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Characteristics and Motivations of Outbound Tourism of New Zealand
Characteristics and Motivations of Outbound Tourism of New Zealand
Characteristics and Motivations of Outbound Tourism of New Zealand
ACKNOWLEDGEMENTS ................................................................................................................... 6
1. INTRODUCTION ............................................................................................................................. 9
2. DEFINITIONS ................................................................................................................................. 12
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 2
5.1.2 Push and Pull Factors: .................................................................................................... 34
10.7 How far following a budget is important for them in planning a holiday? ..................... 49
REFERENCES: .................................................................................................................................. 56
APPENDICES ..................................................................................................................................... 59
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 3
List of Tables:
Table 1: Forecasts of Outbound Trips by NZ Residents 20
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 4
List of Figures & Graphs
Figures:
Figure 1: New Zealand Resident Departures to All Countries 18
Graphs:
Graphs 1 & 6: NZ Outbound Travel Trends 22
Graphs 11 & 12: Outbound Travel Trend to Fiji & Cook Island 28
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 5
AUTHORSHIP
This research report has been prepared by Lalith Siriwardena, as the Major Research
Project of MBA programme at the Waikato University – New Zealand and reviewed by Dr.
Tim Lockyer.
ACKNOWLEDGEMENTS
I acknowledge and thank several people who have contributed either directly or indirectly to
the creation of this report. Many people have helped me by discussing the issues
surrounding the topic and providing information for the report. Sri-Lankan and New Zealand
friends, academic colleagues and passing acquaintances; I have met in town and country;
they all have over the years taught me many things about New Zealand, its people and its
changes.
An enormous debt of gratitude goes to; Dr. Tim Lockyer, the Associate Professor and
Chairperson of Tourism Hospitality Management of the Waikato University and my
supervisor for the guidance through the process. I could not have gone through this far,
without his patience and help; and next more specifically, two of my friends; James Foster
I am also extremely grateful to all those people who have been generous with their time and
information in helping me to prepare this report: Jayantha Samarathunga and his wife
Janadissani, Catherine Breeuwer, Pradeep Kumara, Janaki Bandara.
The acknowledgements certainly have to include the enormous support of my wife Gayana
and daughter Janani too. Acknowledgement would not be complete without thanking authors
of the texts mentioned in the reference list.
Lalith Siriwardena
Hamilton, New Zealand
April 2009
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 6
EXECUTIVE SUMMARY
The intention of this research is first to study New Zealand outbound travel in broad
perspective and second to investigate the ways in which travellers choose holiday
destinations. The research also examines the recent development of New Zealand outbound
Over the last two decades, tourism has proved to be the world’s fastest growing economic
sector. New Zealand tourism is no exception; as it contributes 5.1 percent to the GDP and
has generated as much as 5.8 percent of total employment. New Zealand outbound
tourism has increased 448% in a period of two and half decades since 1983.
According to the New Zealand Tourism Forecast 2008 – 2014, out bound travel will
be in the doldrums through 2009, due to the global economic turmoil; but will revive
gradually.
In 2008, holiday travel has shared 42% of the total travel. While VFR and Business travel
has accounted for 32% and 15% respectively; the other kinds of travel such as Education,
Employment, in transit travel etc. have shared 12% of the total volume. Australia is the most
popular travel destination of New Zealanders; close to 50% of out bound trips are made
there. However, this share has declined lately, because travel to Australia has not grown at
the same rate as the total market. The situation is similar with Fiji which has been the
second popular choice. New Zealanders searching for a Pacific Island getaway then
switched to other South Pacific nations such as Samoa and the Cook Islands.
The outbound travel of any country is affected by the volatility of exchange rates; especially
holiday travel where there is a nearly proportionate relationship between growth in
departures and growth in the value of the currency. When the New Zealand dollar is
relatively low against the USD, it is evident that travellers tend to stay at home and rely on
domestic travel. It is the other way around when the New Zealand dollar appreciates, so that
A survey was conducted on New Zealand travellers and the results are analysed in this
report. The analysis reveals some relationships between various behaviours of travellers and
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 7
it provides some useful data upon which to base further enquiry. It also provides some
reliable empirical evidences for the subject. A majority of survey participants confirmed that
they took holidays primarily for "sightseeing" rather than the expected "escape and
relaxation.”
Not unexpectedly, the cost is regarded as the most important factor in terms of overseas
holiday travel by New Zealanders. Males on overseas holiday tend to spend more than
females and females are more likely to budget, in planning a holiday.
Moreover, New Zealand travellers have indicated that the cost is the key motivator for
selecting an Asian country as a holiday destination. Singapore was the most popular Asian
travel destination out of the given alternatives. Females show stronger preferences to travel
to Singapore and India while males have favour Bangkok, Japan and China. In the case of
Sri_Lanka, Male and Female have an equal preference to travel there, and it is the New
Zealanders’ fourth chosen holiday destination in Asia. Surprisingly, the prevailing
disturbances in Sri Lanka do not seriously discourage New Zealanders from wishing to visit
the country.
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1. INTRODUCTION
People travel for different reasons or needs (“Reason for travelling,” 2009). They include
“sightseeing, relaxing, shopping, and visiting friends and relatives, adventure and education”
(“Reason for travelling,” 2009). The 2007 Tourism Satellite Account figures show that
international tourism brought $8.8 billion into the New Zealand economy in 2007 or 5.1
percent of GDP (Statistics NZ, 2007). The dairy industry contributed $6.6 billion, and meat
the New Zealand economy” (Hall & Kearsley, 2001, p.31) and it has been for some time the
largest foreign exchange earner of New Zealand. It has been the industry that underpins
New Zealand’s economic growth (“New Zealand Tourism Strategy – 2015”). The Tourism
Satellite Account further shows that tourism now represents 18.3 percent of total exports of
New Zealand.
The number of New Zealand residents travelling abroad has been increasing over the last
few decades (Refer: Appendix – g for departures in 1950 - 2000) and the forecast for the
future is bright. However, the economic losses being experienced worldwide will be reflected
in the form of reduced spending by potential travellers (NZ Tourism Forecast 2008 – 2014).
This will have a significant impact on tourism globally, resulting in fewer outbound trips. At
this stage, it is unclear when the full impact of the credit crisis will be realised or how long the
economic recovery will take. In the circumstances, such forecasts are not likely to reflect
actual tourism activity in the short-term (NZ Tourism Forecast 2008 – 2014). Optimistically, it
is believed that the economic downturn would persist in short-term and as the tourism is a
The report consists of three parts. The first part explores the outbound tourism of New
Zealand in great depth while the second part examines New Zealanders travelling to Sri-
Lanka. The report is underpinned by the Travel Survey conducted in 2008, which looks at
the recreational activities, travel habits and perceptions of NZ travellers. The survey provides
travel budget. The results of the survey are analysed in the third part.
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There is much information available on inbound tourism, similar to the forecast on outbound
tourism as a resource. “Accurate forecasts of tourism demand are [obviously] essential for
planning” (Witt & Song, 2001) and investment in the tourism industry, characterised by large
capital outlays and long lead times on key infrastructure developments, such as airports and
hotels. However, there is much less information concerning the behaviour, perceptions and
experiences of New Zealand outbound travellers. This report seeks to acquire an
Demographic information about the tourists and their reasons for travelling,
Such information can be used with confidence by tourism service providers to tailor their
marketing mix. In addition, this study will be useful to the Airlines, Hotels, Airport authorities,
Travel Agents, Duty free shops, Insurers and many others related to the Travel Industry in
preparing strategic plans.
boost of 3.3 percent growth in the year ending March 2011. It is envisaged that the current
recession will remain relatively shallow, and subsequent recovery of the economy will be
gradual (NZIER, 2008).
