The New Zealand Government has announced that $5 million of $20 million additional funding for international marketing is earmarked for regional tourism organization (RTO) joint ventures with Tourism New Zealand and the private sector.  This is an opportunity for Marlborough region tourism – and invites leadership from the local RTO, Destination Marlborough, and partners.

Regional Tourism Organizations’ New Zealand (RTONZ) Chair, Don Gunn says the allocation opens up real opportunities for regions to market collaboratively offshore with other tourism partners, providing for greater economy of scale and effectiveness in the dollar spend.
Last December, DecisionMaker reported the Tourism Board (TNZ), chaired by businessman Greg Muir, wanted to meet John Key, Prime Minister and Minister of Tourism” “to develop a bold plan of action”.

The Ministry of Tourism CEO Ray Salter then said there were investment options, “including new marketing investment through TNZ that could ensure that tourism can contribute to our country’s response to the current economic situation”.
TNZ’S briefing to the incoming minister of tourism had suggested countering immediate falls in arrivals with extra promotion in the domestic market, and international markets that were holding up – UK and Australia.
Mr Key says the $20 million extra funding is expected to bring up to around 45,000 additional visitors to New Zealand through increased marketing efforts.

The additional money is the first significant funding increase Tourism New Zealand has received since it was established as the New Zealand Tourism Board in 1991.  At that time Tourism New Zealand received annual base line funding of $55 million, which was increased to $69 million in 2007.

George Hickton, outgoing Tourism New Zealand ceo says the $20 million additional Government funding announced in November will enable Tourism New Zealand to further push arrivals over the summer season and into 2010.

“Our focus will be on where we are best able to stimulate growth.  Australia remains important, but we will also be looking to recover the long-haul markets over summer, with spend being directed to the US, UK/Europe and China” Mr Hickton says.  The additional funding of NZD20 million will enable Tourism New Zealand to continue year-round activity in Australia.

Mr Hickton says the additional investment into marketing in Australia has helped keep the decline in visitor numbers overall to a minimum in what has been a tough year for the industry.  

“Australia continues to be the foundation of growth in visitor numbers, with the increase of 22.2 per cent (15,916 visitors) in October continuing a year of record growth for this market.  Buoyed by consistent marketing, good value airfares, a strong Australian dollar and high consumer confidence, arrivals from Australia are up 9.7 per cent (1,061,363 visitors) for the year to end of October. " 

Mr Hickton says the industry is seeing a gradual turnaround in consumer confidence in many of New Zealand’s key tourism markets.

“The upcoming summer season is looking more positive as the global economic situation slowly improves.  While we expect summer to start slower, the general feeling is that things will pick up post-Christmas.

“The current picture is that many markets will end up on par with last year, but we are expecting to see improving growth trends as the summer progresses, particularly out of China, the US and parts of Europe,” Mr Hickton said.

China has begun to return to strength after more than a year of declining arrivals, with arrivals up 16.5 per cent (to a total of 7,636 visitors) compared with October last year.

International Visitor Arrivals October 2009:

•    Australia             87,676           up 22.2%
•    UK                16,629        down 7.5%
•    USA                13,984        down 2.1%
•    China                              7,636        up 16.5 %
•    Japan                6,072        down 9.6%
•    Germany            5,313        up 3.9%
•    South Korea             3,933        down 33.1%
•    Canada                       3,243        down 6.8%     

Marlborough can pick up on some of the initiatives the PM has taken and has highlighted – as well as home grown initiatives that Marlborough’s tourism industry and potential growth partners may define around regional stories.

Mr Gunn says it is now up to RTOs to support this opportunity by “banding together more effectively off shore so we can sell the New Zealand regional story in the most effective way”. 

What is Marlborough’s response? - now that the answer to the call for “the bold plan of action” is being trickled out from a number of government agencies.

By Anthony Haas
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