Challenges dampen rosy outlook for tourism industry

Tourism businesses are cautiously optimistic, but many say life is still too uncertain to call an end to the challenges facing the industry just yet.

The Tourism Industry Association yesterday held its first leaders summit in Wellington in a bid to discuss issues facing the industry and solutions to help bring it out of the tough times in the wake of the recession.

Tim Cossar, chief executive of the TIA, said, after meeting more than 700 businesses throughout the country, the mood was that things were still tough and "bloody uncertain".

Cossar said the industry could no longer rely on forward bookings to predict business patterns as the lead-in time for bookings had dropped dramatically.

"Forward bookings just don't exist to the same degree as they used to."

The tough market had led to some tourism businesses having issues with their bankers.

"However, a lot of people in the industry have also changed and adapted to the market conditions and are thriving."

Around 30 per cent of businesses said they were still growing in the recession.

Cossar said there was a sense of guarded optimism but it was still tough for many. But tourism people had a fierce sense of national pride.

"We are the antithesis of beautiful New Zealand. We are in there doing it day in and day out."

Industry consultation had shown a strong desire for leadership and consultation.

"We want to be talked with, not talked at."

The industry said it had been recognised at the top level but that had yet to reach Government departments and local Government.

"There is a desire to see that changed. We really need to pick up our game in that area."

More spending on international marketing remained the top priority for the industry.

The Government has promised to reveal more details of extra cash for marketing the country by the year end, but has yet to say how much or when the industry will see the money.

Cossar said lack of demand was the biggest problem facing the industry and it was vital New Zealand maintained its voice and share of the international market.

Consultation showed the industry was very diverse. But Cossar said the downturn meant the industry needed to form a much stronger alliance to find common ground and fight for common goals.

The association planned to form an alliance of the "visitor" industry rather than around the "tourist" name.

"There is a connotation with the word tourist - that it is just international visitors."

Domestic tourism makes up approximately half of all visitors in New Zealand.

Cossar said the association would spend the rest of the year putting together an industry alliance and would then focus on signing an accord with the Government.