Hawke’s Bay Regional Tourism Conference
TourismAs Associate Minister of Tourism, it is a pleasure to be here in beautiful Hawke's Bay. These industry updates provide valuable benefits to those who attend, and it is good to see so many tourism operators present today.
What's exciting for operators here in the Hawke's Bay and across New Zealand are the upcoming opportunities and events that will provide a major boost to tourism. There's the big one - the Rugby World Cup - which is just over a year away, but there's also the New Zealand Cycle Trail.
This morning I'll also cover the projected trends for visitor numbers; the Government's support for tourism, and how we can better promote regional New Zealand overseas and the Government's investment in infrastructure which will benefit the tourism sector.
First, I'd like acknowledge the Mayor of Napier, Barbara Arnott, and the Mayor of Hastings, Lawrence Yule.
Tourism Forecasts
I don't need to tell you how important tourism is for New Zealand. The numbers alone tell a compelling story. Last year international tourism expenditure contributed $9.3 billion to the New Zealand economy. This accounts for over 16% of our total export earnings and occurred while international tourism suffered an overall downturn.
Globally, international visitor arrivals were down 4%, making 2009 the worst year for tourism in decades.
But, the good news for New Zealand is that our tourism sector performed very well. The total number of visitor arrivals remained unchanged in 2009 compared with the previous year.
Encouragingly the Ministry of Economic Development has recently released new visitor forecasts that show international visitor numbers will reach 3 million in 2015. By 2016, New Zealand will host an additional 669,000 international visitors each year, a 27% increase on current levels and visitor arrivals in 2010 should grow by a projected 3.7% on 2009 levels.
Australia is a key driver in this growth and has been going from strength to strength as a visitor market and this is expected to continue over the coming year.
We also expect Asian markets to bounce back with good growth following a tough period for those markets due to the impacts of the recession and the influenza pandemic.
2011 is looking much stronger as we expect to see a return to growth in long-haul arrivals. A boost off the back of the Rugby World Cup and an overall strengthening in the economies of many of our long-haul markets should see a growth of 6.8% in arrivals that year.
The longer term outlook is for a sustained period of solid growth due to an improving global economic outlook and new routes and aircraft servicing New Zealand.
We're expecting this long-term growth to come out of three key markets, Australia, the US and China. In total, these markets should contribute around 69% of the growth in visitor arrivals to New Zealand over the next seven years. We're also expecting some good growth out of some of our emerging markets; France, India and Brazil.
Government Support for Tourism
Government continues to actively support the sector with an additional $30 million announced in this year's Budget for tourism marketing. This follows the extra $20 million for Tourism New Zealand marketing initiatives announced last year, which includes joint venture initiatives between public and private sectors.
Given the tight fiscal nature of this year's Budget, this further funding is a huge vote of confidence in New Zealand tourism.
We're now spending $100 million per year on marketing New Zealand internationally and Tourism New Zealand and Regional Tourism Organisations are moving to further enhance regional marketing.
Tourism New Zealand and RTO's of New Zealand have recently entered into a new memorandum of understanding to better market our regions in relation to the International Marketing Alliance. (IMA). This MoU is now circulating around the regions to sign.
The MoU stipulates that New Zealand's 28 RTOs will continue to be grouped into nine macro regions, known as IMAs. The aim is to improve the impact and coordination of how New Zealand regions and their products are represented at overseas trade events and training activities.
The benefit of this allows New Zealand to be presented to travel sellers in nine easily consumable `chunks' rather than in up to 28 regional bites.
New Zealand Cycle Trail Project
No doubt one of the key selling points of the regions will be the New Zealand Cycle Trail project which was launched last November. The Cycle Trails will provide significant economic development opportunities for the tourism industry and the Government is investing $50 million over three years.
Eight trails worth $19m were approved for funding in July. That's now increased to 13 trails across the country with $30 million in funding approved.
These trails are across the country in regions including Opotiki/Gisborne, Waikato, National Park, Taupo, Hawke's Bay, Nelson/Tasman, West Coast, Mount Cook/Waitaki, Queenstown, Southland and Clutha. Construction has already started on some trails and will begin on the other trails this summer.
A further five trails are in the process of being reviewed and are expected to have their funding approved this month.
Funding for The Landscapes Trail here in the Hawke's Bay was approved last month and the Prime Minister was in Napier to attend the signing of the funding agreement with the Hawke's Bay Regional Council.
The 55km trail will connect existing trails around the Tukituki Valley, Te Mata Peak, the village of Havelock North and includes a section along the coast between Haumoana and Te Awanga.
A further five trails are in the process of being reviewed and are expected to have their funding approved this month.
This will ultimately give us 18 world class trails showcasing the very best that New Zealand has to offer in terms of our landscapes, culture and communities. They will be a key draw-card for both international and domestic visitors, and add a further dimension to our vibrant tourism sector.
The initial focus of the project is to develop a series of "Great Rides". The Great Rides will complement our 100% Pure New Zealand brand and help attract international tourists.
