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1.1 Programme establishment

The Maori Tourism Facilitation Service (MTFS) was established in October 2004¹ with a budget allocation of $580,000 (inclusive of GST) from Vote Tourism: Implementation of the Tourism Strategy for the period April 2005 to June 2006. Decisions about the future of the programme beyond this period will be based on the effectiveness of the programme and the availability of resources.

A programme pilot commenced in April 2005 in Auckland and the Bay of Plenty with 20 businesses selected to participate. In August 2005, the wider rollout of the programme commenced with an additional 60 businesses targeted nationwide.

1.2 Policy rationale

The establishment of the MTFS was based on the following policy rationale:

1. Maori tourism is important in enhancing the reputation and quality of New Zealand tourism. Research by Tourism New Zealand (TNZ) identified that as part of their overall experience, international visitors to New Zealand like to experience Maori culture and these experiences have an important influence on visitors' holiday satisfaction.
2. Maori tourism is largely underdeveloped. The number of Maori tourism businesses was estimated at 200 in 2001² and has grown to over 350 in 2006³. The New Zealand Tourism Strategy 2010 and study of barriers and opportunities for Maori in tourism identified the key issues facing Maori tourism businesses as: product development, access to finance, capacity building, access to research and information, and marketing. Feedback from several hui held by the Associate Minister of Tourism in 2003 identified mentoring as the mechanism Maori tourism operators felt could best deliver a positive improvement in the quality of Maori tourism businesses.
3. There is a lack of assistance for developing and established Maori tourism businesses focused on product development issues. This gap is not being filled by existing business assistance programmes delivered by Te Puni Kokiri or New Zealand Trade and Enterprise. TPK's Maori Business Facilitation Service is aimed at business start ups. Of all the business assistance programmes offered for product development and capability building, only the Tourism Industry Association New Zealand's business builder CD and the Community Employment group's He Kete Tapoi Maori were designed specifically for tourism. Only He Kete Tapoi Maori was designed specifically for Maori tourism businesses but focusing on those at the pre-start up or start up phase. This service has since been disestablished.

1.3 Policy framework

The policy framework for the MTFS programme that was approved in October 2004⁴ included the following:

• Aim: The aim of the programme is to provide business mentoring assistance to selected Maori tourism businesses to improve individual performance and to ensure delivery of a quality tourism experience.
• Targeted firms: The programme is targeted at Maori tourism businesses in early development and established phases.
• Assessment and mentoring: The programme is to deliver assessments of individual businesses and appropriate mentoring to implement recommendations from the business assessments.

1.4 Programme design

1.4.1 Selection of service provider

In order to determine the most suitable approach for delivering business assessment and mentoring services to Maori tourism businesses, the Ministry of Tourism engaged Tuia Consulting Limited to survey the following five service providers, specialising in business capability, on their experiences and discuss their approaches to delivering services to their clients:

• Te Puni Kokiri's (TPK) Maori Business Facilitation Service (MBFS);
• New Zealand Trade and Enterprise (NZTE);
• Deloitte;
• Poutama Maori Business Trust (Poutama); and,
• Mahi Taapoi (Consulting business with tourism sector capabilities).

Tuia Consulting concluded that while each service provider surveyed aims to enhance and improve the quality and performance of the businesses they assist, no one organisation offers an effective end-to-end solution that meets the specific needs of Maori tourism businesses which includes not only generic business aspects but also Maori specific and tourism specific aspects⁵. The report found that while Poutama and Mahi Taapoi had experience and expertise in assisting Maori tourism businesses, both providers were too small to serve the number of businesses targeted by the MTFS. NZTE and Deloitte were found to have limited experience and expertise in Maori and tourism specific assessment and mentoring. However, it concluded that TPK's MBFS structure provides a sound approach to overseeing and monitoring nation-wide delivery of assessment and mentoring for Maori tourism businesses.

Following this analysis of delivery options, the Ministry of Tourism adopted the recommended combination approach whereby the MBFS structure forms the base of the delivery mechanism and elements from the other service providers are added in to ensure a stronger tourism capacity. Depending on the specific business development needs of the MTFS participant, generalists and/or specialists from the other service providers will be contracted to provide assessments and mentoring on a per client basis. Examples of providers who could assist with more generic business assistance include Accredited Business Mentors from TPK's Maori Business Facilitation Service and NZTE. Examples of providers who could assist with more specific Maori tourism needs include Poutama and Mahi Taapoi.

In February 2005 TPK was appointed as the delivery agent of the MTFS and the Ministry of Tourism as the purchasing agent. Figure 1 below outlines the governance structure for the MTFS programme and its relationship to the other service providers.

Figure 1. Governance structure MTFS programme

Tuia Consulting also proposed an assessment and mentoring framework and assessment tools that will be suitable Maori tourism businesses.⁶ This report which proposed guiding principles, eligibility criteria, assessment and mentoring process and tools, was adopted as the key guideline for operating the MTFS programme. It was recognised that there is room for adjustments based on learning from experience in the actual implementation of the programme.

1.4.2 MTFS Guiding Principles

To ensure the design and delivery of the MTFS is relevant to, and meets the specific needs of, Maori tourism operators, a set of principles was developed to serve as a guideline for assessors and mentors when working with programme participants. The guiding principles include ensuring the operator understands the relevance of each step in the intervention process, keeping it simple, developing achievable action plans, focusing at all times on quality, and creating opportunities for operator personal development.

