TOURIST SPECIAL INTEREST | CYCLING - Tourism … are the travel styles of international cycling tourists? International cycling tourists are predominantly Independent Travellers (94%)

TOURIST SPECIAL INTEREST | CYCLING NEW ZEALAND | APRIL 2013

INTRODUCING CYCLING TOURISM

This report provides an overview of tourists that participate in cycling sports as an activity during their visit to New Zealand. The report includes trends and characteristics of these international cycling tourists. Cycling is a popular tourist activity and an excellent way to see New Zealand. New Zealand offers one of the worlds leading cycleways with 21 Great Rides throughout New Zealand. Cycling tourists are defined as international visitors, aged 15 years and over, who participate in some form of cycling sport at least once while travelling in New Zealand. As a priority Special Interest, Tourism New Zealand is focusing future marketing activity on attracting more International tourists to visit New Zealand to participate in cycling based holidays.

TRENDS IN CYCLING TOURISM

How many tourists cycle while in NZ?

Over the last 5 year period, 318,000 international tourists participated in cycling sports. Annually around 4% of international holiday visitors do some sort of cycling sports while visiting New Zealand. Markets that provide the most cycling tourists include Australia, UK, USA and Germany. Despite a recent dip in numbers (shown in the graph below); the level of cycling participation by International visitors has been increasing over time. It is anticipated that participation rates will continue to grow and cycling will be a significant attraction for future international visitors to New Zealand. Figure 1: Cycling Sport Participation in NZ, 2008-12 *1

What sort of cycling do cycling tourists participate in?

For international cycling tourists, on road cycling (56%) is slightly more popular than off-road mountain biking (48%). A small percent of cycling tourists do both on-road cycling and mountain biking (4%). Figure 2: Types of cycling participated in, 2008-12 *1

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TOURIST SPECIAL INTEREST | CYCLING TOURISM

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How much do international cycling tourists spend on their trip in New Zealand?

Tourists that cycle during their trip to New Zealand spend more on their visit compared to a typical visitor. On average international tourists that participate in cycling spend $3,800 compared to the $2,500 average spend of all visitors. There is a significant high value segment in the cycling market with 22% of international cycling tourists saying they spend over $5,000 on their visit to New Zealand. Figure 3: Expenditure, 2008-12 *1

Where do cycling tourists visit?

The Regional Tourism Organisation (RTO) area with the most cycling tourists are Auckland (36,000), Canterbury (36,000), Queenstown (29,000), West Coast (26,000) and Wellington (25,000). Other RTOs popular with cycling tourists include Rotorua (22,000), Nelson (21,500), Lake Taupo (20,000) and Lake Wanaka (18,000). Figure 4: Where Cycling Tourists Visit, 2008-12 *1

CHARACTERISTICS OF CYCLING TOURISTS

Where do cycling tourists come from?

The international markets which provide the most cycling tourists to New Zealand per year include Australia (21,000), UK (13,000) and USA (6,600). Other important markets include Germany (4,500), Canada (2,200), Netherlands (1,500) and Ireland (1,100). Western markets dominate participation in cycling. Figure 5: Where Cycling Tourists Come From, 2008-12 *1

As a proportion of the total market visitation, Germany (7% of all visitors cycled while in New Zealand) shows the highest propensity to cycle while in New Zealand, followed by Ireland (7%), Denmark (6%), Netherlands (6%), UK (6%) and Israel (5%). The top 10 markets with the highest propensity to cycle while in NZ is rounded out by Sweden (5%), Canada (5%), USA (4%) and France (4%). Figure 6: Propensity of International Cycle Tourists by Market, 2008-12 *1

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What is the age profile of cycling tourists?

The age profile of international cycling visitors highlights a younger segment aged 15 to 24 (23%) and 25 to 34 (34%). Together this youth segment makes up over half (57) of all cycling tourists. Cycling tourists have a slight bias towards males with 54% of international cycling tourists being male to 46% female. Figure 7: Age of International cycling Tourists, 2008-12 *1

Figure 8: Gender, 2008-12 *1

What are the travel styles of international cycling tourists?

International cycling tourists are predominantly Independent Travellers (94%). Only 1% visit New Zealand in a Tour Group while 5% visit as part of a Package. Figure 9: Travel Style, 2008-12 *1

What information do cycling tourists seek before they arrive?

Cycling visitors to newzealand.com are highly engaged beyond the cycling content hub. Cycling visitors spent on average 14:50s on the site, around 11 minutes more than the average. They spent around 1:45s in the cycling hub, indicating peripheral content is very important to cycling visitors.

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Traffic to the website by cycling visitors is very seasonal, with heavy usage during summer and event-heavy months.

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What other content do cycling visitors to newzealand.com view?

Popular peripheral content for cycling visitors is an important part of their visit to newzealand.com. This content includes New Zealand destinations Twizel, Lake Tekapo, Nelson, and Kaikoura. They also view content on Adventure activities, Facts (climate, geography & geology, flora & fauna), Self-drive information, Walking & Hiking, Nature & wildlife, Water based activities, Tours, Food & wine and “Must do” feature articles.

