Hut fees for tourists
A new luge chairlift and doubling of gondola capacity are among $5 million in developments recently completed by Skyline where visitor numbers have grown 50 per cent since 2012. As unprecedented numbers of tourists flood into New Zealand concerns are being raised over the nation’s ability to withstand the crowds. But one North Island hotspot is revelling in the boom.
The lakeside city of Rotorua has been a tourist destination for 150 years and hosting visitors is in its DNA, local tourism operators say.
Every year more than 3 million tourists flock to Rotorua and the council predicts the city’s visitor economy will hit the billion-dollar benchmark by 2030.
New Zealand is fast becoming a globally competing country in the tourism world and “it’s our time to shine at the moment”, said Bruce Thomasen, general manager of Skyline Rotorua Luge Restaurant and Gondola.
Rotorua is renowned for its geothermal activity and Maori culture, with nearly one fifth of the residents working in the tourism sector.
Tourists who visit the city are treated to bubbling mud pools, 30m-tall erupting geysers, lake views, outdoor action activities and traditional Maori culture. tional (about 60 per cent) and the feedback we often get is how amazing they are and how cheap. The reality is we are charging $54 a night for the Milford Track — arguably the greatest walk in the world — and this is well below the value that we are delivering for visitors,” he said.
Fees across the Tasman were much higher with the Three Capes Track in Tasmania working out at roughly $180 per night.
“These price changes are based around each walk’s demand profile, with our highest-use tracks seeing the largest increase.”
The more popular Great Walks were now operating at over 90 per cent capacity over the summer period.
At Te Puia, a Maori cultural centre home to the world famous geothermal valley, tourists are immersed in Maori wood carving and weaving schools and invited to take part in poi dancing and haka performances in the traditional Maori meeting houses.
Tim Cossar, chief executive of Te Puia, said the centre has experienced strong growth over the past five years, jumping from around 312,000 guests to 550,000.
The centre is undergoing a $20 million development, including new school facilities and restaurants, he said.
“A big part of the reason we are doing that is quite simply our existing facilities have been outgrown.”
Skyline has seen similar growth in visitor numbers, increasing by 50 per cent since 2012, with up to 5000 tourists riding the gondola every day during peak season, Thomasen said.
“We want to encourage visitors to explore the wider range of equally spectacular tracks in the network and, for Kiwis in particular, to take advantage of tracks suitable for quieter times of year.”
It would introduce seasonal pricing for huts on two of the Great Walks tracks, Abel Tasman and Rakiura on Stewart Island. Winter rates would be lower than in summer.
During the last three years there had been a 35 per cent increase in use in the Great Walks. In the 12 months to April 120,000 people used them.
With higher numbers, the gap between what the department spends and earns from these walks was closing. “However, overall the
In the past five years, Skyline has poured $5m into developments, including doubling the cabin capacity on its gondola service and installing a new luge chairlift.
The property was well placed to take on growing demand and was “nowhere near capacity”, Thomasen said.
While smaller tourist destinations such as Waitomo and Milford Sound may be struggling to cope with increasing numbers, Rotorua has the infrastructure and future plans in place to handle it, he said.
Both Thomasen and Cossar said the only red flag in Rotorua’s tourism sector was the lack of five-star hotels to house the tourists.
The city also needed to be prepared for further growth by continuing to develop its effluent and freshwater systems, they said.
“We don’t want to be destroying the very thing people have come here for in the first place,” said Cossar.
“The world is demanding more and more of what New Zealand has to offer and this puts pressure on us.”
Deputy mayor Dave Donaldson, who leads the economic development portfolio, said Rotorua Lakes Council department has a $1.2 million shortfall per year on its Great Walks. On top of the high cost of removing all waste from these remote and unspoiled destinations, these tracks are wellformed and have higher-standard huts and facilities making them more expensive to build and maintain.”
Walker said user fees made an important contribution towards providing outstanding experiences on these tracks without drawing from DoC’s other work.
Any revenue earned above what was well prepared for the growth and had already established goals through its 2030 planning vision.
In 2010, the city’s visitor economy was sitting at around $500m. Now it’s estimated at $750m and the council hopes this will reach $1 billion by 2030. is needed to sustain the Great Walk experience will be reinvested back into the conservation and recreation priorities of the department,” said Walker. It was maintaining its kids go free policy aimed at making Great Walks accessible for Kiwi families. “DoC will continue to invest in New Zealand’s extensive network of huts and tracks offering fantastic, lesserknown multi-day walks for those seeking quieter, lower-cost experiences.”
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The council has implemented seasonal waste collection systems and upgraded toilet and campervan facilities recently, he said.
“We’ve been dealing with this for a long time. The growth is steady, but we are well prepared and planning to cope with it.”
On any given day in Rotorua, the council estimates that on average there would be around 10,000 tourists in the city, which only has a residential population of 65,000.
This comes with pros and cons for the community, Donaldson conceded.
One of the cons was the congestion and pressure these kind of crowds placed on city infrastructure, but a pro was living in a vibrant tourist destination and being able to enjoy the attractions and hospitality built to cater to those individuals, he said.
Rowena Henderson, who has lived in Rotorua all her life, said tourists helped support Rotorua’s economy and had a positive impact on the city and its people.
However, she said it could get “a little overpowering” for locals in peak season.
“Sometimes I feel like it can be a little bit overcrowded. You know, you turn around and there’s a foreign language going on around you and a foreign face,” she said.
“It’s good that they are here economically, but I do feel that sometimes they do overpower places.”
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