Tourism's great big shopping list of new attractions. Investors wanted.

Wednesday, 4 September 2019

A new international visitor levy will pay for tourism and conservation projects.

The Government is trying to increase private investment in new tourism attractions but there is scepticism about whether it will work in the current climate.

Luxury health spas, adventure and nature-based tourism, and Māori cultural activities all feature on a 'shopping list' designed to make New Zealand more appealing to well heeled visitors.

Tourism Minister Kelvin Davis announced the the tourism attraction programme at an industry summit in Wellington on Wednesday.

More than half of all international holiday-makers have experienced Māori culture during their stay and a new report lists Māori tourism as an investment opportunity.

The prospectus for would-be investors said that international tourists aged 15 and over spent an average of just $135 on visitor experiences during their stay here, which was much lower than comparable countries such as Australia and Norway.

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Waikato-Tainui's expansion into Auckland is continuing with construction of the new 150 million Te Arikinui Pullman Auckland Airport Hotel.

The $1.2 billion spent on attractions and activities for the year to the end of February made up only 4 per cent of total visitor spending.

Because of tourism's pivotal role in the economy it was important to attract high-quality investment in the sector, said Davis.

Economic Development Minister Phil Twyford said the programme aimed to professionalise the ability for tourism ventures to raise private capital and accelerate investment in projects across New Zealand.

Spas and health resorts are viewed as prime investment opportunities because globally health and wellness tourism is growing at 12 per cent annually.

'We want to support the sector to keep developing exceptional attractions that meet the demands of visitors. This type of investment helps lift the value of the industry, provides premium visitor experiences and supports regions to thrive.'

The new programme is a joint initiative involving New Zealand Trade and Enterprise (NZTE), Tourism New Zealand, the Department of Conservation, and the Ministry of Business Innovation and Employment.

A previous NZTE attempt to woo tourism investors, known as Project Palace, sought investment in new hotels.

The latest investment push focuses on attractions to cater for the 5.1 million international visitor arrivals expected annually by 2025.

Health and wellness, ranging from hot springs to high end retreats offering yoga, pilates and massage, is identified as a lucrative option.

The report claims international visitors patronising such facilities spend 59 per cent more and domestic visitors 159 per cent more than the average visitor.

Lincoln University tourism professor David Simmons is a member of the Eden Project of NZ Trust which has ambitions to develop a Kiwi version of the UK's famous Eden Project glasshouses in Christchurch's red zone.

He welcomes the Government's efforts to facilitate new tourism investment and hopes it will help get the $100m project off the ground.

His group is in discussions with Land Information NZ about using an area designated for ecotourism in recently released plans for the city's red zone.

'We're very excited that the curtains have been pulled back from the stage and there's space on the stage for us.'

Assistance offered to investors includes detailed information on markets, development costs, and international and domestic visitor forecasts for all regions and more than 60 visitor activities.

But tourism consultant Stephen Hamilton said the private sector might be looking for a lot more than information if it was to invest in major new developments when visitor growth was slowing, with our second largest tourism market (China) dropping 11 per cent in six months.

He said the provincial growth fund, which provided a $10m loan for the Mt Ruapehu's Sky Waka gondola, might have to come to the part to get projects over the line, particularly in regions with lower visitor numbers.

'It sounds quite risky potentially.

'Simply adding more attractions to Queenstown may be simply splitting consumer spending more ways.'

Hamilton said more attractions of national significance were needed and the Eden project was a good example of that.

'Something that's unique to New Zealand, as opposed to one of 30 in the world, is the sort of thing we could do with more of.'