In this study, two approaches have been initiated. In terms of NZ outbound travel, the
research was based on literature and information gathered from the internet, text books, and
from people involved in the industry; while to explore habits, attitudes and perceptions of NZ
travellers a questionnaire was used on a convenience sample of 155 potential travellers in
Hamilton and Auckland. The survey consisted of a personal interview and a mail back
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survey on a standard questionnaire. The surveyor approached the prospective participants
in public areas at selected locations such as public libraries, private and government offices,
so that a fairly large group was approached at each session. This method was used in the
preliminary research to get a gross estimate, without incurring much cost and time.
In addition, participants were contacted through friends and friends of friends. In technical
terms, this is a non-probability sampling method, in which members are selected in a non-
random manner combining the respondent-driven (RDS), and "snowball” sampling
techniques. The sample consisted of a cross section of people in New Zealand. Conclusions
from research of the literature combined with the findings of this questionnaire have been
used to draw broad conclusions about New Zealand travelling abroad on holiday.
The individuals, who agreed to participate for the survey, were given a questionnaire with
fifteen questions; to mark what is important in choosing a destination for overseas holiday.
The subject questionnaire is attached at Appendix – a.
The appropriateness of the questions has been evaluated in a pilot survey on a sample of
twenty five people; subsequently, the questionnaire was redesigned with the feedback
received. Question number one is a screener question, which identifies whether the
individual has travelled overseas for a holiday during the last twelve months; it offers an
1.3 Scope
The report includes all measurable forms of outbound tourism activity in New Zealand,
including activities pursued by persons under 15 years of age and is therefore exhaustive.
The research was limited to Hamilton and Auckland cities.
1.4 Assumptions
The report is based on a series of assumptions, some of which have a major bearing on the
projected levels of tourism activity. The based, economic and demographic data and trends
for each market have been sourced directly from official compilers of relevant countries; thus
very reliable. The economic models in such case are based on historical examples, but
times change and the models may not be as reliable as they used to be.
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2. DEFINITIONS
2.1 Tourism: The term tourism has a “very broad meaning” (Collier, 2008, p.3), because it
“invariably [senses] different understandings to different people” (Collier & Harraway, 2003,
p.3). The New Zealand Tourism Industry as defined by Collier & Harraway is “the study of
man away from his usual habitat, of the industry which responds to his needs, and of the
impacts that both he and the industry have on the hosts’ socio-cultural, economic and
2.2 Tourist: The term tourist is defined as a person who is travelling outside his or her usual
country of residence and staying at least 24 hours away from home (Hall & Kearsley, 2001,
p.4).
2.3 Travelling: For the purpose of this study travelling is defined as change in location of
people on a trip or an act of going from one place to another. “The terms tourism and travel
are sometimes used interchangeably. In this context, travel is considered as it has a similar
definition to tourism, but implies a more purposeful journey” (“Travel and Tourism,” 2008).
2.4 International Tourism: “Occurs when people travel to a country/s other than that in which
they normally reside. International tourism may be subdivided into two categories; inbound
tourism and outbound Tourism” (Collier & Harraway, 2003, p.4).
2.5 Inbound Tourism: The term denotes that the “tourism which involves people coming into
a country, for example people from overseas visiting New Zealand” (Collier & Harraway,
2003, p.4).
2.6 Outbound Tourism: Outbound tourism “involves people departing from a country, for
example; New Zealanders leaving New Zealand to travel overseas” (Collier & Harraway,
2003, p.4).
2003, p.6).
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2.8 Heritage Tourism: “The National Trust defines heritage tourism as travelling to
experience the places, artefacts and activities that authentically represent the stories
2.9 Off-peak: The term describes a less expensive time to travel as result of lower consumer
2.10 Package Tours: This is a prepaid travel arrangement that includes transportation,
accommodations, and at least one other component such as meals, transfers, sightseeing
(Collier & Harraway, 2003, p.88).
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3. LITERATURE REVIEW
“Tourism closely rivals the dairy industry as New Zealand’s largest export earner;” (Collier &
Harraway, 2003, p.153). That signifies the importance of tourism in the New Zealand
economy. Outbound travel is one of the popular leisure activities of New Zealanders. The
New Zealand Outbound and Domestic Tourism Forecasts of McDermott Fairgray (2000)
state that, the number of short term departures is expected to be increased by 4.8% per
annum from 1.65 million trips from 2006. In a growing market “consumer behaviour is key to
underpinning of all marketing activit[ies] which [are] carried out to develop, promote and sell
tourism products” (Swarbrooke & Horner, 2007). Nevertheless, there is little research on
outbound tourism in New Zealand and motivational factors of travellers in terms of selecting
Moreover, the noted significant increase in outbound tours of recent years has been “driven
mainly by a strong exchange rate and lower international airfares. The increases have been
experienced across all purposes of travel, although the largest increases were in the holiday
and [Visiting Friends and Relatives] VFR markets” (“New Zealand Domestic and Outbound
Travel Patterns,”2008).
Further, according to the Outbound Travel Commentary (October, 2008), outbound travel is
up by 5,400 or 12.1% in 2008 over the previous year. Outbound holiday travel on holiday is
also up by 5,100 or 6.9% in the same period, but there have been fewer business trips down
by 1,300 or 4.9%. In total there have been 1.984 million trips undertaken during the year
ended in October 2008; this has increased, by 25,000 or 1.3% from 2007.
With regard to international tourists travel patterns; Collier and Harraway claim that such
phenomenal growth has been influenced by factors such as a general increase in available
leisure time, increasing disposable income, advances in transportation technology, an
increase in education levels, an increase in urbanisation, the increasing influence and
activities of the mass media, and an aging population (Collier & Harraway, 2003) etc.
But where do New Zealanders travel overseas and what are the main motivations for travel
to these destinations? [It has been observed that] much of travel is short haul in nature i.e.
from New Zealand to Australia and the remainder is either medium haul i.e. to Asia or long
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haul i.e. to Europe [from New Zealand]” (Page, 2003). “One of the explanations on the
propensity for outbound travel among New Zealanders was made evident in a report; ‘The
Tourism Competitiveness’ of the Tourism Council of Australia (October, 1998). It was
considerably more cost effective for New Zealanders to take a holiday in Australia than to
take a domestic holiday in New Zealand. The report examined an index of competitiveness,
based on package of accommodations, food, beverages, transport and local tours.
statistical services of the Ministry of Tourism. The statistics indicate that, though the total
number of outbound travel has been increased by 24,675 in the year 2008 over the previous
year (Statistics NZ); there was a 2% negative growth in Australian outbound travel and the
same has been compromised by Fiji and Asian outbound travels in the same period, which
have shown a growth of 5% in each category (Ministry of Tourism NZ). Further, according to
the WTO Tourism 2020 Vision (2000), South Asia is expected to acquire a 0.5% gain in
global market share in the next decade. The other motivational factors for outbound tourism
may be explained by high levels of disposable income and extended holidays (Swarbrooke &
Horner, 2007, p.63). Apart from that, air travel cost [is also] an important factor in travel
decisions (Crouch, 1994).
