Research on expenditure by holiday park visitors released.

22/02/10

 The Holiday Accommodation Parks Assn (HAPNZ) has released updated research that provides a valuable insight into the economic benefit of holiday park visitors to a local community.

 

A media release from HPANZ says that the study was completed by independent tourism research specialists Angus & Associates over the peak December 2009 to January 2010 period.

 

“We are looking to focus on better understanding our markets and the economic contribution made by visitors. It’s clear from this research that the profile, travel patterns and expenditure of international and domestic visitors to holiday parks during the peak season are very different but that both groups are extremely valuable to their host communities” said Fergus Brown chief executive of the Holiday Accommodation Parks Assn.

 

It is clear from the updated findings of this project that the profile and travel patterns of international and domestic visitors to holiday parks during the peak season continue to be very different. At present domestic visitors make up around two thirds of holiday park visitor nights annually and international visitors one third.

 

Domestic holiday park visitors tend to be frequent visitors to this style of accommodation and are most likely to be middle aged. They are more likely to be travelling with children and in larger groups than international visitors. At this time of year they tend to have ‘stay put’ holidays, travel by private vehicle and be away from home for 1-2 weeks.

 

On the other hand, international visitors staying in holiday parks at this time of year are most likely to be from UK/Europe or Australia. They are younger than their domestic counterparts, and less likely to be travelling with children. They have a relatively long length of stay in New Zealand, move around frequently and use a range of accommodation types during their visit (although approximately 80 percent of nights are spent in holiday parks).They are most likely to be travelling in a campervan or (to a lesser extent) a rental car.

 

Holiday park visitors spend an average of $98 per person per day. However there are significant differences in spend by origin of visitor, region visited and accommodation type used – with average expenditure for different groups ranging anywhere from $62 to $217 per person per day.

 

In comparison with the 2006/07 peak season, average daily expenditure has increased, but not by enough to account for inflation over the period. Average total trip expenditure has increased relatively more – mostly fuelled by longer lengths of stay.

 

Generally international visitors spend significantly more than domestic visitors, however domestic visitors are more frequent/loyal visitors to holiday parks and make up a greater proportion of the market, so whilst the international market might seem lucrative, the domestic market remains important.

 

Further, international visitors have a much shorter average length of stay at a holiday park (since they tend to be ‘touring’) – so although they may spend more on a daily basis, domestic visitors spend more on a ‘per stay’ (or ‘per arrival’) basis. Domestic visitors are also much more likely to return to a park in the future, some for many consecutive years, whereas international visitors (mainly due to travel distance) are much less likely to be repeat visitors.

 

In terms of the economic benefit to the community in which a holiday park is located, it is clear that visitors are spending money on a wide range of goods and services – not just those that are strictly tourism related.

 

Given that domestic visitors tend to be making ‘stay put’ trips during the peak season, their expenditure is likely to be very concentrated in one place. Domestic visitors also tend to return to the same spot year after year so for this group expenditure is not only concentrated in a region, but also likely to make a contribution to the local economy for many years.

 

International visitors tend to spend more during a trip overall. Although they tend to make just one trip to tour New Zealand, international visitors staying in holiday parks have a long length of stay in the country. In contrast to domestic visitors, they visit a wide variety of locations on their trip and move to different regions frequently. As such the impact of their expenditure tends to be spread widely throughout the different regions of New Zealand. In this respect the two markets are quite complementary to each other.

 

Examples of the data collected follow

 

FREQUENCY OF HOLIDAY PARK USE

In this latest study, visitors were asked about how many times they had stayed at the holiday park that they were interviewed at – to determine the level of repeat business on an individual holiday park level, rather than purely loyalty to the style of accommodation.

 

Unsurprisingly, the vast majority of international visitors (92%) were staying at the park for the first time. In the domestic market the picture was very different however. Just under three quarters of the domestic visitors interviewed had stayed at the park previously, just under half (47%) were on at least their fourth visit, and just under one quarter (24%) reported having stayed at the park 11 times or more.

 

VISITOR INFORMATION AND BOOKING SERVICES

 

Many holiday parks now offer visitor information and booking services in order to provide a more comprehensive service to their guests, and as a means of additional revenue.

 

Respondents were asked whether they had used this service at the holiday park where the interview took place, and if so, what they had sought information on or booked. Some 39% of domestic visitors and 56% of international visitors had used this service at the park of interview, and at the time of interview.

 

Information and/or booking for activities and attractions was most commonly sought – but more so by international visitors (43%) than domestic visitors (32%). Demand for information and/or bookings for restaurants and cafes was similar in both markets at just over 20%, whilst demand for information and/or bookings for onward accommodation and transport was much higher in the international market.

 

Information requested by respondents in other areas included directions, weather forecasts and information about local events.