Access Tourism NZ TOURISM FOR PEOPLE WITH DISABILITIES, SENIORS, AND AGEING BOOMERS IN NEW ZEALAND AND WORLDWIDE

Darren McClelland of Enjoy Inspire, Victoria, recently attended a forum on Access Tourism put on by the Victoria Tourism and Industry Council (VTIC).  The VTIC is cognisant of the fact that the population is ageing, experiencing increased disability, retiring, and travelling more frequently. Darren reports about the forum that several speakers gave presentations, including one on the imminent retirement of the Australian Baby Boomer generation, whose number one priority is travel.  Their average age will be 64, and over half of Australians 60 or older have a physical disability.  Therefore, Access Tourism is not a niche market but a large and very important one.   Successful Access Tourism case studies were presented, and Bill Forrester (who spoke at the first Access Tourism New Zealand conference in 2010), suggested that there is an information problem for accessibility more than an infrastructure problem.   He said that often facilities are available but tourism operators do not clearly explain the facilities or the level of assistance available from staff to help provide access. Sometimes this information is available but tucked away on a website, as if to meet legal obligations rather than treating people with accessibility needs as a valued customer.  Bill (Twitter: @Travability) explained that tourism operators should readily make enough detailed information available to customers for them to make their own decision about whether it is safe and convenient to visit. He noted the sector is loyal and will bring friends if these customers feel safe and valued. Enjoy Inspire considers good information will enable visitors to make their own risk assessment and will provide less inconvenience to operators from unexpected surprises for guests with accessibility needs. For instance, an accommodation provider could explain clearly on its website where rails are situated in its guest rooms along with the height of the rails from the floor. An explanation of internet access and whether televisions have captions functionality will assist those with hearing difficulties.

The newly released New Zealand Regional Visitor Monitor (NZRVM) shows that the percentage of  domestic visitors who are 45 years of age or older visiting regions in New Zealand has increased over the last several years.  To the year ended March 2011, that percentage was 44%.  The percentage of international visitors 45 or older has remained fairly stable at around 29-32%.  But this percentage is bound to increase as Baby Boomers retire and begin to travel more.  The NZRVM also shows that for both domestic and international visitors, to “Challenge and Test Myself” is not a high motivator to visit, but New Zealand still promotes itself as an adrenalin destination.  Nothing wrong with that, but we should balance that out by looking at who our visitors  actually are and who they will be in the future.  There are very few grey hairs in New Zealand tourism advertising.   Hopefully the New Zealand tourism sector will take note of actual trends and begin to include older people in planning and advertising, as advocated by Access Tourism New Zealand many times before (most recently, here).

Meanwhile, in the USA, mainstream USA marketers are  working to target people over 45 – territory they previously left untended.  Why? There are more Americans aged 51 today than any other age, the average Baby Boomer is now 54, and the largest group of Boomers is aged 50-55.

The Silver Group recently polled 14,000 Americans aged over 50 to determine their attitudes to Age-Friendly brand experiences. Their research shows that  

• A brand’s ‘age-friendliness’ is critical in determining purchase decisions and choices for 6 out of 10 older consumers.
• All categories will be affected including travel/tourism (47%), sports gear (48%), apparel (53%), skin-care (46%), finance/insurance (54%)
• All customer touch-points need review including: product/service design (39%), retail environment (63%), website (45%), social network/reviews (72%), Advertising/PR (82%).

 Dispelling the myth that being ‘age-friendly’ means being ‘old’, the research showed that Apple is the most age-friendly brand among those surveyed so far. On the other hand, the process revealed flaws in major brands including Burger King, American Express, Singapore Tourism.  Creating an ‘age-friendly’ customer experience will be critical to retain loyalty and attract the business of the exploding older market.

American Baby boomers and seniors age 50+ are increasingly likely to have a cell phone, a laptop, or a game console, representing the fastest growing age segment to adopt social networking technology (Rhodda).   The American Association of Retired Persons (AARP) sees this as an opportunity to provide a connected lifestyle that blurs boundaries across home, work, leisure, and retirement, smoothly connecting online and offline lives.  Twitter use by 55-64 year old Americans doubled between November 2010 and May 2011, and also increased in 45-54 and those 65 or older (Pew International).  In Canada, those aged 55 or older are the largest drivers of social networking growth.  Canadians age 55 or older experienced 36% growth in unique social networking visitors and 48% growth in total social networking visits. Canadians 55 and up represent a combined 18% share of total social networkers. In contrast, social networking actually declined among Canada’s youngest consumers in the same time period. Canadians age 2-17 reported 9% fewer unique visitors and an 18% reduction in total visits (European Travel Commission).  Increasing tech use by older people will be important to tourism too.  A PhoCusWright report notes that by the end of next year, travellers will book one third of the world’s travel sales online.