Package holiday reduces travel risk (“Times Online”, 2009) and makes the overall cost
cheaper (“The Evolving Role of Travel Agents”, 2009) by stimulating travellers. Similarly,
research indicates that “exchange rate volatility is likely to cause tourists to abandon the idea
of holidaying in a particular country. Secondly, changes in the exchange rate are likely to
have the same impact on the tourist’s destination choice as relative price changes” (Webber,
2001).
As noted above, it is a phenomenon that “outbound tour operators put together packages for
outward travel from a specific destination. The packages presented will often be diverse in
nature. The better-known outbound operators tend to cater for the mass market by offering
package holidays to the more popular tourist destinations” (Collier & Harraway, 2003).
Likewise, outbound tourism offered by New Zealand travel agencies in most cases, provides
three pieces of headline information: countries visited, main form of activity, and price - with
importance in reverse order where price is still a decisive factor.
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Australia stands as a cheaper travel destination for New Zealanders. “Clearly, Asia is [the
world’s largest] continent which encompasses a wide variety of national tourism markets with
very different characteristics” (Swarbrooke & Horner, 2007); therefore it has divided Asia into
regions of more manageable size (Boniface & Cooper, 2005) such as; Central Asia, South
East Asia, Western Asia etc. Among all Asian countries; China, Bangkok, Singapore, India
and Sir-Lanka are popular destination choice of NZ travellers.
According to the Annual Statistical Report of Sri-Lankan Tourism; 2627 of New Zealanders
chose Sri-Lanka as a holiday destination in 2007. Sri Lanka is known as a tropical paradise
to escape to. It has a diverse range of tourist attractions; among them; beaches, wildlife
sanctuaries, and historic sites. Ancient ruins are popular among Tourists. ”Heritage tourism,
as it name implies, tends to focus on the historical manifestations of human activities in the
past. Buildings, historical sites, paintings, monuments and so on are all components of
heritage tourism” (Collier, 2003). “Heritage tourism is grow[ing] rapidly in recent years as a
result of higher levels of education, more income, growing awareness of the world [and]
technology” (Dallen & Stephen, 2003). Thus Sri-Lanka should adopt a new approach in
promoting inbound tourism to take the advantage of growing outbound tourism in New
Zealand and other neighbouring countries, such as India and China etc.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 16
PART 1
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4. CHARACTERISTICS OF NZ OUTBOUND TOURISM
Outbound tourism plays a significant component of the New Zealand tourism industry (Hall &
Kearsley, 2001, p.40). “Thousands of New Zealanders travel off-shore each year, for
holiday, business, visiting friends and relatives and for many other reasons. The Ministry of
Tourism [New Zealand] is responsible for the provision of quality information, research and
forecasts to meet the needs of a wide range of tourism sector users” (Ministry of tourism,
2009). The collection of data on outbound travel is one responsibility of the department.
Along with Statistics New Zealand, the Ministry of Tourism uses data collected from
Departure Cards to determine how many short term trips are taken each year, and the
Number
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0
1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007
Year ended December
The outbound tourism of New Zealand has shown a steady growth over the last 25 years
(Refer Appendix – g for departures in 1950 - 2000). Figure 1 above, illustrates the twenty
five years of outbound travel of New Zealand. It is noticeable in the graph that there are 3
spikes; one in 1988, next in 1996-97 and the other in 2004-05. Similarly, there have been
times when there were slight slumps due to macro conditions which affected the growth. The
attachment at the Appendix-c provides evidence for the massive increase of 1,619,422
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Overseas travel by New Zealand residents during the last quarter of 2008 shows negative
growth in comparison to the same period in 2007 (refer Appendix–d). The changed world’s
economic situation has undoubtedly affected the tourism industry. It is a fact that when easy
access to cheap credit is reduced, it leads to decreased spending on discretionary activities
such as travel, which will inevitably be impacted. Apart from that, the recent economic
turmoil has come on top of fuel price volatility which has forced up the cost of airline tickets
common to most parts of the world. The conditions are expected to persist well into 2009.
Therefore, it is likely that outbound [travel] activity will slow down in [2009] and domestic
travel activity will increase” [as it is relatively better affordable] (NZ Tourism Forecast, 2008 –
2014).
“Outbound trips by NZ residents are forecasted to remain flat in 2008 and 2009 at 1.99
million before gradually increasing to 2.3 million by 2014 [as shown in Figure 2 below]. This
represents a total increase over the forecast period of 16.5% (326,000 trips) and an average
increase of 2.2% per annum” (NZ Tourism forecast, 2008 – 2014).
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On the other hand, as far as the whole year is considered, NZ residents have made
1,979,490 trips by November 2008; which is an increase of 8502 trips or 0.4% on the
previous year of the same period (Key tourism Statistics, 2009).
Similarly, in holistic view, the global growth has now been projected to be around 2% in 2009
(WTO, 2008); considering the downward trend due to the grim economic outlook. That is a
decrease of 2.8% from the original forecast of overall global tourism growth. Optimistically,
such an adverse situation will be short term and the current trend will fall in line with the long
term forecast.
As far as outbound trips are concerned, Australia has been the popular destination choice of
New Zealanders over many years. The attachment at appendix – e; indicates that 47.98%
of New Zealanders have chosen Australia as their tour destination. The second choice was
Fiji as 5.1% trips have been made there. Most of the Kiwis have chosen U.K. and U.S.A. as
the third popular travel destination in 2008 with equal 4.75% share.
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Table 1 indicates the number of trips that NZ residents have made during 2006 and 2008
and the forecast for the next six years. The forecast was made before the global economic
down turn, it needs to be readjusted by making an allowance for the undesirable conditions.
4.2 Destination of New Zealand Outbound Tourism
trend during the period under review and recorded 47.98% in 2008; where there was an
upward trend in overall outbound travel of New Zealand. It is a clear indicator that travellers
in New Zealand have chosen destinations other than Australia. Graphs 1-6 further indicate
the varied overseas travel of New Zealanders to six countries in 2006 - 2008.
Travel to Fiji has shown a fluctuating trend due to the prevailing unrest in the country. It is
apparent that Samoa, the Cook Islands and other Pacific islands have gained Fiji’s lost
market share. New Zealand travel to China has increased steadily in the period of 2006 to
2008; which is 10.58% of increase in the three years period. Increased number of Chinese
permanent residents and Beijing Olympic Games in 2008 may also have contributed to such
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Graphs 1 -6: NZ Outbound Travel Trends – Country wise
60.00% 30.00%
50.00% 25.00%
40.00% 20.00%
30.00% 15.00%
20.00% 10.00%
10.00% 5.00%
0.00% 0.00%
2006 2007 2008 2006 2007 2008
Australia Fiji
30.00% 30.00%
25.00% 25.00%
20.00% 20.00%
15.00% 15.00%
10.00% 10.00%
5.00% 5.00%
0.00% 0.00%
2006 2007 2008 2006 2007 2008
Canada China
30.00% 30.00%
25.00% 25.00%
20.00% 20.00%
15.00% 15.00%
10.00% 10.00%
5.00% 5.00%
0.00% 0.00%
2006 2007 2008 2006 2007 2008
Table 3 below illustrates the ranks of travel destinations by their popularity from 1996 to
2006, and variation of rank in the five year interval during the subject period. Australia is
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well placed at number ‘One Position’ with a massive difference in the share percentage of
ranked number two. The reasons why Australia is a popular choice of holiday destination of
New Zealanders are that New Zealanders can travel there without applying for a visa before
leaving and the travel cost is relatively low due to economies of scale.
