THE PRESS SATURDAY, SEPT. 24, 1983. Confidence in tourism

Press, 24 September 1983, Page 16

THE PRESS SATURDAY, SEPT. 24, 1983. Confidence in tourism

Although confidence in tourism in New Zealand appears boundless, the growth in the industry has been limited. The annual report of the Tourist and Publicity Department notes that, although a few more people came to New Zealand in the year ended last March than came in the previous year, the increase in travel receipts, as measured by the Reserve Bank, was actually a decline in real terms. One explanation offered for this was that the larger number of people coming were spending less. Possibly they were using cheaper accommodation, perhaps they were staying for a shorter time. The hopeful sign was that people were still coming. Figures produced since the period of the annual report give more grounds for optimism. In the year to July, Reserve Bank travel receipts were up by 5.6 per cent on the previous year. In July alone, the receipts were up 14.8 per cent on July, 1982. Even if there was a decline in earnings in real terms compared with the previous year, the $304 million that the tourists brought to New Zealand still makes tourism a major industry. The industry deserves to receive thorough and constant attention. It is also important that the industry does not fall into the same trap as the farming industry did. One parallel with the farming industry, as it existed in the past, is special dependence on one market. For the last 20 years, Australia has been the dominant country of origin for visitors. In 1959-1960, 48 per cent of visitors came from Australia. The proportion remained fairly constant until there was a jump in the 1972-1973 year to more than 60 per cent. Since then the proportion of tourists coming from Australia has been declining. This year, Australian tourists are accounting for less than 45 per cent of the total — a reflection, in part, of increases in the numbers of visitors from other parts of the world.

Another parallel with the farming industry lies in marketing. More attention has been given to marketing New Zealand produce in recent years, but many of New Zealand’s skills have lain in production rather than marketing. The growth in investment in the tourist industry in New Zealand might be seen to have similarities to an emphasis on farm production. The additional and better facilities are, of course, necessary to do the job; but they will not be of much use unless additional tourists are drawn to New Zealand. There is the tourist rub. New Zealand is competing for the tourist dollar against many countries. Some countries figure so large on the world map that no-one needs to be told where they are, or even what some of them have to offer. New Zealand is not in this category.

Even in countries where the standard of education is reasonably high, many people have only the haziest idea of New Zealand’s whereabouts. How can this be overcome as a first step to promoting interest among travellers? The Government would like to see the tourist companies take the major responsibility for advertising New Zealand. The tourist companies sometimes see their main role as promoting business for their own enterprises, not in the broader job of promoting New Zealand as a whole. The Tourist and Publicity Department has travel commissioners

in a number of overseas posts and a budget of about $3 million a year for direct advertising. A few seconds on American television alone at peak hours would soon gobble up most of that sum. The department has other schemes for tourist promotion and substantial assistance is given to companies either as direct help or as export tax incentives. The Minister of Tourism, Mr Talbot, in reply to a letter to “The Press” recently put the total figure at $3O million a year. Such a sum is far from insubstantial. It may be set off as a necessary expenditure to generate the $304 million a year. However, the bulk of $3O million goes to support the activities of the tourist companies and the tourist companies do not generally feel that their first responsibility is to promote New Zealand as a whole. There is still room to question whether enough of this country’s resources are being directed towards planting New Zealand in the minds of the potential travellers as an attractive destination.

New Zealand’s distance from much of the rest of the world means that, for the most part, travellers have a long haul before reaching our shores. Airlines have seen the benefit of promoting a South Seas package that can embrace New Zealand; though this often means only a short stay here as part of a longer tour. Destinations at a great distance may suffer a decline in world tourist traffic, unless they happen to be favoured in the ever-changing vogue for particular tourist regions. This is not sufficient reason to abandon all optimism about the future of the New Zealand tourist industry, but it provides ground for caution. If the Government and the travel companies can persuade people to come to New Zealand, care has to be taken about what happens while they are in New Zealand. The Tourist and Publicity Department argues that many tourists come here for a distinctly New Zealand experience, not simply to see the scenery; if the department is right, hard thought has to be given to alternative forms of development. Wild-water rafting certainly provides distinct experience. Can New Zealand afford to dam the Kawarau River and interfere with the use of the river for rafting? Are there better sites for this, close to other tourist centres, that should be exploited more? This is the kind of question that will have to be considered. A growing part of the industry is in private home-stay accommodation for families and tourists travelling alone. Is this organised on the best lines for travellers?

Tourism is a strong creator of jobs, many of them . requiring training and skills — practical skills and social skills. Yet many of these skills can be quickly taught and developed if the enthusiasm exists and if the importance of the job is recognised. A firm of economic consultants, 8.E.R.L., in preliminary results from research, estimates that every additional 12 overseas tourists will create one job. An additional 100,000 tourists could mean that an extra 8000 dr more people would be employed in the industry. Few other industries could match this figure. Although New Zealand is going to have to compete for the tourist dollar, the returns could be worth it if promotion is successful.