In spite of these increases, the tech-enabled lifestyle is not yet widespread among older age ranges, and this is caused by  technology choices that are complex and devices and software that are difficult to use, even as their use becomes a necessity.  What is true for all technology is that there is good design, for example, new tablet computers, and there is bad design, for example TV remotes (AARP). Good design is intuitive and easy to use at any age.   To enable a connected living and social aging experience, vendors need to step up and begin to design for all, enabling user experiences that can appeal to all age groups (AARP).

The ageing market is a big market.  This year (2011), the leading edge of the nearly 80 million Baby Boomers in the United States will turn 65 and become “officially” senior citizens. But the Boomer generation isn’t just big — it’s made up of people who think and act differently than previous generations. As Boomers confront “old age,” they will certainly defy what we think it means to “get old.” It will “challenge us to rethink how we use the web and how we engage older people with newer technologies” (Jamie Carracher).  With the ageing of the population, “accessibility has to be built into the planning processes for new projects from the beginning, including consideration of design, text size and physical usability.”

NZ Senior Citizens Minister John Carter has recognized the growing importance of the older market to NZ tourism, but the message does not seem to have been heard by the NZ tourism industry.   Carter, in talking about a new SuperGold card reciprocal agreement with Australia, notes that the over 65s are a fast growing population who are travelling more, with over 100,000 Kiwi seniors heading to Australia each year. “70,000 Australian seniors head for our shores each year and spend over $131 million while they are here……With all the travel our citizens do between our two countries, I can see this as a great opportunity to grow seniors tourism and build on the ANZAC spirit.”

The seniors market seems to be largely neglected in New Zealand. Currently, Tourism New Zealand (TNZ), which is NZ’s official overseas marketer is running a global – including in Australia – youth campaign called There’s Too Much To Miss with the objective of driving as many 18-29 year olds to the TNZ site as possible (IT 827).  Another current marketing effort is the 100% PureYou campaign, which in the Australian market shows young women jetboating, a man of about 35 with his young children, and a young women horse riding.  Not a single grey hair in sight. The snapshot of this campaign in other markets also does not show anyone with grey hair – except for a guide.  In addition, there is only one older couple in the What do You Say UK campaign, the remaining dozens of interviewees/models all look younger than 45. 

According to Travel Today, TNZ has been forced recently to rethink its international marketing as the organisation had been “too carried away” with pushing an adrenalin theme.  Kevin Bowler told delegates at the Australian Tourism Exchange in early April that the organisation altered its marketing strategies midway through last year after research found interest in the destination was not converting as well as hoped.  “We probably got a little bit carried away with adrenalin and how exciting everything was.  As a result Tourism NZ has looked to promote more “relaxation and rejuvenation” product as it looks to secure more of what Bowler termed the “active considerers”.    This is a step in the right direction as a NZ Ministry of Tourism report released over a year ago finally recognized leading edge Baby Boomers as NZ’s largest domestic market segment.  The Domestic Market Segmentation report notes that this segment is asset rich, money is less of a barrier to travel than with other segments, and holidays are very important to them.   Also over a year ago – at the 2010 Australian Tourism Exchange – Michael Londregan, a California-based travel agent, who oversees Qantas’s holiday arm in the US and Canada, said at the Australian Tourism Exchange trade fair in Adelaide that Baby Boomers were the key market returning to international travel (ATNZ).  On top of that, NZ Ministry of Tourism data shows that the over 45s comprise around 45% of our international visitors.  There is nothing wrong with NZ appealing to a young market, but lets also go after those with grey hair and money.

