$15m to help lure US tourists

By SIMON HENDERY

Tourism New Zealand's efforts to lure US travellers to its shores have received a major shot in the arm in the form of $15 million of new taxpayer funding over the next three years.

The money will be used to maximise marketing opportunities provided by New Zealand's high media profile in the US, Tourism Minister Mark Burton said in a pre-Budget announcement yesterday.

"The extraordinary publicity we have received through The Lord of the Rings trilogy, the America's Cup, and our ongoing and successful partnership with the Discovery channel has been invaluable, and it is essential that we capitalise on it," he said.

Over the past year, Tourism New Zealand has spent about $3 million on marketing activities in the US out of its total $55 million budget.

Visitors from the US are among the country's highest-spending tourists, injecting an average $4400 into the economy while in the country, about $1000 more than the average tourist.

Tourism NZ chief executive George Hickton said the funding would be focused on marketing in California and New York, two states which provided a significant proportion of US visitors.

The enhanced campaign - still based around the global 100% Pure New Zealand catchline - will begin in August and include a focus on internet marketing, coverage on the Discovery Channel, magazine campaigns, and other promotional activities and events.

Just over 200,000 US tourists visited New Zealand last year.

They spent a total of $880 million while in the country.

Hickton said a 3 per cent increase in visitor arrivals from the US - less of a rise than he expected from the campaign - would generate more than $25 million in additional tourist spending.

"So it doesn't take long to get your money back."

News of the funding was welcomed by the largest tourist operator, Tourism Holdings.

"An increased investment right now is ideally timed as we know that the market is ripe for New Zealand, but it does need that extra push in order for us to make the most of the opportunity," managing director Dennis Pickup said.

How tourism New Zealand will woo US travellers