The commission planned to decide by January, but the timeline has been extended to allow for further investigation after the threshold for clearance was not met.
The commission has now released its finalised statement of issues, with a key point of contention being the market in which the merged entity would operate.
The commission indicated it is likely to assess the market as the “supply of guided rafting trips,” rather than the broader Rotorua adventure tourism sector, as the applicants suggested.
It raised concerns that the new entity’s “monopoly position” could limit competition, and that other tourism operators may struggle to provide meaningful alternatives.
Barriers for new entrants include Department of Conservation concessions on the Kaituna River, capacity limits, upcoming resource consent requirements, and Worksafe obligations, the commission said.
White-water rafting at Okere Falls near Rotorua. Photo / Christine Cornege.
Concerns around bundling other tourism activities and sledging operations have been removed from the previous preliminary statement of issues released last year.
Under the Commerce Act, the merger can only be approved if the regulator believes it is unlikely to substantially lessen competition in any relevant market.
The rafting companies have argued that defining the market as rafting-only ignores “commercial common sense”.
Rafting JV Co maintained that the merger would also allow more efficient use of assets, cost savings, improved river experiences, enhanced safety, stronger adherence to tikanga Māori, greater financial resilience to climate impacts and the potential establishment of a dedicated rafting guide school.
“Rafting isn’t a necessity. If it becomes too expensive, people just won’t come, they’ll do something else,” Rotorua Rafting’s Sam Sutton told Local Democracy Reporting last week.
Rotorua Rafting owner and operator Sam Sutton. Photo / Supplied
Sutton also earlier noted the merger could help counter rising DoC concession fees and weather-related disruptions. He was surprised at the level of scrutiny compared with sectors like supermarkets, fuel, and building.
So far, the application has received largely positive feedback, including from RotoruaNZ, the council-controlled organisation responsible for tourism in the region.
RotoruaNZ chief executive Andrew Wilson earlier said the merger could help “ensure the long-term sustainability of the rafting sector” and “preserve and enhance a cornerstone” of Rotorua’s adventure tourism market.
Tourism Industry Aotearoa and tour operator Contiki also supported the proposal.
Public submissions on the application are open until February 20, with an opportunity to cross-submit until March 3.
A final decision is expected on April 14.
Mathew Nash is a Local Democracy Reporting journalist based at the Rotorua Daily Post. He has previously written for SunLive, been a regular contributor to RNZ and was a football reporter in the UK for eight years.
- LDR is local body journalism co-funded by RNZ and NZ On Air.