Cruise ships and the companies that run them have become much more attuned to meeting the needs of their ageing and disabled passengers.  No longer is the stereotypical cruise passenger fit, healthy, and dancing – instead many are using walkers, canes, wheelchairs, and scooters  Some cruise passengers may have sight loss, be blind, have hearing loss or be deaf, and cruise lines are pursuing this market opportunity.  This has been prodded not only by considerations for the bottom line, but also by changes in laws. Under Maritime law, a ship’s flag determines what country has jurisdiction. Therefore, an American ship flying an American flag off the coast of Africa is still governed by American maritime law; similarly, Italian law would govern an Italian ship on the coast of California.  However, as of 2004, foreign cruise lines sailing in U.S. waters must comply with the Americans with Disabilities Act, which requires access to passengers in wheelchairs. And last year, a new USA Department of Transportation rule was announced which ensures vessel operators policies do not discriminate against passengers with disabilities.   In Europe, cruiselines, tour operators and travel agents will need to work more closely to ensure they do not breach new European Union regulations on selling cruise holidays to disabled clients.  The EU Regulation 1177/2010, which gives new rights to cruise and ferry passengers, becomes law on December 18, 2012. Breaching the new rules- which apply where embarkation is in the EU – will result in a penalty.

Cruise Lines International Association (CLIA) predicts that the 2011 cruise season will be better than ever before, with 16 million passengers (an increase of 6.6%).   Here in New Zealand, the number of Kiwis taking a cruise has reached a record high, increasing 62% over the last five years.  The important role played by older tourists in this growing sector was in February recognized by the NZ Tourism Industry Association when CEO Tim Cossar stated that “the cruise market is being driven by high spending Baby Boomers”.  In spite of that, our ports are ill prepared for an influx of older visitors.   Cruise passengers travelling to New Zealand tend to be in older age groups.  72% are aged between 55 – 74 years, while only 5% are under the age of 40 (2006/2007 Cruise Research, Tourism New Zealand).  Along with an increase in the age of our visitors will come an increase in visitors with disabilities because disability increases with age.  Given this, the rise in cruise numbers, and the increasing provision of access on ships resulting in more passengers that have disabilities using those ships, Access Tourism New Zealand will continue to advocate for an improvement in access at NZ ports. 

For information about cruise lines and access – including caveats against particular choices – and for cruise tips for people with disabilities, visit the Cruise Critic website.

In February, the USA  Environmental Protection Agency (EPA) announced the winners of the fourth annual “Building Healthy Communities for Active Ageing Award”.  The principal goal of the Award program is to raise awareness across the US about healthy synergies that can be achieved when communities combine and implement the principles of smart growth with the concepts of active aging.  

What began as an initiative by the World Health Organization in 2007 has now trickled down to cities across the US, Canada, Europe, Latin America, and beyond. In its push for the continued creation of environments that foster social inclusion and social participation, WHO stresses that “Active ageing is a lifelong process, …[therefore] an age-friendly city is not just ‘elderly friendly.’

Smart growth principles include  communities designing places that increase mobility and improve quality of life. Neighborhoods that integrate homes with shops, services, and parks and recreational facilities allow residents—especially older adults—to pursue an interesting and active life without depending on a car.  Active aging takes place when elders regularly participate in structured and unstructured physical activities.  By 2030, the 65 and older population in the United States is expected to reach nearly 20 percent, or more than 70 million.  Communities can promote Active aging by implementing a diverse array of accessible physical activity programs or self-directed activities such as walking and biking to local parks and greenways.

The EPA Achievement Award winners are public sector entities or neighborhood or non-government organizations that demonstrate excellence in building healthy communities for active aging.  One of the 201 winners was the City of Charlotte, North Carolina.  In the last five years, Charlotte has built sixteen miles of greenways, 88 miles of bike facilities and 106 miles of sidewalks have been completed. By retrofitting dozens of streets and adding ADA (Americans with Disabilities Act) ramps at intersections, the City has made improvements for pedestrians of all ages and abilities.  The other recipient was Brazos Valley Council of Governments, Texas. Brazos improved biking and walking facilities, developed a wheelchair accessible trail system at Wolf Penn Creek, and a LifeTrail™, a fitness circuit designed to meet the needs of persons of all abilities, amongst other things.

