Bruce Bassett Tourism Strategy Group Ministry of Economic Development Presentation to the 2010 Backpacker Conference 3 September 2010 Measuring the Backpacker

Bruce BassettTourism Strategy GroupMinistry of Economic Development

Presentation to the 2010 Backpacker Conference

3 September 2010

Measuring the Backpacker Sector – Definition and Trends

Importance of ‘knowing’ your sector

My key take-outs are:

• There is a reasonable amount of data on the backpacker sector

• There are definitions and compatibility issues to be aware of

• There are important information gaps

Finally, I will issue the challenge that the sector itself should be organising to generate the information it really needs

Data sources

International Visitor Arrivals - IVA

International Visitor Survey - IVS

Domestic Travel Survey - DTS

Tourism Satellite Account (TSA)

Forecasts

Accommodation Survey - CAM

Regional Visitor Monitor - RVM

Other relevant data

-Business demography

-Electronic card transaction data

- Backpacker data

Data sources

Commercial Accommodation Monitor (CAM)

Census of commercial accommodation businesses - GST registered with turnover over $30,000

Conducted by Statistics New Zealand ‘Supply side’ survey. Self-completed Hotels, motels, backpackers, holiday parks Monthly, quarterly and annual data Long time series KPI-quality data for guest nights, occupancy, capacity, establishments,

seasonality, regional activity Proxy measure for whole sector, esp. at regional levels Latest data to June 2010

Strongest data for backpacker sector analysis

International Visitor Survey (IVS)

Survey of 5000international visitors aged 15+ At Auckland, Wellington and Christchurch airports ‘Measures expenditure and travel patterns Tourist’ = staying in New Zealand for less than a year

Backpacker =

An international traveller who spends at least 30% of their nights in New Zealand staying in backpacker/hostel type accommodation

Data okay for characteristic analysis, but limited by definition used and sample size

Data sources

Domestic Travel Survey (DTS)

Survey of New Zealand households Telephone sample of 15,000 households Measures expenditure and travel patterns of domestic travellers Measures overnight, day-trip and non-travellers Backpacker =

A domestic traveller who stayed in a backpacker at least once during the trip

Limited backpacker-relevant data

Data sources

Regional Visitor Monitor (RVM)

• Survey of visitors in in six tourism regions (aged 15+)• International & domestic tourists• Measures motivations, expectations, booking, satisfaction

and environmental ratings• Backpacker =

A traveller whose main accommodation in the region was in a backpackers

Unique characteristic information on booking and motivation in regions

Data sources

What indicators are covered?

• Number of businesses• Capacity• Guest nights• Occupancy• Share of total accommodation• Business size• Employment• Seasonality• Regional differences• Origin, purpose, age, travel style, spend,

booking, satisfaction• Environmental performance

Here are some results…

Number of businesses - CAM

Backpacker Establishments at end of year (CAM)

0

50

100

150

200

250

300

350

400

450

500

YE Jun-01

YE Jun-02

YE Jun-03

YE Jun-04

YE Jun-05

YE Jun-06

YE Jun-07

YE Jun-08

YE Jun-09

YE Jun-10

Est

ablis

hmen

ts

Daily capacity - CAM

Backpackers - National Daily Capacity (CAM)

0

5,000

10,000

15,000

20,000

25,000

30,000

Jan-00

Jul-00

Jan-01

Jul-01

Jan-02

Jul-02

Jan-03

Jul-03

Jan-04

Jul-04

Jan-05

Jul-05

Jan-06

Jul-06

Jan-07

Jul-07

Jan-08

Jul-08

Jan-09

Jul-09

Jan-10

Share of all capacity - CAM

Share of total accommodation capacity (CAM - YE Jun 2010)

Hotels23%

Motels21%

Backpackers19%

Holiday Parks36%

Business size by capacity - CAM

Backpackers by Capacity Size (CAM - YE Dec 2009)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

1-4 5-9 10-19 20-29 30-39 40-49 50-59 60-79 80-99 100-199

200+

Beds/Units

Sha

re o

f bu

sine

sses

Business size by employees - SNZ

Backpackers by Employee Size (Stats NZ Business Demography - Feb 2009)

0%

10%

20%

30%

40%

50%

60%

Self Employed 1-5 6-9 10-19 20+

Number of employees

Sha

re o

f bu

sine

sses

Employment by accommodation type - SNZ

Total Employees by Accommodation Type(Stats NZ Business Demography - Feb 2009)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Hotels Motels Other Holidayparks

Backpackers Hosted

Accommodation type

To

tal e

mp

loye

es

Monthly guest nights - CAMBackpacker Guest Nights by Month (CAM 2007-2010)

0

100

200

300

400

500

600

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Gu

est

nig

hts

(0

00

s)

2009/10 2008/09 2007/08

Backpacker Guest Nights & Growth Rates - Year End (CAM)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

