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Kiwi tourism minister says no more money for Tourism
New Zealand tourism minister Damien O’Connor has ruled out any potential for increased government spending until at least the country’s next Budget.
With tourism industry leaders saying the country is losing out, being beaten and outspent by other destinations, O’Connor says tourism has to appreciate that it faces intense competition for funds from the roads and infrastructure sectors.
Air New Zealand and the Tourism Industry Association NZ are seeking a higher contribution from the government to help drive visitor numbers to New Zealand, which last year only increased by 1.5% on 2004, well down from previous double-digit growth.
In May, the government increased Tourism New Zealand’s budget for international marketing from $NZ53 million to $NZ69 million a year but the industry is seeking a figure in the region of $NZ100 million.
Air New Zealand CEO Rob Fyfe told media at TRENZ 2006 in Christchurch that ANZ spends $NZ120m a year marketing destination New Zealand, making it the single biggest individual contributor, adding that the country’s growth ambitions were “lacklustre” compared to other countries.
Fyfe said: “I’d love to see others in the industry lining up alongside us to help us make this investment work in New Zealand.”
He added: “I accept Damien’s point of saying there’s all sorts of competing demands on the tax dollar in New Zealand, but I think we turn our back on the opportunity that tourism presents for our nation at our peril.
“It’s frightening to see how much money other nations are spending to grow their tourism and what their growth ambitions are.”
Industry chief Fiona Luhrs has asked the Government to channel some of $NZ500 million in goods and services tax paid by overseas visitors to promote the country, with tourism being the only export sector that paid GST, with visitors paying almost $NZ500 million of that tax. But O’Connor did not support the proposal, saying that other sectors paid GST.
Report by The Mole
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