Meanwhile, Colin Milner, CEO of the International Council on Active Aging points out that those 50 and older represent a huge market.  ”While there’s bound to be some segmentation, certain values, principles, and social-economic forces are converging to the point where we can make some predictions for the market as a whole.”  These include growth of “green exercise” and green communities. “Hiking, trail walks, meditation gardens, labyrinths, cycling paths, gardening, and eco tourism will flourish going forward,” says Milner

 Sources: US Environmental Protection Agency (EPA)

In a positive step forward, the New Zealand Government has recognized the skills, knowledge and economic power of older people and how these will benefit New Zealand’s economic competitiveness in the next 40 years.  Minister for Senior Citizens John Carter – in releasing a report called The Business of Ageing, Realising the economic potential of older people in New Zealand: 2011-2051   – said that in less than 20 years, one million people in New Zealand will be over the age of 65, compared to about 560,000 today. And in 40 years, one in four people will be aged over 65, compared to one in eight today.  “People over 65 are predicted to be our only growth market in terms of demography. They will become one of the most significant consumer markets in New Zealand. They will have their own needs and preferences that are quite different from earlier generations of older people, and also quite different from younger people.  Baby boomers will be healthier, better educated and have more spending power than any other generation reaching 65 in New Zealand’s history.  They want to stay active and keep working. Flexible work options could drive job growth and help us respond to projected skill and labour shortages.  Government cannot work in isolation to develop priorities for older people, so buy-in from the business sector, employers and people of all ages is essential to capture the possibilities this report outlines” said Carter.

That the mature market is hailed as a good example of an opportunity for New Zealand, both domestically and internationally is a major step forward.   The report mentions tourism amongst other things.  Certainly, in tourism, there has been little recognition of the growing importance of this market.  The first mention of the fact that “travellers in the older age groups will become even more significant in the future” occurred in the Ministry of Tourism’(now part of the Ministry of Econmic Development) report, Interenational Visitors Tourism Sector Profile, in June 2009.  Then last year (2010), Prime Minister and Minister of Tourism John Key said that moteliers should not be surprised if their market becomes increasingly retired people. “They will travel around New Zealand as they will have more time on their hands and will want see the West Coast or whatever and you will get more of them as at the moment New Zealand has 535,000 over 65 and in 40 years it will have a million.” said Key.    Also in 2010, the government released a report which recognized the importance of the older market.  The report – Domestic Tourism Market Segmentation - went on to state that major barriers to this group travelling are “health and disability (their own or that of a travelling companion) as well as lack of travelling companions”.    

This latest report states that ”A tourism industry that responds to the changing demands of baby boomers over 65 could have spin-off effects for other industries and stimulate regional economic growth”. As Access Toursm New Zealand has pointed out on numerous occassions, if New Zealand is to seriously market to and cater for older travellers (or indeed, older markets in general), it has to take into consideration that disability increases with age, and must improve its access tourism offer.  Instead of seeing a person’s disability as a barrier (as the Segmentation Report does), it must look at  environment factors such as inaccessible tourism websites, transport, accommodation and other innaccessible products as disabling.

The Annals of Leisure Research is seeking papers for a special issue that examines the inclusion and citizenship of people with disability in “cultural life” (recreation, leisure, the arts, sport, or tourism).  The purpose is to:

a)      clarify what the terms inclusion and citizenship mean in different cultures;

b)      to place inclusion and citizenship to ‘cultural life ‘(recreation, leisure, the arts, sport or tourism) across discourses relating to economic, social and environmental contexts that affect people with disabilities participation; and

c)       to discuss the terms inclusion and citizenship from the ideological frameworks of government, researchers, providers of service or disability advocacy groups.

Submissions are sought from the consumer (demand), providers (supply) and coordination/regulation (government) sector perspectives. The guest editors invite interested researchers to contribute theoretical, methodological or empirical papers related to the theme of this Special Issue. The topics of potential papers include but are not limited to:

• The role of inclusion and citizenship in the construction of ‘cultural life’(recreation, leisure, the arts, sport or tourism) environments and experiences;
• What is the impact of inclusion/exclusion on the person and their experiences?;
• The social and/or cultural construction of inclusion in ‘cultural life’(recreation, leisure, the arts, sport or tourism) activities and experiences;
• The role of inclusion in the construction of cultural, sub cultural and personal identities of different societies;
• The role of inclusion in the construction and/or deconstruction of the intersection with gendered, ethnic and sexual identities within the experience of ‘cultural life’(recreation, leisure, the arts, sport or tourism);
• How experiences of inclusion compare and contrast between different dimensions of disability (e.g. mobility, vision, hearing, cognitive, sensitivities etc.);
• The impact of inclusion and citizenship within space and place making

Important Dates:

• Abstract deadline: 30 June 2011 to Jerome(at)dal.ca
• Notification of acceptance of abstracts deadline: 1 August 2011
• Submission for double-blind reviewing process: 30 November2011
• Review Process Notification: 30 January  2012
• Special issue publication: June or December 2012

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The government of Singapore is creating an inter-agency office that will develop a more accessible urban environment for the country’s older citizens and wants to be a world leader in this field (ChannelNewsAsia.com). Called the “City for All Ages Project Office”, it will look at improving physical infrastructure to make it more senior-friendly, while supporting services that cater to this growing group.  The first of the Baby Boomers reached 65 this year, and the population of people over the age of 65 will continue to rise over the next 20 years.  Singapore is one of the fastest ageing societies in the world, with one million citizens born between 1947 and 1965.  The goal of the office is to make a city that is both affordable and liveable to Boomers and seniors.  This is a smart move by Singapore because not only will it make the city more accessible for residents, but it will also be more accessible for visitors, who are also ageing.  The agencies involved are: the Ministry of Community Development, Youth and Sports (MCYS), Ministry of National Development (MND), Housing & Development Board (HDB), Urban Redevelopment Authority (URA), Centre for Livable Cities (CLC), Economic Development Board (EDB) and SPRING Singapore.  The office will report to the Minister in charge of ageing issues Lim Boon Heng.   “Let me explain what we mean by ‘liveability’. It goes beyond being barrier free. It goes beyond universal design,” said Heng. “Liveability takes into account the socio-psychological needs of older people, including the need for familiarity, sense of place and sense of safety and convenience.”  The agency plans to accomplish these objectives by coordinating research efforts, and  encouraging the design of new products and services for Boomers.

Derek Thompson, who writes about technology for The Atlantic, predicts that as the world ages, the development of technology will expand to cater the needs of the ageing.  A Pew Internet study shows that 81% of younger Boomers (those born between 1956-1965), 76% of older Boomers (1946-1955), 51% of the Silent Generation (1937-1945), and 30% of the G.I. Generation (born before 1937) use the internet.  And Pew reports that “the fastest growth has come from internet users 74 and older: social network site usage for this oldest cohort has quadrupled since 2008, from 4% to 16%.”  Also, wireless net access is definitely not the exclusive province of youth. Like the recent iPass mobile workforce study — which put the median aged of a mobile-enabled worker at 46 — Pew found that 55% of people aged 46-55 access websites or other digital media or services via a laptop, cell phone, or other internet-connected mobile device.  And Baby Boomers are using the web as much or more than younger users to make travel reservations (Millenials 64%, Gen X 67%, Young Boomers 70%, older Boomers 67%, Silents 61%, and G.I.s, 53%).

 An American Express study reports that more than half (54%) of Canadians aged 55 to 64 say being able to access the internet anywhere has changed their overall spending habits. This indicates that devices such as Smartphones will continue to prove popular among Baby Boomers.  And in the USA, older shoppers make more purchase of health, beauty, food, and beverage products on line than do younger shoppers.   In addition, the percentage of older Americans using GPS is the same as for the younger groups (25%).  While younger age groups currently predominate on Facebook, about 20% are 40 or older.   And check this neat You Tube post from the American Association of Retired Persons (AARP), which shows that people 65 or older are adopting Facebook faster than any other age group,  that the largest group on Twitter are people 35-49, and that the largest demographic on Match.com is 50 year olds.

The second series of the annual CEO-level conference, Ageing Asia Investment Forum (AAIF) will be the first conference in Asia focused on healthcare and ageing well for Asia’s ageing baby boomers.  By 2050, the number of people in Asia above 60 years of age is expected to be 1.2 billion, four times higher than in Europe and the United States, combined. In Asia-Pacific, baby boomer (born between 1946 and 1965) consumers control and an estimated wealth of US$11 trillion.

