribution of scores. 10.5 What do they consider important for a perfect holiday? The survey includes a question that asks the participants what is important in their choice of holiday. As illustrated in Table: 10, the most important one with the lowest mean, was “Sightseeing,” the next most important was “Relaxing” and the least important was “Activities”. Table 10: What is important for a Perfect Holiday Particulars

Mean

Standard Deviation

Escape

2.87

1.366

Sightseeing

1.92

Relaxing

2.72

1.357

Activities

3.81

1.174

Shopping

3.71

1.238

0.987

Low standard deviation in the sightseeing category indicates that the variability of data is low and most of the participants were in unanimous agreement that sightseeing is very important. In contrast, the category "Escape" has the highest standard deviation though it has been ranked second in importance, thus higher spread of data; meaning the decision is relatively divided. 10.6 How important is the Cost of travel for selection of their overseas holiday destination? Particulars

Mean

Std.

Median

Skewness

Kurtosis

2.00

1.164

2.628

Deviation The Whole Sample

1.61

0.687

Gender wise Analysis Male

1.76

0.764

Female

1.47

0.574

Table 11: Perception on Travel Cost

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The survey participants were asked how important the cost is in selection of a travel destination. This question used a five point scale with 1 = Very Important and 5 = Very Unimportant. Table 11, illustrates that the data set has a Skewness of 1.164; which means there is non-symmetric distribution of the scores which are bunched up on the left of the score scale; “Very important” and “Important” categories. On the other hand, the Kurtosis of 2.628 signifies relatively peaked and a heavier tail of distribution (Foster, 1998, P.88). At the same time, the median of distribution of the scores is two; as such, the majority of the participants considered that the cost is important in choosing a holiday destination. An interesting fact was revealed, when the survey results were statistically analysed for gender. The result of t-test provides an assessment of difference between the mean in each set of data in the sample as illustrated in Table 11. This indicates that there is a variance on perception of cost between male and female in relation to selection of holiday destinations. The mean of Male participants is 1.76 in comparison to the means of whole sample; 1.61 and 1.47 of females. These results indicate that the perception of male on cost of travel is more inclined to “important” while females consider it is “very important.” Table 12: Relationship of Income and Cost of Travel Income Category

Mean

Standard Deviation

$35,000 - $45,000

1.51

0.608

$46,000 - $55,000

1.50

0.607

$56,000 - $65,000

1.61

0.608

$66,000 - $75,000

1.59

0.636

$76,000 - $85,000

1.60

0.699

$86,000 & over

1.93

0.917

Further, Table 12; illustrates the variation of mean in the distribution of score of “Cost,” in relation to the income of the survey participants. Analysis shows that the mean increases with the increased annual income. That is, the participants in the lower bracket of income consider that the cost of travel is “very important” while the participants in the higher income bracket view it as “important” as the mean progress towards two.

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10.7 How far following a budget is important for them in planning a holiday? Particulars

Mean

Std.

Median

Skewness

Kurtosis

2.00

1.021

1.202

Deviation The Whole Sample

1.85

0.866

Gender wise Analysis Male

1.95

0.937

Female

1.76

0.788

Table 13: Perception on following a Budget The responses to the question; "importance of following a budget in planning holiday” have been statistically analysed and illustrated in Table: 13 above. The statistical median is established at two, indicating following a budget is “important” like in the case of cost. In addition to the higher standard deviation, Skewness and Kurtosis are placed between 1.021 and 1.202 respectively. It indicates that the decision is comparatively divided. However, the t-test analysis of gender further provides the evidence that the perception of both genders on the subject matter is unanimous as it has been noted before. 10.8 How much do they spend on an overseas holiday?

Particulars

Frequency

Percent

$1000 - $2000

31.0

20.0

$2001 - $3000

56.0

36.1

$3001 - $4000

44.0

28.4

$4001 - $5000

24.0

15.5

Table 14: Overseas Holiday Expenses In response to the question "the likelihood of expenses in an overseas holiday", a majority answer $2001 - $3000 (Refer Table 14). The second and third ranked responses were $3000 - $4000 and $1000 - $2000 respectively. Table 15: Analysis of Holiday Expenditure Gender- wise Gender

Percentage

Mean

Standard Deviation

Male

49%

2.58

0.942

Female

51%

2.29

1.178

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The t-test on gender analysis of group data as illustrated in Table 15, shows that Males inclined to spend more ($3001 - $4000) on overseas holiday than females; the mean is 2.29; indicating that they tend to spend $2001 - $3000; so does the whole sample. The standard deviation of 1.178 in female is slightly higher than the case of male, shows that the decision is relatively divided with wider spread. 10.9 What factors influence on their decisions to choose Asia as a holiday destination? Particulars

Factors Cost

Experience

Weather

Beaches

Guided To.