YEDec-01

YEJun-02

YEDec-02

YEJun-03

YEDec-03

YEJun-04

YEDec-04

YEJun-05

YEDec-05

YEJun-06

YEDec-06

YEJun-07

YEDec-07

YEJun-08

YEDec-08

YEJun-09

YEDec-09

YEJun-10

Gue

st n

ight

s (M

illio

ns)

-5%

0%

5%

10%

15%

20%

Gro

wth

rat

e

Growth Rate Guest Nights

Guest nights and growth - CAM

Total Backpacker Capacity - Year End (CAM)

0

2,000

4,000

6,000

8,000

10,000

12,000

YEDec-01

YEJun-02

YEDec-02

YEJun-03

YEDec-03

YEJun-04

YEDec-04

YEJun-05

YEDec-05

YEJun-06

YEDec-06

YEJun-07

YEDec-07

YEJun-08

YEDec-08

YEJun-09

YEDec-09

YEJun-10

Cap

acity

(00

0s)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Gro

wth

Rat

e

Grow th rates Yearly Capacity

Backpacker capacity - CAM

Backpacker Occupancy Rates - Year End (CAM)

0

10

20

30

40

50

60

YEDec-01

YEJun-02

YEDec-02

YEJun-03

YEDec-03

YEJun-04

YEDec-04

YEJun-05

YEDec-05

YEJun-06

YEDec-06

YEJun-07

YEDec-07

YEJun-08

YEDec-08

YEJun-09

YEDec-09

YEJun-10

Ave

rage

Occ

upan

cy (

%)

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

Gro

wth

rat

e

Growth Rates Occupancy Rate (%)

Backpacker Occupancy Rates - CAM

Guest nights by accommodation type - CAM

Total Guest Nights - All Accommodation(CAM - YE June)

0

2

4

6

8

10

12

YE Jun-01

YE Jun-02

YE Jun-03

YE Jun-04

YE Jun-05

YE Jun-06

YE Jun-07

YE Jun-08

YE Jun-09

YE Jun-10

Gue

st N

ight

s (M

illio

ns)

Hotels Motels Backpackers Holiday Parks

Origin of guest - CAMInternational & Domestic Backpacker Guest Nights by Month (CAM)

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10

Domestic Guest Nights International Guest Nights

Total spend by Backpackers - IVS

Total spend of international backpacker guests (IVS)

$0

$100

$200

$300

$400

$500

$600

$700

YE Jun05

YE Jun06

YE Jun07

YE Jun08

YE Jun09

YE Jun10

$N

Z (

Mill

ion

s)

Backpacker vs other international - IVS Backpackers' proportion of…

(IVS - YE June 2010)

8% 9% 11%

92% 91% 89%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total people Total spend Total nights

Backpackers Non-Backpackers

Average spend per person - IVS Average spend per person (IVS)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

YE Jun05

YE Jun06

YE Jun07

YE Jun08

YE Jun09

YE Jun10

Backpacker Non-Backpacker

Average nights in New Zealand - IVS

Average nights in NZ per person (IVS)

05

1015

2025

3035

40

YE Jun05

YE Jun06

YE Jun07

YE Jun08

YE Jun09

YE Jun10

Nig

hts

in N

Z


Average spend per night - IVS

Average spend per night (IVS)

0

20

40

60

80

100

120

140

160

YE Jun05

YE Jun06

YE Jun07

YE Jun08

YE Jun09

YE Jun10

Spe

nd p

er n

ight

($N

ZD

)


Origin of Backpackers - IVSOrigin of International Backpackers


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Australia UK USA Germany Canada Japan Other


Age of Backpackers - IVSAge of International Backpackers


0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

15 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+


Visitors employed in NZ - IVS

Employed while in NZ (IVS - YE June 2010)

0%

1%2%

3%4%

5%

6%7%

8%9%

10%


Purpose of visit - IVSPurpose of Visit of International Backpackers


0%

10%

20%

30%

40%

50%

60%

70%

80%

Holiday VFR Business Education Other


Travel style - IVSTravel Style of International Backpackers


0%

10%

20%

30%

40%

50%

60%

Tour Group Package Traveller Fully IndependentTraveller

Semi IndependentTraveller


Other accommodation used - IVSOther Accommodation used by Backpackers


0%

5%

10%

15%

20%

25%

30%

Private Dwellings Hotels Motels Holiday Parks/Campgrounds

DoC Site Guest & Hosted

Activities undertaken - IVSActivities undertaken by International backpackers (IVS - YE June 2010)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Lookouts And ViewingPlatforms

Heritage Attractions

Volcanic/GeothermalAttractions

Boating

Museums & Galleries

Entertainment

Sightseeing (Land)

Other Scenic/NaturalAttractions

Shopping

Dining

Walking & Trekking


Satisfaction - IVSSatisfaction Ratings of NZ Experience (out of 10)


