China Southern Airlines starts new direct service to Auckland

The inaugural flight to New Zealand by China Southern Airlines arrived in Auckland yesterday launching a three flight a week direct service that is being highlighted as a significant opportunity for New Zealand’s tourism sector and economy.

Aboard flight CZ305 was a 100 strong delegation including airline and tourism officials, and media, who were welcomed by Prime Minister John Key and Simon Moutter, Chief Executive, Auckland International Airport.

As the third largest airline in the world and Asia’s biggest, the arrival of China Southern Airlines will provide a direct link between the twin cities of Guangzhou, China, and Auckland, flying A330-200, 218 seat passenger aircraft.

Simon Moutter, Chief Executive, Auckland International Airport, said the timing of the arrival is a significant milestone for the Airport and will benefit New Zealand by furthering important visitor, education and business connections between the two countries:

“With $18.6 billion already contributed to the New Zealand economy by tourism we are constantly looking at new destinations and growth markets to fuel the country’s wide ranging economy and extensive tourism sector. It is anticipated that the new service will bring in an extra 25,000 visitors per year and generate $75 million of additional value.

“China and its people are increasingly important to New Zealand. In 2010, Chinese tourist arrivals increased 20% to 123,000, and they are now spending on average $300 per night, more than European, North American and other Asian tourists. We expect this to grow as the Chinese become more confident travellers. This new service is particularly important to New Zealand as China has already become the number one tourism market by value to Australia at $3 billion AUD.

“And for business we can’t ignore the potential of the Chinese market, with an economy growing on average 8% over the last four years and with over 1.3 billion people. Increased air-links with China will boost NZ tourism, business and trade, especially following the signing in 2008 of the NZ/China free trade agreement, the first between China and a developed nation. There is no doubt this new route will support our economy at an important time,” says Mr Moutter.

China Southern Airlines flight CZ306 is scheduled to leave Auckland on Mondays, Wednesdays and Saturdays at 2200hrs. The return flight, CZ305, leaves Guangzhou at 2350 (local time), and arrives in Auckland at 1520 the following day. Flights depart Guangzhou Baiyun airport on Tuesdays, Fridays and Sundays. The new route will improve access across China, through the airline’s Guangzhou hub, with travellers not needing to change airlines when travelling further into the country.

Kevin Bowler, Chief Executive Tourism New Zealand highlighted the benefits of the new route: “The partnership with China Southern Airlines is highly valued and welcome news for New Zealand’s tourism sector. We are committed to providing ongoing support for this new route and look forward to welcoming a greater number of visitors, not only from southern China but from throughout China.

“China presents enormous opportunity for New Zealand, with 50 million international departures expected to double over the next five years. Thanks to strong partnerships with the likes of China Southern Airlines, I am confident China will, in the next few years, become New Zealand’s third largest source of inbound visitors.”

Mayor Len Brown is delighted to welcome China Southern Airlines to New Zealand’s largest city.
“This development furthers the important visitor, education and business connections between Auckland and our partner city of Guangzhou. We look forward to showcasing the diverse Auckland region to around 25,000 Chinese visitors that will travel on this new route,” says Mr Brown.

China Southern Airlines operates a modern fleet of over 400 Boeing and Airbus aircraft and flies to 34 cities across China. The A330-200 aircraft to be operated between Auckland and Guangzhou will feature 142 economy seats, 48 Premium Economy class seats, 24 business class and 4 first class. Flying time to Guangzhou is approximately 11.5 hours.

The 100-strong delegation will be spending five days touring New Zealand visiting Auckland, Wellington and Queenstown.

National Tour Details

9th April: Arrive Auckland Airport at 1520
10th April: Auckland famil day including trip to Waiheke Island
11th April: Auckland, including Gala Dinner at Auckland Museum
12th April: Queenstown
13th April: Wellington

During the tour the delegation will be meeting with, government officials, major tourism operators and trade representatives.

Key facts:

· China Southern (CZ) will commence a three times a week A330-200 (218 seat four class) direct services per week between Guangzhou and Auckland arriving in Auckland at 1520 on Saturday 9th April, 2011.
· China Southern Airlines has to date spent almost $10 million promoting New Zealand as a tourism destination for Chinese travellers.
· New Zealand currently welcomes 123,000 visitors from China each year, making it New Zealand's fourth-largest visitor market after Australia, the UK and USA, and it is the fastest growing market.
· Chinese visitors are amongst the highest spending visitors to NZ – spending on average more per night than any other visitor with exception of Japan. With average expenditure per night of holiday visitors at over $300 per night we know these new flights will bring a significant increase the export earnings for New Zealand.
· Asia is now the biggest travel market in the world and forecast to grow the fastest over the next 20 years (IATA) with air-links being a critical component for accessing that potential growth.
· There have been over 115,000 visitor arrivals from China in the last 12 months ended Oct 2010 making it New Zealand’s number four tourism market and yet this is only 0.3% market share of Chinese Outbound Travel.
· Tourism New Zealand research indicates there are currently just under 17 million Chinese who would be “Active Considerers” so we could easily see China become New Zealand’s second or third largest visitor market.
· A Boston Consulting Group report published last month estimates the population of China’s Middle-Class and Affluent Consumers (MACs) will increase from 150 Million to more than 400 million over the next decade, and two-thirds of them will reside in small cities. With China Southern Airline’s large domestic network the ability to grow tourism is therefore significant. If NZ could attract just 1% of this group to visit our country it would nearly double New Zealand’s visitor industry.
· Outbound travel by Chinese residents to all markets has quadrupled to reach 46 million trips in just ten years.

www.destinationchina.co.nz