The incoming New Zealand International Convention Centre is a big lever to pull business tourism in, energising the Auckland hotel and tourism market, Les Morgan argues. Photo / Chris Tarpey
The incoming New Zealand International Convention Centre is a big lever to pull business tourism in, energising the Auckland hotel and tourism market, Les Morgan argues. Photo / Chris Tarpey
THREE KEY FACTS:
In the year to March 2023, tourism directly added $13.3 billion to GDP.
The indirect value added of industries supporting tourism generated another $8.8b, or 2.5% of GDP.
Les Morgan is Sudima Hotels and Hind Management chief operating officer.
OPINION
As the Government steps up its pro-growth export value drive, and our biggest dairy company goes back to basic ingredients, the challenge for tourism - our country’s second largest export earner behind dairy -is to regain its pole position.
This is the time for tourism and hospitality to get New Zealand up in lights on the world stage.
Aotearoa is an attractive niche destination and there’s nothing to stop tourism and hospitality championing the Government’s commitment to double the value of exports in 10 years. One silver lining of Covid is that tourism stakeholders are more aligned.
Catalysing tourism is partly about an inclusive but balanced approach to who we welcome. Above all, it’s about industry players stepping smartly up the value chain.
After some tough years, our tourism and hospitality industry’s vital signs look better. 2023 data showed tourism made a direct contribution of $13.3 billion to our GDP. Total tourism expenditure increased by 39.6% (to $ 37.7 billion) from the previous year. The total number of people employed in the tourism industry (around one in nine) increased by nearly 50%.
Industry players are more optimistic, feeling momentum, and looking for openings. China tourism is on a comeback and, most likely, its progress will shape industry fortunes. But acceleration demands a wider perspective than primary tourism markets.
Les Morgan with a robot operating at Sudima Auckland Airport. Photo / Dean Purcell
New Zealand must take every value-add opportunity out there, everywhere, diversifying and deploying our strengths, and I was reminded of this in recent international travels.
Ahead of a panel discussion last month on Chinese Tourism at the New Zealand-China Business Summit, in April I joined the PM’s senior business delegation to Singapore, Thailand and the Philippines. Southeast Asia is a fast-growing and crucial market for Aotearoa, offering more business and leisure travellers, and new ideas.
Three areas stood out for me where we can add and capture value at pace in tourism and some other leading New Zealand sectors.
Relationships
The Government’s push on international relationships is right, but making long-term friends is Aotearoa’s speciality.
Genuine smiles and warm hearts can open entire markets. The sheer scale of the Southeast Asia market and the large family companies there with capital looking for a home is exciting. It’s about cultivating friendships, about whanaungatanga.
A proverb we heard was The Three Cups of Tea, which will resonate with kiwis. In short: one cup to become friends, a second cup to become very good friends, a third cup to become lifelong friends. This is about building trust and becoming family. It’s your brand, your reputation; it’s very much their approach to business.
We need to be up there more often, investing time and capital. We heard from influential and powerful people who backpacked or studied here, how do we get them back here?
The second thing that struck me is ESG (environmental, social, and governance) and sustainability. The Southeast Asia trade visit positioned NZ as a global leader in innovation, clean tech and green transformation.
We seem fairly advanced on the ESG front, partly because green capital is yet to flow strongly into that region. As a premium destination championing regenerative tourism on all levels, New Zealand enterprise can lever this for added value, through both physical and intellectual property.
ESG is the future platform for business and New Zealand’s tourism sector needs to own this value curve.
Sector intersections
Opportunities in sectors synergies was a third business mission observation. The symbiotic relationship between tourism, trade and education is a way to add value, especially at the premium end where NZ tourism inclines.
Our educationalists are doing wonderful jobs in-market. Our food, tourism and education industries could partner more on everything from educational tourism and agri-tourism through to marketing, sustainability and export promotion.
We absolutely need more international conferences. The incoming New Zealand International Convention Centre is a big lever to pull business tourism in, energising the Auckland hotel and tourism market which is lagging behind other regions like Christchurch and Queenstown. We have never had a product quite like this and I think it’s a game-changer.
Ultimately, powering New Zealand growth and productivity is about doing better what we do best, and building world-class brands and reputational capital around this. Our rebounding tourism sector is a natural hub in this value-add game. If we can be bolder, smarter and more connected as an industry, we can lead the way for New Zealand.
