By Lisa Hopkins,
Cheif Executive
Business Events Industry Aotearoa
At MEETINGS 24 in Rotorua, we witnessed the business events industry come together and make significant strides in leveraging New Zealand’s cultural richness and collaborative spirit to drive economic growth. There is no doubt this MEETINGS will be remembered for how people felt, and that is a testament not only to RotoruaNZ, but to every single person who attended - buyer or exhibitor.
Not only did we see business exchanged, but also ideas, knowledge and innovation. Coupled with extraordinary manaakitanga, which touched the hearts of many, I can’t help but feel this event will be long remembered for its experiences.
But there is plenty happening in our sector at the moment. As I write this, we are still waiting for the June 2024 international arrivals data to be uploaded to the Stats NZ website. We track this monthly, and there are a couple of interesting observations.
May 2024 is the first month to record more international arrivals for business events, with a 6% increase compared to the same month in 2019. Arrivals from China and India show significant growth, with Australia at around 85% of pre-Covid levels for the same period.
We are also hearing about the softness in the accommodation sector, especially in the corporate and government space. There are hints of light in the centres with large conference spaces as conferences continue to be held, although we are keeping a close eye on this. Speaking with a Minister recently, I reminded him of the government's important role in our sector – not only hosting events but also contributing speakers, delegates and sponsorship. With government budgets tightening, our sector is feeling this decline acutely.
Tourism New Zealand's off-peak push
As you would have read, Tourism New Zealand has set an ambitious goal to increase international tourism revenue by $5 billion over the next four years, with a substantial portion expected from off-peak visitors. Business events are central to this strategy. In 2023, 83% of international delegate arrivals occurred between March and November, compared to 62% of holidaymakers.
This falls well within the business events' wheelhouse, and as an industry, we are delighted to play a strategic role in supporting TNZ in achieving its goals.
However, we also can’t forget that approximately 75% of New Zealand’s business events base is driven from the domestic market. Unfortunately, when there is an economic crisis, this sector is often seen as discretionary.
Hopefully, the economic indicators appear to be pointing in the right direction and this is just a moment in time which will begin to right itself towards the end of the year.
Strengthening industry collaboration
During MEETINGS 24, an agreement was signed between BEIA and the Professional Conference Organisers Association (PCOA). This Memorandum of Understanding (MOU) aims to enhance the business events industry across Australia and New Zealand through collaboration and knowledge-sharing. By combining resources and expertise, BEIA and PCOA will provide both PCOs and corporate and association event professionals tools, learning opportunities and the development of professional standards.
This is an exciting opportunity for New Zealand event organisers to upskill via a series of online webinars and in-person development. You don’t need to be a member of BEIA to take advantage of these webinars.
A united industry speaks out on the International Visitor Levy
Leaders from the tourism, hospitality, and event industries have been collaborating on industry-wide issues, with the latest focus on the International Visitor Levy (IVL). Currently, the IVL is a $35 levy charged to most international visitors to New Zealand. Australia and most Pacific Islands are the exceptions. It was introduced in 2019 to address current challenges in the tourism and conservation systems. The current government is keen to have this reviewed, including the size of the levy.
The public was invited to make submissions, and the associations collectively urged the government to adopt the smallest possible increase. There is growing concern that the cost of travelling to New Zealand, beyond airfare, is becoming a barrier for visitors and international business event attendees. We stressed the importance of making New Zealand an accessible and welcoming destination for all visitors.
We now wait for the outcome from the government.
While there might be some highs and lows ahead, the one thing we should all agree on is that New Zealand's business events sector is poised for continued growth. Strategic initiatives, collaborative partnerships, and a deep commitment to cultural authenticity and sustainability will drive it.
Posted by Lisa Hopkins on August 02, 2024
