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Home / New Zealand

Tourism funding: Hauraki, Coromandel councils keep contributions going

By Al Williams & Danielle Zollickhofer
Waikato Herald·
1 May, 2024 05:30 AM4 mins to read

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Hotwater Beach in the Coromandel is a popular summer destination. Photo / Mike Scott

Hotwater Beach in the Coromandel is a popular summer destination. Photo / Mike Scott

Hauraki and Thames-Coromandel district councils have decided to continue funding Destination Hauraki-Coromandel.

Hauraki District Council contributed $136,486 to Destination Hauraki-Coromandel in 2023/24. The organisation had asked for an increase in funding, but a council spokesperson said the council had to take other cost pressures into account.

Several councils across the Waikato region have announced funding cuts for their local tourism organisation, as they grapple with large rates increases this year.

“We made the decision to stick to the current funding for the next year ... dependent on the final outcome of the Long Term Plan consultation,” the spokesperson said.

“Although we have not increased funds in the current economic climate, we have not decreased them either as we appreciate the benefit that comes from supporting tourism in the district.”

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From 2017 to 2022, visitor spending in the Hauraki District increased 33 per cent, from $69.8 million to $92.62 million.

“[This] is significant and the activities of the RTO will have contributed to this.

“By funding tourism promotion, we are supporting our local business operators ... Tourism is good for business and for the ‘feel’ of a place.”

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A spokesperson for Thames-Coromandel District Council said no changes were proposed to the existing budget allocated towards supporting destination marketing and management.

In its draft plan, Thames-Coromandel District Council suggested contributing $494,000 in 2024, $504,000 in 2025, $514,000 in 2026 and $524,000 in 2027 to Destination Hauraki-Coromandel.

“Last year our council asked for a review of the purpose, performance, and funding of the organisation...The review also assessed alternative options for the future delivery of destination marketing and management activities in the district,” a council spokesperson said.

Windows walk: The Karangahake Gorge on the way to Waihi. Photo / Alan Gibson
Windows walk: The Karangahake Gorge on the way to Waihi. Photo / Alan Gibson

“In the end, council decided that it wants [Destination Hauraki-Coromandel] to continue to operate as a council controlled organisation of our council and Hauraki District Council.”

At yesterday’s council meeting, Thames-Coromandel received a report with the findings of the review.

The review found that Destination Hauraki Coromandel was “performing well to meet existing key performance indicators and rough return of investment measures”.

The review also found that Destination Hauraki-Coromandel was operating on a “relatively low” level of local government funding compared to other regional tourism operators, but it could seek greater private and non-local government funding.

Instead of continuing the status quo, the council had also considered alternatives including bringing marketing and promotion “in-house” and reviewing the current funding.

Destination Hauraki Coromandel general manager Hadley Dryden.
Destination Hauraki Coromandel general manager Hadley Dryden.

Destination Hauraki-Coromandel general manager Hadley Dryden said with the councils maintaining their current level of funding, the organisation was able to continue its work.

“We will continue to promote the region and maximise opportunities as international arrivals grow and we continue to recover from 2023 weather events. Tourism is crucial to the region’s economy and will help us maintain a presence in the marketplace and support off-season growth.

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“We are aware of the pressures on ... local government, so we don’t take [the funding] for granted.”

The news comes after fellow regional tourism organisation Hamilton and Waikato Tourism (HWT) raised “grave concerns” last month as four Waikato councils announced they would propose to reduce contributions.

HWT represents Hamilton City Council and Waipā, Waikato, Waitomo, Ōtorohanga and Matamata-Piako district councils.

In their long-term plans, Hamilton and Waikato proposed cutting funding to HWT by 50 per cent, Waipā proposed a 20 per cent decrease and Waitomo said it would cut funds by “at least” 50 per cent.

Al Williams is the editor of the HC Post, based in Whangamatā. He has worked at daily and community newspapers in New Zealand and overseas. Most recently he was the deputy editor of Cook Islands News.

Danielle Zollickhofer is a multimedia journalist and assistant news director at the Waikato Herald. She joined NZME in 2021 and is based in Hamilton.

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