Agencies circling $30m account

Advertising agencies are circling the $30 million Tourism New Zealand advertising account, one of the country's largest.

The activity comes as speculation mounts that Tourism New Zealand's longstanding agency, M&C Saatchi, has been shortlisted to win a much bigger contract with Tourism Australia.

If it wins that account, it will likely be forced to drop the New Zealand account.

"Speculation is rife on both sides of the Tasman and agencies have been calling us," said Tourism New Zealand chief executive George Hickton.

He would not discuss M&C Saatchi or the Australian tender, but confirmed there would be a conflict of interest if one agency held both accounts.

Industry sources said M&C Saatchi, which devised the successful 100% Pure New Zealand campaign, was one of three final candidates in the Tourism Australia tender. Australian reports suggest Saatchi & Saatchi and Clemenger BBDO are the others.

A spokeswoman for M&C Saatchi in Australia said the company would not comment on the tender and no one from Tourism Australia was available to comment by late yesterday.

Local advertising executives said if M&C Saatchi won the Australian tender - thought to be more than double the size of the Tourism NZ business, at around A$60 million ($64.5 million) - it would have to drop the New Zealand account.

"New Zealand would be the poor relation and I would think taxpayers would not look too kindly on that," said one senior executive.

Another said there would be a definite conflict of interest. "I can't see how they could possibly promote both interests - if they're doing a really good job for their Australian client they'll hurt New Zealand."

Hickton said the contract between Tourism NZ and M&C Saatchi allowed either party to terminate after a notice period of six months or immediately in the event of a conflict of interest.

Whatever happens, the 100% Pure campaign will continue.

"We're happy with the campaign and would continue with it regardless," he said. "There is really no need to fiddle with it."

The heads of local advertising agencies said there would be widespread interest in the Tourism New Zealand account.

"We'd love to have a crack at it - it's one of the most plum, prize accounts," said Nick Baylis, chief executive of advertising agency FCB New Zealand.

Whybin TBWA New Zealand's chief executive, David Walden, said only a handful of agencies had the international reach that Tourism NZ would need. "Everyone is watching with interest."

A spokesman for Whybin TBWA in Sydney, which had held the main account for Tourism Australia until late last year, confirmed that Whybin had not made the second round of the tender.

Short-listed candidates are expected to make further presentations in May.