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Auckland International Airport Ltd - Accelerate Guangdong

Commentary

Ministry of Business, Innovation & Employment :


Auckland International Airport Limited (AIAL) is focussed on increasing the air connectivity out of Guangdong, China.

Guangdong is China’s largest consumer market with one of the highest per capita disposable incomes. Diversifying from its usual marketing activity, AIAL aims to secure and expand China-New Zealand air services, with an emphasis on mitigating seasonal air passenger flows. Accelerate Guangdong involves the development of a food and wine microsite, and in-market representation and promotions.


The Challenge


Accelerate Guangdong intends to address three key challenges:
•    The size of the Chinese market and the large geographic spread requires different marketing approaches.
•    Each region requires focus on which consumer segments deliver the greatest economic benefits.
•    Research indicates that clear perception gaps exist for Chinese consumers around New Zealand’s perceived ability to provide highly-rated food, art and culture experiences.


The Solution


The Accelerate Guangdong project will support the Tourism Industry Association’s Tourism 2025 framework, by assisting in growing air connectivity to New Zealand from the high growth region of Southern China.


The project:


•    Targets trade and tourism growth in a region that is already aware of New Zealand’s brand proposition, and has the potential to increase air connectivity.
•    Builds on the New Zealand Story through creating links between food/wine/cultural tourism andproduct experiences to strengthen New Zealand’s place in the market.
•    Targets for value, focussing efforts on high net worth individuals and free and independent travellers.
•    Uses a digital and direct selling strategy to inform the target market that New Zealand is easily accessible and provides amazing, unique, quality, culturally interesting food tourism experiences that will rejuvenate and improve the lives of Chinese visitors and their families and friends.
•    Develops a successful digital / direct marketing model which moves consumers from interest to purchase.
•    Utilises relationships to build a strong cluster of operators to accelerate growth.


Key facts


Programme start: 1 July 2014
Length of TGP Funding requirement: 3 years
TGP funding: $1.11 million
Industry funding: $1.78 million
Commercial partners: Auckland Airport with industry partners being sought

Estimated potential economic benefits to NZ: Increasing the perceptions of food and culture among prospective travellers will have positive flow on effects for the whole tourism sector.

Wider economic benefit from the conversion of targeted high net-worth and free independent travellers is estimated to be in the order of $81 million over the project life.