Budget 2006: Extra cash brings mixed response from tourism industry

The Budget's increased funding for tourism drew mixed reaction from the industry.

The Government pledged an extra $63.7 million over the next four years, cementing the expenditure of marketing organisation Tourism New Zealand at $69 million a year.

Tourism Minister Damien O'Connor said it supplemented previous time-limited and targeted funding and gave the industry greater security.

"Tourism has a critical role to play in expanding opportunities for New Zealand and boosting the economies of the regions across the country and it's going to become more important."

Ian Lewington, acting chief executive of Tourism Holdings, which runs attractions including Kelly Tarlton's, welcomed the cash boost.

"It will enable Tourism NZ to expand its range of operations in terms of the promotion of New Zealand and hopefully get the message across to come and visit."

Lewington said he would like to see funding raised further "given the amount of GST, employment and income tax that international tourism generates for New Zealand".

Some money could be spent helping with Tourism NZ's strategy in Japan.

The recent depreciation in the dollar, however, could have an adverse effect on the funding's final value.

Tourism Industry Association New Zealand chief executive Fiona Luhrs described the $63.7m as a "lost opportunity" during a time of economic slowdown and said it merely held Tourism NZ's funding at its existing 2005-2006 level.