$200m tourism package a ‘lifeline’ for struggling south
A $200 million South Island tourism package is being labelled a lifeline for struggling communities.
Tourism Minister Stuart Nash announced the 12 point Tourism Communities: Support, Recovery and Reset Plan at the annual TRENZ tourism conference in Christchurch yesterday.
Six of the initiatives will focus on Fiordland, South Westland, Queenstown Lakes, Mackenzie District and Kaiko¯ ura that will among them receive $108.5m, with the remainder assisting the industry nationally to cope with the economic loss of international visitors and prepare for a reshaped future.
Canterbury Employers’ Chamber of Commerce chief executive Leeann Watson said it offered a lifeline to businesses and their communities. A recent Tourism Industry Aotearoa (TIA) survey showed tourism businesses had seen their revenues cut almost in half on average and four out of every 10 tourism jobs in New Zealand were lost over the past year.
A strong and well-co-ordinated plan to welcome tourists back was essential, she said. ‘‘This combined with the vaccination roll-out provides us cautious optimism that we are starting to reach a turning point in our response to one of the most significant economic disruptors of our generation.’’ Westland district mayor Bruce Smith was especially pleased with the $49m allocated to assisting businesses, particularly in Fox Glacier and Franz Josef, that had gone into hibernation. In February, the region submitted a formal plea to the Government for help as the towns were facing the loss of 80 per cent of jobs and closure of two-thirds of businesses. ‘‘That will be huge for us. The reality is that we have got to have attractions if we want people coming to visit us,’’ Smith said.
Queenstown Lakes mayor Jim Boult said a $20m fund to help develop alternative industries and attract private sector investment, such as a digital innovation hub and a film studio, was fantastic.
‘‘We have been working away for the last 12 months on lots of initiatives to diversify our economy and while we have got lots of things happening, some financial assistance is very welcome.’’
Diversification of the economy would take several years. ‘‘But if you don’t start somewhere you are never going to get
where you want to go,’’ Boult said.
Wayfare Group chief executive Stephen England-Hall said he did not expect his company, which employs hundreds of people across Real Journeys in Queenstown and Milford Sound, skifields and the International Antarctic Centre, to be directly impacted by the funding announcements.
However, there would be indirect benefits from the support for regional tourism organisations and the community development programme for Queenstown. The Government is putting $15m into the Milford Opportunities Project, which would help the company navigate the social licence and the environmental impacts of continued visitation in Milford Sound.
In Kaiko¯ ura, Nin’s Bin owner Johnny Clark said many projects around town would be bolstered by the funds, such as the Wakatu Quay development, which would then benefit businesses like his own.
South Pacific Helicopters owner Daniel Stevenson said the money would provide a pathway back to some kind of normal again, and enable businesses to survive.
Mackenzie mayor Graham Smith said the announcement was a great start towards rebuilding the tourism economy and changing the way tourism operated in the future. ‘‘Businesses have to adapt to the new climate, and this is part of this package too to help our businesses adapt and go forward.’’
Tekapo Springs sales and marketing manager Andy Murray was at the announcement and said the mood in the room when Nash was introduced was ‘‘a mixed bag’’, with many operators feeling ‘‘frustration’’ at the Government.
But Nash ‘‘delivered’’, Murray said, and the announcement was ‘‘really positive and well received by the industry’’.
Whether the support would be enough was the ‘‘million-dollar question’’ but it was ‘‘definitely a step in the right direction’’.
Regional Tourism New Zealand chairman David Perks said the $26m to be allocated to 31 Regional Tourism Organisations (RTOs) would allow them to ensure tourism businesses were well-placed to prosper in the future.
‘‘The funding is especially welcomed by local government, which is traditionally the major funder of regional tourism.’’
TIA chief executive Chris Roberts said the association was pleased its call for the Department of Conservation concession fee waiver scheme to be continued beyond June 30 had been heeded.
‘‘This measure will provide immediate relief for 1000 tourism businesses that operate on the public conservation estate,’’ Roberts said.