It is understood that outbound travel to Fiji has been erratic and as a result, Fiji's rank has
been fluctuating too. There is a steady growth in New Zealand outbound travel to China,
India, South Africa, France and Italy over the period. The travel to France has been boosted
in 2007 by the Rugby World Cup held with total of 19,200 trips.
Table: 3
NZ Resident Departures Ranked by Country of Main Destination - 2006, 2001 and 1996
Source – Statistics NZ
Year ended December 2006 Year ended December 2001 Year ended December 1996
Country of main destination Share Share Share
Departures Ranking Departures Ranking Departures Ranking
(percent) (percent) (percent)
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4.3 Purpose of Travel:
Basically, people travel for three purposes; Holiday, Business and Visit Friends and
Relatives (VFR). The Table 4 exhibits the distribution of New Zealand outbound travel on
those three categories.
Employment, in transit travel etc. share 12% of the total number. The analysis further reveals
that holiday travel has gone down by 1% (3,500 trips) within two years since 2006 (Refer
Figure 3), and at the same time VFR has increased in the subject period from 1% annually
from 30% in 2006. “The VFR market has strong growth potential, since there are large
immigrant and ethnic communities in many countries which will continue to stimulate family
travel on a growing scale, both intra- and inter-regionally” (Paci, 1994). Contrary, “departures
for business purpose (283,800) were down by 4500 (two percent) from the year ended
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Similarly, the outbound travel statistics between 2005 and 2007 show a decline. On the
other hand, the VFR share grew by two percent in the same period.
The core of the outbound market is a short-stayed, high-spending holiday segment which
excludes the VFR market, business visitors, and visitors in transit, people who come for
Holiday
2007 2005
Visiting
friends/
3% 1% relatives Holiday
7% Business
12%
Visiting
42% friends/relatives
15% Conventions/ 15% 43%
conferences Business
Education 30%
32% Other/not
stated
Other/not
stated
As in Graphs 7 and 8, the VFR market has experienced a rapid growth since 2005 as it has
On the other hand, business departures account for 15% of all departures in 2007. After a
strong growth period between 1984 and 1996, business departures flattened off.
The dampening economic growth in New Zealand is one of the causes for this. The industry
went through a similar state in 1988–1991 and 1996–1999, due to a decline in the stock
market that affected the New Zealand economy and those of its main trading partners.
Further, the other segments, such as education, convention/conferences shrank at this time,
because they were not able to grow in the light of expanded overall growth of outbound
travel.
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4.4 Trends of Outbound Tourism:
outbound travel of the last three years shows that travel escalates between mid December
and January of each year and in October. The School holidays contribute to the higher
number of departures in those months. The Christmas and New Year holidays -a popular
time for people to visit friends and relatives (VFR) - have also contributed to high departures
in December.
The Travel declines in February onwards and gradually picks up in late August and
September. Holiday departures are normally low in February, with business the main
purpose of travel in that month. The total New Zealand resident departures in January and
February were about half those of the highest months, with New Zealanders preferring to
holiday within New Zealand in the summer.
(000)
All countries
250
200
150
100
50
0
28 Sep 12 Oct 26 Oct 9 Nov 23 Nov 7 Dec 21 Dec 4 Jan 18 Jan 1 Feb
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4.4.2 Trend of Outbound travel to Asia
Similar to what has been noted above, there is no exemption in the case of outbound travel
to Asia. Graph - 10 below represents the trend of the last three years. The trend lines of all
three years in the graph run close together, indicating the trend is typical of New Zealand
outbound travel to Asia. Unlike in the above case, the trends spike at the end of December
and plummet down in the first week of January. By the end of January the trend touches the
lowest for the year. When trends of three year are examined as in the Graph 10, it is
observed that the trends peak in the end of December, after a gradual increase in early
November. There is a sharp decline after December and the trend line hits its lowest level in
late January.
in September and gradually decline towards early December and again pick up slightly in
late December and early January. It is interesting to note that both countries have an
identical pattern of inbound travel.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 27
Graphs 11 & 12: Outbound Travel Trend to Fiji & Cook Island
(000)
Fiji Cook Islands
(000)
14 6.0
12
5.0
10
4.0
8
3.0
6
2.0
4
1.0
2
0 0.0
28 Sep 12 Oct 26 Oct 9 Nov 23 Nov 7 Dec 21 Dec 4 Jan 18 Jan 1 Feb 28 Sep 12 Oct 26 Oct 9 Nov 23 Nov 7 Dec 21 Dec 4 Jan 18 Jan 1 Feb
Figure 4 below is an illustration of the age distribution of New Zealand outbound travellers in
2007. It exemplifies “how the pattern has changed over the last 17 years. The following
analysis highlights the reasons for this shift, driven by demographic and travel propensity
changes in the New Zealand population” (TAANZ, 2008).
10
0
0–4 5–9 10–14 15–19 20–24 25–29 30–34 35–39 40–44 45–49 50–54 55–59 60–64 65–69 70–74 75+
Age group (years)
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 28
“Over the last fifteen years (1991-2006) the population of New Zealand increased by 20%
(from 3.5 to 4.2 million), while the number of overseas trips undertaken by residents have
jumped by 139%. New Zealand residents’ propensity for overseas travel has doubled over
this period, from 22 trips per 100 people in 1991 to 44 trips per 100 people in 2006. (Note
that these propensities measure the ratio of trips relative to population, or travel per capita.
They do not strictly represent the proportion of the population that undertook overseas trips,
because they include multiple trips undertaken by some travellers)” (TAANZ, 2008). The
average length of stay and median length of stay for the years ending December, 2004,
2005 and 2006, broken down by both purpose of travel as well as outbound markets, are
outlined in the Appendix- h.
The table therein indicates that the median age of travellers of New Zealand remained at
42.1 years during 2004 – 2006; while Auckland and Northland represent lower and highest
age brackets respectively in the subject period. “Propensity for overseas travel increases
with age, and peaking around their 50s age group, and then declines as age increases (refer
Figure 4). Those in their 50s are the most prolific travellers, taking 69 overseas trips per 100
people in 2006. Travel propensity has increased in all ages over the last fifteen years
although the age of peak propensity shifted from the 45-49 years age group in 1991 to those
in their 50s in 2006.
1996
1991
Age Group
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 29
Source: TAANZ – Travel Statistics
This shift reflects the age progression over time by the baby boomers (born during 1946-
1965, now in their 40s-50s), and that baby boomers have a higher travel propensity than in
previous generations. However, each later generation coming through will have even higher
travel propensity than the previous ones as indicated by the vertical shifts in the Figure 5”
(TAANZ, 2008).
“Over the last fifteen years the population of New Zealand grew at an average of 1.2% per
year. The population is also aging gradually with the highest proportion now in the 35-49 age
group (22.5%). This group will enter the 50-59 age group over the next two decades. They
have the highest propensity for overseas travel as many are at a more affluent stage of their
lives with children no longer dependent, greater discretionary income and more leisure time”
(TAANZ, 2008).
Figures 6 and 7 set out the number of nights that travellers have spent in the overseas.
Thirty Seven percent of outbound trips in 2007 have been short and confined to “one –
seven” days. The 8 – 14 category accounts for next highest; while 5% of travellers spend 22
-28 days overseas. It is significant that the 1 - 7 days category has been growing since 2003,
while the 8-14 days category has been decreasing.