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Popular business listings with cycling visitors show an active adventurous independent segment who visits many regions. Business listings visited by cycling tourists include Cycle tours, Cycle & mountain bike hire, Car & motorhome hire, Bus networks, Rail journeys (TranzAlpine, Otago Rail Trail), Vineyards, Ballooning, Whale Watch, Zorb and Ziptrek.

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Who do cycling tourists travel with?

International cycling tourists are slightly more likely than the norm to travel alone, with 48% traveling by themselves. Just over 27% travel with a Partner or Spouse and this also is higher than the norm for international visitors. International cycling tourists are slightly more likely to be travelling with friends (10%), 11% travel with their family/whanau and 1% are travelling with a tour group. Figure 10: People Travelled With, 2008-12 *1

39% of international cycling tourists travelled in a pair, 5% travelled as three people, 3% travelled as a four and just 6% travelled as a group of 5 or more. Figure 11: The Number of People Travelled With, 2008-12 *1

What are the main purposes of travel of cycling tourists?

International cycling tourists are predominantly holiday visitors (62%) although there is a significant VFR segment (24%). Only 4% of cycling tourists are in New Zealand on business (as their main purpose of visit) and 5% are here for Education. Figure 12: Purpose of Visit, 2008-12 *1

How long do international cycling tourists stay in New Zealand?

Because cycling tourists are generally from longer staying Western markets, cycling tourists tend to stay in New Zealand for longer periods of time than typical visitors. Over a third (35.3%) stayed in New Zealand for a month or more, 16% stayed for 20-29 nights and a further 28% combined stayed for more than 10 and less than 20 nights. Figure 13: Length of Stay, 2008-12 *1

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What accommodation types do international cycling tourists use?

The most common accommodation used by international cycling visitors are private residences of friends or family (18%). The next most common accommodation type is backpackers (17% of cycling visitors stay in a backpackers), hotels (14%) and motels (11%). Figure 14: Accommodation Used, 2008-12 *1

What other activities do cycling tourists do?

International cycling visitors tend to be most interested in adventure tourism activities during their stay in New Zealand. Top 10 activities that they tend to over index on (i.e. are more likely than the typical visitor to participate in) include kayaking and rafting, climbing, horse trekking, sky diving, swimming, caving, bungy Jumping, motor sports, paraponting and wineries. The breadth of activity highlights this as an active segment that enjoys outdoor adventure activities. Figure 15: Top Ten Activities Cycling Tourists Over Index On, 2008-12 *1

What transport do cycling tourists use?

The most common transport options used by international cycling tourists include Car/Van (38% used a Car or Van), a scheduled coach service (25%), aeroplane (19%), or a ferry (18%). 5% travelled on coach tour while 5% travelled in a Campervan or Motorhome. Figure 16: Transport Used, 2008-12 *1

How satisfied are international cycling tourists?

New Zealand typically delivers a high satisfaction for international holiday tourists and this is no different for cycling tourists. Cycling tourists tend to be slightly more satisfied with their visit to New Zealand than the average with Irish and French cycling tourists the most satisfied (9.4 out of 10 for Overall Satisfaction) followed by UK and Swedish cycling tourists (9.3), German, American and Danish cycling tourists (9.2), Canada (9.0) and Israel (8.8). Figure 17: Satisfaction of Cycling Tourists, 2008-12 *1

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(32%) Kayaking & Rafting

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DATA SOURCES

*1 IVS: Statistics New Zealand - International Visitor Survey, Jan 2008 - Dec 2012

*2 newzealand.com analytics via Adobe Site Catalyst

*3 Tourism New Zealand – Active Considerer Monitor, Dec 2012 - Feb 2013

SIZING THE OPPORTUNITY FOR CYCLING TOURISM

The Active Considerer

The Active Consider is Tourism New Zealand’s global target audience. The Active Considerer is defined as aware of New Zealand, find New Zealand a highly appealing travel destination, seriously considering visiting New Zealand in future, have New Zealand as one of their preferred destinations for their next holiday and are willing to spend a certain amount on a trip to New Zealand. It is with this audience that Tourism New Zealand has tested the appeal of Cycling as a holiday type and the association of New Zealand as a destination for Cycling.

Size of the Potential Active Considerer-Cycling Tourism Population

In terms of markets with the largest populations of Active Considerers who state they are personally interested in and would specifically travel for a general cycling touring holiday, China (6.2 million ACs) and the USA (4.2 million) represent the largest potential markets, for Cycle touring in New Zealand, followed by Germany (1.1m), UK (0.9 m), Australia (0.8 m) and Japan (0.6m).

Figure 18: Estimated size of AC Population that are personally interested in and would specifically plan travel for a Holiday that involves general exploring by cycling (m).

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Consideration of New Zealand for a Cycling Holiday

In the UK 87% of Active Considerers interested in Cycling state that New Zealand would be their single most preferred or on their shortlist of a few destinations. This is followed by the USA (84%), China and and Japan (82%) and Germany (68%). Figure 19: % of ACs interested in Cycling who would consider travelling to NZ to participate in Cycling

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TOURIST SPECIAL INTEREST | CYCLING - Tourism … are the travel styles of international cycling tourists? International cycling tourists are predominantly Independent Travellers (94%)