AAIF will be held in Singapore from 4 – 6 April at Pan Pacific Hotel.   Focused on the business of enabling healthy ageing, 40 CEOs from over 12 countries will discuss investment and collaboration opportunities for Asia’s emerging silver industry.  Over 200 international top business, government and not-for-profit leaders from various major baby boomer and ageing markets will attend the forum.  An international panel of speakers form Asia’s fastest ageing markets – including Japan, China, Korea, Malaysia, Singapore will present and discuss:

• Health tourism
• Successful Japanese business models in accessing the ageing market
• industry collaboration and PPP investment opportunities in ageing Asia
• Asian healthcare groups strategies on longevity, preventive health, wellness, seniors housing and step-down care
• Identifying seniors’ living solutions for Asia: ageing-in-place versus retirement communities

Tony Gonchar, newly named CEO of the American Society of Travel Agents (ASTA) is keenly aware of the importance of Baby Boomers to the travel industry.  He told Travel Agent that “ The boomer generation is changing the industry and travel distribution and ASTA will have to adapt to new realities,” Gonchar said. “ASTA is indispensible to professional agents and can contribute mightily to our members ability to serve the traveling public and the new boomer market. But boomer expectations of their travel agent advisors have changed the equation.”  In a paper he wrote (A perspective on global wealth and your business), Gonchar pointed out that  Boomers today drive luxury spending based on sheer population size and available discretionary income. “Boomers control 80 percent of personal financial assets and 50 percent of discretionary spending power. They spend $500 million on vacations per year and represent 80 percent of all leisure travel.”

Newcastle University’s Institute for Ageing and Health (IAH) is Europe’s leading research organisation tackling the broad challenges of population. It is a major source of knowledge and innovation with potential for translation into products or services.  They lead the Newcastle Science City Ageing and Health theme and are committed to seeing genuine benefit, both social and economic emerge from their world class research. They work with businesses and other organisations to support the development of knowledge and innovation to underpin new products and services suited to a society with a much greater average age. According to IAH, few companies are prepared for the changing age demographic. Many seem stuck in the groove of automatically targeting their efforts at the younger generations: so far at least, many companies have failed to age with their customers. As with all forces for change, ageing presents a challenge and an opportunity. Companies that analyse the situation correctly and successfully should prosper.  Companies that engage and trade the 50+ market will be working with a longer living, healthier, more demanding and more diverse group of consumers which:

• Is a growing market with wealth spending power and high expectations
• Is currently 20 million strong in the UK and growing fast
• Holds 80% of the UK’s wealth
• Spends as much as 40% (£260bn) of UK consumer spend
• If aged between 50 and 65, spend twice as much on leisure and entertainment as the under 30s
• Own laptops (56%) and mobile phones (70%) (NSC)

A seminar about business opportunities and an ageing society will be held at Kirkley Hall, Ponteland Newcastle on 18 January.  Register here.

Tourism New Zealand, which markets NZ to the world, continues to ignore the older market.  At least, that’s what it seems like on looking at the three videos being used in their latest marketing campaign (“100% Pure You”) in Australia.  The videos feature three young women, a young couple, and a young father with his son.  Not a silver hair in sight.   This in spite of the fact that according to our own research figures, almost 50% of visitors in and to New Zealand are 45 and older.  It is also in spite of the fact that the demographic reality is that populations are ageing worldwide.  In Australia for example, our most important international market and the one this campaign is initially aimed at,  the only age group increasing is that of people 65 or older, Baby Boomers are turning 65 at the rate of 200,000 a year,  and the population over 65 is predicted to double over the next 40 years .  

And it is older Australians who are predicted by social researchers to be the ones who will spend on travel.     In caravan parks around the country they are known as the SKI Club – Spending the Kids’ Inheritance – and their vans have bumper stickers saying exactly that.  In fact, in a 2009 report informing the Australian national long-term tourism strategy, it is predicted that to 2030, the only source of increased domestic tourism activity will be in the 50+ age group, and the only increase in dollar value will be in the 60+ age group.  Why is New Zealand not targeting this growing demographic by having at least some older models in the video promotions released in Australia?

Tourism New Zealand intends to broaden this campaign to other countries.  Populations are ageing in our other traditional target markets also.  In the UK for example, it is estimated that the population of those 65 or older will grow from 16% currently to 23% by 2034, while in the USA, more than 7000 will turn 65 every day for the next 20 years.  In Japan, the population over 65 is currently 22% or about 27 million, those aged 61 to 63 number 18 million (Invest Japan), and ageing in Japan is happening at a greater rate than elsewhere (Reuters).  The mean and median age in years is about 44.5 (IPSS). According to an article in the Nikkei last year, Japanese aged 60-70 are emerging as an important source of economic vitality, as they are proving to be active spenders keen on making the most of their post-retirement years (Silver Group Asia). Data clearly shows that older consumers are more eager to spend than those younger than them.