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
1–7 8–14 15–21 22–28 29+ 1-7 8-14 15-21 22-28 29+
Length of absence (days) Length of Absence (days)
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 30
In 2006, New Zealand travellers spent an average 19.6 days out of the country (refer
Attachment- h). The decrease in average length of stay, as mentioned above, can be
explained by the changing composition of New Zealand’s outbound travel as per the
attachment at Appendix – e. The decline in Travel to Australia has affected length of stay,
although the overall drop in outbound trips has been taken over by new destinations, such
as; China and India. This meant that the average length of stay of visitors to all markets
subsequently declined.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 31
5. TRAVEL MOTIVATIONAL FACTORS
Most often, assumptions regarding New Zealand outbound tourism are determined by the
number of outbound trips. However, this ignores the complexity of the issue. For instance, it
is not only the income of the traveller that impacts on travel behaviour; but what motivates
his or her decision.
Physical
relaxation,
sun tan,
health, sex
Emotinal
Cultural nostalgia,
Sightseeing, romance,
experiencing adventure,
new cultures spiritual
fulfilment
Tourist
Status Personal
VFR, making
exclusivity, friends,
fashionability, stisfying
obtaining others, serch
good deal Personal for economy
Development
Increasing
knowledge,
learning new
skills
Source: Adopted from Consumer Behaviour in Tourism (Swarbrooke & Horner, 2007, p.54)
a particular time.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 32
There are many potential motivators that could relate to either or both of these factors.
Furthermore, there are a number of potential variations on a theme for each individual
motivator, and myriad ways in which they can be combined” (Swarbrooke & Horner, 2007).
Some of the major motivational factors are outlined in Figure 8. In general, tourists are
attracted not by one factor mentioned above, but by multiple factors. However travellers tend
to compromise between those multiple motivators when the final decision is made
(Swarbrooke & Horner, 2007). In such case, the holiday travel represents by one dominant
Maslow’s Hierarchy of Needs is based on the assumption that people are motivated by a
series of five broad unsatisfied needs (“Maslow's Hierarchy of Needs,” 2009). These needs
are ranked according to order in which they influence human behaviour, as per Figure 9
below.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 33
5.1.2 Push and Pull Factors:
As noted above, Maslow’s Hierarchy of Needs can be useful in identifying the order of
satisfying human needs, which in the end leads to purchase of holidays by travellers.
It is assumed that “people travel because they are pushed and pulled to do so” (Seyhmus &
Muzaffer, 1996) by the travellers’ motivational factors. The push factors stimulate the desire
to travel and influence travellers to make the decision, in the mean time the pull factors in
Push Factors
escape,
experience,
prestige, VFR,
hobbies,
sightseeing,
shopping
Outbound
Travel
Pull Factors
Travel Cost, Culture,
Heritage
travellers such as the desire for escape, rest and relaxation, health and fitness, adventure,
prestige, and social interaction. [On the other hand, the] pull factors are those that emerge
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 34
as a result of the attractiveness of a destination as it is perceived by the traveller. They
include tangible resources such as beaches, recreation facilities and historic resources as
well as travellers’ perception and expectation such as novelty, benefit expectation and
marketed image of the destination” (Baloglu & Uysal, 1996). “These different reasons or
motivations to travel can result in very different product and service needs. Understanding
the motivations behind a [traveller’s] trip can go a long way in helping tourism operators truly
understand their client and in so doing, help them to provide a product or service that will
Due to the diverse nature of tourism, the travellers’ motivational factors may become
complex and vary country to country, region to region. Figures 10, illustrates the push and
pull motivational factors of the outbound travellers. The topic will be discussed in detail with
regard to local condition in Part 3 of the thesis.
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6. EFFECTS OF EXCHANGE RATE ON OUTBOUND TOURISM
In 1985, New Zealand's currency was allowed to float, after the pegging regime. In June
2007, for the first time, the Reserve Bank of New Zealand (RBNZ) had to intervene in the
currency market - to control the rising kiwi dollar. During the past 22 years, New Zealand's
interest rates remained higher than other developed nations. In terms of the exchange rate,
high volatility has been a consistent issue.
While many of New Zealand’s export industries experience large absolute reductions in
returns when the New Zealand dollar appreciates, this is not necessarily so for tourism. In
the long term, the exchange rate is not a determinant of tourism growth but the growth of
disposable income. According to the research done on the subject by the New Zealand
Institute of Economic Research (NZIER); the tourism industry as a whole is less exposed to
the adverse impacts of an appreciating NZ dollar than other sectors.
However, deeper analysis reveals that some market segments are more likely to suffer than
others. Inbound holiday makers are typically much more sensitive to movements in
exchange rates than other types of travellers. At an aggregate level holiday arrivals go down
by 0.2% when the New Zealand dollar goes up in value by 1%. That impact is 10 times
greater than the impact that exchange rates have on other categories of travellers at an
In contrast, “outbound travel is highly sensitive to exchange rates, especially holiday travel
where there is a nearly proportionate relationship between growth in departures and growth
in the value of the New Zealand dollar. That suggests that tourism operators who rely on
domestic tourism as well as overseas visitors will find that returns get squeezed not only by
a reduction in spending by international visitors, but also by an increase in outbound travel
from New Zealand when the dollar appreciates” (NZIR, Authoritative Analyse, 2007).
Research has been revealed that a 1% variation in the value of the NZ dollar yields an
approximate 0.9% increase or decrease in holiday departures.
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7. FUTURE OF NEW ZEALAND’S OUTBOUND TOURISM
It has been observed that the outbound tourism of New Zealand has been setting new
market trends, such as a declining share of larger destinations, such as Australia, a growth
in smaller, less familiar destinations like Samoa, and a wider variety in tourist demand and
destination choices.
“There is no doubt that distribution of tourism by the year 2020 will be different from that of
the early years of this century. The countries of East Asia and the Pacific (EAP) region are
the nature of travel across the globe” (Worldwide Destinations, 2005, p.478).
The growth of the market as a whole is influenced by factors, such as aging population,
search for authenticity, change of peoples’ life style such as increasing stress of work and
other causes. Contrary, “in the short term, the potentially drastic impact of wars and further
terrorist incidents, other factors such as relative price [economic factors] and exchange rate
affecting the cost of travel” (Oppermann & Cooper, 1999) yield a negative growth.
“Although forecasters say that long haul travel will continue to increase, short – haul travel –
especially to neighbouring countries – will still account for a very high proportion of
international trips. Similarly, business tourism will remain an important segment of the
market; but it is probable that developments in communications such as video conferencing
and videophones may reduce the need” (Worldwide Destinations, 2005, p.478).
In terms of New Zealand outbound tourism, the trend is expected to be slowing down in the
next two years due to the current economic crisis. As per Table 1 in page20, on Forecasts
of Outbound Trips by NZ Residents 2008-2014, the trend is expected to remain flat in 2009,
as in 2008, before it picks up in early 2010. After that, there will be an annual growth of
2.2%.
“A study conducted by the Ministry of Tourism suggests that on average each New
Zealander spends around 21 nights away from home each year. When the economy is
strong and international travel becomes more affordable, a higher percentage of these nights
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 37
are spent overseas, and when the economy is weak and international travel becomes less
affordable the converse is true. This implies a high degree of substitution between outbound
and domestic travel” (Ministry of tourism, New Zealand Tourism Forecast 2008 – 2014,
2009). As such the domestic tourism is expected to be increase in next few years.
