Address to Tourism Auckland

It is a pleasure to be here today as Prime Minister and Minister of Tourism.

I’d like to acknowledge Graeme Osborne, Rodney Walshe, and the team at Tourism Auckland for inviting me here and for hosting this event.

In particular I’d like to thank Graeme for his excellent contribution to Tourism Auckland over the past ten years, and wish him well for the future.

The tourism industry presents a huge opportunity for New Zealand’s economic growth and success.

That’s why I decided to take responsibility for the tourism portfolio when I became Prime Minister.

We have an enormous amount going for us as a tourism destination: outstanding scenery, friendly people, delicious food and wine, and one of the world’s best adventure playgrounds.

Our challenge is to make the most of every opportunity coming our way, and of course that includes the Rugby World Cup 2011.

There is simply no overstating how important the World Cup will be for Auckland and for New Zealand.

This is an unprecedented opportunity to show the world just how great New Zealand is as a tourism destination.

It’s the third largest sporting event in the world, and, come September 9, 2011, all eyes will be on us.

We’re expecting at least 85,000 international visitors and four billion more will be watching from home.

On Sunday I opened the new Eden Park and it looks magnificent. Eden Park will be home to some of the World Cup’s biggest games, including the final.

The fact that it’s ready a year before the tournament shows that we are on track and we will be ready to host the best Rugby World Cup ever.

I’ll come back to the World Cup soon, but first I’d like to talk about the outlook for our tourism industry, and the recent merger of the Ministry of Tourism into the Ministry of Economic Development.

As our economy recovers from the global economic recession, it’s good to see that international arrival numbers are bouncing back.

In August this year, there were 168,000 international arrivals. That’s 4.3 per cent more than there were in August last year.

Even better, we’re expecting a growth rate of about 3.7 per cent in the year ahead, and by 2016 there will be 27 per cent more international arrivals than there are today.

These forecasts are encouraging.

But I believe that if we use the right tools and make the most of the opportunities coming our way, we can exceed these forecasts and attract more high-spending visitors.

One important tool for the tourism industry is effective and innovative marketing, especially overseas.

The National-led Government has already put an extra $30 million into marketing New Zealand as a tourist destination overseas this year.

This included $5 million for joint venture marketing campaigns between Tourism New Zealand and Regional Tourism Organisations.

I’m pleased that Tourism Auckland took advantage of this. I hope you see good results from your $1 million investment to promote the Auckland region in Australia.

I’d like to see more collaboration between Tourism New Zealand and RTOs for marketing campaigns.

There are several examples of this type of collaboration that have worked well.

Following the devastating Canterbury earthquake, Tourism New Zealand and Canterbury Christchurch Tourism worked together to let overseas markets know that the area is still well and truly open for business.

By working together, Tourism New Zealand and the RTO were able to provide a unified message to the Australian market, and encourage visitors to keep coming.

I also believe there’s room for the public and private sectors to work together more on overseas marketing and get better results.

In April Tourism New Zealand and Air New Zealand jointly ran a successful marketing promotion in Australia.

The “Big Shout” campaign offered consumers a free domestic flight in New Zealand with every trans-Tasman flight they booked.

Although led by Tourism New Zealand and Air New Zealand, there were opportunities for regions, including Auckland, to support the promotion, too.

We will always rely on New Zealanders travelling up and down the country and keeping the tourism industry going.

But international visitors provide an extra opportunity. They are often high-spending tourists and they bring new money into our economy.

So that’s where the Government is continuing to focus its efforts. We know that tourism has huge potential to contribute to economic growth.

If we are to lift the tourism industry’s game even further, we need to be more innovative, attract more high-spending visitors, and give them the best possible experience while they are here.

Our drive for innovation is behind the decision to merge the Ministry of Tourism into the Ministry of Economic Development.

This move ensures tourism is positioned at the heart of the Government’s economic plans.

Tourism is not just an add-on. It is a significant player in growing a high-value, productive economy.

So it needs to be more closely aligned with the Government’s plans to grow the economy than it has been before.

That’s what the merger has enabled.

The decision follows an independent review, which found that tourism would benefit from the merger, including sharing functions such as policy, research, and monitoring.

I know that many of you here today rely on some of the Ministry’s outputs – particularly research which helps you make business decisions.

Research will continue to be an important output for the new Tourism Strategy Group. The team will have a stronger focus on analysing tourism data, not just producing it, and we’re confident that this will be more useful for you.

The integration will also enable better links between tourism and other related portfolio areas – such as Rugby World Cup, Regulatory Reform, or Small Business.

Overall, the merger aims to help the tourism industry in New Zealand lift its game.

We’re also relying on tourism leaders up and down the country to help the industry grow and contribute to the economy.

Auckland already plays a big role.

You are our biggest city and you epitomise what the New Zealand experience is about, with the stunning Hauraki Gulf, lots of parks and beaches, and world-class dining.

70 per cent of all visitors to New Zealand spend time in the Auckland region.

The forecast growth in international arrivals for Auckland is roughly in line with the forecast for all of New Zealand, at 28 per cent by 2016.

Last year, visitors to the Auckland region spent almost $42 billion. In 2016, they are expected to spend $5.1 billion.

This is great news.

But I believe Auckland can go further.