Mean

1.67

2.27

3.33

3.49

4.25

Median

1.00

2.00

3.00

4.00

5.00

Std. Deviation

0.912

1.147

1.146

1.125

1.048

Skewness

1.533

0.733

-0.254

-0.531

-1.309

Kurtosis

2.365

-0.339

-0.638

-0.378

0.950

Table 16: Influential Factors for choice of Asian Holiday Destination The next question in the survey asks the participants, if they select Asia as a holiday destination what influences their decision. Statistical analysis of Table 16 shows that the “cost” is most important in choosing an Asian holiday destination with median of one. The standard deviation relating to that response was below one; therefore, the decision is firm and undivided. The other most important factors influencing the decision were “gaining Experience” in the second place and “Weather” in the third place. The least important factor was “Guided Tour.” “Weather” as the third deciding factor has the broader distribution among the set of scores; meaning the choice is highly distributed. The negative Kurtosis also supports the aforesaid line of reasoning. On the other hand, the negative Skewness shows a longer left tail, where the mass of the distribution is concentrated on the right of the data set.

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10.10 Their likelihood of visiting specific Asian countries The survey participants were subsequently asked to indicate their likelihood of visiting given six Asian countries. This question used a six point sale with 1 = most likely and

6 = least

likely. Country

Mean

Standard Deviation

Sri-Lanka

3.45

1.766

India

4.02

1.677

China

3.83

1.725

Japan

3.34

1.715

Bangkok

3.33

1.491

Singapore

2.90

1.607

Table 17: New Zealand travellers’ Choices of Asian Holiday Destinations The lowest mean represents the most popular choice; which is Singapore with the mean of 2.9 (Refer Table: 17). Bangkok and Japan have been chosen second and third respectively, while Sri-Lanka has been picked for fourth as an Asian holiday destination. The higher standard deviation, ranging from 1.6 to 1.7 in all the cases, indicates that the data sets have been spread out over a wider range of scores; indicating a divided decision. Table 18: Analysis of Preferential Asian Holiday Destinations Gender-wise Statistical Mean Particulars

Singapore

Bangkok

Japan

Sri-Lanka

China

India

Male

3.00

3.20

3.24

3.46

3.75

4.22

Female

2.81

3.46

3.44

3.44

3.90

3.82

Statistical analysis in Table 18, on gender indicates the variation of preferences. The lower mean signifies the stronger preference of the particular gender for specific destination. Females show stronger preferences for Singapore and India than do males, while males prefer Bangkok, Japan and China. The picture changes in the case of Sri Lanka, where Male and Female preferences are equal.

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10.11 How important is the given categories in influencing the aforesaid selection of Asian travel destination? Table 19: Factors Influencing the Selection of Asian Travel Destinations

Particulars

Categories Best Travel

Non-stop

Best

Travel

Easier

Cost

flight

Accommodation

Safety

overall

Mean

1.65

3.62

3.20

3.52

3.01

Mode

1

5

3

5

2

0.938

1.191

1.078

1.479

1.375

Std. Deviation

In the next question, the participants were asked to rank on a five-point scale the importance of various factors influencing their choice of a destination in Asia. The “mode” in Table 19 signifies highest frequency of a particular value in the data set, when participants have ranked the selections in the scale where, 1 = most important and 5 = least important. Analysis of Table 19 shows that the “Best travel cost” has the lowest mean; therefore, most of the participants have selected it as the most influential factor in their choice of destination. The categories; “Easier overall” and “Best accommodation” have been ranked second and third respectively, while “Travel safety” and “Nonstop flight” have come next in the order. The relatively low standard deviation in “best travel cost” points out that the selection is unanimous. The questions specifically on Sri-Lanaka were asked next in the survey. 10.12 What comes into their mind, when thinking of Sri-Lanka? The participants were given six well known facts about Sri-Lanka and asked to rate them on a six point scale where 1 = first recollection. Table 20: Sri-Lanka – the order of recollection Particulars

