$325m ‘strategic’ tourism splurge — Govt says 3000 jobs protected
We’ve [made sure the support] was targeted, it was sustainable and had the biggest impact possible for the long-term health of the tourism sector.
Kelvin Davis, Tourism Minister
The Government is spending more than $230 million on “strategic” tourism businesses in a move it says will protect up to 3000 jobs in the sector hammered by the pandemic.
This round of funding is unlikely to attract the same heat as when up to $10.2m was allocated to AJ Hackett Bungy last month, as initial amounts to many of the country’s best-known attractions are just 5 per cent of that.
Tourism Minister Kelvin Davis yesterday released the first batch of 126 businesses that would receive a $500,000 grant in the first year and then be eligible for soft loans as part of a package that could total $245m. The amount of the loan would be determined by individual business cases.
He also announced $50m for a regional events fund, $20m for an inbound tour operator loan scheme and $10m to lift digital capability in the sector.
The 48 strategic businesses released yesterday range from Kelly Tarlton’s in Auckland to Larnach Castle in Dunedin.
The Government copped flak after granting $5.1m (and a possible loan of the same amount) to AJ Hackett Bungy last month because of the wealth of the operation’s owners who include NBR richlister Sir John Davies.
But Davis has defended the grant which was made following an urgent request from the company, which said it would save the jobs of 83 staff. Whale Watch Kaikïõura received $1.5m and Discover Waitomo up to $4m under the Strategic Tourism Assets Protection Programme.
More than 300 businesses have applied for funding from the “bespoke” programme that is aimed at ensuring that strategic tourism assets that generate a wider range of benefits aren’t lost. According to Ministry of Business Innovation and Employment criteria the assets should be nationally and/or internationally recognised, a key attraction and one without which tourism to the region would be significantly diminished.
Funding decisions are made by the Tourism Recovery Minister’s Group, comprising Davis, Finance Minister Grant Robertson, Mãori Development Minister Nanaia Mahuta, Conservation Minister Eugenie Sage and the Under-Secretary for Regional Economic Development Fletcher Tabuteau. Davis said the package would support tourism operators of all sizes and types including Mãori cultural attractions, adventure activities, scenic tours, and zoos, aquariums and wildlife encounters across Aotearoa.
The $50m for the Regional Events Fund would help drive domestic tourism and the $20m in loans for inbound tour operators would prepare them for “when international travel resumes”, he said.
“We’re also providing $10m that will help tourism businesses adapt to our current reality by helping them develop digital strategies, access digital tools and benefit from the existing Digital Enablement initiatives.”
Tourism was New Zealand’s top foreign exchange earner in the 2018-19 year but has dried up with border closures and flight restrictions.
“We’ve had to adapt the [support] to make sure it was targeted, it was sustainable and had the biggest impact possible for the long-term health of the tourism sector”.