That tourism, currently this country's biggest export earner is important is not in doubt. What needs to be discussed is the level and sources of funding
In his recent Talking Point, Neil Barber, chairman of the Hawke's Bay Tourism Industry Association, provided some valuable information. For instance at the present level of RTO funding the cost amounts to $26 per ratepayer. The industry employs 6200 people meaning ratepayers are providing a subsidy of $300 each year per industry job. Or we could relate the additional $1.8 million spent in the past two years to the 880 additional jobs that have been created during the same period meaning it has cost $3750 for each new job. It's hard to imagine any other sector of our economy receiving anything approaching this level of financial support.
Whilst we are told Hawke's Bay Tourism is meeting all its key indicators this is almost meaningless unless it can be shown the RTO is responsible for the total improvement in visitor numbers. We should remember Napier has always been a holiday destination and almost certainly people will still come here as they have always done. Remember also whilst we are successful in attracting domestic visitors we are much less successful in attracting international visitors.
In addition both the Hastings and Napier councils spend many millions every year building, subsidising and promoting visitor amenities such as i-sites, the aquarium, museum, Splash Planet, sports facilities and much more. Tourism operators, airlines and others are also active promoting their own products and Hawke's Bay generally.
It should also be remembered Jetstar's arrival has been of huge benefit to the visitor industry. In the current financial year (June 30) we are likely to see a record 700,000 passengers passing through our airport, some 200,000 more than just three years ago. It's improbable this would have happened without Jetstar and the additional travellers must have made a significant contribution to the 470,000 additional bed nights we have provided in the same period. This is significant because I cannot recall there ever being support from Tourism Hawke's Bay during the 14 years I have been campaigning for better air services.
If we are going to do a review perhaps we should also be asking whether the regional council has the necessary expertise either within the organisation or around the council table to be in charge.
I was a board member of Wine Country Tourism Association until 2011 and can attest to the dysfunction when visitor promotion was an integral part of the regional council operation. Only when Tourism Hawke's Bay was created by merging the privately funded Wine Country Association with the ratepayer funded regional council tourism operations was real progress made.
Funding is always contentious but perhaps tourism operators should support their own organisation by making a meaningful contribution to the cost of running it. After all in almost every other local government activity spending is apportioned according to private and public benefit. Clearly the greatest benefit of tourism is to the businesses in the visitor industry.
* Simon Nixon is a Hastings district councillor and a former board member Wine Country Tourism Association.