In the longer term, it is envisaged that the Great Rides will be progressively linked with other cycling routes and facilities, and will cater for a range of cycling abilities, types and purposes.
Government is investing in the New Zealand Cycle Trails to help develop a product that will meet the demands of visitors in the future. Trips along the cycle trail will enable people to take their time, get off the beaten track, meet local people and enjoy our scenery. The brand Nga Haerenga means "the journeys", both in a physical and spiritual sense, and this is exactly the sort of experience we want visitors to New Zealand to enjoy.
Rugby World Cup
As you all know, Rugby World Cup 2011 kick off is just over a year away - the 9th of September 2011. The tournament provides one of the greatest opportunities to showcase New Zealand on the international stage.
Hosting one of the world's biggest sports events gives us an unprecedented opportunity to show 85,000 international visitors and a global viewing audience of more than 4 billion people the innovative, creative and world-class way we do things - whether it's food and wine, renewable energy, marine manufacturing, information and communications technology or film and fashion.
Ultimately, the thing that visitors will remember long after they have gone home is the hospitality, service and overall holiday experience that they received during their stay. It's our big chance, and we must get it right.
It's great to see that Hawke's Bay is hosting three teams - Canada for 15 days, Japan for six, and France for three, and that matches between Canada and the other two teams are being played right here at the redeveloped McLean Park.
Hosting teams is where real opportunity exists, and through the nationwide festival, the Sector Showcasing programme, and the NZ 2011 Business Club, the Government will be helping regions to realise that opportunity.
Through the sector showcasing programme, New Zealand business and industry sectors are gearing up to showcase their innovation, expertise and excellence to the world during 2011.
Hawke's Bay will play a key part when it comes to showcasing New Zealand wine to our international visitors, and will undoubtedly attract visitors beyond those coming here for games.
The region has built a strong reputation for its exceptional wine and food. But more than this, you have managed to build a regional brand that is supported by many well known and very successful events that help showcase your products to the world.
Events that spring to mind are the weekly Farmers Market in Hastings, and the Mission Estate Concerts. Events that are lined up for the Rugby World Cup include the Hot Red Wine Expo, and Wine Dine Devine Hawke's Bay.
The wine events, and many others planned for Hawke's Bay, will be part of a nationwide festival which will encourage visitors, and travelling Kiwis, to 'take the long way round', and really see the country and meet the people.
There's plenty of time between games, so they have this wonderful opportunity to really experience our country, rather than just seeing the stadia.
The NZ 2011 Business Club is a great way for Hawke's Bay businesses to get involved in the action. It's an on-line concept which matches visiting business people with local hosts in the same industry or with similar interests. So when people come here for a game, they'll get to meet a local host who'll maybe take them for a game of golf, or a vineyard tour, or home for a BBQ, and maybe talk a little business.
You can sign up as a business host by contacting your local Economic Development Agency. Over 800 people have signed up to host overseas businesses.
To ensure the nationwide festival touches every community around the country, the Government recently launched the $9.5 million NZ 2011 Festival Lottery Fund, to fund community festival events during RWC. The deadline for applications in September 17.
Infrastructure
Government also has a big role to play in ensuring that visitors experience the first rate infrastructure that they expect, and that underpins the entire tourism industry. This means widely accessible broadband, efficient, well-maintained transport networks, smooth processing at our borders and assurance of high quality experiences.
Broadband
In this year's Budget, Government announced an extra $200 million in funding over the next four years to roll out ultra-fast broadband.
Up to $1.5 billion has been committed to Government's ultra-fast broadband initiative, and we expect this to be at least matched by the private sector.
It is vital that our tourism businesses, our visitors, our educational institutes, and all New Zealanders, have access to the communication technologies they need and expect. Government is making sure this will happen.
Transport
New Zealand is a long, thin country. To make the most of the experiences on offer in New Zealand, visitors need regular domestic air links, a quality roading network and a range of public transport options, such as rail and bus networks.
Government is committed to ensuring New Zealand's transport network is able to meet our needs for growth now, and into the future.
Government is investing hugely in New Zealand's State Highway network -$10.7 billion for new roads over the next 10 years. Linking our major sea and air ports more effectively into the state highway system is a top priority.
Budget 2010 also announced $500 million for the electrification of Auckland rail lines, as well as $250 million for the wider rail network and rolling stock.
Smartgate
The experience visitors have at our border provides the first, and the last, memories that they take home. We want to make sure that experience goes as smoothly as possible.
Government is working closely with Australia to streamline our trans-Tasman border experiences. Trans-Tasman travel is big - more than one million Australian residents travelled to New Zealand last year, and the number of New Zealanders travelling to Australia is only slightly less.
In December Smartgate terminals became operational at Auckland airport. Australian and New Zealand ePassport holders can use these automated terminals on both sides of the Tasman to clear customs and immigration. The terminals will be rolled out in Wellington and Christchurch airports in 2010/2011.
I wish you all the very best with the rest of your conference today. I trust you will get a lot from it and the valuable networking opportunities that it provides.