Tea

Cricket

War

Beaches

Heritage

Wild Life

Mean

2.21

2.38

3.64

4.10

4.15

4.37

Std. Deviation

1.319

1.429

1.735

1.347

1.498

1.465

As per Table 20, the first recollection with lowest mean was Tea, while Cricket and War have come to second and third in the order. The last rated recollection was wildlife. The standard deviation in this question has higher values ranging from 1.3 to 1.7, indicating a divided answer with a very high spread of scores. Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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10.13 What kind of accommodation is preferred, if they travel to Sri-Lanka? Table 21: Preferred Accommodation in Sri-Lanka Particulars

Frequency

Percent

5 star

40

25.8

3 star

43

27.7

Bed & Breakfast

37

23.9

Holiday Home

35

22.6

Statistical

Analysis

Mean

2.43

Median

2.00

Std. Deviation

1.105

Skewness

0.101

Kurtosis

-1.315

As indicated in Table 21, the responses for the question about the accommodation in SriLanka, received divided answers with over 22% for each of the four categories. The median of 2 indicates that the majority of participants prefer “3 star class” accommodation in SriLanka. However, the standard deviation of 1.105 and negative Kurtosis of 1.315 confirm the indistinct distributed results. Further, the data set has a Skewness of 0.101; which means there is a relatively symmetric distribution (0 = symmetric distribution).

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11. CONCLUSION It appears that most New Zealand travellers are primarily holiday seekers. The analysis of the survey reveals perceptions and behaviours of New Zealand travellers, and facts which may be used in tourism marketing. New Zealanders have proven very accepting of the internet as a means of information gathering (“Internet World Stats”, 2008), although purchasing travel products over the internet has not increased at the same pace. Booking travel over the internet may be quite complex as travel products are not always clearly described accurately; travellers do not have the advantage of best product and price comparisons without knowledge of all travel information, such as insurance, visas and health requirements etc. But, they are served by highly trained travel agents who ensure that important information is provided and understood by their client (“The Evolving Role of Travel Agents”, 2009). Similarly, in the survey analysis, travellers continue to regard travel agents as a convenient and trusted source of obtaining travel products. Commonsense suggests that higher income of prospective travellers should result in higher frequency of overseas travel. Yet, survey results show that the frequency of travel decreases with increased income. This suggests the hypothesis that the higher the income of people, the incidence of overseas travel decreases. As a matter of speculation, higher financial commitments associated with increased income might cause the situation. The analysis further revealed that the travel cost is allied with the income of travellers, where perception on subject matter changes from “Very Important” to “Important,” along with increasing income of travellers. Therefore the prospective travellers in the lower income bracket are shown to be more cost conscious, though they have higher propensity of travel. The questions relating to travel expenses carried an undivided answer, indicating the attitude on the subject matter is unanimous. Moreover, the most popular purpose of overseas holiday is “Sightseeing” out of other given common travel activities. The other push factors with regard to New Zealand out bound tourism, in an order of importance were; relaxing, escape, shopping and participating activities etc.

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The responses on Asian travel focused questions revealed that the cost is the prime motivator or the pull factor for New Zealand travellers. Travellers have shown that they were keen to take that challenge as an “Experience;” indicating that New Zealand is also a potential market for Asian inbound travel operators. Singapore was the most popular Asian travel destination of New Zealanders out of the given alternatives. Tour marketers in those countries should take advantage of the gender analyses, in implementing focused marketing campaigns to attract specific market segments. New Zealand travellers chose Sri-Lanka as the fourth-preferred Asian holiday destination. The question specific to Sri-Lanka indicates that the prevailing war, confined to the Northern part of the country is not the first recollection of New Zealand travellers, but the third. This suggests that there is scope to promote travel packages to Sri-Lanka when war does not look like a barrier, if tour packages are planned taking into consideration the push and pull factors noted before. Moreover, the country is endowed with a heritage of over 2500 years, which has left ruins of the ancient civilisation. This suggests a strong point of value addition to Sri-Lankan tourism by promoting heritage tourism. Offering competitive tour packages is a viable option, if currencies are compared - that is; exploiting Sri-Lanka’s strengths and unique appeal as one of the world’s most beautiful countries. The outlook of New Zealand outbound tourism in the long term is still positive amidst the current economic turmoil. Overall it seems that New Zealand outbound tourism needs to be understood that not all travellers have similar interests and perceptions, as supported by the findings of this research. In the circumstances, tourism operators are required to find the balance between what they want to provide to travellers by way of experience, with greater understanding of why travellers should choose such experience and which component of those aspect the travellers enjoy the most. This report has been a very brief overview of the market, drawing on various data sources and a brief consideration of their implications for the outbound travel segment. In the circumstances, further research is recommended to reach a decisive conclusion in the area of study. 

