‘New-look’ tourism sector needed – Nash

The tourism industry is in line for more targeted assistance but Tourism Minister Stuart Nash has ruled out a regional wage subsidy.

Nash set out his tourism priorities in a speech at the Otago University tourism policy school conference in Queenstown yesterday and made it clear the pandemic would force the industry to significantly change the way it operated.

Nash said the interruption to tourism had provided an opportunity to take a hard look at the sector and to fix long-standing issues.

‘‘I think most New Zealanders all recognise that prior to Covid-19, unsustainable tourism levels put far too much undue pressure on communities and our natural attractions.’’ Nash said mass-scale international tourism was unlikely before 2022, and he was deeply concerned about the situation unfolding in areas like Queenstown, the West Coast, Fiordland, the Mackenzie District and Kaiko¯ura, which were heavily reliant on overseas visitors.

Targeted initiatives were under consideration to support the worst affected communities but he said regional wage subsidies were ‘‘not sustainable nor fair’’. One option was to make it easier to hibernate a company and then provide support when it was ready to start up again once international tourists returned.

Other potential steps until the borders reopened included help to diversify regional economies overreliant on international tourism and deploying tourism workers to other sectors. Nash said he hoped to make an announcement about further support before the May Budget.

However, he ruled out anything like the controversial strategic assets protection programme (STAPP) grants, which were investigated by the auditor-general.

Nash said the Government planned to take a closer look at existing local levies, such as the $35 a head international visitor conservation and tourism levy, which does not currently apply to Australians.

‘‘Australia charges Kiwis, why shouldn’t we charge Australians?’’

Pricing strategies for public assets were also being considered and Nash said they were looking at ‘‘innovative technology’’ to ensure overseas visitors contributed to the upkeep on national parks.

He supported the introduction of more differential pricing for locals and international visitors.

‘‘The costs and negative impacts associated with tourism must be mitigated or priced into the visitor experience, and not funded by New Zealand rate and taxpayers.

‘‘Consistent advice from within the sector, from small communities, and from external agencies like the Parliamentary Commissioner for the Environment, demonstrate we cannot go back to the tourism model that existed prior to Covid-19.’’

Nash announced the tourism infrastructure fund, previously used to help councils pay for tourismrelated infrastructure, would shortly open for applications and priority would be given to areas that needed it most.

In the past, much of the funding had gone into public toilets and facilities to alleviate the negative impact of freedom camping, an area Nash had also promised to toughen up on and he said a discussion document would be released shortly.

‘‘I am looking to change the rules around freedom camping, which is not free at all for taxpayers or ratepayers who have to pick up the tab.’’

Asked about bed taxes, which Queenstown mayor Jim Boult has championed, Nash said they were looking at the issue nationally but signalled it might be through targeted local authority rates. ‘‘We are trying to find a way that would make it easier for councils to make their own determination around whether they want to do this. But we [the Government] won’t be introducing a bed tax ourselves.’’

‘‘We cannot go back to the tourism model that existed prior to Covid-19.’’ Stuart Nash Minister of Tourism