Chinese Consumer Market
The first in our series of reports on the Chinese Market in New Zealand, its growth, its future and its place in New Zealand. Here we explore the hard numbers pulled from both the Census, Tourism New Zealand, Immigration and our own market analysis.
The New Zealand Tourist industry, much like New Zealand itself, is almost unrecognisable today compared to twenty, or even ten years ago. While the main draw for tourists to New Zealand, soaring mountains, majestic glaciers, rolling green hills and picturesque farms remain unchanged, the people who come visit us are ever changing.
New Zealand was the first ever country to officially embrace tourism, with Tourism New Zealand founded in 1901. The first decades of travel to New Zealand was almost exclusively Australians and Britons, making up over 80% of inbound visitors, with little change over the following century. For many in New Zealand businesses, they still market and plan for such, despite the changes this millennium has seen both in terms of demographics, and how they receive information.
China alone had over 400,000 tourists to New Zealand in 2019, on top of the already 200,000 who call New Zealand home. Second only to Australians in visitor numbers but with an average spend of over double (4,000NZD per person for Chinese as opposed to 2,000NZD for Australians). This makes up the largest and most lucrative non-English speaking market. Due to its rapid rise over the last decade, many New Zealand businesses have been left behind in tapping this market.
While 2019 had a drop in visitor numbers from 2018, the inbound Chinese remains the most lucrative, non-English market in New Zealand. Including other Asian markets such as Hong Kong, Taiwan, Singapore and enclaves in South East Asia, the greater market pushes well over half a million inbound visitors and 5% of the permanent population.
The inbound Chinese Market is also one of the most seasonal markets, with monthly visitors topping 50k a month in peak to around 20k in low season. This mixed with a shifting Chinese holiday season that often doesn’t match Western dates, many businesses miss out or miss time their promotions.
The size, growth, average income and spend of the Chinese market has grown to the point that any business must have a strategy on how best to utilise it for their own growth.
Given the recent market changes to domestic travel and retail spending, foreign born citizens or residents should be the first priority for any business looking to capitalise on the changing market.