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• Vote: Tourism

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• Output Class - Policy Advice - Tourism
  • Quantity, Quality, Timeliness and Cost
  • Major Budget Variances
• Output Class - Land and Property Management
  • Description
  • Quantity, Quality, Timeliness and Cost
  • Major Budget Variances

Output Class - Policy Advice - Tourism

This output class provides policy advice in relation to:

• economic, environmental and social policy affecting tourism;
• barriers and opportunities for tourism;
• the purchase of promotion services from the New Zealand Tourism Board (NZTB);
• the Government's interests as owner of the NZTB; and
• requests for grants for non-commercial tourism facilities.

Quantity, Quality, Timeliness and Cost

Work Programme

All policy advice projects were delivered in accordance with the terms of the work programme as agreed with the Minister. Changes to deadlines were negotiated with the Minister.

Key Deliverables in the Work Programme for 2003/2004

New Zealand Tourism Strategy

The New Zealand Tourism Strategy 2010 provides the platform for much of the policy work that will be undertaken during the year. In its work with Māori in the tourism industry, the Ministry of Tourism will continue to develop the recommendations from He Mātai Tāpoi Māori.

During the 2003/2004 year, the Ministry of Tourism funded and participated in six regional hui hosted by Māori Regional Tourism Groups to facilitate improved knowledge of the Government's Māori tourism programmes and to assist in improving its own understanding of the needs of Māori tourism businesses. The Ministry's participation also served to raise awareness among Māori tourism firms of the assistance available to them.

The Ministry developed a two-year Māori tourism plan designed to guide its work in assisting Māori capability development in the tourism sector. Implementation of the plan is expected to begin in 2004/2005.

Further development of cultural tourism initiatives.

Five regional cultural tourism development plans were developed during the year to increase the quality of cultural tourism products in specific regions and to increase international demand for those products. These plans were funded from the Strategy Implementation Fund. The five regions are Hawkes Bay, Nelson, Northland, Taranaki and Wellington. The Regional Tourism Organisations (RTOs) in each region are now implementing these plans.

Further cultural tourism marketing initiatives are also being undertaken by Tourism New Zealand.

In partnership with other government agencies, develop polices that reduce barriers to continued growth, with emphasis on infrastructure and resource constraints.

In September 2003 the Ministries of Tourism and Economic Development, in conjunction with other government agencies and local authorities, prepared a report on the provision of infrastructure in destinations with low rating bases and high tourist flows. The report findings supported a successful Budget bid for $11 million over three years. This funding will establish an Infrastructure Funding Scheme to assist local authorities to develop water and sewerage infrastructure to support increased visitor numbers.

Build regional tourism organisation capability.

The Ministry of Tourism continued to support Regional Tourism Organisations (RTOs) and Local Government New Zealand through funding projects and providing advice to Regional Tourism Organisations New Zealand (RTONZ) on priorities. By year-end all funded projects had been completed and a significant body of work is now available on best practice for RTOs and Local Government. This information will be hosted on the Ministry of Tourism's website in 2004/2005.

Contribute to enhanced sustainability for the sector.

A review of the information available on tourism demand on local government infrastructure other than water and sewerage was due to be completed in 2003/2004. As priority was given to achieving a successful outcome to the review of water and sewerage infrastructure, completion of the review of other infrastructure has been deferred to 2004/2005.

Research and Statistics

This output involves the provision of tourism research, statistics and policy advice on tourism research needs, to assist decision-making processes by government, the tourism industry and other stakeholders. Significant deliverables include the following:.

Effective provision of the core tourism dataset comprising the International Visitor Arrival (IVA) and International Visitor Surveys (IVS), Domestic Travel Survey (DTS), Commercial Accommodation Monitor (CAM) datasets, and the tourism satellite accounts (TSA) and forecasting programme including forecasts to 2009.