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398 – 405. Retrieved January 6, 2009, from http://jtr.sagepub.com/cgi/content/abstract/39/4/398 Witt, S. & Song, H. (2001). Forcast Future Tourism Flows. Tourism and Hospitality in the 21st Century. Retrieved January 5, 2009, from http://books.google.co.nz/books?id=StGXloIiPTIC&pg=PA106&lpg=PA106&dq= WTO Tourism 2020 Vision. (2000), Forecast of Inbound Tourism, World by Regions. Retrieved January 2, 2009, from http://www.tpdco.org/pdf/Tourism%202020%20vision.pdf?dynawebSID=6d8 WTO. (2009). World Tourism Organisation. Retrieved January 26, 2009, from http://www.unwto.org/index.php Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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APPENDICES

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Appendix – a: Questionnaire for Travellers My name is Lalith Siriwardena. This research is a part of my MBA programme. I am exploring behaviours, attitudes and perceptions of NZ travellers. The objective of the research is to understand factors that influence the travellers to choose Sri-Lanka as a holiday destination. Please note that no personal information will be collected and stored and only group results will be reported in the thesis. You can skip over any question/s given in there. If you fill in and return the questionnaire, I will assume that you have given the consent for this research. Further, if you have any questions in this regard, please do not hesitate to contact me on email:[email protected] or my supervisor Dr. Tim Lockyer on email: [email protected]. Thanks for agreeing to take part in this research. For each question, please select relevant answer that most closely represents your situation, rating from 1 to 5 where 1 equals most likely and 5 equals least likely. Please note that there is no right or wrong answer. 1. Have you travelled overseas for holiday in the last 12 months? Yes No 2. How do you normally book your air ticket? a) Through Agent b) Booked online 3. How often did you travel overseas for holiday? a) Once in past 3 years b) Twice in past Three Years c) Three times in past 3 Years d) I didn’t travel very much in past 4. How many days on average do you normally spend for your overseas holiday? a) Less than 5 dys

b) Between 6 – 10 dys

c) Between 11 - 15 dys

d) More than 15 dys

5. If you think of a perfect holiday, what is important to you? Please rate each of the followings from 1 to 5. Use each number only once. Category

Very Important

Important

1 1 1 1 1

2 2 2 2 2

Escape Sightseeing Relaxing Activities Shopping Others Please specify

Neither Important or Unimportant 3 3 3 3 3

Unimportant

Very Unimportant

4 4 4 4 4

5 5 5 5 5

6. Please indicate on the following scale how important the cost of travel (air fare + accommodation) is to the selection of your holiday destination? Please rate each of the followings from 1 to 5 by circling a number. Very Important

Important

Neither Important or Unimportant

Unimportant

Very Unimportant

1

2

3

4

5

7. In planning a holiday how important is to follow a budget closely? Please rate each of the followings from 1 to 5 by circling a number Very Important Important Neither Important Unimportant Very Unimportant or Unimportant 1

2

3

4

5

8. On average how much do you normally spend on an overseas holiday including flight and accommodation? Please Tick the appropriate box. a) $1000 - 2000 b) $2001 - 3000 c)

$3001 - 4000

d) $4001 - 5000

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9. If you select Asia as the destination for your holiday what influences your decision? Please rate each of the followings from 1 to 5. Use each number only once. Factor

