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Output Expense > Policy Advice > Tourism

This output expense provides advice on economic, environmental and social policy affecting tourism, including implementation of programmes to advance the recommendations of the New Zealand Tourism Strategy 2010 (NZTS 2010) and the government's wider objectives as they relate to the sector, including tourism aspects of major events. It includes the provision and management of tourism research and data to assist in sector decision-making. Further outputs include advice on the government's interests as owner of Tourism New Zealand, the New Zealand Māori Arts and Crafts Institute, and on government's land and property holdings.

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.

The following outputs were included in this output expense for 2005/06.

Core Policy Advice

Reflecting the Government's role as having a key responsibility for implementing the NZTS 2010, the Ministry will provide advice on priorities and will take responsibility to implement the recommendations, in partnership with other sector stakeholders as appropriate.

The Ministry will provide advice on policy issues of concern to the Government, the sector and communities including:

The interaction between tourists and the physical environment (in particular the conservation estate) and the cultural environment.

Work on the developing policy direction for tourism on the conservation estate has been initiated. In addition, the vision for Tourism on the conservation estate is being developed in partnership with the Tourism Conservation Forum.

Over the 2005/06 year, contributions were made to the development of national park management plans, and final submissions were made on the Abel Tasman National Park Plan and evidence presented in support of the submissions on the Fiordland National Park Management Plan.

Increased awareness and capability of local government to deal with tourism.

Work has been completed in updating and adding new content to the Tourism Planning Toolkit in liaison with Lincoln University and Local Government New Zealand (LGNZ).

Increasing the capability of the industry through work at the sector level (labour markets) firm level (SME capability development) and individual level (education and training).

The Ministry will deliver programmes that have resulted from policy work over the past two years including:

A tourism demand subsidy scheme which will assist communities with small ratepayer bases to develop or expand their water and wastewater infrastructure to meet tourism demands.

Final applications to the Tourism Demand Subsidy Scheme were sought by 30 September 2005. 44 applications (15 water and 29 wastewater) were received from 32 different communities across 16 districts. The first four successful schemes, totalling $2.160 million (GST inclusive) in allocated subsidy funding were announced by the Minister of Tourism in January. These schemes were: Paihia wastewater; Franz Josef water and wastewater; and Ohakune wastewater. The remaining applications were considered by the Sanitary Works Technical Advisory Committee in February 2006. The Minister approved the final successful schemes - Paihia water, Punakaikai wastewater and water, Hanmer Springs wastewater and water, Tutakaka wastewater and Kaikoura wastewater - and these were announced in April 2006.

A business assessment and mentoring programme for Māori tourism businesses to assist in raising the quality and quantity of Māori tourism businesses in New Zealand.

Completed the pilot review of the facilitation and delivery of assessments and mentoring for up to 60 Māori tourism businesses following the 2004/05 pilot programme. Delivered additional assessments and commenced further mentoring services for Māori tourism businesses.

Advice on Purchase, Grants and Ownership

This output provides advice on the purchase of services from Tourism New Zealand (TNZ). In 2005/06 particular focus will be placed on providing leadership to a baseline review of TNZ funding. As part of the baseline review the Ministry will continue its focus on ensuring that the structure and content of the purchase agreement allows for efficient and effective monitoring of TNZ's activities and spending.

A baseline review of Tourism New Zealand's off-shore marketing function was completed in December 2005 with the results submitted to the Ministers of Tourism and Economic Development for consideration in the 2005/06 budget development process. This review:

• was conducted within a context of net benefits of tourism within the economy rather than simply volume of economic activity that the sector generates;
• developed research methodologies to establish whether and which gains in tourism are attributable to Tourism New Zealand performance; and
• established the degree to which Tourism New Zealand is operationally fulfilling the goals of the NZ Tourism Strategy 2010.

New understandings generated from the baseline review are being utilised in the development of new performance measures for Tourism New Zealand and will be developed further in the 2006/07 work programme of the Ministry of Tourism and Tourism New Zealand.

The Baseline Review will be utilised as a contribution in the forward planning of the Tourism New Zealand budget for the next three years.

Advice on the New Zealand Māori Arts and Crafts institute is also included in this output.

Refer to report on Crown entity monitoring.

Research and Statistics

This output provides tourism research and statistics and policy advice on the research needs of the tourism sector. In particular, the Ministry will ensure that government's current tourism data set is increasingly accessible to and used by the private sector in its decision-making, and that an applied research programme that is relevant to both public and private sector needs is developed.

The Ministry will deliver the following programme to enhance understanding of the dynamics of the tourism sector in New Zealand:

A tourism flows model that utilises a wide body of tourism and related data to determine the flows of tourism activity in New Zealand. This will be set out on a Geographic Information System framework and will integrate sector forecasts to provide future focus.

The Tourism Flows Model that provides a geographical presentation of tourism data has been developed to a stage to enable testing of data quality and presentation styles.

Advice and Assistance on Major Events

Through providing secretariat support to the Major Events Development Fund, the Ministry will contribute to the implementation of the Major Events Strategy to retain, grow and attract major events that complement New Zealand's image and existing infrastructure and achieve a greater contribution to economic growth.

The Ministry of Tourism has established New Zealand Major Events and through this unit it has been providing secretarial support in the form of assessment of events and advice to the interagency events group. New Zealand Major Events has assessed 23 events of which 16 have been supported from the Major Events Development Fund.

Land and Property Management

This output involves the management of tourism and other concessions at Wairakei and Rotorua to ensure that risks are appropriately managed, commercial returns are achieved on property holdings, and all legal and contractual obligations are met. Advice will be provided on ensuring that tourism concessionaires are protected throughout the process of resolving outstanding land occupation issues with Contact Energy.

The tourism and other concessions at Wairakei and Rotorua were managed throughout the year. A record amount of concession revenue was collected and reports were completed on all legacy occupation issues.

The Crown's letter of settlement was agreed to by the Contact Energy Board on 30 September 2004. The survey of the land in question was completed in June 2005 and the plan was deposited and registered in June 2006. The full set of legal documents have been prepared and are awaiting signature. The ancillary agreements were also prepared and are either awaiting signature or in final negotiation.

Crown Entity/Statutory Board Monitoring

The Ministry of Tourism administered the process of reappointing the Chair of the Tourism New Zealand Board.

The Ministry completed the annual assessment of the New Zealand Māori Arts and Craft Institute. A Statement of Intent was produced for the first time in 2005/06. In addition advice was provided on the site redevelopment and the associated business case.

Monitoring and reporting to the Minister 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);
• Quarterly reports; and
• the Annual Report.

Cost

(Figures are GST exclusive)

Sources of Revenue Other

Major Budget Variances

The variance between 2005/06 and 2004/05 for actual expenses mainly relates to increased funding transferred from 2004/05 to 2005/06 to cover costs associated with Tourism Research, Māori Tourism, Cultural Tourism and Labour Market Research projects; one-off funding provided in 2005/06 for the Tourism Offshore Marketing Baseline Review and additional funding to strengthen the capability for the provision of business and competition policy advice and for Tourism policy and research work.

The Supplementary Estimates decrease (-$86,000) is due to a transfer to 2006/07 resulting from delays in the completion of the Commercial Accommodation Monitor review (-$113,000) and the Workforce and Skills project (-$25,000), partially offset by a cost recovery of fees ($52,000).