The continued growth of New Zealand outbound tourism is dependent on understanding the
end customer which encompasses the factors that drive their demand for tourism and
delivering quality and value by the service providers.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 38
PART 2
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 39
8. INBOUND TOURISM OF SRI-LANKA:
Sri Lanka is an island in the Indian Ocean; which is located to the south of the Indian
subcontinent. It was formally known as Ceylon and Serendib. Tourism is one of the main
industries in Sri-Lanka.
There are many tourist attractions, such as; white sandy beaches located in the southern
and eastern parts of the country, wildlife sanctuaries and world heritage sites located in the
central north part of the country. Tourism in Sri-Lanka has a seasonal trend; November,
December and January are peak months for arrivals with a mini peak start in July that lasts
two months.
The top ten inbound tourist markets of Sri-Lanka are India, U.K., Germany, Maldives,
Australia, Netherlands, U.S.A., Japan, Russia and China.
The inbound tourism of Sri-Lanka has been going through a roller coaster ride as it was
adversely affected by the civil war in the northern part of the country. According to the
Annual Statistical Report of Sri-Lanka (2007); the number of tourists visiting the country
plunged in 2007 by 13.27 percent from a year earlier; that is a drop of arrivals by 65,595
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 40
The fall was mainly from countries like Belgium, Netherlands, and Norway. The situation has
become worse by January 2009, as there has been a drop of 32.4%, (Sri-Lanka Tourism
Development Authority, 2009). It has been observed that the drop was mainly the result of
heightened defensive action of the Humanitarian Armed Forces of Sri-Lanka and a terrorist
Optimistically, the war will end in the coming months and the tourism of Sri-Lanka will once
again have a golden era!
400
300
2007
200
2008
100
0
New Zealanders travel to Sri-Lanka primarily for visiting friends and relatives, seeing sites, or
to acquire a new life experience. The statistics provide evidence that Sri-Lanka is still not a
popular holiday destination of New Zealanders since arrivals of New Zealanders contribute
0.54% of the total tourist arrivals in 2007 (Annual Statistical Report of Sri-Lanka Tourism,
p.14). Such a fact is highlighted when the tourist arrival of Australia is reviewed, where
Australians have contributed 4.10% (Annual Statistical Report of Sri-Lanka Tourism, p.14) of
the total guest arrival in Sri-Lanka in the same year. The prevailing unrest in the country,
unavailability of direct flights from New Zealand and focused marketing activities to promote
local tourist attractions are noticeable reasons for such comparative, undesirable results.
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Table 5: New Zealand Outbound Travel to Sri-Lanka (Number of Trips)
Table: 5 on New Zealand Outbound Travel to Sri-Lanka, illustrates a drop of 14.7% in 2008
as compared with the 2007 travel figures. It exceeds the overall drop of Sri Lanka's inbound
travel by 1.43%. Likewise, the political settlement of the country is the key driver for growth
in the tourism industry in the next 10 – 12 months.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 42
PART 3
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 43
9. AN OVERVIEW OF TRAVEL SURVEY ON BEHAVIOUR, ATTITUDES AND
PERCEPTIONS OF NEW ZEALAND TRAVELLERS
Part three of the report is based on the Travel Attitude and Motivations Survey carried out by
the researcher in 2008. In the survey, respondents were asked to indicate the importance on
The participants for the survey were adults of 18 years and over. The sample comprised 155
usable surveys; of these, there were 76 Male (49 percent) and 79 Female (51 percent).
Further, 34.2% of the participants in the sample were drawing an income of $35,000 -
$45,000 (Refer Table: 6) as the highest share, while participants in both “$66,000 - $75,000”
Throughout the report, a number of tables and graphs are included to assist in identifying
differences in the travel behaviours, patterns and motivations of the travellers who are
looking for accessible travel destinations. This report seeks to develop a profile of those
travellers of New Zealand, who have stated prime motivational factors in choosing an
overseas holiday destinations. By focusing on this group exclusively, the report endeavours
to provide a more specific and actionable profile for this travel segment. This part of the
report is more marketing oriented as the statistical analysis has been made to facilitate
marketing decisions for the service providers in the travel sector.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 44
10. SURVEY DATA ANALYSIS AND DISCUSSION
not.
The next question asks how the participants normally book their air tickets; 88 people (56.8
percent) book through an agent while 67 persons (43.2 percent) book on line; indicating that
travellers prefer a flexible personalized service and guidance in selection of travel
destination.
respondents, while “Once in past 3 years” and “Three times in past 3 years” categories place
second and third in the order. On the other hand 19.4% of participants have not travelled
much in the recent past. The other significant fact that is evident in the analysis is that the
sample has split into almost similar size in four categories given.
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The statistical mean of this question is 2.36; indicating that the actual highest frequency is
slightly leaning towards “three times in past 3 years” category from “twice in past 3 years”
category. It suggests that New Zealand travellers incline to go overseas more than twice in
three years.
The statistical analysis in Table: 9 above, illustrates the relationship between income and
frequency of overseas travel. It is evident that increased income does lower the occurrence
of overseas travel.
overseas holiday, as 31.6% of participants have confirmed. Similarly, the “more than 15 days
category” is about the same. The smallest category is Less than 5 days.
31.6% 31%
28.4%
%
%
9%
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However; in the statistical analysis, the mean falls a small degree before the “11 – 15 days
category” at 2.85 indicating that in an average the majority of respondents have spent their
holidays between “6 - 10 days” and “11 – 15 days.” The standard deviation of 0.968; signifies
that it is a strong choice with lower distribution of scores.
The survey includes a question that asks the participants what is important in their choice of
holiday. As illustrated in Table: 10, the most important one with the lowest mean, was
“Sightseeing,” the next most important was “Relaxing” and the least important was
“Activities”.
Low standard deviation in the sightseeing category indicates that the variability of data is low
and most of the participants were in unanimous agreement that sightseeing is very
important. In contrast, the category "Escape" has the highest standard deviation though it
has been ranked second in importance, thus higher spread of data; meaning the decision is
relatively divided.
10.6 How important is the Cost of travel for selection of their overseas holiday destination?
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The survey participants were asked how important the cost is in selection of a travel
destination. This question used a five point scale with 1 = Very Important and 5 = Very
Unimportant. Table 11, illustrates that the data set has a Skewness of 1.164; which means
there is non-symmetric distribution of the scores which are bunched up on the left of the
score scale; “Very important” and “Important” categories. On the other hand, the Kurtosis of
2.628 signifies relatively peaked and a heavier tail of distribution (Foster, 1998, P.88). At the
same time, the median of distribution of the scores is two; as such, the majority of the
An interesting fact was revealed, when the survey results were statistically analysed for
gender. The result of t-test provides an assessment of difference between the mean in each
set of data in the sample as illustrated in Table 11. This indicates that there is a variance on
perception of cost between male and female in relation to selection of holiday destinations.
The mean of Male participants is 1.76 in comparison to the means of whole sample; 1.61
and 1.47 of females. These results indicate that the perception of male on cost of travel is
Further, Table 12; illustrates the variation of mean in the distribution of score of “Cost,” in
relation to the income of the survey participants. Analysis shows that the mean increases
with the increased annual income. That is, the participants in the lower bracket of income
consider that the cost of travel is “very important” while the participants in the higher income
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10.7 How far following a budget is important for them in planning a holiday?
