Plan To Double Income From Tourists By 1970

Press, Volume CIII, Issue 30558, 29 September 1964, Page 18

Plan To Double Income From Tourists By 1970

The aim of earning £lom in overseas exchange from tourists can be achieved by 1970, according to a study of the tourist industry published by the New Zealand Institute of Economic Research.

The report was written for the institute by Dr. P. J. Lloyd, lecturer in economics at Victoria University of Wellington.

Examining two projects for attracting more tourists, Dr. Lloyd says that the number of American tourists could be raised from 8300 in 1963-64 to 33.000 by 1970, and the number of Australian tourists from 25.115 in 1963-64 to 45.000. The 45.000 extra tourists from these two countries would spend £5.7m on their travel, compared with £s.lm at present spent in New Zealand by all overseas tourists. “These figures are neither projections nor predictions, but projects which could be achieved if the necessary’ steps are taken,’’ Dr. Lloyd continues. “We have not even touched upon the market prospects in the United Kingdom, Japan, and elsewhere.” To accommodate the extra tourists, more hotels or motels, or extensions of existing hotels or motels, would have to be built. The extra accommodation would cost some £llm, on the basis of £3500 for a hotel bed for each

Ameriaen and £2500 for each Australian. The New Zealand population would also have the use of this extra accommodation, so that only about 60 per cent of the capital cost of the extra accommodation was a cost incurred in the earning of the extra foreign exchange.

The “import content” of hotel construction was about 15 per cent, which should be spread over the life of the asset The import content of other goods and services consumed by tourists was also low, and the net receipt of overseas exchange from tourists in 1970 would be not far short of the gross receipts of £lo.Bm. More Employees As many as 3800 extra persons would need to be employed in the industry to cope with the extra tourists. Describing the attitude of New Zealand governments to the tourist industry in the 1950’s as one of “indecision,” Dr. Lloyd draws attention to the shortage of hotel accommodation in that decade. The growth of motels since 1957, and the subsequent removal of price control, building controls, and other restrictions on the licensed trade, are seen jas significant developments in I recent years.

To achieve an increase of 45,000 American and Australian tourists by 1970, Dr. Lloyd urges the establishment of a tpurist planning board as the first step in an eightpoint “tourist development plan.” The board would coordinate the activities of Government and private organisations. It would prepare a longterm plan for development of the industry, paying particular attention .to accommodation and transport. “Close attention should be paid to developments in international transport. Since more than 75 per cent of our overseas tourists arrive by air, it is most important that New Zealand be included on the main international air routes between the west coast of the United States and Australia.” The board should co-operate closely with the travel authorities in Australia and Fiji to develop the overseas tourist trade of the South Pacific region as a whole. Hotel Locations A new approach should be made towards the location of hotels and motels “as the only sound method of overcoming the problem of summer seasonality. This would mean the development on a larger scale of a few resorts with year-round attractions.’’ i If private hotel or motel companies were not prepared to build the extra accommodation indicated by the plan, the Tourist Hotel Corporation should be permitted to build hotels which were economically desirable at the major points of entry for overseas tourists, or in other strategic areas. Dr. Lloyd says that by far the greater number of “tourists” in New Zealand are New Zealanders on holiday. Probably at least half of the population took a holiday in the year ended March 31, 1963. “As a very crude estimate, they spent £47m on tourist travel within New Zealand.”