Rotorua tourism could benefit from Nash's $200M recovery plan

Multimedia Journalist·Rotorua Daily Post·

10 May, 2021 09:00 PM4 mins to read

Tourism Minister Stuart Nash announces the new $200m support and recovery plan at the TRENZ Hui 2021 in Christchurch. Photo / George Heard

Rotorua tourism operators could benefit from a $200M government package announced by minister of tourism Stuart Nash on Thursday.

The Government's new Tourism Communities: Support, Recovery and Re-set Plan is set to roll out between now and 2023.

"[The plan] will invest in new programmes like small business support, tourism infrastructure, the conservation estate, Māori development, economic and regional development and mental wellbeing support," Nash said.

"It is an opportunity for government, councils, iwi, businessmen and tourism communities to work together and re-set the industry on a more sustainable model for the future."

While the majority of the funding is being diverted to tourism businesses based in the South Island, $76.5 million is available for allocation nationwide.

Nash recognised "the impact of the loss of international visitors is felt beyond the tourism workforce and businesses," and components of the plan would "address longer-term challenges."

The plan has allocated $26 million to be distrubuted as grants to regional tourism organisations.

Rotorua mayor Steve Chadwick. Photo / File

Rotorua mayor Steve Chadwick expects Rotorua to receive "a fair share" of the funding package.

"As with any Government support, as a key tourist destination hit particularly hard by Covid, our expectation will be that Rotorua receives a fair share of the new tourism package announced this week," Chadwick said.

"We will be looking to make the most of what's available to assist our district recovery."

In 2020, 18 businesses across Rotorua and the wider Bay of Plenty were in line for $38.9 million in grants and loans as part of the Strategic Tourism Assets Protection Plan (STAPP).

But according to a recent Tourism Industry Aotearoa survey, the industry still has a way to go.

Respondents to the survey reported an average 40 per cent reduction in staff numbers since New Zealand's borders closed a year ago.

"I expect the TIA survey is probably reflective of what is happening locally and reflects the ongoing struggles many of our businesses face," Chadwick said.

Destination Rotorua chief exec Andrew Wilson. Photo / File

Rotorua Economic Development interim chief executive Andrew Wilson said the TIA survey findings were consistent with the feedback received from local tourism businesses over the past year.

"We know they continue to face incredible challenges and are working phenomenally hard to support their staff.

"We are really pleased to hear the Minister has announced there is more central government funding."

In 2020, Rotorua Economic Development Limited received $1 million of STAPP funding.

The money was directed towards destination management and planning, domestic marketing, capability building and product development.

Wilson said additional support would enable Rotorua Economic Development to continue the work they'd started.

Rotorua Canopy Tours general manager Paul Button. Photo / File

Rotorua Canopy Tours general manager Peter Button said he thought Nash's announcement was "amazing."

"New Zealand tourism is our biggest export as a nation," Button said.

"We need tourism to be alive and well when international visitors come back."

Rotorua Canopy Tours was the recipient of a $500,000 STAPP grant last year.

Button said the money had been used to maintain the business's conservation commitments, marketing plans and, most importantly, its team.

"Human capital is important in this industry," Button said.

"We need to look after our people."

Skyline Rotorua general manager Andrew Jensen. Photo / File

Skyline general manager Andrew Jensen said his business saw the recent announcement as "encouraging for the industry."

However, Skyline would not be seeing further support from the new plan.

Skyline recieved $500,000 from STAPP last year.

"We are very grateful for the government support we have received throughout Covid-19," Jensen said.

"The funding we received for the Skyline Rotorua business through the Strategic Tourism Asset Protection Project has been used on core operational costs to keep the business running and the lights on.

"The funding has gone into staff wages and retaining critical operational staff, base operating costs and some repairs and maintenance."