The responses to the question; "importance of following a budget in planning holiday” have
been statistically analysed and illustrated in Table: 13 above. The statistical median is
established at two, indicating following a budget is “important” like in the case of cost. In
addition to the higher standard deviation, Skewness and Kurtosis are placed between 1.021
and 1.202 respectively. It indicates that the decision is comparatively divided. However, the
t-test analysis of gender further provides the evidence that the perception of both genders on
the subject matter is unanimous as it has been noted before.
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The t-test on gender analysis of group data as illustrated in Table 15, shows that Males
inclined to spend more ($3001 - $4000) on overseas holiday than females; the mean is 2.29;
indicating that they tend to spend $2001 - $3000; so does the whole sample. The standard
deviation of 1.178 in female is slightly higher than the case of male, shows that the decision
10.9 What factors influence on their decisions to choose Asia as a holiday destination?
Factors
Particulars
Cost Experience Weather Beaches Guided To.
The next question in the survey asks the participants, if they select Asia as a holiday
destination what influences their decision. Statistical analysis of Table 16 shows that the
“cost” is most important in choosing an Asian holiday destination with median of one. The
standard deviation relating to that response was below one; therefore, the decision is firm
and undivided. The other most important factors influencing the decision were “gaining
Experience” in the second place and “Weather” in the third place. The least important factor
was “Guided Tour.”
“Weather” as the third deciding factor has the broader distribution among the set of scores;
meaning the choice is highly distributed. The negative Kurtosis also supports the aforesaid
line of reasoning. On the other hand, the negative Skewness shows a longer left tail, where
the mass of the distribution is concentrated on the right of the data set.
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10.10 Their likelihood of visiting specific Asian countries
The survey participants were subsequently asked to indicate their likelihood of visiting given
six Asian countries. This question used a six point sale with 1 = most likely and 6 = least
likely.
The lowest mean represents the most popular choice; which is Singapore with the mean of
2.9 (Refer Table: 17). Bangkok and Japan have been chosen second and third respectively,
while Sri-Lanka has been picked for fourth as an Asian holiday destination. The higher
standard deviation, ranging from 1.6 to 1.7 in all the cases, indicates that the data sets have
been spread out over a wider range of scores; indicating a divided decision.
Statistical analysis in Table 18, on gender indicates the variation of preferences. The lower
mean signifies the stronger preference of the particular gender for specific destination.
Females show stronger preferences for Singapore and India than do males, while males
prefer Bangkok, Japan and China. The picture changes in the case of Sri Lanka, where Male
and Female preferences are equal.
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10.11 How important is the given categories in influencing the aforesaid selection of Asian
travel destination?
In the next question, the participants were asked to rank on a five-point scale the importance
of various factors influencing their choice of a destination in Asia. The “mode” in Table 19
signifies highest frequency of a particular value in the data set, when participants have
ranked the selections in the scale where, 1 = most important and 5 = least important.
Analysis of Table 19 shows that the “Best travel cost” has the lowest mean; therefore, most
of the participants have selected it as the most influential factor in their choice of destination.
The categories; “Easier overall” and “Best accommodation” have been ranked second and
third respectively, while “Travel safety” and “Nonstop flight” have come next in the order. The
relatively low standard deviation in “best travel cost” points out that the selection is
unanimous.
The questions specifically on Sri-Lanaka were asked next in the survey.
The participants were given six well known facts about Sri-Lanka and asked to rate them on
a six point scale where 1 = first recollection.
As per Table 20, the first recollection with lowest mean was Tea, while Cricket and War have
come to second and third in the order. The last rated recollection was wildlife. The standard
deviation in this question has higher values ranging from 1.3 to 1.7, indicating a divided
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10.13 What kind of accommodation is preferred, if they travel to Sri-Lanka?
As indicated in Table 21, the responses for the question about the accommodation in Sri-
Lanka, received divided answers with over 22% for each of the four categories. The median
of 2 indicates that the majority of participants prefer “3 star class” accommodation in Sri-
Lanka. However, the standard deviation of 1.105 and negative Kurtosis of 1.315 confirm the
indistinct distributed results. Further, the data set has a Skewness of 0.101; which means
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 53
11. CONCLUSION
It appears that most New Zealand travellers are primarily holiday seekers. The analysis of
the survey reveals perceptions and behaviours of New Zealand travellers, and facts which
may be used in tourism marketing.
New Zealanders have proven very accepting of the internet as a means of information
gathering (“Internet World Stats”, 2008), although purchasing travel products over the
internet has not increased at the same pace. Booking travel over the internet may be quite
complex as travel products are not always clearly described accurately; travellers do not
have the advantage of best product and price comparisons without knowledge of all travel
information, such as insurance, visas and health requirements etc. But, they are served by
highly trained travel agents who ensure that important information is provided and
understood by their client (“The Evolving Role of Travel Agents”, 2009). Similarly, in the
survey analysis, travellers continue to regard travel agents as a convenient and trusted
Commonsense suggests that higher income of prospective travellers should result in higher
frequency of overseas travel. Yet, survey results show that the frequency of travel decreases
with increased income. This suggests the hypothesis that the higher the income of people,
the incidence of overseas travel decreases. As a matter of speculation, higher financial
commitments associated with increased income might cause the situation. The analysis
further revealed that the travel cost is allied with the income of travellers, where perception
on subject matter changes from “Very Important” to “Important,” along with increasing
income of travellers. Therefore the prospective travellers in the lower income bracket are
shown to be more cost conscious, though they have higher propensity of travel. The
questions relating to travel expenses carried an undivided answer, indicating the attitude on
the subject matter is unanimous. Moreover, the most popular purpose of overseas holiday is
“Sightseeing” out of other given common travel activities. The other push factors with regard
to New Zealand out bound tourism, in an order of importance were; relaxing, escape,
shopping and participating activities etc.
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The responses on Asian travel focused questions revealed that the cost is the prime
motivator or the pull factor for New Zealand travellers. Travellers have shown that they were
keen to take that challenge as an “Experience;” indicating that New Zealand is also a
potential market for Asian inbound travel operators. Singapore was the most popular Asian
travel destination of New Zealanders out of the given alternatives. Tour marketers in those
countries should take advantage of the gender analyses, in implementing focused marketing
New Zealand travellers chose Sri-Lanka as the fourth-preferred Asian holiday destination.
The question specific to Sri-Lanka indicates that the prevailing war, confined to the Northern
part of the country is not the first recollection of New Zealand travellers, but the third. This
suggests that there is scope to promote travel packages to Sri-Lanka when war does not
look like a barrier, if tour packages are planned taking into consideration the push and pull
factors noted before. Moreover, the country is endowed with a heritage of over 2500 years,
which has left ruins of the ancient civilisation. This suggests a strong point of value addition
The outlook of New Zealand outbound tourism in the long term is still positive amidst the
current economic turmoil. Overall it seems that New Zealand outbound tourism needs to be
understood that not all travellers have similar interests and perceptions, as supported by the
findings of this research. In the circumstances, tourism operators are required to find the
balance between what they want to provide to travellers by way of experience, with greater
understanding of why travellers should choose such experience and which component of
those aspect the travellers enjoy the most.
This report has been a very brief overview of the market, drawing on various data sources
and a brief consideration of their implications for the outbound travel segment. In the
of study.
