Tourism funding cuts reflect world-wide changes to industry: AUT professor

Director of the New Zealand Tourism Research Institute professor Simon Milne said proposed tourism funding cuts is not unique to Hawke's Bay. Photo/Supplied.

Proposed cuts in tourism funding is not unique to Hawke's Bay and reflects worldwide changes to what is an evolving industry, a tourism professor says.

Professor of Tourism at Auckland University of Technology and director of the New Zealand Tourism Research Institute Simon Milne said tourism agencies facing tough times was a "theme" seen all around the world.

"Obviously there are these pressures on public finances everywhere around the world and one of the places where money can be cut is in the public support of tourism or related activities like the promotion of events.

"That goes hand in hand with a very significant trend we're seeing in the tourism industry, which we've been seeing for a few years now, where destination marketing and management organisations are having to redefine their role and think through what they do."

Traditional tourism agencies such an information centres were having to redefine themselves as consumers turned to information technology, user-generated content and social media for information, he said.

"This reflects what we see all around the world; increased pressure on the public purse strings, a re-evaluation and reinvention of what these organisations are about and making sure that they are really adding value in this modern age."

Professor Milne said there was "no question" a cut in funding would have an impact on tourism organisations but said it begged the long term question if there was value in public money being invested in it.

"I think if you look around the world there's definitely a push towards what we call the co-funding of these kinds of organisations trying to increase engagement from the private sector who are usually already paying some kind of duties or fees.

"But at the same time governments around the world are very aware that they still need to be playing a role if they're going to have some say and influence over this really important sector."

He said people often thought tourism agencies just dealt with event promotion and visitor numbers but they had much more to offer - even when things went wrong.

"I think we need to realise it's not just about promotion and raising visitor numbers it's also about this issue of what happens when things do go a bit awry and we can see those roles are very important in places like Christchurch.

"New Zealand had to play that role on an international level when we had the earthquakes. We were out there pushing that message forward."

Professor Milne said tourism was and would continue to be a big part of New Zealand's future and while it may be ideal for tourism agencies to be funded through the private sector there were arguments against that model.

"One of the arguments about tourism is that the benefits it brings to a region go beyond just enhancing the profit of particular business entities.

"There are economic and, what you might call, psychic rewards from having your region attracting events that aren't just of interest to visitors but locals too."