Even in markets that Tourism New Zealand has only recently begun to turn their attention to, like China and South America, populations are ageing.  When will New Zealand begin to consistently appeal to the older demographic in these markets by at least showing them in our promotions?   Surely it is an economic imperative to do so in order to maintain a sustainable tourism industry.

The first Baby Boomers turn 65 in just two weeks.  In the USA alone, 12,000 people a day will have a 65th birthday, and this will continue for the next 20 years.   According to the American Association of Retired Persons (AARP), countries around the world are starting to strategically plan for aging Boomers who seek the best health products and services by creating state-of-the-art medical facilities.   Germany is currently seen as one of the best destinations for medical tourism and the Oetker Hotel Collection is now developing luxurious accommodations for foreign patients.  Some reports have estimated that there are around three million patients traveling abroad for treatment each year and almost one-fifth are from the Middle East.

“We are the first grand hotels in Germany, if not in Europe, to provide a so-called medical spa and continue our tradition with contemporary means, which differentiates us from other competitors,” Samir Daqqaq, senior vice president for developmen told the news provider quoted by AARP.   He also explained that the hotels are targeting patients who are looking for the best services, rather than the most affordable. While Germany can’t compete with the cheap procedures offered by countries such as India and Thailand, it does offer some of the most advanced treatments in the world.  Daqqaq estimated that 40 percent of patients are looking for advanced technology, while only 9 percent are trying to find lower costs.  He also commented on the impact that retiring baby boomers will have as they start to travel more.

“The boomers will… be a source market for the global tourism industry for several decades and will have the biggest impact when the latter part of the group retires around 2024.” 

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According to a press release from the Preferred Hotel Group (PHG), when the first wave of America’s Baby Boomers turn 65 on January 1, 2011, they will represent a monumental question for the travel industry: How will this healthiest, wealthiest and most active senior generation in history behave?  “The answer is extremely encouraging,” says Lindsey Ueberroth, President of PHG. “Unlike their parents’ generation, baby boomers don’t consider themselves ‘old’ at 65,” she said. “Our findings show that just the opposite is true. The Boomer generation is more physically active than any in history. They are veteran travellers. And now, with more time available as they reach traditional retirement age, they say they are going to intensify their pursuit of travel, new experiences and adventure.”  USA Boomers constitute almost half (47%) of active American leisure travellers. Two-thirds have taken a leisure trip to celebrate a life event like an anniversary or birthday, and they are more likely to travel as a couple.   Since 40% are grandparents, they are more likely to travel on multi-generational trips. More than two-thirds (68%) have a valid passport.

Ueberroth presented these findings December 7, in Cannes, at the International Luxury Travel Market (ILTM), the leading annual business-to-business event for the global luxury travel community. PHG teamed up with Ypartnership, a leading research company in the travel, leisure and lifestyle category, to study the behaviours of more than 2,500 adult travellers. The specific boomer generation data was derived from a subset of 1,185.  Ueberroth is highly optimistic. “There are 77 million boomers. Every day for the next 19 years, more than 11,000 boomers will celebrate a 65th birthday,” Ueberroth said. “Preferred Hotel Group believes that the travel industry is on the verge of a true golden age. The opportunities to serve the boomers are vast. We are going to seek out the boomers. We are going to serve them well and often. And, we are going to share in the growth and prosperity that they will generate. This is a turning point.”

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Amadeus (a leading transaction processor for the global travel and tourism industry) and  Oxford Economics (a leading global forecasting and research consultancy) have produced a research report looking at trends shaping the future of travel.  The Travel Gold Rush 2020 includes findings from interviews with 30 travel industry thought leaders and, combined with macroeconomic forecasts, provides insights into how the industry will develop in the coming decade.  Focused specifically on the challenges and opportunities facing airlines and agents, the report not only looks at potential new revenue opportunities and drivers of profitability but also at how traveller tastes and preferences are changing, and new models driving future growth.  One of the nine trends they identify as altering Western travel is demographic change.  The report makes the following points:

• Airlines and agents should pay attention to meeting the potential offered by ageing in Western countries
• Older consumers tend to have substantial disposable income and more time to travel; because of this they will travel further afield
• They are looking for inspiration and experience-based travel, not destination-based travel

