Thank you for inviting me here to speak at the New Zealand Airports Conference for 2009.

I would like to acknowledge Steve Fitzgerald, Chair of the New Zealand Airports Association, for organising this conference, and Beca, as the principal sponsor of the conference. I'd also like to welcome members and attendees present today.

There is an important relationship between aviation and tourism, and airports play a strategic role within the tourism industry. The opportunity to be here at your annual conference to comment on this relationship is appreciated. 

 

Tourism is a vital industry in New Zealand......

I will begin briefly today by emphasising just how vital the tourism industry is to New Zealand.   The tourism sector earns 10% of our GDP and over 18% of our export earnings, making it a highly significant contribution to New Zealand's economy.

The global economic downturn has been challenging for the travel sector. A reduction in visitor arrivals from some of our key markets has impacted on tourism businesses here in New Zealand, on the airlines servicing New Zealand, and many of our airports.

However, there are signs of recovery and business confidence is improving. The Tourism Industry Monitor, which collects information on the performance of tourism businesses through an online survey, shows more optimism than pessimism for the first time since the Monitor began in March of this year. But recovery is going to be slow and it may be next year and the following summer before we see a noticeable increase in visitor arrivals. 

Despite the present challenges, I am optimistic for the tourism industry. The Ministry of Tourism has recently released its forecasts which indicate a growth in visitor arrivals of 50% by 2025, generating a significant economic contribution.

....it is the foundational sector for economic development

This government has prioritised the tourism industry as a foundation sector for driving economic growth and raising productivity in New Zealand.

We recognise that the value of tourism is more than the number of jobs the industry creates, or the number of people that arrive here. Tourism plays a wider enabling role in the economy.  It underpins the majority of air services to and from New Zealand, and is central to our profile and brand in key markets. 

And in an increasingly connected global economy, tourism is at the heart of how New Zealand is viewed offshore.

But if we are to maximise the potential for tourism to make a growing contribution to our economic growth, New Zealand needs to be connected to the rest of the world.  This is why infrastructure, including airports, airlines, and air routes, is so critical.

Keeping New Zealand connected requires a coordinated approach.....

New Zealand's connectedness with the rest of the world requires a coordinated effort from all sectors of the economy. 

On the one hand, without air linkages and the ability to get international tourists here, we wouldn't have a tourism industry.  And airports play a key role in maintaining and increasing air capacity.  

On the other hand, without tourism we would risk losing many air links to the outside world.  This would impact on our high-value export products that require air-freight, and our business travellers that require regular, convenient flight schedules.

The 100% Pure New Zealand tourism brand and New Zealand's reputation as a quality tourism destination are also key leverage points for airports and airlines. Tourism marketing raises New Zealand's profile and awareness in key visitor and export markets, generating more opportunities for our air services.

Growing New Zealand's connectedness with the rest of the world benefits tourism, and therefore trade (air cargo), business connections, foreign direct investment and innovation.

Given tourism's pivotal role, I believe that all sectors of our economy should work more closely together on issues that affect tourism. And aviation is one of these issues. The question we need to be asking is how aviation fits into a NZ Inc approach for enhancing the economic development of New Zealand. And it is with this question in mind that the Ministry of Tourism is pulling together a cross-government view on the aviation sector and its importance to the wider economy.

To inform this work, we need a comprehensive body of information and knowledge.  That is why I was so pleased to announce, along with the Minister of Research, Science and Technology, a research investment package to fund three major linked research streams.

The package includes funding for Otago University to develop a better understanding of the key economic and political variables that are affected by international and domestic air travel, in recognition of how critical air links are for international tourism to New Zealand.

 

...and airports have a strategic role to play

 

In many ways, airports and tourism businesses are very similar. They both need planes and passengers to flourish.

In an economic environment where airlines are in survival mode, the efforts airports have made to work with airline partners to maintain existing services is commendable. 

 I note that airports have responded to changes in market structure to account for new airline models, which have helped maintain or increase services to existing markets such as Australia and the domestic market. You have achieved this through excellent airport redevelopment, such as self-check-in terminals, and integrated international and domestic terminals.

And I am aware that some regional airports have, despite the economic environment, experienced growth in passenger numbers over the past year.   It is also pleasing to see that some airports, such as Hamilton, are rebuilding services and securing direct trans-Tasman air links. Rotorua's new trans-Tasman service will operate twice-weekly, commencing mid-December, and will provide a direct connection between Sydney and Rotorua. This service will also make Rotorua more accessible to Asia, since many of our Asian visitors arrive via Australia, and Rotorua is traditionally a popular destination with the Asian markets of Japan, South Korea, and China.  It will also provide benefits for the Central North Island skifields next season. I have no doubt that over the longer-term, Rotorua's new trans-Tasman service will but act as a gateway for the entire Central North Island.

