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Prime minister defends NZ tourism budget
New Zealand prime minister John Key has defended the lack of new marketing funds for Tourism New Zealand in last week’s budget despite evidence that visitors to the country are spending less.
Speaking at a TRENZ media briefing, the prime minister said that in tough economic times, all sectors had to tighten their budgets and share the pain.
Tourism’s budget has remained flat at around NZ$85 million. The PM indicated that marketing funds for tourism would need to be better targeted, focusing on key source markets and the use of social media technology.
“In the final analysis, dollar value is more important than total visitor numbers, so we must make sure that we attract longer stayers and bigger spenders – that’s our focus,†he said.
The Rugby World Cup over six weeks in September and October is expected to attract 85,000 visitors to New Zealand although the event will result in a loss of about NZ$39 million for the government and New Zealand Rugby.
The prime minister said the overall benefit of RWC to New Zealand would be significant in terms of economic activity and future spin-offs for business and tourism.
“The event is not just about the rugby. We have a thousand things going on away from the rugby (Real New Zealand Festival).
“In the scheme of things, RWC is good value,†Key said.
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