There are many excellent examples of attention being paid to older travellers in other parts of the world.  For example, Oz-Bus is reaching out to this demographic by offering products to suit their mature years – twin-share instead of dorms, small hostels, and no multi-share hostels.  Why? Because Oz-Bus noticed that 60% of its bookings were by over-30s, and 25% by over 60s.  Peter Beattie writes in the Australian that Baby Boomers, third age or senior tourists represent the richest ageing group in history and a class of older travellers: wealthier, healthier, more active and with higher expectations than their predecessors is emerging

In Israel, the Jerusalem Post highlights how that countries growing aged population has resulted in the development of a travel industry for seniors.  According to the article, “there are currently roughly 700,000 seniors and pensioners residing in Israel and a growing number of them enjoy good health and sufficient financial resources to enjoy their retirement years”.  The article interviews the Director of Beshvil Hazahav, a travel company specialized in tours for seniors, who points to the fact that “many retirees enjoy good health and longevity” and that “they are also at an age when they no longer have mortgages to pay and children to support”, as the reason many of them choose to travel.

In the UK,Shearings Holidays, which is the UK’s leading specialist tour operator for the mature traveller, offers holidays throughout the UK, Europe and beyond by coach, air and rail, as well as sea and river cruises. The company is part of Shearings Group, which employs over 3,000 staff and comprises as well National Holidays, Caledonian Travel, a chain of 50 holiday hotels under the Bay and Coast & Country brands, and eight Wallace Arnold Travel shops.   Travelmole reports that the company is to appoint two new sales managers in a bid to work with travel agents to drive sales in the over 50s market.  The new staff will work on pumping up activity in the south east which the operator sees as a key development region.  Commercial director Caroline Brown said: “As well as widening our product portfolio to help agents increase their sales from the over 50s, we’ll also be growing our agent support team. Agents who choose to work with us can benefit from the loyalty and high holiday spending of the over-50s market. Some of our agents have customers that book over 20 holidays each year with Shearings and 20% book more than one holiday a year.”

In addition, The International Longevity Centre UK has just produced a new report called The Golden Economy, which points out the following:

• In the UK, those aged 50 or over spent £276 billion in 2008‚ making up around 44 per cent of the total family spending in the UK.  Yet, despite the size of the market, for many, the private sector does not meet their needs.
• The older consumer market is expected to grow by 81 per cent from 2005 to 2030 while the 18-59 year old market will only increase 7 per cent.

 In the USA, Baby Boomer spending is growing at a pace that’s leaving younger generations far behind. Spending by the 116 million U.S. consumers age 50 and older was $2.9 trillion last year — up 45% in the past 10 years. USA Bureau of Labour Statistics data show that meanwhile, the 182 million people younger than 50 spent $3.3 trillion last year — up just 6% during the same decade (USA TODAY).  Marketers who ignore Boomers do so at their peril. For one thing, Boomers are about to get a lot richer. People 50 and older will inherit an estimated $14 trillion to $20 trillion during the next 20 years.

 Meanwhile, NZ ignores this market.

In a first for New Zealand, The New Zealand Tourism Research Institute at Auckland University of Technology has created a Research Programme Area in Access Tourism headed by Sandra Rhodda. 

 NZTRI’s Access Tourism programme aims to research and develop Access Tourism in NZ.  Access Tourism is tourism, travel, and hospitality for people with permanent or temporary disabilities, seniors, parents with strollers, and any person with a need for improved access.  This is an interdisciplinary research area that addresses the challenges and opportunities presented by Access Tourism.

The Access Tourist already represents a sizeable proportion of our tourism markets.  Between 17 and 20% of the population in our main markets already report a disability, and this percentage is bound to grow because the large Baby Boomer cohort is ageing and disability increases with age.  Those aged 45 or older already comprise almost half of our domestic and international visitors (and over 70% of our cruise ship visitors).

Areas of interest include:

• Research and policy development
• Understanding the Access Tourism market
• Awareness promotion and education of government and industry to the potential of Access Tourism
• Access Tourism product development and marketing in NZ
• Promotion of cooperation in a developing Access Tourism sector, including in the public and private sector
• Access Tourist satisfaction and motivation
• Economic and social benefits of Access Tourism
• Access Tourism as an important factor in tourism sustainability
• Relationship of Access tourism to Health, Wellness, and Medical Tourism
• Opportunities for Access Tourism legacy development around major events such as RWC2011