Fund tourism to grow Wellington economy: TIANZ

Cutting investment in destination marketing or visitor infrastructure is not an efficient or effective way to encourage economic growth in Wellington, according to the Tourism Industry Association New Zealand (TIANZ).

TIANZ is urging Wellington City Council to maintain its current level of funding to both Positively Wellington Tourism (PWT) and Te Papa.

In its submission to the council's Draft Long Term Plan 2012-2022, TIANZ says it does not support the proposed reduction in funding for Positively Wellington Tourism's Australia marketing campaign.

TIANZ Sector Manager - Hotels, Rachael Shadbolt states "reducing this investment from $1 million a year to $800,000 simply doesn't make sense. Australian arrivals into Wellington have increased 21% in the 24 months since the activity launched in March 2010. Australia is Wellington's number one international visitor market and that marked growth has been key to buffering the industry from a tough few years."

TIANZ notes the campaign is entirely funded from the Downtown City Levy, which many TIANZ Wellington member hotels contribute to. A mid-sized hotel of about 150 rooms contributes about $33,000 a year to this fund and there are about 10 hotels this size or larger in the Downtown area.

TIANZ also backed the continuation of the $200,000 annual investment in attracting long-haul airlines to Wellington.

Shadbolt adds "the removal of this funding will mean PWT is no longer able to continue the good progress made in this area."

TIANZ also opposes any reduction in council funding to Te Papa as this would affect Wellington's ability to grow its visitor economy. TIANZ sees the museum as Wellington's most popular visitor attraction and its ability to attract appealing exhibitions is vital to encouraging both international and domestic travellers to the city.

The association supports the proposal to invest $4 million to fund the refit of an alternative conference venue while the Wellington Town Hall is closed for earthquake strengthening.

Shadbolt concludes "the meetings and conventions market is critical to Wellington, providing hotels with a constant flow of high yielding guests throughout the year. In 2011, convention business equated to 8% of all hotel rooms sold, or 62,334 rooms.

"It is also a lucrative tourism sector worth about $100 million to Wellington each year. It's vital that an attractive alternative conference venue is available, otherwise Wellington runs the risk of losing business to other regions and even other countries."

To read TIANZ's submission to Wellington City Council go to www.tianz.org.nz/main/local-government/

Image: Tourists on the Wellington waterfront. Courtesy of Positively Wellington Tourism.

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