Report bullish about cycle tourism potential

Developing cycle tourism properly could mean a doubling of their spending in New Zealand, says new research.

If cycle tourism is developed correctly in New Zealand, tourists' spending in that area could double to $640 million a year, new research by the Ministry of Tourism suggests.

Released today, the report contained key findings that gave certainty to the Government's drive to invest in cycling tourism, the ministry's general manager Ray Salter said.

At a Government-initiated jobs summit in February, one of the ideas to emerge was a national cycleway.

A few months later the Government committed $50m in funding over three years for the New Zealand Cycleway Project.

Work on the first seven "Great Rides" around the country was due to start this summer.

Salter said the current annual take of about $320m from cycle tourism could double, but the estimate was heavily dependent on New Zealand getting the product right.

That meant providing safe trails with good support services and amenities - including accommodation and information - and investing strongly in marketing the experience.

The report said there was considerable potential to grow the Australian cycling market, which grew by 21 per cent in Australia last year.

The next largest cycling markets are Britain and the United States.

"With only small increases in participation, international cycle tourist expenditures could increase by $150 million and domestic expenditure by $83 million annually," the report said.

Mr Salter said the research would be made available to potential applicants for phase two of the cycleway project process.

Phase two referred to the funding process for all future cycleway proposals following the initial seven trails.

Salter said the phase two funding process would be announced at the end of the month.

He said a format would be provided and asked potential stakeholders to hold proposals until after that.

- NZPA