The Tourism Export Council of New Zealand (TECNZ) is extremely concerned by proposed massive funding cuts to regional tourism promotion as local authority long-term plans are reviewed.
TECNZ chief executive Judy Chen said TECNZ had already supported the submissions of three Regional Tourism Organisations (RTOs) to their regional councils in an attempt to maintain funding for tourism promotion and events, and, on the West Coast, to secure their very existence.
“We’re seeing proposals to slash regional tourism budgets. This is completely at odds with the increase in tourism numbers and seems to be very counter-intuitive.
“It appears some local authorities see success in numbers as proof they do not have to promote their region but that isn’t the case at all. Increased destination promotion has resulted in increased visitor numbers but the reverse will occur if budgets are reduced. We will then see job losses and business closures across whole regions because any reduced tourism spending has repercussions for retailers, hospitality and accommodation providers, not just tourism operators.”
Just last week Stats NZ reported that total overseas visitor arrivals numbered 423,500 for February, the highest for the month ever, which was up 11% for the same month last year. Visitor arrivals reached a record 3.78 million for the year to February, up 7% on the previous 12-month period.
Ms Chen said regional tourism support was vital to enable New Zealand to continue to be a sought after destination.
“This support is particularly crucial right now as the World Travel & Tourism Council’s annual Economic Impact Research released last week forecast that growth in the tourism sector would slow this year because of higher oil prices. We need to maintain our tourism marketing momentum to retain tourism jobs and SMEs.”
West Coast
Tourism West Coast is under threat of being disbanded and taken over by the Destination West Coast as part of the West Coast Economic Development Action Plan. Already one of the local councils, the Westland District Council, has voted unanimously to reject the proposal however the Buller District Council is set to vote this evening (March 28), and the Grey District Council on 9 April.
Ms Chen said the disbanding proposal was a particularly concerning development.
“Tourism West Coast currently enjoys the highest growth in New Zealand in terms visitor expenditure at 12%. Much of this success is because TWC can operate autonomously and focus on strategic actions. Changing the structure would be a major step backwards and could also alienate some local tourism outfits. We want to see the status quo retained.”
Northland
Meanwhile the Northland Regional Council, which has traditionally supported the local RTO, Northland Inc, is looking to withdraw its tourism promotion funding.
“Removing this funding will have a catastrophic impact on the future of the industry and local communities. For a region that has many difficult challenges, tourism offers an extremely positive story. Northland stands as the 6th largest tourism region for New Zealand. Ratepayer investment as a percentage of council funding shows Northland Inc. to be one of the lowest funded RTOs in the country. Again, tourism support must continue or the region will go backwards.”
Hawkes Bay
The Hawke’s Bay Regional Council is proposing to reduce Hawke’s Bay Tourism funding by 50% over the next three years, equating to a $1.8 million loss, which will also mean a significant reduction in tourism promotion, events and activity. Tourism employs over 6,200 people in Hawke’s Bay, with 880 new jobs generated in the last two years.
“These jobs and the businesses that provide them are at risk by these ill-considered funding cuts. The long-term repercussions are huge. Experience has shown it will take years to rebuild the losses to tourism awareness, events and activities.
“The move by these regional councils, and others, is extremely concerning. Funding tourism is not a cost, it’s an investment in each region’s future. We call on councils to give deeply consideration to the negative impacts to their regions if tourism is not well supported.”
ends
For more information contact:
Judy Chen
027 6644 836
CEO@tourismexportcouncil.org.nz
About the Tourism Export Council of New Zealand
The Tourism Export Council of New Zealand (TECNZ) is a trade association that represents the interests of the inbound tourism industry. Its membership includes inbound tour operators (Inbound Members) and attraction, activity, accommodation, transport suppliers, regional tourism organisations and tourism services providers (Allied Members). TECNZ members collectively handle most of New Zealand’s international visitor arrivals. www.tourismexportcouncil.org.nz.