Tourism industry shakeup could treble income, says plan

By SIMON HENDERY tourisim writer

A shakeup of the tourism industry could almost treble revenue over the next nine years, says a planning document released yesterday.

The New Zealand Tourism Strategy 2010, put together by an industry group over the past nine months, recommends expanding the role of Tourism New Zealand and cutting the number of regional tourism organisations.

The report says that under existing conditions, spending by international visitors will increase from $5.4 billion last year to $9.3 billion in 2010 as tourist numbers rise from 1.8 million to 3.2 million.

But under its proposed shakeup, the 2010 figure could "conservatively" rise to $14.8 billion spent by 3.3 million visitors.

Domestic tourism spending would also rocket under the strategy, from $4.2 billion last year to $12 billion in 2010.

The report says that while another 100,000 tourism-related jobs are expected to be created over the decade, the industry needs better cooperation to entice tourists to spend more.

A 1 per cent increase in spending by all visitors generates the same economic result a $1 billion rise in revenue as 12 per cent growth in tourist arrivals, it says.

Tourism Minister Mark Burton said the strategy was a "natural evolution" building on work already done in the industry.

While specifics for reshaping Tourism New Zealand and the regional tourism organisations are not included in the 180-page report, Mr Burton said details could now be fleshed out by the industry.

On Monday, he will announce tourism Budget funding, including specifics relating to implementing the report, which calls for up to $11 million from the Government and industry toward setup costs for the proposed new structure.

Evan Davies, managing director of Auckland casino operator Sky City, chaired the 10-person strategy group, which included Government, industry and Maori representatives.

He said the planned industry restructuring was developed from consultation before and during the drafting of the document.

Tourism New Zealand chief executive George Hickton said he agreed that the expanded role the tourism board would have under the proposed structure would have benefits.

But Don Gunn, president of the Inbound Tour Operators Council, cautioned against unnecessary change in the industry.

"One of our messages [to the strategy group] was that if it isn't broken, you don't need to fix it.

"Tourism New Zealand have been doing a good job given the resources they have."

Simon Milne, Professor of Tourism at Auckland University of Technology and a coordinator for the Tourism Research Institute, said the strategy was positive, but would still leave the industry top-heavy in organisation.

Links

New Zealand Tourism Strategy 2010

Tourism Industry Association New Zealand