Vote: Tourism
Output Class D1 - 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. Delays and changes to deadlines were negotiated with the Minister.
Key Deliverables in the Work Programme for 2002/2003
New Zealand Tourism Strategy
Provide reports to the Minister on the completion of the tourism strategy implementation work by Local Government New Zealand, Regional Tourism Organisations, Māori (through the Māori Tourism Advisory Group) and Tourism
New Zealand’s projects in Qualmark and the Visitor Information Network, by 31 December 2002.
The Ministry provided a comprehensive range of reports to the Minister on progress in implementing the New Zealand Tourism Strategy through various channels throughout the year, including a report-back prior to the 31 December 2002 deadline.
In October 2002, the Ministry reported back on each of the key projects listed above (with the exception of the Māori Tourism Advisory Group which was the subject of a separate report as noted below).
In October 2002 the Ministry provided a separate report on the progress and achievements of the Māori Tourism Advisory Group, including recommendations to disband it as a formal advisory group but to maintain relationships with key members at the regional level.
In November 2002, a stocktake of the New Zealand Tourism Strategy was prepared for the Minister and tabled at a roundtable meeting of key stakeholders as part of the process of developing the strategy.
Throughout the 2002/2003 year both Qualmark and the Visitor Information Network were reported on through the Tourism New Zealand quarterly progress reports to the Minister, which in turn, the Ministry reported on in its assessments to the Minister. This was the mechanism approved as part of the agreement to fund these projects through Vote Tourism: Implementing the Tourism Strategy.
In early June 2003, the Ministry released Towards 2010: Implementing the New Zealand Tourism Strategy which provided a comprehensive review of progress by a wide range of stakeholders in implementing key recommendations of the Strategy. This review included progress on each of the projects above.
Research
Key research projects under the Tourism Research Council will be delivered and disseminated. It is estimated that there will be a minimum of 11 research projects completed during the year in accordance with the timetable agreed with the Minister.
The Ministry of Tourism (TMT) prepared and disseminated 11 Tourism Leading Indicators Monitor reports over the year with specific editions prepared to coincide with major events such as Tourism Rendezvous New Zealand and the New Zealand Tourism Conference.
Complete a review of the key tourism information programmes funded by the Government and begin implementing the recommendations of the review through the Ministry of Tourism’s purchase of two of the key programmes, the International Visitor Survey and the Domestic Travel Survey by 31 December 2002.
The Ministry released the Review of Core Tourism Statistics in December 2002. The Review contains six strategic and 96 technical recommendations to enhance the quality and consistency of the tourism data set. In the second half of the year, TMT worked to advance a range of the review’s recommendations through its management of the core tourism data set.
A tender process was undertaken to select a provider for the International Visitor Survey (IVS) and Domestic Travel Survey (DTS) programmes. ACNielsen was appointed to undertake both surveys and assumed responsibility for the DTS on 1 November 2002 and the IVS from 1 January 2003.
Negotiate the purchase and delivery of Tourism Satellite Accounts (TSAs), adjuncts to the system of national accounts which calculate the contribution of the tourism sector to the New Zealand economy, for calendar years 1998 and 1999 by 31 March 2003.
Negotiate the purchase and delivery of provisional TSAs for calendar years 2001 and 2002 by 30 June 2003.
Tourism Satellite Account 1997-1999 was released in December 2002 and Provisional Tourism Satellite Account 2000-2002 was released in May 2003. These outputs were prepared for TMT by Statistics New Zealand.
Negotiate and deliver the tourism forecasting programme, including forecasts to 2008, by 31 December 2002.
The New Zealand Tourism Forecasts 2002-2008 Summary Document was released in August 2002, with the full set of forecasts placed on the trcnz.govt.nz website. These outputs were prepared for TMT by Covec Limited and Market Economics Limited. These companies were engaged to undertake the 2003 forecasting programme.
New Zealand Tourism Board
Advice on the purchase of services from NZTB and the Board’s contribution to the Government’s tourism outcomes:
- reports are provided to the Minister within 20 working days of the receipt of quarterly and annual reports from NZTB.
Advice was provided on the positions that became available on the TNZ Board in 2002. Appointment decisions were made in 2003, including the appointment of the Deputy Chair.
Reports were provided, within agreed timeframes, on the quarterly performance of TNZ and on the Annual Report.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 3,865 | 4,119 | 4,118 | 2,576 |
| Other | 101 | 101 | 100 | 1 |
| Total Revenue | 3,966 | 4,220 | 4,218 | 2,577 |
| Expenses: | | | | |
| Annual appropriations | 3,966 | 4,220 | 4,218 | 2,577 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 3,966 | 4,220 | 4,218 | 2,577 |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
Revenue Other is derived from consultancy services.
