Todd McClay: Investment boost to grow tourism

Tourism plays a vital role in the Rotorua electorate and wider Bay of Plenty. That's why I was delighted to hear Prime Minister John Key's recent announcement that the Government will invest $158 million in tourism over the next four years as part of Budget 2013. This investment will help put an even greater focus on international growth and with Rotorua fast becoming the tourism capital of New Zealand, this is a positive announcement for local businesses.

This funding boost will be used to accelerate the work already underway in attracting high value tourists, and supporting and growing emerging and existing markets. It will also be utilised to encourage innovation, bring international events to New Zealand and simplify visa processes.

Ultimately this is good for Rotorua as it opens the way for smaller tourism businesses to become involved in the international tourism market. Already Rotorua makes up a significant component of New Zealand's tourism sector.

It's not hard to understand the vital role tourism plays in the economic wellbeing of New Zealand. Thanks to our stunning scenery, vibrant culture, world-class food and wine, and skilled and passionate tourism operators, millions of overseas guests visit our country each year.

Increased investment in tourism will result in more visitors to New Zealand, spending more money. This benefits tourism operators, shops, hotels, cafes and restaurants right throughout the country. By investing in these businesses to grow, they are then able to employ more people and boost investment, leading to more jobs and economic growth.

This is why tourism is a critical part of the Government's key priority to build a more competitive and productive economy. In the year to March 2012 the tourism industry employed 6.2 per cent of our workforce, generated $9.6 billion in revenue and made up 15.4 per cent of our export earnings, and 3.3 per cent of GDP.

However, tourism does face some challenges. The number of visitors to New Zealand is increasing, but tourists are spending less when they come here. We need to focus on new markets and visitors who spend more.

Traditionally, we have relied on tourists from places such as Australia, the UK and USA. We are investing $24.5 million in boosting our traditional markets. But we also need to expand our focus, so we are investing another $44.5 million to attract visitors from places such as India, Indonesia and Latin America.

These places have growing wealth, relative proximity to New Zealand, and increasing numbers of people who want to travel.

Along with China, which is already our second-biggest tourist market, we can expect to see high growth in the number of tourists coming from these countries. The Prime Minister's recent visits to China and Latin America have highlighted the huge potential for tourism and trade from these places.

We are also focusing on visitors who spend more while they are here. This includes $20 million to target luxury travellers, and $34 million to attract business events. The rest of the new funding will go towards investment in the tourism sector, and improved visa facilitation to make it easier for people to come here.

This new tourism funding is part of a larger internationally-focused growth package in this year's Budget. The funding will help us to attract high value visitors and more tourism dollars, and increase the value of tourism to New Zealand. This can only be positive for Rotorua and I'll continue to play my part by working alongside the local tourism sector and be their voice in Parliament.