Big rises in tourists, revenue predicted

Press, 30 April 1984, Page 8

Big rises in tourists, revenue predicted

Wellington reporter Startling increases in tourist numbers and revenue are predicted in the Issues and Policies Report for New Zealand Tourism produced by the Tourism Council. A shortened version of the report has been released by the Tourist and Publicity Department. An achievable growth potential in tourism of 6 to 7 per cent a year in tourist arrivals is predicted during the next five years. The consequences of this will be 200,000 extra arrivals a year by 1988-89 and J2BO million a year in extra foreign exchange by then (in 1983-84 dollars). There will be 19,600 extra jobs and widespread advantages for other sectors of the economy, such as horticulture and retailing. There will also be extra revenue for the Government of 5100 million. The report found New Zealand tourism to be internationally competitive, unprotected by tariff barriers or quotas, and lightly assisted, so it did not need to be restructured. But New Zealand tourism was also found to be diverse and fragmented, which meant it was difficult to identify precisely or measure. The report found it hard

for tourism to form a politi-cal-economic lobby commensurate with the industry’s real economic impact. The industry’s benefits were widely dispersed, both within the industry itself and by regions around the country, which mitigated against its benefits being fully recognised. Economic contributions by the industry were also underrated, the report said, because foreign exchange earnings from tourism were listed in the “invisibles” category. Even under “invisibles,” foreign exchange earnings from tourism were split between “travel” and “transport” receipts. Tourism was not identified separately in standard sectoral analyses of the economy and it functioned commercially without continuous high level Government involvement in areas such as international quota negotiations. Tourism had virtually unlimited prospects, the report said. It was not a big user of non-renewable resources, was not limited by overseas quotas, and was not “fished out.” Tourism offered wide social, cultural and (in many cases) environmental benefits.

But although the requirements for Government involvement to achieve growth were small, the report said there were some requirements. First among these was the right economic environment — including exchange, inflation and interest rates, which would permit tourism to be competitive internationally. Another requirement was the retention of export incentives at present or equivalent levels, and early confirmation of this. The report said adequate funding for the expansion of Government bodies with key roles in tourism development, and particularly Air New Zealand and the Tourist Hotel Corporation, was needed. A means for limited assistance to the public, non-profit and volunteer organisations whose services, training role, or facilities were assuming a great importance in visitor satisfaction was also needed. Among the 15 recommendations was one that the identified problems of land and sea transportation be reviewed. This recommendation had the object of improving passenger services, particularly at centralised passenger

terminals, for baggage handling and in overcoming the perceived high cost and uncertainty barrier of the Cook Strait ferry services. The report said there was significant evidence to accept that the basic tourism “product” New Zealand offered tourists — landscape, activities and people — was attractive enough and in tune with market demands. The main impediment to growth was the intensity of com; ’tition from other couniries in all overseas markets. “It is critical to ensure we have the right plant and facilities and trained staff in place,” the report said. “Investment in these areas often, but not always, flows to keep ahead of demand.” The tourism “product” had to be fast-changing. The improvement of plant, provision of facilities and services, access to activities, professionalism in staff, and authenticity in presentation were all now essential. “New Zealand is in tourism for the long haul,” the report said. “Quality matters as much as quantity. Growth in a manner which impairs New Zealand as a destination, or alienates New Zealanders from tourism, is obviously counterproductive.”