Very Important

Important

1 1 1 1 1

2 2 2 2 2

Cost Experience Weather Beaches Guided tour Others Please specify

Neither Important or Unimportant 3 3 3 3 3

Unimportant

Very Unimportant

4 4 4 4 4

5 5 5 5 5

10. If you decide to visit Asia for your holiday, please indicate how likely it is you would visit each of the following countries? Please Rate from 1 to 6 where 1 equals most likely and 6 represents least likely. Sri-Lanka

India

China

Japan

Bangkok

Singapore

11. How important is each of the following categories in influencing your selection as in question 10. Please rate each of the followings from 1 to 5. Use each number only once. Category

Very Important

Important

1 1 1 1 1

2 2 2 2 2

Best Travel cost Non-stop flights Best Accommodation Travel Safety Easier overall

Neither Important or Unimportant 3 3 3 3 3

Unimportant

Very Unimportant

4 4 4 4 4

5 5 5 5 5

12. If you think of Sri-Lanka what comes into your mind? Please rate followings from 1 to 6. Tea

Beaches

War

Wild life

Cricket

Heritage

13. If you travel to Sri-Lanka, what kind of accommodation do you prefer? a) 5 star

b) 3 star

c) Bed & Breakfast or Guest House

d) Holiday Home

14. Now you have come to the final stage of questionnaire. Last two questions are about you. Please tick your gender Male

Female

15. Which statement below matches the annual income of your family? a) 35,000 – 45,000 b) 46,000 – 55,000 c) 56,000 – 65,000 d) 66,000 – 75,000 e) 76,000 – 85,000 f) 86,000 & over

Thank you very much for your assistance in completing this questionnaire. If you wish to receive the summary of findings please email your request with contact details to:[email protected] Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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APPENDIX – b

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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APPENDIX – C New Zealand Resident Departures 1983 - 2007 Year Ended December 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

New Zealand resident departures 360,793 379,764 378,491 490,515 637,149 757,154 716,329 717,278 778,956 750,895 799,659 823,834 920,107 1,092,879 1,132,200 1,166,720 1,184,922 1,283,439 1,287,296 1,293,935 1,374,408 1,733,210 1,871,801 1,863,784 1,980,215

Annual change

-15,118 18,971 -1,273 112,024 146,634 120,005 -40,825 949 61,678 -28,061 48,764 24,175 96,273 172,772 39,321 34,520 18,202 98,517 3,857 6,639 80,473 358,802 138,591 -8,017 116,431

% change

-4.0 5.3 -0.3 29.6 29.9 18.8 -5.4 0.1 8.6 -3.6 6.5 3.0 11.7 18.8 3.6 3.0 1.6 8.3 0.3 0.5 6.2 26.1 8.0 -0.4 6.2

(Source – Pivot Table – Outbound Travel, Ministry of Tourism NZ)

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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APPENDIX – d Outbound Travel – all countries (Source – Key Statistics, Ministry of Tourism NZ)

APPENDIX – e Outbound Trips by NZ Residents (Source – NZ Tourism)

Destination Australia U.S Canada China Thailand India U.K. Fiji Cook Island Samoa Sri-Lanka Rest Of the World Total

No 929 87 16 51 29 24 89 109 45 31 3 450 1863

No of Outbound Trips (000') 2006 2007 2008 % No % No % 49.87% 978 49.47% 950 47.98% 4.67% 92 4.65% 94 4.75% 0.86% 18 0.91% 20 1.01% 2.74% 58 2.93% 60 3.03% 1.56% 31 1.57% 31 1.57% 1.29% 26 1.32% 27 1.36% 4.78% 96 4.86% 94 4.75% 5.85% 96 4.86% 101 5.10% 2.42% 52 2.63% 55 2.78% 1.66% 37 1.87% 37 1.87% 0.16% 3 0.15% 2 0.10% 24.15% 490 24.79% 509 25.71% 100.00% 1977 100.00% 1980 100.00%

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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APPENDIX – f Outbound Travel to Asia 2006/07 Week number

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 November December January February

Four weeks ended 01/10/06 08/10/06 15/10/06 22/10/06 29/10/06 05/11/06 12/11/06 19/11/06 26/11/06 03/12/06 10/12/06 17/12/06 24/12/06 31/12/06 07/01/07 14/01/07 21/01/07 28/01/07 04/02/07 11/02/07

