Nine-year dispute over Otehei Bay access ends as rivals agree

Access to scenic Otehei Bay, on Urupukapuka Island in the Bay of Islands, has been the subject of a long-running commercial dispute. Photo / Peter de Graaf

Peace has broken out in the Bay of Islands after rival tourism operators agreed to end a long-running dispute over access to a popular island.

The agreement will see one company stump up for a new wharf at Otehei Bay, on Urupukapuka Island, while the other will pay for improved on-land facilities.

At 208ha Urupukapuka is the largest island in the Bay. It gained fame in the 1920s as the base for US author Zane Grey's game fishing exploits and is now part of a major wildlife restoration project.

Urupukapuka is fully publicly owned, though one area — Otehei Bay — has long been leased to private operators by the Department of Conservation.

In 2009, when a previous operator went into liquidation, the lease and what was then Zane Grey Resort was bought by Auckland-based tourism firm Explore for a multimillion-dollar sum. That was the start of a nine-year dispute with Paihia-based rivals, Fullers GreatSights, in which visitors to the Bay were often the losers.

A disagreement about how much Fullers should pay to use the wharf — Explore wanted $300,000 a year plus a one-off payment of $290,000 — reached the Court of Appeal in 2010; another legal dispute hit the High Court in 2016 when Fullers accused Explore of adding a pontoon to the wharf to prevent its vessels docking. Explore said the pontoon, which was subsequently removed, was installed to improve access for smaller boats.

Fullers also complained that its passengers were prevented from using the cafe and toilets at Otehei Bay, in breach of lease conditions set by DoC. Both sides have spent large sums on legal action.

Last summer Fullers started using a barge to drop passengers off on other beaches around Urupukapuka without jetties or other facilities.

This summer, however, is shaping up very differently, with the two firms agreeing to set aside their dispute and work together to improve the island's facilities.

Following mediation between the two operators, along with DoC and the Northland Regional Council, Fullers GreatSights has agreed to replace the wharf while Explore will invest in the café and other facilities on land.

Explore group managing director William Goodfellow said his company had already invested significantly in the café and other facilities and would continue to do so.

"The vision has always been to create a world-class experience at Otehei Bay. With the investment in the wharf and on-island facilities, Otehei Bay will be confirmed as a must-visit destination in the Bay of Islands."

Fullers GreatSights general manager Charles Parker said his company had hoped to replace the wharf this winter.

However, marine contractors were not available in the required timeframe so repairs were being carried to make the wharf safe for the coming summer, with the wharf due to be fully rebuilt next winter.

The new wharf would be larger and have two pontoons instead of one to improve access for commercial vessels and the public. The cost would be ''well north of $1 million'', Parker said.

"It's an excellent outcome for the region and the Bay of Islands community, and we're excited about returning to help showcase this stunning location to visitors and locals alike this summer," he said.