Huge tourism potential seen

Press, 24 October 1984, Page 2

Huge tourism potential seen

By

PATRICIA HERBERT

in Wellington Tourism could attract a million overseas visitors a year by 1990 and generate more than 33,000 jobs, according to a Government study just released. To achieve this goal, the study recommends that tourism be assigned a national development priority. The 26-page report, entitled “Tourism Reconnaissance Conclusions,” incorporates the findings of four supporting technical - analyses. It was commissioned by the National Administration last year as part of a review of the tourist sector. The Minister of Tourism, Mr Moore and the Minister of National Development, Mr Caygill released it yesterday. Both welcomed it, Mr Moore because the material would be “helpful” to future Clanning and Mr Caygill ecause it confirmed “yet again” the potential of tourism and “its ability to create employment opportunities and income this decade." ■ The reconnaissance was co-ordinated by the Ministry of Works and Development in association with the Tourist and Publicity Department. The research was undertaken by Dr T. D. C. Cullwick, professor of marketing at Victoria University, Price-Waterhouse Associates, a business management consultancy, and McDermott Associates, research consultants. Part of the team’s brief was to consider if it was realistic to regard tourism as having major growth potential. It decided yes. Two studies had been done on this question. The first, produced by the Tourism Council and the Tourist and Publicity Department aimed at a 40 per cent increase in overseas visitors from 1982 to 1988. The second, by the

National Travel Association, was more optimistic and envisaged a 90 per cent increase over the same period. But the scenario painted in the report is rosier still. “Current holiday-maker arrivals amount to 260,000 a year and the recomiaissance has indicated the potential to increase this two or threefold to about 500,000 to 800,000 ’ a year over and above any increases associated with business travel or visits to friends and relatives,” it says. ..“If the sector were to look towards 'doubling visitor numbers by, the end of the decade, it would make a substantial contribution to New Zealand’s overseas exchange earning capability and generate a significant number of jobs when they are needed.” The National Travel Association, based on its growth projections had estimated that tourism could generate 33,000 jobs by 1989 but the report says the industry’s contribution to employment could be considerably greater. “If managed expertly and sensitively such expansion could be achieved without undue strain on labour and finance markets, on prices, or on the social and physical environment,” it says. It reviews the performance of the tourist sector from 1977 to 1982 and finds it compares poorly with Australia and that its growth plans were conservative in relation to other countries’ and to its potential. However, it suggests the industry would be capable of undertaking a bolder strategy “if major expansion was a national development imperative.” A number of pre requisites for achieving growth are outlined. Among them are: 9 The establishment of renewed investor confidence

through a series of clear signals from Government of its commitment to rapid expansion. © Promotion of New Zealand’s selling features — the great variety of scenic and other attractions within a reasonably small compass, the relatively incluttered and pollution-free environ-, ment, and the Southern Hemisphere seasonal differ? ehces. ® The establishment of an effective computer-based booking network.’ including smaller - hotels .and motels,'; rental cars, and other facilities. . v © The development of closer ties with Australia in creating demand for the whole south-west Pacific region. © More competitive airfares by allowing Air New Zealand to borrow at lowest possible cost on maximum possible equity ratios, by establishing minimum acceptable standards of service for tourist class passengers and through the use of charter flights and special packages. © Differentiating accommodation costs for the domestic and international market so that prices reflect the considerable exchange advantages enjoyed by overseas visitors. The idea is to encourage investment in this area by improving profitability. © Staff training to provide professional service and the development of skills in foreign customs, language, and food. 0 Central and local government input in natural resource management and in upgrading airports and road-links. © The establishment of an international tourism development board to co-ordi-nate planning. 9 The adoption of a regional approach to promotion, pushing the South Island’s ski-fields and alpine holidays or “Volcanic New Zealand,” for example.