Auckland Council's proposed budget involves cuts that could significantly impact tourism. Photo/Supplied
Auckland Council's proposed budget involves cuts that could significantly impact tourism. Photo/Supplied
Proposed budget cuts to Auckland’s economic and cultural agency could impact the entire country, according to Tourism Industry Aotearoa.
Auckland Council’s Governing Body has adopted the Consultation Document for Annual Budget 2023/24, which proposes overcoming a forecast shortfall of $295 million through spending cuts, increased rates, asset sales and debt.
Spending on events and infrastructure would be cut by tens of millions of dollars; something Tourism Industry Aotearoa chief executive Rebecca Ingram said could result in “a step backwards for the entire tourism industry throughout Aotearoa New Zealand”.
The budget exclusively focuses on arts and culture activity in Auckland, however, Ingram said the city’s location means any impact on tourism would have nationwide economic consequences.
“Auckland is the main gateway to New Zealand and it is important that its tourism system is working well to ensure the quality and vibrancy of the visitor experience and for New Zealand’s prosperity.”
Of seven proposals set forward in the budget, three will directly impact Auckland’s arts and culture.
Proposal A will cut $20m from regional services; council-delivered services that create “a city with great neighbourhoods, centres, parks and public spaces loved by Aucklanders”.
Proposal B recommends cutting two regional contestable grants related to arts and events, something the Council states in the consultation document would lead to a “reduction in activities that contribute to a healthy, vibrant, thriving, world-class city”.
However, it’s proposal F that could cause the greatest setback to Auckland’s culture, for locals and visitors.
This involves reducing the budget for Tātaki Auckland Unlimited (TAU) by $27.5m. Combined with the existing $17m savings target, Auckland’s economic and cultural agency would have to cut spending by $44.5 million.
Alongside managing and operating 18 regional facilities like the Zoo, Art Gallery, Maritime Museum and stadiums, TAU also delivers major events like Elemental AKL, Lantern, Pasifika and Diwali festivals and programmes that support tourism.
Achieving the full savings will require “activities and services currently provided by TAU to be significantly reduced,” according to the budget’s consultation document.
Proposed actions include:
• Reducing Auckland Council’s role in marketing Auckland internationally to attract investment, business and visitors
• Reducing spend dedicated to marketing Auckland as a tourist destination
• Cutting spend related to attracting major events that occur from 2024 onwards
• Reducing funding for visitor attractions and major events for 2023/2024 by $15.1 million
• Review pricing, opening hours and programming at regional facilities and consider introducing charges for previously free areas
The proposal to cut TAU’s funding includes an acknowledgement it could lead to “a loss of capability and capacity to market and manage Auckland as a tourism destination” and “a notable reduction in the level of activity across the culture venues and facilities managed by TAU”.
Meanwhile, proposal A warns there would be a “reduction of activities that contribute to arts, culture, events, leisure, education and community development”.
For many cities, the consequences would end with residents. However, for a gateway city like Auckland in a tourism-dependent country like New Zealand, there are wider economic implications.
The budget does recognise this, stating cuts from TAU would have “a consequential negative impact on regional GDP, businesses and jobs.”
Tourism Industry Aotearoa’s Ingram stressed this would not be confined to Auckland.
“We are concerned that proposed cuts to Tātaki Auckland Unlimited’s budget will result in a step backwards for the entire tourism industry throughout Aotearoa New Zealand,” she said.
“The region plays an important role in ensuring the economic, social and cultural benefits of tourism are shared across the motu,” she said.
Securing major events like the FIFA Women’s World Cup has “substantial flow on benefits” to the rest of New Zealand, Ingram said, and helped smaller regions secure events and bookings they might not otherwise get.
Tātaki Auckland Unlimited encourage public to have their say
TAU chief executive Nick Hill said the organisation was committed to helping close the budget gap.
“There is no doubt that we face tough decisions ahead and some of our activities will be reduced,” he said, adding that, in the meantime, they would continue to deliver projects and work that had been budgeted for this financial year, through to June 2023.
The budget is currently open for public feedback and Hill encouraged Aucklanders to participate.
“Public consultation about Auckland Council’s proposed Annual Budget 2023/2024 takes place from February 28 through to March 28, and we encourage Aucklanders to have their say,” he said.
Final decisions on the budget will be made in June 2023.
Arts funding cuts cause heated response from Mayor
Discussions around the arts budget cuts have been especially heated, with Auckland Mayor Wayne Brown swearing at a journalist who enquired about the issue this week.
“Don’t f***ing come and talk to me,” Brown said to Spinoff journalist Sam Brooks, who had enquired about the cuts. The encounter followed a speech Brown made defending the proposal to cut council’s contestable funds for cultural events and the arts.
The speech was made at the Auckland Art Gallery.
“Write a submission and make it clear that you value it [arts funding],” he added.
