Dialogue: Our chance to transform the economy

By EVAN DAVIES*

The question has been asked, if an industry is as successful as tourism, why is a strategy needed?

Tourism accounts for 9.3 per cent of GDP, contributes 16 per cent of our export earnings (making it one of the country's largest earners of foreign exchange) and employs almost 150,000 people. In short, it's booming.

However, tourism as an industry has the growth potential to rival our leading industries.

With a long-term strategy that acknowledges the need for sustainable yield-driven development, which uses resources and opportunities effectively and which is focused on developing our global market share, tourism has the ability to transform the economy.

If the country follows Tourism Strategy 2010 we can expect by that date to see:

* International tourist numbers increasing 81 per cent to 3.2 million visitors a year.

* International visitors spending $14.8 billion (up from $9.4 billion).

* Total expenditure by both international and domestic tourists of $27 billion (up from $16 billion).

* An extra 100,000 jobs in tourism, with Maori comprising more than 20 per cent of these new employees.

The benefits of a long-term strategy are clearly worth pursuing.

Four specific objectives have been identified by the group. These include securing and conserving a long-term future, marketing and managing a world-class visitor experience, working smarter, and being economically prosperous.

But developments need to be sustainable if benefits are not to be short-lived.

More than 40 recommendations are made to achieve the objectives.

These cover environmental and heritage protection, Maori participation, community goodwill, building a compelling brand, optimising yield, seasonal and regional spread, technology, central and local government commitment, sector cooperation, and building prosperity.

But the place to start is to consider the efficiency and effectiveness of the present industry structure, and assess the need to develop a new structure that is based on streamlining industry processes and programmes, and strengthening industry functions and partnerships.

The present structure is 10 years old and has worked well. But national and international tourism have changed, along with the challenges facing the industry.

Additionally, the industry will require a structure that is geared to implementing a long-term strategy whose success is dependent upon active working partnerships across the sector.

The proposed structure - establishing a New Tourism New Zealand, developing a tourism ministry, rationalising regional tourism organisations and industry associations, and greater Maori participation - will serve the industry well as it continues to develop the disciplines necessary to compete in an increasingly competitive global tourism market.

The recommendation to develop New Tourism New Zealand best illustrates the most significant shift required in the way that both the Government and the private sector approach a range of related issues, especially ownership models.

The new body will be governed jointly by the Government and industry, and this will see the development of a new approach to public and private sector partnerships involving joint ownership and funding.

Some of New Tourism New Zealand's key functions, aside from leading destination brand development and international marketing, will be to encourage more effective partnerships and create opportunities to use public money to push for more private contributions.

In the medium to long-term, expectations are that the money needed to achieve the targets identified in the strategy will be spread across sector participants.

It will not simply be the responsibility of the Government.

It is timely for industry, together with the Government, to be responsible for the funding, management and ultimately the success of tourism.

Without all sector participants pulling their weight, these results will not be achieved.

The strategy also makes detailed recommendations in a number of key areas that will have to improve if tourism is to expand. These include technology, people, research and development, infrastructure and investment.

Implementing the strategy will be challenging. This is a broad and comprehensive strategy that has been developed to address the whole of the sector, and it is important that the industry is ready to cope with the impact that successful implementation will create.

If we are to generate another 100,000 jobs, for example, then we must ensure that a skilled workforce is available to fill those positions.

The Minister of Tourism, Mark Burton, and I have undertaken joint responsibility for managing the development of an implementation plan.

We are working through the implications of the recommendations affecting the Government and industry and will expect to include a broad range of stakeholder groups in this process.

The Tourism Strategy 2010 has articulated a longer-term vision for the industry, and is the first step to maximising tourism's earnings potential while ensuring cultural, social, environmental and economic sustainability.

* Evan Davies is chairman of the Tourism Strategy Group and managing director of Sky City.