2007/08

Depart ures 21,965 21,481 20,679 17,631 16,328 16,900 18,824 21,918 24,544 27,330 28,078 28,842 31,564 31,380 27,154 21,990 17,560 14,272 14,703 15,079 27,742 34,140 15,136 13,473

Four weeks ended 30/09/07 07/10/07 14/10/07 21/10/07 28/10/07 04/11/07 11/11/07 18/11/07 25/11/07 02/12/07 09/12/07 16/12/07 23/12/07 30/12/07 06/01/08 13/01/08 20/01/08 27/01/08 03/02/08 10/02/08

2008/2009

Departur es 23,031 22,464 21,006 17,739 17,496 17,529 19,316 22,481 24,351 27,677 28,960 29,850 34,549 35,929 31,443 26,983 20,198 15,756 16,788 15,519 27,664 38,657 17,226 13,959

Four weeks ended 28/09/08 5/10/08 12/10/08 19/10/08 26/10/08 2/11/08 9/11/08 16/11/08 23/11/08 30/11/08 7/12/08 14/12/08 21/12/08 28/12/08 4/01/09 11/01/09 18/01/09 25/01/09 1/02/09 8/02/09

Percentage change from previous year

Numerical change from previous year

Depart ures

One year ago

20,979 21,324 22,004 21,427 19,739 19,964 19,890 21,898 24,382 26,078 27,273 27,135 29,578 33,170 30,930 . . . . . 27,898 . . .

1,066 983 327 108 1,168 629 492 563 -193 347 882 1,008 2,985 4,549 4,289 4,993 2,638 1,484 2,085 440 -78 4,517 2,090 486

Current year

One year ago

-2,052 -1,140 998 3,688 2,243 2,435 574 -583 31 -1,599 -1,687 -2,715 -4,971 -2,759 -513 . . . . . 234 . . .

5 5 2 1 7 4 3 3 -1 1 3 3 9 14 16 23 15 10 14 3 0 13 14 4

Current year -9 -5 5 21 13 14 3 -3 0 -6 -6 -9 -14 -8 -2 . . . . . 1 . . .

APPENDIX – g New Zealand Resident Short-term Departures 1950-2000 (Source: Statistics NZ)

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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APPENDIX – h New Zealand Resident Departures by Region of Residence 2004 - 2006 (Source: Statistics NZ) New Zealand resident departures New Zealand region of residence(1)

Northland Auckland Waikato Bay of Plenty Gisborne Hawke's Bay Taranaki Manawatu-Wanganui Wellington Tasman/Nelson Marlborough West Coast Canterbury Otago Southland Other(4) Total(5)

Year ended December 2006

2004

2005

2006

Holiday

VFR

Business

Total

Average absence (days)

36,443 765,902 112,080 83,115 8,231 40,451 28,176 57,707 217,161 27,558 11,717 6,774 214,313 62,867 25,578 32,234

42,143 813,781 127,054 93,676 9,565 42,016 30,712 64,564 225,783 29,018 13,313 7,116 240,114 70,481 26,852 31,886

40,559 827,744 122,403 88,518 9,902 42,277 31,539 60,166 225,986 27,651 13,820 7,772 232,739 66,730 24,789 38,733

120 230 146 158 105 131 144 123 201 142 143 128 212 158 138 …

96 190 106 102 64 91 90 84 142 87 109 93 127 105 81 …

25 110 39 37 22 28 34 28 83 38 34 16 57 32 23 …

271 602 332 333 223 282 300 267 486 296 320 255 438 334 268 …

21.7 19.2 20.0 20.6 21.3 19.8 20.1 20.1 18.6 23.9 20.0 20.0 18.7 21.8 18.9 23.1

48.6 40.2 44.1 46.5 44.5 46.3 45.6 44.9 41.7 45.1 47.3 45.5 43.1 42.9 44.4 40.0

1,733,210

1,871,801

1,863,784

189

139

68

450

19.6

42.1

Year ended December

Departures per 1,000 people by purpose of travel(2) (3)

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

Median age (years)

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APPENDIX – i Effect of Exchange Rate on New Zealand Resident Departures – Year ended March 2006

(Source: New Zealand Institute of Economic Research)

Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report

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