Tourism grants gold rush for Otago
Otago has scored by far the largest chunk of controversial funding to save key tourism businesses, reflecting its popularity with both international and domestic visitors.
Over the past four months the Ministry of Business, Innovation and Employment (MBIE) has progressively named 130 chosen operators as they signed funding agreements for cash grants of up to $500,000.
The final recipient, Rotorua’s Tamaki Ma¯ori Village, was named yesterday.
Otago was the clear winner with 26 businesses sharing $12.3 million, followed by Bay of Plenty (18, $8.7m), Canterbury (14, $7.4m), Waikato (11, $6.4m), Southland (9, $4.5m), Auckland (8, $3.7m), Northland (7, $3.2m), West Coast (7, $3.3m), Tasman (6, $2.8m), Wellington (4, $2m), Hawkes Bay (3, $1.26m ), ManawatuWhanganui (3, $870,000) and Marlborough (1, $500,000).
A further 10 attractions, classed as ‘‘national’’ because they operated in more than one region, shared $9.6m, and more than half of that was a $5.1m grant to AJ Hackett Bungy.
The strategic tourism assets protection programme (Stapp) got the lion’s share of the Government’s $400m Covid-19 industry rescue package, but the selection criteria attracted strong criticism from some businesses that missed out.
A group of 50 operators have asked the auditor-general to investigate the process, dubbed a ‘‘lottery’’, and might seek a judicial review.
MBIE said regional spread was not a factor in decision-making by the
Tourism Recovery Ministers Group, which chose recipients based on recommendations from officials.
Water-borne activities feature prominently: 25 of the chosen tourism businesses run cruises, jet-boat rides, and kayak and rafting trips.
Wildlife attractions getting assistance showcased Kiwi, penguins, albatrosses, dolphins, and whales, along with zoos, aquariums, and the Huka Prawn Park.
Seventeen aviation operators ranging from scenic flights to skydiving got the nod, as well as half a dozen caving and glowwormtrips and three glacier and mountain-guiding companies.
Ma¯ori cultural experiences, 10 art galleries and museums, hot pools, gondolas, luges, the Rainbow’s End theme park, Maniatoto’s curling rink, the Highlands Motorsport Park and geothermal attractions all made the cut.
Those applying for money had to sign a declaration that they had exhausted all avenues of financial support from banks, shareholders or other sources.
Some tourism operators were therefore surprised that local authorities such as the Wellington City and Auckland councils got a hand-up for ratepayer-funded facilities including the New Zealand Maritime Museum, Auckland Zoo and Auckland Art Gallery.
Three tourism businesses owned by Queenstown’s Davies family declined grants worth $1.5m on the basis that revenue was better than expected, and there is pressure to have that money reallocated to others who needed it.
At the Tourism Summit in Wellington last week, new Tourism Minister Stuart Nash said he was seeking advice on what to do with grants and loans that were unused.
He has not ruled out further assistance for the industry which has been hit hard by the prolonged border closure, and the idea of a travel card to encourage domestic tourism is being considered.
The grants will be distributed over two years and businesses then have the option of taking up more than $203m available as low-interest loans.