1%1% 2%2%6%

8%

28%22%

31%

21%

30%

42%

1%0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


10 ExtremelySatisfied

9

8

7

6

5

4

3

2

1 Not At AllSatisfied

Recommend New Zealand - IVSRecommend NZ as Holiday Destination


1%1% 3%

19% 17%

78% 78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Very Likely

Quite Likely

Neither

Quite Unlikely

Very Unlikely

Domestic Backpackers purpose of trip

Domestic backpacker spend$164 million

Purpose of Trip - Domestic Backpackers(DTS - YE March 2010)

Holiday64%

VFR13%

Business14%

Other10%

Domestic Backpackers age - DTS

Age Profile of Domestic Backpackers(DTS - YE March 2010)

0%

5%

10%

15%

20%

25%

30%

35%

40%

15 to 24 25 to 34 35 to 44 45 to 54 55 to 64 65+

Why visit a region - RVMFactors that influenced international backpackers decision to visit region

(RVM - YE June 2010)

0% 10% 20% 30% 40% 50% 60%

Participate In An Activity

Reflect On Myself

Recharge & Feel Refreshed

Escape From The Pressures

Challenge & Test Myself

Experience Local Culture

Learn About Other Cultures

Experience Must See Destinations

Explore Uniquely Diff Places

Have Fun, Socialise & Enjoy

See Natural Or Other Attraction

Expectations of regions - RVMInternational Backpackers - Expectations of the regions

(RVM - YE June 2010)

0% 10% 20% 30% 40% 50% 60% 70%

Vibrant Urban Atmosphere

Adventure & Excitement

Appealing Cityscape/Townscape

Clean & Pure/Unspoilt Landscape

Relaxing Place To Visit

Safe & Secure Place To Visit

Scenery (Beautiful Country)

Friendly/Welcoming People

How backpackers found out about regions - RVM

International Backpackers - How they first found out about regions(RVM - YE June 2010)

0% 10% 20% 30% 40% 50%

Other Media

Travel Agent

Family Connections

School

Internet

Guidebook / Other Travel Book

Word Of Mouth / Recommendation

Information sought pre-arrival - RVM

International Backpackers - Information about regions sought pre-arrival(RVM - YE June 2010)

0% 10% 20% 30% 40% 50% 60% 70% 80%

Geography

People/Culture

Prices

Weather/Climate

Transport Options/Schedules

Activities & Attractions

Accommodation

Sources of Information - RVM

International Backpackers - Sources of Information about region pre-arrival(RVM - YE June 2010)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Magazines Or Newspapers

RTO website

Advice From A Travel Agent

www.newzealand.com

i-SITE/Other Visitor Info Centre

Advice From Family Or Friends

Other Internet/Web Sites

Guide Or Travel Books

Websites used for pre-booking - RVM

International Backpackers - Websites used to pre-book accommodation(RVM - Oct 09-Jun 10)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Direct with accomprovider

lonelyplanet.com newzealand.com Other

Satisfaction by accommodation type - RVM

Guests' Average Satisfaction with Accommodation Providers (RVM)

7.3 7.2 7.3 7.2

5

5.5

6

6.5

7

7.5

8

8.5

9

9.5

10

YE Jun 07 YE Jun 08 YE Jun 09 YE Jun 10

Luxury Lodge

Hotel

Motel

Holiday Park

Backpackers

Environmental ratings - RVMInternational Backpackers' Environmental Ratings of Accommodation

Businesses (RVM - YE June 2010)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Amongst Best in World

Ahead of Most Others

Average Behind MostOthers

AmongstWorst in World

Don't Know

Backpacker sector outlook

No accommodation sector forecasts

• International arrivals3.5% - Average annual growth rate to 2016

3.1 million international arrivals in 2016

• Domestic tourism Stable levels over the forecast period

Tourism Confidence Index - TIM

95104

121 122129 125

118110

98

80 8289

105

0

20

40

60

80

100

120

140

160

180

200

Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10

Net

pes

sim

ism

Net

opt

imis

m

So, what is missing?

Quite a lot of descriptive data, but…

Real lack of business-oriented intelligence:

•Financial data of sector•Performance of businesses•Benchmarking data across businesses

Difficult to use what we have now

What we have now is actually hard to use due to:

•definitions•sample size limitations•where data is held

Looking forward

Need for the sector itself to take change of its information needs

On one hand…• MED likely to do less sector-specific analysis than in

the recent past• Data sources such as CAM will be reviewed to assess

merits of the data vs respondent load

On the other…• Opportunity to organise your sector to deliver quality

information – sector-wide and for business benchmarking

To conclude…

Quality data on the tourism industry and its functional sub-sectors is critical to decision-making

The best means of putting very specific information in place is for the sectors to do it themselves

Challenging, but the information can be tailored to what is really needed, with the major gap at present around quality commercial information

Thank you…

The information used today can be found at:

www.tourismresearch.govt.nz

Documents

Bruce Bassett Tourism Strategy Group Ministry of Economic Development Presentation to the 2010 Backpacker Conference 3 September 2010 Measuring the Backpacker