Coromandel tourism authority steps up advocacy amid financial constraints

Hot Water Beach is a popular tourism activity in the Coromandel. Photo / The Coromandel

Coromandel regional tourism organisation Destination Hauraki-Coromandel (DHC) has acknowledged 2024 as one of the toughest years it has encountered.

The struggle was reflected in the ongoing effects of cyclones Gabrielle and Hale, Covid-19, government administration changes and its 2023/24 annual report which showed a drop in revenue.

A snapshot of its statement of financial performance showed its main revenue from service delivery grants/contracts from government dropped to $983,360 from $1,077,112 in 2023.

The performance report showed DHC received $369,372 in Strategic Tourism Assets Protection Programme (STAPP) funding, $68,610 in regional event funding, $503,000 from the Thames-Coromandel District Council and $128,700 from the Hauraki District Council in 2023.

In 2024, there were no contributions from the STAPP fund while Thames-Coromandel District Council contributed $664,534, Hauraki District Council contributed $166,486 and $139,562 came from regional event funding.

Destination Hauraki Coromandel general manager Hadley Dryden said the organisation had prepared for the end of STAPP funding, seen as a legacy of Covid-19 and born during the previous government administration.

Challenges included ongoing road closures, the closure of Cathedral Cove, a review of the organisation in mid 2024, and the battle for greater support, given Coromandel’s contribution to the tourism industry, he said.

“When you look at the scale of what we are funded, it’s not in the same ballpark as other regions; with the funding we are now effectively going back to the future.”

Dryden said there was still strong advocacy to provide more support to Hauraki and Coromandel communities with regards to the impacts of tourism.

Following what had been acknowledged as one of the toughest years the regional tourism organisation had encountered, destination marketing and management output from DHC continued at a high pace amid a packed timeline of activity, he said.

“The improved regional visitor activity and spend was gratifying to see in the wake of a slow recovery from the effects of the global pandemic and the January 2023 weather events which devastated our region.”

From an economic perspective, Hauraki-Coromandel had its highest ever total visitor spend over the summer quarter.

“Strategically, the year encompassed greater regional advocacy by DHC at a national level, beyond our Hauraki- Coromandel borders, to rally support for regional tourism recovery.

A slip at Thornton Bay near Thames in February 2023 meant residents in three homes had to evacuate. Photo / Mike Scott

“The necessity to appeal for greater support is a luxury we typically can’t afford as we prioritise our core business of destination marketing; however, building stronger networks with national tourism agencies and media channels paid dividends.

“It was a key learning and an outcome worth continuing to foster, particularly when backed by a clear strategy that is supported locally to deliver enhanced outcomes for our region.”

In May a review of DHC recommended there was room for improvement in defining its performance expectations.

Those improvements included having more specific targets and better defining the role DHC should play in supporting destination management.

In recognising the recent review of its structure and performance, DHC chairman John Sandford said it was pleasing that the performance of the organisation had been validated.

“Our operational team has kept pace with the changing trends, DHC has continued to deliver results that match and often exceed those of many larger and better-funded New Zealand regional tourism organisations.

“This constant search for excellence led the board of DHC to submit recommendations to Thames-Coromandel and Hauraki councils about its board composition; the governance changes now adopted will enable DHC to better meet the needs of both the communities we serve and the needs and expectations of our manuhiri, our guests, the people from New Zealand and across the globe who come to experience this wonderful slice of beauty, wonder and peace that is so good for your soul.”

DHC is scheduled to host a Hauraki-Coromandel tourism sector update on October 22 in Whitianga where it will reflect on 2023/24 before presenting what’s in the pipeline for the future.

It marks the return of the first region-wide update since the global pandemic and the January 2023 storms hit Hauraki- Coromandel and will include updates from the Department of Conservation, Tourism Industry Aotearoa, Regional Tourism New Zealand and a panel of local tourism operators.