KEY POINTS:
A luxury tourism promoter fears top end businesses will be hit harder this year after organisers decided to cancel a trade show designed to attract top-dollar tourists to New Zealand.
Pure Luxury New Zealand was first held two years ago in a bid to match providers of luxury travel, accommodation and activities with international buyers.
But the Tourism Industry Association has put it on hold for this year after reviewing its events.
Karine Thomas, a promoter of 28 luxury tourism accommodation providers, said it was disappointing the event would not go ahead.
"We have had two years of establishing the brand and establishing the luxury show. Really with the way the economy is, is this not the time to be raising the flag higher?"
She said the top end of the market was already being hit by tougher economic conditions and a lack of promotion could mean a loss of even more business for operators.
"I'm a little bit worried. I really don't know if the luxury industry understands how trying it is going to be in the next 18 months. It's important to keep getting the message out there."
Thomas said the event was a cost-effective way for New Zealand businesses to promote themselves - without it they would have to go to an international event which could cost five or six times more than the $5000 local stand fee.
"Only three or four operators would be able to afford to go to those a year whereas more than 40 were able to exhibit at Pure Luxury New Zealand," she said.
John Sax, owner of Rotorua's luxury Treetops Lodge, said previous shows had enabled him to identify the right buyers for his product and select leading travel agencies around the world to work through that may not previously have been aware of New Zealand as a luxury destination.
"It's not a one-year fix. An ongoing strategy is needed for New Zealand to make progress."
Sax said New Zealand was competing with many destinations.
A spokeswoman for the association said it had carried out a full review into the viability of having the event this year and had decided it would be better as a biennial event.
"As part of its review, TIA and the Tourism Industry New Zealand Trust consulted a wide range of stakeholders around the country.
"While not absolutely everyone in the industry agrees with this view, on balance we believe that we have come to the best conclusion."
The spokeswoman said one major concern had been the ability to bring new products to the event every year because of the small size of the industry in New Zealand.
Asked whether it would go ahead in 2010 she said: "At the moment we are considering our options but it is certainly in the game plan."
The spokeswoman said there would still be a luxury focus at its major tourism trade show TRENZ, held in June this year.