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 55
REFERENCES:
Maslow's Hierarchy of Needs. (2009). Abraham Maslow. Retrieved April 4, 2009, from
http://www.abraham-maslow.com/m_motivation/Hierarchy_of_Needs.asp
Annual Statistical Report of Sri-Lanka Tourism. (2007). Sri-Lanka Tourism Development
Authority, Research & International Affairs Division. Retrieved January 1, 2009, from
http://www.sltbstatistics.org/Annual%20Report%202007.pdf
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Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 58
APPENDICES
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 59
Appendix – a: Questionnaire for Travellers
My name is Lalith Siriwardena. This research is a part of my MBA programme. I am exploring behaviours,
attitudes and perceptions of NZ travellers. The objective of the research is to understand factors that influence
the travellers to choose Sri-Lanka as a holiday destination.
Please note that no personal information will be collected and stored and only group results will be reported in
the thesis. You can skip over any question/s given in there. If you fill in and return the questionnaire, I will
assume that you have given the consent for this research. Further, if you have any questions in this regard,
please do not hesitate to contact me on email:lalith@ihug.co.nz or my supervisor Dr. Tim Lockyer on
email: LOCKYER@waikato.ac.nz. Thanks for agreeing to take part in this research.
For each question, please select relevant answer that most closely represents your situation, rating from 1 to 5
where 1 equals most likely and 5 equals least likely. Please note that there is no right or wrong answer.
1. Have you travelled overseas for holiday in the last 12 months?
Yes No
2. How do you normally book your air ticket?
a) Through Agent b) Booked online
3. How often did you travel overseas for holiday?
a) Once in past 3 years b) Twice in past Three Years
c) Three times in past 3 Years d) I didn’t travel very much in past
4. How many days on average do you normally spend for your overseas holiday?
a) Less than 5 dys b) Between 6 – 10 dys c) Between 11 - 15 dys d) More than 15 dys
5. If you think of a perfect holiday, what is important to you? Please rate each of the followings from 1 to 5.
Use each number only once.
Category Very Important Neither Unimportant Very
Important Important or Unimportant
Unimportant
Escape 1 2 3 4 5
Sightseeing 1 2 3 4 5
Relaxing 1 2 3 4 5
Activities 1 2 3 4 5
Shopping 1 2 3 4 5
Others Please specify
6. Please indicate on the following scale how important the cost of travel (air fare + accommodation) is to the
selection of your holiday destination? Please rate each of the followings from 1 to 5 by circling a number.
Very Important Important Neither Important Unimportant Very Unimportant
or Unimportant
1 2 3 4 5
7. In planning a holiday how important is to follow a budget closely? Please rate each of the followings from 1
to 5 by circling a number
Very Important Important Neither Important Unimportant Very Unimportant
or Unimportant
1 2 3 4 5
8. On average how much do you normally spend on an overseas holiday including flight and accommodation?
Please Tick the appropriate box.
a) $1000 - 2000 b) $2001 - 3000
c) $3001 - 4000 d) $4001 - 5000
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 60
9. If you select Asia as the destination for your holiday what influences your decision? Please rate each of the
followings from 1 to 5. Use each number only once.
11. How important is each of the following categories in influencing your selection as in question 10. Please
rate each of the followings from 1 to 5. Use each number only once.
Thank you very much for your assistance in completing this questionnaire. If you wish to receive the summary
of findings please email your request with contact details to:lalith@ihug.co.nz
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 61
APPENDIX – b
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 62
APPENDIX – C
New Zealand Resident Departures
1983 - 2007
Year New Annual %
Ended Zealand change change
December resident
departures
1983 360,793 -15,118 -4.0
1984 379,764 18,971 5.3
1985 378,491 -1,273 -0.3
1986 490,515 112,024 29.6
1987 637,149 146,634 29.9
1988 757,154 120,005 18.8
1989 716,329 -40,825 -5.4
1990 717,278 949 0.1
1991 778,956 61,678 8.6
1992 750,895 -28,061 -3.6
1993 799,659 48,764 6.5
1994 823,834 24,175 3.0
1995 920,107 96,273 11.7
1996 1,092,879 172,772 18.8
1997 1,132,200 39,321 3.6
1998 1,166,720 34,520 3.0
1999 1,184,922 18,202 1.6
2000 1,283,439 98,517 8.3
2001 1,287,296 3,857 0.3
2002 1,293,935 6,639 0.5
2003 1,374,408 80,473 6.2
2004 1,733,210 358,802 26.1
2005 1,871,801 138,591 8.0
2006 1,863,784 -8,017 -0.4
2007 1,980,215 116,431 6.2
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 63
APPENDIX – d
Outbound Travel – all countries (Source – Key Statistics, Ministry of Tourism NZ)
APPENDIX – e
Outbound Trips by NZ Residents (Source – NZ Tourism)
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 64
APPENDIX – f
Outbound Travel to Asia
Percentage
Numerical change
2006/07 2007/08 2008/2009 change from
from previous year
Week previous year
number Four Four Four One One
Depart Departur Depart Current Current
weeks weeks weeks year year
ures es ures year year
ended ended ended ago ago
1 01/10/06 21,965 30/09/07 23,031 28/09/08 20,979 1,066 -2,052 5 -9
2 08/10/06 21,481 07/10/07 22,464 5/10/08 21,324 983 -1,140 5 -5
3 15/10/06 20,679 14/10/07 21,006 12/10/08 22,004 327 998 2 5
4 22/10/06 17,631 21/10/07 17,739 19/10/08 21,427 108 3,688 1 21
5 29/10/06 16,328 28/10/07 17,496 26/10/08 19,739 1,168 2,243 7 13
6 05/11/06 16,900 04/11/07 17,529 2/11/08 19,964 629 2,435 4 14
7 12/11/06 18,824 11/11/07 19,316 9/11/08 19,890 492 574 3 3
8 19/11/06 21,918 18/11/07 22,481 16/11/08 21,898 563 -583 3 -3
9 26/11/06 24,544 25/11/07 24,351 23/11/08 24,382 -193 31 -1 0
10 03/12/06 27,330 02/12/07 27,677 30/11/08 26,078 347 -1,599 1 -6
11 10/12/06 28,078 09/12/07 28,960 7/12/08 27,273 882 -1,687 3 -6
12 17/12/06 28,842 16/12/07 29,850 14/12/08 27,135 1,008 -2,715 3 -9
13 24/12/06 31,564 23/12/07 34,549 21/12/08 29,578 2,985 -4,971 9 -14
14 31/12/06 31,380 30/12/07 35,929 28/12/08 33,170 4,549 -2,759 14 -8
15 07/01/07 27,154 06/01/08 31,443 4/01/09 30,930 4,289 -513 16 -2
16 14/01/07 21,990 13/01/08 26,983 11/01/09 . 4,993 . 23 .
17 21/01/07 17,560 20/01/08 20,198 18/01/09 . 2,638 . 15 .
18 28/01/07 14,272 27/01/08 15,756 25/01/09 . 1,484 . 10 .
19 04/02/07 14,703 03/02/08 16,788 1/02/09 . 2,085 . 14 .
20 11/02/07 15,079 10/02/08 15,519 8/02/09 . 440 . 3 .
November 27,742 27,664 27,898 -78 234 0 1
December 34,140 38,657 . 4,517 . 13 .
January 15,136 17,226 . 2,090 . 14 .
February 13,473 13,959 . 486 . 4 .
APPENDIX – g
New Zealand Resident Short-term Departures 1950-2000
(Source: Statistics NZ)
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 65
APPENDIX – h
New Zealand Resident Departures by Region of Residence 2004 - 2006
(Source: Statistics NZ)
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 66
APPENDIX – i
Characteristics and motivations of outbound tourism of New Zealand & Selection of Sri-Lanka as a Travel destination: An analytical report Page 67