Times are tough, councils across New Zealand are proposing major rates rises and funding cuts in their long term plans. One of the expenses facing the chop from several Waikato councils is tourism.
Local regional tourism organisation Hamilton and Waikato Tourism (HWT) is raising “grave concerns” about cuts to tourism funding, as four Waikato councils seek 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.
Matamata-Piako and Ōtorohanga were yet to make a decision.
Hamilton and Waikato Tourism chairman Richard Leggat said the funding cuts would have a big impact on the local visitor sector.
“[The] significant funding cuts, currently up to 43 per cent collectively, [have] the potential to make [our] work untenable and would have a devastating impact on many Waikato businesses and residents who directly and indirectly rely on tourism for their livelihoods.”
He said having no regional tourism organisation in the Waikato, as was the case between 2006 and 2011, would be “disastrous”.
“The Waikato’s previous regional tourism organisation was closed in 2006 and whether you look at visitor numbers, spend, bed nights, employment or GDP, you can see a clear decline in tourism in our region between 2006 and when our regional tourism organisation was re-established in 2011,” Leggat said.
He said there were more than 12,000 people working in the Waikato tourism industry and tourism was a key contributor to the region’s GDP, providing $1.9 billion in visitor spending per year.
”The compounded investment to date in the regional tourism organisation from our council partners has enabled and assisted with these great results.”
Councils argue that the current economic climate is very tough so cuts have to be made to focus on core services.
Hamilton City Council cut equates to $357,000
Leggat said the 50 per cent funding cut proposed by Hamilton in its draft budget last year equated to $357,000.
”Tourism is a real asset to our region and the benefits it brings suggest council investment in our regional tourism organisation pays for itself many times over,” he said.
“The continued investment in the regional tourism organisation should be viewed not only as an investment in an organisation, but in the social, cultural, environmental, and economic wellbeing of our communities.”
Hamilton Mayor Paula Southgate said there was “absolutely no doubt” that tourism played a vital role in Hamilton’s economy.
“It is thanks to the hard work of our region’s tourism industry that we are now the fifth most visited region in New Zealand, behind Auckland, Christchurch, Queenstown, and Wellington.
“I absolutely want to see the tourism sector continue to flourish but [our] council also needs to find efficiencies in the way that we work in the current economic climate.
“In this long-term plan, council has decided to ensure a strong focus on our core services, to ensure ratepayers are getting what they need and expect.
“Council simply can’t fund everything and this has meant making some tough calls.”
She added this was just one of many cuts the council was proposing, but it would remain open-minded to feedback from the community.
Waitomo confident in tourism sector
Waitomo Adventures, which provides blackwater rafting and cave abseiling experiences at Waitomo Caves, is concerned about Waitomo District Council’s proposal to cut “at least half” of its funding to HWT.
Waitomo Adventures founder and chief executive Nick Andreef said the region risked becoming a “poor cousin” if the funding was reduced.
”It’s amazing what Hamilton and Waikato Tourism achieves, despite already receiving less funding than most regional tourism organisations around the country.
“They have championed Waitomo to the world and provided valuable capability building that ... [led] to return visitation and positive word-of-mouth for the region.
”The last time there was a funding cut like the one being proposed, our region was left without a regional tourism organisation.”
Talking to the Waikato Herald, Waitomo Mayor John Robertson said all councils were in “a really tight spot”.
“Inflation has come upon us. Our main concern is the affordability of rates for our ratepayers.”
He said Waitomo District Council contributed $70,000 per year to Hamilton and Waikato Tourism.
“The direct advantage [of the funding] goes to operators. Those companies ... need to consider if they should contribute more.”
Robertson said the council was still “consulting” but was likely to propose to “at least” halve its funding.
“We recognise the impact on organisations, but times are tough for our constituents.”
Despite the tough times, he was confident in the district, he said.
“I don’t think the reduction of funding would have an impact [on tourism] ... our district will still thrive.”
Matamata-Piako District Council still consulting
Hobbiton Movie Set chief executive Russell Alexander echoed Leggat’s sentiments, saying the number of people visiting had been strong over the summer and a reduction in funding would result in a “loss of momentum”.
”With tourism still rebounding from the global pandemic and the cost-of-living crisis on people’s minds, the gains we have made can’t be taken for granted,” Alexander said.
“Councils should back tourism to make sure Waikato remains on people’s wish-lists and our communities benefit from their fair share of New Zealand’s tourism pie.”
Matamata-Piako District Council contributes $150,000 per year to Hamilton and Waikato Tourism.
Mayor Adrienne Wilcock said the council had decided to put its decision on hold.
“We are seeking further information from Hamilton and Waikato Tourism. We need to understand the value of [the regional tourism organisation] better.”
She said HWT would meet the council in April.
“If other councils reduce their funding, we may follow suit, but that decision is yet to be made and I’m not going to pre-empt an outcome at this stage.”
Wilcock, like Southgate, said the council had to focus on its core services.
“The question is where do you cut the cloth and how sharp do you cut it?
“With water, roads and recycling, you receive the service you pay for, but the funding for a regional entity is a bit of a grey area.
“How do you value the benefit to the ratepayer?”
Tourism organisations in Waikato
While Hamilton and Waikato Tourism covers the six councils of Hamilton, Waipā, Waikato, Waitomo, Ōtorohanga and Matamata-Piako districts, there are two other regional tourism organisations operating in the region.
They are Destination Hauraki Coromandel and Destination Great Lake Taupō, also known as Love Taupō, representing the Hauraki, Thames-Coromandel and Taupō district councils respectively.
Those three councils don’t contribute to Hamilton and Waikato Tourism and instead fund their own respective bodies.
Waikato Herald approached Destination Great Lake Taupō asking what the situation looks like in Taupō.
Destination Great Lake Taupō general manager Jane Wilson said: “At this stage, we have not had our budgets confirmed for the next financial year”.
“However, as with most councils around the country, it is a challenging time financially heading into the [long-term plan] discussions.”
Taupō District Council has recently announced it would delay its plan until at least September 30.
Destination Hauraki Coromandel has also been approached for comment.
Meanwhile, South Waikato District Council cut all funding from HWT in 2021 and decided to do its own promotion, meaning they were not represented by any regional tourism body.
Public consultation for districts’ draft long-term plans takes place now and people can have their say on the proposals.
Danielle Zollickhofer is a multimedia journalist and assistant news director at the Waikato Herald. She joined NZME in 2021 and is based in Hamilton.
Stay up to date with the Waikato Herald
Get the latest Waikato headlines straight to your inbox Monday to Saturday. Register for free today - click here and choose Local News.