• International Visitor Arrival (IVA): This dataset was published by Statistics New Zealand (SNZ) monthly. It provides data on arrivals to New Zealand including how long visitors intend to stay in New Zealand and where they came from. Weekly IVA data collated by SNZ was forwarded to stakeholders by the Ministry of Tourism.
• International Visitor Surveys (IVS): The Ministry of Tourism released headline data from the IVS for the year ended 30 September 2003 in December 2003, with 2003 data released in May 2004.
• Domestic Travel Survey (DTS): The DTS provides data on the behaviour and expenditure of domestic travellers. The Ministry of Tourism has been working with the DTS provider to process 2002 and 2003 data to improve its quality and relevancy. This information will be provided on a quarterly basis for 2004/2005.
• Commercial Accommodation Monitor (CAM): The CAM provides data on guest occupancy rates of various commercial accommodation providers in New Zealand. This information was provided by SNZ on a monthly basis.
• Tourism satellite accounts (TSA): The TSA provides an assessment of the contribution tourism makes to the New Zealand economy. The TSA figures for 2000 - 2003 were released by SNZ in June 2004.
• Forecasting: The Ministry of Tourism released the Tourism Research Council of New Zealand (TRCNZ) forecasts for the period 2003 - 2009. Over time these forecasts are proving to be highly accurate predictors of patterns in tourism. The forecast for visitor arrivals shows a steady increase from two million in 2002 to three million by 2009. Accordingly, international visitor spending is also forecast to rise from six billion dollars to close to 12 billion dollars over the same period.
• The Tourism Leading Indicators Monitor (TLIM): The TLIM is a collation of the highlights of the above mentioned data sources. Prepared by the Ministry of Tourism, this document brings together key information from the individual data sources and provides trend analysis. The TLIM was disseminated on a monthly basis.

Further development of the core dataset by implementation of the recommendations of the 2002 Review of Tourism Statistics carried out by the Ministry of Tourism.

In accordance with the recommendations of the 2002 Review of Tourism Statistics, the Ministry of Tourism is increasing its communications functions with the aim of improving stakeholder understanding and application of the core tourism data set. In particular, a stakeholders group for IVS, DTS and CAM data sets was established in 2003/2004 to ensure the efficacy of these datasets and to improve alignment of the IVS and DTS datasets.

Communications initiatives included publishing a forecasting summary document, Understanding the Dynamics of New Zealand Tourism, expanding the trcnz.govt.nz website content and direct engagement with stakeholders.

The number of visitors to the Ministry of Tourism's website doubled over the course of the 2003/2004 year.

Projects Not Included in the 2003-2006 Statement of Intent

In October the Ministry completed its report into the economic impact of the 2002/2003 America's Cup regatta and a further report into the potential economic impacts of Team New Zealand training in the Hauraki Gulf for a European challenge.

The Ministries of Tourism and Economic Development led the development of a Major Events Budget bid to attract, retain and grow major events.

Crown Entity/Statutory Board Monitoring

The Ministry of Tourism administered the process of appointments to both the Tourism New Zealand Board (four appointees) and the New Zealand Māori Arts and Crafts Institute Board (seven appointees).

Monitoring and reporting to Ministers on the financial and non-financial performance of the New Zealand Tourism Board was provided as reflected through:

• the Statement of Intent;
• the Output Agreement;
• management reports (for reference as appropriate to the Minister); and
• the Annual Report.

Cost

(Figures are GST exclusive)

Sources of Revenue Other

Major Budget Variances

The Supplementary Estimates increase reflected costs associated with the economic impact study of the 2007 America's Cup Team NZ challenge and additional costs associated with the International Visitor Survey and the Domestic Travel Survey.

The variance between the Supplementary Estimates and actual expenses is mainly due to a vacancy in a purchase advisor position and expenditure being lower than forecast in the Major Events output.

The variance between 2003/2004 and 2002/2003 for actual expenses reflects increased funding in 2003/2004 for the tourism data, research and dissemination programme, plus costs associated with the economic impact of the Team NZ 2007 America's Cup Challenge.

Output Class - Land and Property Management

Description

This output class involves the management of tourism and other concessions at Wairakei and Rotorua.

Quantity, Quality, Timeliness and Cost

Quantity, Quality and Timeliness

Management of tourism and other concessions at Wairakei and Rotorua will be delivered as detailed in the Ministry of Economic Development Output Plan included the following:

Managing relations with nine tourism concessions.

The Ministry of Tourism maintained regular contact with the nine concessionaires and undertook bi-monthly site visits. Compliance action was taken against one concessionaire regarding property management.

Collection of rentals and concessions by due dates.

By year-end, all but one rental payment had been received for rent due in the 2003/2004 year. Due to higher than expected turnover for some operators, actual rental received exceeded expected rental income for the year.

Managing certain items of infrastructure.

Existing infrastructure was maintained and non-complying and unnecessary signs removed.

Negotiations have been progressed with Contact Energy over definition of the deed agreement pertaining to the Wairakei site. The Ministry of Tourism expects to conclude these negotiations in 2004/2005.

Cost

(Figures are GST exclusive)

Revenue Other was derived from net gain on sale of fixed assets.

Major Budget Variances

The variance between 2003/2004 and 2002/2003 for actual expenses relates to the transfer of forest management from the Ministry of Economic Development to the Ministry of Agriculture and Forestry from 1 July 2003.