Government urged to boost tourism cash

The tourism industry wants the Government to boost international marketing dollars to draw more visitors.

Tourism New Zealand, the Government-funded marketing organisation, received about $65 million this year for its global tourism efforts, but on average has a budget of about $55 million.

Its base funding has not increased since the tourism board was founded in 1992.

Fiona Luhrs, chief executive of the Tourism Industry Association, says that is not nearly enough, citing figures from New Zealand's main tourism competitor, Australia, as proof.

The Australian Government committed A$360 million ($377 million) over four years for global tourism advertising, with states such as Western Australia earmarking about A$38 million for tourism in its last budget.

"Tourism New Zealand is run on a fraction of the budgets of competing international destinations which are fast coming up to speed with attractive campaigns of their own," said Luhrs.

The industry has been hit by declining growth rates in domestic and international markets because of factors such as the high dollar and more competition from other countries.

Luhrs met new Tourism Minister Damien O'Connor this week to outline the industry's concerns.

Contrary to popular opinion, she said, the private sector contributed significantly to overseas marketing. Companies such as Air New Zealand spent about $70 million on international marketing, far exceeding the budget of Tourism New Zealand.

Luhrs said "building worldwide awareness" of the country was a Government responsibility.

A baseline review of Tourism New Zealand's funding is under way.

Meanwhile, the Government said yesterday it was revamping its travel agent scheme with China as part of a move to improve the low levels of satisfaction that Chinese tourists had reported when visiting.

Changes to the Approved Destination Scheme, set by the Governments of both countries in 1999, could encourage more Chinese tourists to use approved agents who would have access to cheaper visa fees and faster processing times than non-approved agents.

Chinese tourists have been dissatisfied with tightly controlled shopping tours during their visits.

 

What's it worth?

* Tourism brings in $17 billion.
* It is the country's largest export earner, accounting for nearly 19 per cent of export earnings.
* The sector employs directly or indirectly 10 per cent of the workforce.
* It generates nearly $500 million in GST returns from international visitors each year.