The Routeburn Track is one of New Zealand's 10 Great Walks. Photo / Stewart Nimmo
The Routeburn Track is one of New Zealand's 10 Great Walks. Photo / Stewart Nimmo
A report outlining ambitions for tourism identifies systemic issues holding the industry back with the Government‘s approach to funding the industry seen as critical.
The industry wants a bigger share of the $4b-plus the Government collects in taxes and levies. Representatives are eager to sit down with the new tourism minister - when that appointment is made.
Released by Tourism Industry Aotearoa at its annual summit, the blueprint forecasts tourism spending topping $50 billion a year by 2030, up from $41b just before the pandemic.
“The historic and structural lack of sustainable industry funding mechanisms has meant there has been persistent under-investment in many aspects of the tourism industry, including infrastructure, destination management and development, data and research, product development, network design, quality improvement, capability building, and others,” the document says.
The blueprint sets out solutions after identifying key systemic issues, including:
A key driver behind many issues in the tourism industry is an informality and fragmentation of structures, roles and functions across the tourism system, and no clear mandate for parties within the system, other than for Tourism New Zealand.
This hampers the industry’s ability to make enduring progress on important issues and challenges, and is why many issues recur but don’t get resolved. There is a lack of system leadership across the industry, and in a complex interconnected system like tourism, this is a serious deficiency.
A lack of well-founded funding streams within the industry for industry-good and local government activities impedes the ability to deal with issues and develop destinations to the scale and depth needed. Currently, the industry is reliant on ad-hoc and time limited external funding sources which do not provide certainty required for long-term planning and for operating the functions needed.
Data and research
Tourism is poorly served by the data and research available to inform its development which has been a persistent situation. The research support for the tourism industry is in a worse position, with tourism largely absent from the Government’s $1.5b research and science programme.
Destination management
Over recent years, a major milestone has been achieved with the establishment of Destination Management Plans by all regions across the country. However, there is a big gap between the aspirations of the plans and the allocation of funding to implement these plans.
Relationship with DoC
The current arrangements are not working well, with difficulties stemming from DoC’s complex legislative framework and some of its management, planning and regulatory processes. These arrangements must be configured to increase the ability of tourism to contribute positively to conservation efforts.
Workforce
Gains have been achieved with tourism set to become an NCEA Achievement Standard and in ensuring an appropriate flow of overseas workers. Long-term solutions are needed to ensure quality roles for New Zealanders.
On funding, the TIA document says it will engage with the new government to discuss the distribution of the International Visitor Levy estimated to collect $450 million over the next five years and which will form an important part of the overall funding system.
The industry group says research support for the tourism industry is in a bad way. Photo / Supplied
Current central government tourism funding for local government is primarily provided through three contestable funds – the Provincial Growth Fund, Tourism Infrastructure Fund, Responsible Camping Initiative and others that emerge from time to time.
“While this funding is important, it does not provide long-term certainty for the effective planning and management of tourism. Central government does very well from tourism,” the blueprint adds.
“It receives revenue from GST from tourism-related expenditure, other taxes and charges [e.g. PAYE, business taxes, excise tax and border control charges) and the International Visitor Levy (IVL].”
GST revenue from tourism was $3.9b in the year ended March 2020.
Local government incurs many costs associated with tourism, but typically only has the rating base to fund these costs.
‘‘There is often a disconnect between where visitors go and where New Zealanders live and pay rates, which means there are regions with small resident populations that have relatively high costs in supporting this tourism activity.’'
Tourism 2050: A Blueprint for Impact sets out actions the TIA believes can make game-changing advancements between now and 2030, and position the industry for the next 30 years.
They include:
Designing settings to clearly define and articulate the structures, roles and responsibilities within the tourism industry, address funding, power-up data and research, achieve net zero carbon, champion predator-free and biodiversity initiatives and grow the tourism workforce.
Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.