1.4.3 Eligibility criteria

In assessing the eligibility of Maori businesses for the MTFS programme, the overriding questions are:

1. Is it likely that this business' performance and quality will improve as a result of the programme; and
2. Will any improvements contribute to the performance and quality of the Maori tourism sector?

Participants must meet the following four necessary criteria:

• The business is a Maori tourism business – defined as one which identified itself as a Maori tourism business and provides, or has the potential to provide, authentic, high quality Maori experiences to tourists;
• The business includes Maori aspects, or has potential to include Maori aspects, as part of its products and services (e.g. tikanga, te reo and cultural performances);
• The business operator is willing to participate fully in the programme
• The business has been in operation for at least six months including a summer season from December to February (where appropriate).

There are also the following important criteria, but the Account Manager has some discretion to grant exemptions:

• The business has growth potential, i.e. turnover and employment;
• This business is the business operator's primary source of income;
• The business has achieved a minimum of $30,000 turnover in the last financial year;
• The business operator is willing to invest in mentoring, advice and learning (time and/or money); and
• The business operator is willing to take a sector-wide view, that is, where appropriate align strategies to leverage off sector initiatives and directions.

1.4.4 Assessment and mentoring process

Table 1 on the following page outlines the key stages of the MTFS assessment and mentoring process.

Table 1. MTFS Assessment and mentoring process

The two main components of the MTFS programme are:

• Business Assessment - Individual Maori tourism businesses' current performance is assessed initially through a self-assessment tool (known as a "Business Snapshot") with the assistance of the Account Manager, then in more detail by an Assessor. This process identifies the businesses' strengths and weaknesses and identifies areas for improvement. The key output from the assessment is a Business Development Plan (BDP), prepared in consultation with the business.
• Individualised Mentoring - The business is then provided with individual mentoring support to assist it to implement their BDP, incorporating recommendations from the assessment process.

The roles of Account Manager, Assessor, and Mentor are separated in order to build in checks and balances into the programme and increase accountability for the integrity of the process and outcomes:

• A key role of the Account Manager is to determine clients' eligibility, and enrol clients into the programme. The Account Manager assists the client in completing the Business Snapshot as an initial assessment. The Account Manager then assigns an appropriate Assessor to conduct an in-depth assessment with the client and develop a Business Development Plan (BDP). The Account Manager has the responsibility for signing off the BDP by checking that the client is satisfied with the BDP and recommended mentors. This process provides for quality assurance checks, consistency of delivery, overview of programme and sector, and managing potential conflicts of interest (e.g. to avoid the situation of consultants feathering their own nests where the consultant develops a BDP which recommends to clients services that s/he wants to provide, rather than what the client actually needs). The Account Manager then assigns an appropriate mentor to the client.
• The assessment is to be conducted by an Assessor who is a generalist with experience and expertise that is able to take a broader perspective while Mentors can be more specialised, focusing on particular areas of intervention.
• The role of the Lead Mentor is to assist clients in implementing the recommendations in their BDP. The Lead Mentor, in conjunction with the Account Manager, will engage specialist mentors and/or other service providers as required (e.g. NZTE, Poutama).
• The responsibility for regular checking of the client's progress is with the Assessor to ensure that the intent of the BDP is maintained throughout implementation and not redesigned by the mentor.

1.4.5 September 2005 Implementation Review

A review of the implementation of the pilot MTFS programme was completed in September 2005. This review found that the implementation of the pilot went well and noted some areas for improvement.

1.5 Programme intervention logic model

The specific outputs and outcomes intended from the MTFS programme were identified from within relevant policy documents, and where required, were clarified through consultation with the Ministry of Tourism and TPK. These outputs and outcomes are presented in the intervention logic model on the following page. In addition to intended outcomes of the participating Maori tourism businesses, the model includes intended outcomes for other key stakeholder agencies including the Ministry of Tourism (TMT), Te Puni Kokiri (TPK), Tourism New Zealand (TNZ), New Zealand Maori Tourism Council (NZMTC), and Maori Regional Tourism Organisations (MRTO).

Table 2: MTFS Programme intervention logic model

1.6 Findings and lessons from related evaluations

Several evaluations of programmes related to the MTFS have recently been completed or are nearing completion. Key findings of relevance are noted here:

• NZTE's Enterprise Training Programme - The Ministry of Economic Development completed an evaluation of this programme in December 2005 which found that 11% of participants during the period between July 2003 and September 2005 were Maori businesses. There were over 100 Maori tourism businesses that participated in this programme (this could be an underestimate as the classification of 'tourism' was based on the name of the business, and many of the participants did not identify their ethnicity).
• The Ministry of Economic Development is currently completing an evaluation of the Biz information service which provides information and referrals on basic business enquiries through their 0800 phone service and a series of walk-in centres throughout New Zealand. This evaluation found that 10% of the enquiries are from Maori businesses.
• NZTE's Escalator Programme- The Ministry of Economic Development completed an evaluation in May 2006 of this programme which provides training and brokering for firms wanting to raise capital. As a result of this evaluation, there will be increased integration between this programme and the Investment Ready Training workshops offered by NZTE's Enterprise Training Programme.
• NZTE's Enterprise Development Grants programme – The Ministry of Economic Development completed an evaluation in September 2005 of this programme which provides funding of up to 50% of the cost of capability building activities such as employing a business mentor, undertaking advanced management or technology-based training, etc. One of the findings of this evaluation is that assistance in the form of advice had more impact than provision of facts or information on improving the management practices of firms.