The New Zealand Government is investing an additional NZ$35 million in its new Tourism Growth Roadmap with an ambitious goal of doubling New Zealand’s tourism export earnings by 2034.
Announced by Tourism and Hospitality Minister Louise Upston on Tuesday, the plan to drive international visitor numbers and improve tourism infrastructure includes investing more than NZ$19 million in international marketing across core and emerging tourism markets and NZ$8 million on attracting business and major events to New Zealand.
A further NZ$4 million will be put towards improving the visitor experience along the Milford Road corridor.
This is the first stage of the Tourism Growth Roadmap which the government says will shift over time to focus more on the supply side of tourism to support this growth.
Rebuilding demand the top priority, HCA says
Hotel Council Aotearoa Strategic Director, James Doolan, welcomed the latest investment, highlighting the widespread economic benefits tourism brings to the country.
“We’re pleased to see that funding has been identified as a key workstream,” Doolan told HM.
“HCA has long called for collaboration between central government, local government and industry around principles for a long-term sustainable tourism funding regime based on sound data and international best-practice.
“The Minister is completely correct that rebuilding demand is still the highest priority.”
“Tourism delivers massive benefits to all New Zealand through city centre activation, employment and significant tax revenues that support other parts of the economy.”
Tourism, which is currently New Zealand’s second largest export, has struggled to bounce back in the wake of the pandemic.
“Unfortunately, international visitation to New Zealand stubbornly lags 2019 levels, despite significant growth in accommodation supply and the opening of new tourism infrastructure such as convention centres in Christchurch, Wellington and – coming soon – in Auckland as well,” Doolan said.
“In reality, New Zealand needs to quickly achieve 130% of pre-Covid visitor levels in order be at ‘par’.”
Confidence returning
Minister Upston has announced a number of initiatives recently that should give hoteliers confidence around the coalition government’s support for sustainable tourism growth, according to Doolan.
“Four years ago, during Covid, HCA called for accelerated depreciation for tourism assets,” he said.
“The “Investment Boost” initiative announced in last month’s budget certainly helps hoteliers who are considering property renovations this year.
“Alongside airlines, airports and ground transport networks, hotels are key “tourism-enabling” infrastructure without which it would be impossible to attract free-spending international travellers.
“This tourism-enabling infrastructure requires significant up-front capital and long lead-times.
With neighbouring markets vying for international tourists, Doolan is eager to see New Zealand step up to claim its share of the pie.
“It’s a competitive world out there,” he said, pointing to Australian states such as South Australia, Queensland and Tasmania, which are targeting “near-term tourism growth built on event attraction and infrastructure improvements”.
“In delivering Minister Upston’s Growth Roadmap, New Zealand has a fantastic opportunity to once again take a leading role in tourism policy settings and smart sector reinvestment.
“HCA will continue to do all we can to help drive demand, working alongside the Minister, government officials, regional tourism organisations and Tourism New Zealand.”