One of the things we need to do to achieve this is to make sure that Auckland has the right tourism infrastructure in place – to attract visitors in the first place and to cater for them when they are here.

I’d like to talk about two specific areas today.

The first is regarding the cruise ship industry.

Cruise ship travel is very popular, especially for the high-spending visitors from overseas that we are trying to attract.

We need to make the most of the opportunities this industry provides, and have the right infrastructure in place to cater for cruise ship arrivals.

The Government recently part-funded research into the cruise industry and its economic impacts.

It shows that the cruise industry grew significantly in the 2009/10 season in New Zealand, and that the outlook for the next two seasons is good.

Between the 2009/10 season and the 2011/12 season, the number of cruises coming to New Zealand is expected to grow by 53 per cent.

It goes without saying that the economic impacts will grow, too.

And although a lot of this research is based on estimates due to gaps in our knowledge of the cruise industry, we need to make sure we can cater for this increase.

That is why the Government supports, in principle, developing a cruise terminal at Queen’s Wharf.

We are working with the relevant authorities to deliver this as soon as possible.

The second infrastructure issue is building a national convention centre.

Worldwide, there is a big market for international conventions, conferences, and exhibitions.

We want to attract as many of these events as possible to New Zealand.

They are a great boost to the local tourism industry and economy.

The Government is supportive of a national convention centre being developed in Auckland, and we will make an announcement on our progress in due course.

Both a cruise ship terminal and a national convention centre would help us boost our economy.

They would create jobs in the short term while they are built but, more importantly, they offer long term benefits to the tourism industry.

This is also the case for the New Zealand Cycle Trail project.

The Government wanted to build a network of trails that would be a fun and healthy way for Kiwis and tourists to see our best scenery, but would also have lasting economic benefits.

We decided to invest $50 million over three years and make it happen.

I’m pleased to report that we have made good progress on the project so far, with funding approved for 18 trails nationwide.

The momentum of the project is going to build from here and we’re aiming to have all 18 trails complete by the summer of 2012/13.

The trails will have long-lasting economic benefits and enhance our reputation as a world-class tourism destination.

Finally today, I want to talk about our biggest opportunity.

With less than a year to go, New Zealand is on track to host the best Rugby World Cup ever.

The building blocks are all in place and ticket sales are on track.

We’ll have 85,000 visitors to New Zealand and billions more will be watching from home.

The World Cup will present endless opportunities for the tourism industry next September and October.

But we also need to focus on the long-term opportunities that come hand-in-hand with hosting such a major sporting event.

Currently 98 per cent of our visitors say they are likely to recommend New Zealand to others.

After the World Cup, we want people to leave New Zealand with fantastic memories and share them with their friends and family all over the world.

We only get one chance to get it right and make the most of the opportunity.

We have an excellent reputation and we want to keep it.

Negative experiences travel quickly.

So the onus is on all of us to act responsibly and make the most of the Rugby World Cup.

That means providing value for money.

Some isolated experiences indicate that some people are not having a good experience when booking accommodation.

I encourage all accommodation providers to help us maintain our excellent reputation as a tourist destination.

Industry leaders are working hard to ensure that potential visitors have the information they need about accommodation options.

The message we want to send to potential visitors is that we will have plenty of accommodation available next year, and there will be something for all budgets.

Alongside the Rugby World Cup, we’ll also be hosting our biggest ever festival – the REAL New Zealand Festival – with more than 1000 events up and down the country.

It’s great to see Auckland getting behind it.

The Queen’s Wharf fan zone and festival will be the hub of the action.

The Waitakere Moon Festival will showcase our Chinese communities and feature everything from fashion parades to fireworks.

Style Pasifika will celebrate the best of Pacific creativity including music, entertainers, and design.

And just a stone’s throw away from Auckland there’ll be many more festival events – such as the Whitianga Scallop Festival in the Coromandel.

As a small trading nation, we rely on our ability to sell our exports, attract visitors, and create links with other businesses.

The Rugby World Cup is a chance for us to show off the best of our creative and innovative businesses and industries.

One of the ways we are doing this is by working with businesses and industries to build a programme of events that will showcase them during the World Cup.

We have so much to offer – from food and wine to renewable energy, from film and fashion to marine manufacturing.

Here in Auckland you’ll be hosting New Zealand Fashion Week, New Zealand Cuisine and Food Industry Showcase, and the Auckland International Boat Show, among others.

The Rugby World Cup is a fantastic opportunity, and the Government is working hard to make sure it’s a success.

We want the positive impact of hosting the tournament to be felt long after the stadiums are empty and the William Webb Ellis trophy is safe and sound in its new home at the NZRU.

I would like to take this opportunity to thank you for your contributions so far, and wish you well over the next year as you make preparations.

Ladies and gentlemen.

Thank you for inviting me to speak today.

The National-led Government is working hard to lift the long-term performance of the economy, create jobs, boost incomes, and provide the world-class public services Kiwis deserve.

The tourism industry has an important role to play. You have huge potential to help us grow the economy and secure a brighter future for New Zealanders.

I’m looking forward to attending the New Zealand Tourism Awards tonight and I’m sure I will see some of you there.

The theme for this year’s awards is innovation. Innovation is a key driver of economic growth, so I’m looking forward to celebrating that tonight with our top tourism industry leaders.

Thank you.

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