Major Budget Variances
The Supplementary Estimates change reflects a transfer of funding from the Other Expense appropriation of Promotion of New Zealand associated with the America’s Cup 2003 and the Lord of the Rings to meet costs relating to co-ordination of the Amerigo Vespucci visit and for an economic impact study of the America’s Cup event ($229,000); and a transfer of funding from D2 Land and Property Management to meet costs relating to the development of the tourism core data set ($25,000).
The variance between 2002/2003 and 2001/2002 for actual expenses reflects increased activity in 2002/2003 on various projects including the Tourism Strategy, the IVA research project and the "One Stop Shop" for the America’s Cup Regatta 2003.
Output Class D2 - Land and Property Management
Description
This output class involves the management of a forest at Wairakei and tourism and other concessions at Wairakei and Rotorua.
Quantity, Quality, Timeliness and Cost
(Performance standards are in brackets where applicable.)
Quantity, Quality and Timeliness
Forest
Forest area managed at 1 July 2002 - 753 hectares of commercial forest.
The annual harvest was completed for the forest and normal silviculture operations were undertaken for the forest. The management of the forests was transferred to the Ministry of Agriculture and Forestry on 1 July 2003 following approval by the Ministers of Tourism and Forestry.
Achieve revenue target for forestry sales of $850,000 (excl GST).
Revenue collected amounted to $1.09 million, exceeding the revenue target of $850,000.
Implement planting, pruning and thinning programme in accordance with the sustainable 28-year rotation plan.
Silviculture operations consistent with a sustainable harvest were carried out.
Concessions and Rentals
Manage relations with nine tourism concessions and two farms at Wairakei and two lessees at Rotorua.
New permits were agreed for two tourism concessions, two new leases established with existing concessionaires and relationships with remaining concessionaires managed throughout the year. Due diligence reports were provided on two concessionaires for the Commissioner of Crown Lands.
Achieve rental target for Wairakei and Rotorua of $460,000 (excl GST).
All outstanding rent owed by the Māori Arts and Crafts Institute was paid in full and a new rental agreement completed with a new rental arrangement agreed for 2003-2008. A rent dispute with the Rotorua Golf Club was referred for arbitration. Total revenue collected amounted to $488,000.
Infrastructure
All items of infrastructure are maintained in good and safe repair. Regular checks are carried out by the Park Manager with the lookout and jetty inspected annually by a consultant engineer.
Regular checks of infrastructure items were carried out. The viewing platform was surveyed and identified as an asset on Taupo District Council Land. Responsibility has subsequently been transferred to this agency.
Risk management programmes are documented, fully executed and current.
Risk management programmes have been maintained. Risks arising from occupancy and use by third parties have been identified and the responsible agent, the Commissioner of Crown Lands (CCL), advised.
Agreement with Contact Energy
Following legal agreement(s) being in place with Contact Energy the agreed projects, covering new management accountability, asset and liabilities communications and occupancy agreements, will be completed or agreed milestones reached.
Ministers authorised new negotiating instructions for reaching an agreement between the Crown and Contact Energy. No agreement has yet been reached. The asset and liability matters cannot be resolved until an agreement has been executed.
A new management regime was put in place on 30 June 2003, comprising a Memorandum of Understanding between the CCL, the Ministry of Tourism and the Ministry of Agriculture and Forestry, the transfer of forest management to MAF and closure of the local Ministry of Tourism office.
Cost
(Figures are GST exclusive)
| 2003 | 2003 | 2003 | 2002 |
| Main Estimates | Supplementary Estimates | Actual | Actual |
| $000 | $000 | $000 | $000 |
| Revenue: | | | | |
| Crown | 816 | 888 | 880 | 914 |
| Other | -- | -- | -- | -- |
| Total Revenue | 816 | 888 | 880 | 914 |
| Expenses: | | | | |
| Annual appropriations | 816 | 888 | 880 | 914 |
| Other appropriations | -- | -- | -- | -- |
| Total Expenses | 816 | 888 | 880 | 914 |
| Net Surplus/(Deficit) | -- | -- | -- | -- |
Major Budget Variances
The Supplementary Estimates change reflects additional funding required to harvest and salvage storm-damaged trees in the Wairakei Tourist Park ($97,000); partially reduced by a transfer of funding to D1 Policy Advice - Tourism to meet costs relating to the development of the tourism core data set (-$25,000).
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