The point I would like to emphasise is that airports have a role that goes beyond merely providing a runway and passenger processing facilities. Airports play a key role in attracting visitors to New Zealand by acting as the gateways for our visitors.

Airports provide the first and last impression of New Zealand for our visitors...

Many of you will have heard the recent comments from the Jetstar CEO that New Zealanders place a higher value on the airport experience than the in-flight experience. 

Airports are part of the overall tourist travel experience and are an essential partner in delivering on the tourism promise of 100% Pure experiences.  A positive experience at airports can set the mood for visitors for the rest of their trip in New Zealand.  However, a negative experience at airports can tarnish our visitor's perception of New Zealand.

It is fantastic that Auckland Airport was ranked as one of the top 10 airports in the world and the best airport in the Australia Pacific region, in the 2009 independent Skytrax World Airport Awards. This award recognises the key services Auckland International Airport provides (such as world-leading, self-service check-in solutions) as well as the quality experience customers have access to while at the airport (such as shopping, internet services, staff courtesy, and cleanliness of the terminal).

It's also great to see that Christchurch International Airport is the first carbon neutral airport in the Southern Hemisphere.   This demonstrates a commitment to delivering on, and reinforcing, the 100% Pure brand promise.

....and are crucial for developing and maintaining key air routes for New Zealand

The quality of the service and facilities airports provide help to facilitate airline connections and attract new carriers to New Zealand.

It is exciting to see the recent infrastructure investment at Auckland International Airport that enabled New Zealand to become one of the first countries to receive services operated by the double Decker A380. 

Airports also maintain critical relationships with border agencies to make the experience of our visitors a good one. 

And you are doing a great job.  Your role in managing the outbreak of swine flu with border agencies, airlines, and health agencies in New Zealand during the "keep it out" stage was critical.  The measures put in place to manage the outbreak could have caused massive disruptions.  The fact that the process at airports appeared to outsiders to be operating normally is a testament to the cooperation and professional approach of airport staff, border agencies and public health officials.

Airports will also be critical for enhancing trans-Tasman travel.  As you will know, Prime Minister John Key and Australian Prime Minister Kevin Rudd have committed to continuing to work together to progress work towards implementing a new trans-Tasman passenger clearance model.  This model will improve the way that functions are carried out at passport and biosecurity control in airports, which will streamline the process of trans-Tasman passengers arriving in New Zealand. 

I recognise that the Australians have proved vital to keep things ticking over this current season, so removing barriers to travel between Australia and New Zealand can only help ensure we keep this stream of visitation growing.

 

Airports also play a fundamental role in promoting destinations....

In an increasingly competitive global travel market, New Zealand's tourism industry must maintain brand awareness and exposure in our key visitor markets.  This requires us to take a more collaborative approach to selecting markets and spending our investment in marketing, and will involve us becoming more technologically saavy.

I commend the recent joint venture marketing campaigns by Auckland International Airport, including working with Malaysia Airline Service to deliver a newspaper promotion in India, and with Emirates Airlines to promote ski holidays in New Zealand.  This type of activity demonstrates airports working smarter and more collaboratively with airline customers.

It demonstrates that there are win-win opportunities for airlines, airports, tourism consumers and trade from working together to promote travel to New Zealand.

I also congratulate Christchurch International Airport on its recent success in being awarded one of the four Regional Airport Marketing Awards at the Routes Airport Marketing Awards in Beijing, China.  This award follows the Oceania and Asia Pacific Airport Marketing Awards in March of this year. Clearly, great things are happening at Christchurch Airport.

Regional airports are working more strategically with regional tourism organisations, local businesses and local bodies to promote tourism in regions.  For example, Rotorua Airport is working with Air New Zealand and businesses in Rotorua. Hamilton Airport is also operating in this space. I encourage you all to continue to look for more opportunities to work together for regional benefits.

This said, I recognise that the challenge for Tourism New Zealand is to work more strategically with airlines, as well as with airports, to promote New Zealand offshore.  Joint venture marketing initiatives between government, airports, airlines and industry partners, would have a positive benefit for tourism, and trade, and consequently for transport.  It is something this government is exploring further.

 

Conclusion

I know with certainty that the extent to which New Zealand stays connected with the rest of the world impacts on our tourism industry, other export sectors, and our businesses.

The aviation industry helps to keep us connected.  But the aviation industry also stands to find fresh opportunities from working with other sectors, such as the tourism industry, to maintain and grow New Zealand's connectedness.

A collaborative approach between aviation and tourism in New Zealand will have better outcomes for New Zealand's offshore profile, and will enable us to make the most of opportunities such as the Rugby World Cup. This Cup is an unprecedented platform for NZ to be seen by a global audience, so we must be ready to take opportunities as they arise.

And on this positive note, I wish you well for a successful day ahead.