New Zealand Tourism Minister announces Industry Transformation Plan to guide holiday areas away from overtourism

New Zealand Tourism Minister Stuart Nash’s announcement of a Tourism Industry Transformation Plan is being seen as signalling a reconsideration of the role of tourism in the nation’s economy and that the era of ‘overtourism’ at some of the country’s best-known natural attractions may be over.

Revealed this week, Minister Nash outlined plans to “reset” tourism for a post-COVID world - planning for fewer international visitors and attempting to diversify the economies of tourism-dependent towns while offering great levels of environmental protection.

Explaining the plan at the tourism the industry’s annual TRENZ conference today, Minister Nash outlined what is an ‘all-of-government plan’ to support the recovery of tourism communities, advising “the economic impact of the loss of international visitors is felt beyond the tourism workforce and businesses.

“Whole communities, especially in … South Island regions, are facing new challenges to their way of life.

“At the same time, reviews by agencies like the Parliamentary Commissioner for the Environment, the Climate Change Commission, and the Tourism Futures Taskforce have highlighted transformation is required to rebuild tourism for the future.    

“We will roll out a $200 million Tourism Communities: Support, Recovery and Re-set Plan between now and 2023. It will invest in new programmes like small business support, tourism infrastructure, the conservation estate, Māori development, economic and regional development, and mental wellbeing support.

“There are 12 key points in the Tourism Communities Plan. Half are focused on the most vulnerable South Island regions: Fiordland, South Westland, Queenstown Lakes, Mackenzie District and Kaikōura. The remaining six are nationwide initiatives.

“(We need) long-term structural change and short-term targeted support must prioritise the regions and communities who need most help.”

Support for the South Island communities will include grants for tourism business, psychological and social wellbeing support and training, a business ‘kick-start’ fund and support to diversify and re-set the Queenstown-Wanaka regional economy.

The Plan also acknowledges that “tourism at the iconic UNESCO World Heritage site Milford Sound-Piopiotahi cannot return to its pre-COVID state. Significant pressure from 870,000 annual visitors undermines cultural and environmental values and infrastructure in Fiordland National Park. Transformation is needed to protect Milford Sound-Piopiotahi and create a more sustainable and high-quality visitor experience.”

The plan also includes six additional components to address longer-term challenges:

1. Regional Tourism Organisations will receive a new round of annual grant funding of $26 million to manage, plan, promote and market tourism activities in their regions. The surge in domestic tourism in the past year has been a boost for some traditionally out-of-the-way regions, and the new investment will build on this.

2. Inbound Tour Operators (ITOs) provide a vital link to global markets and need to be ready to facilitate the return of international visitors when it is safe to do so. $14 million in existing loans from the 2020 Tourism Recovery Package will be able to be converted to grants. This means 26 ITOs may receive up to $500,000 each.

3. Some Māori tourism businesses have experienced a severe downturn with the absence of international visitors and will be targeted for support. Funding will be managed by New Zealand Māori Tourism who will also expand their business support services. The investment will help the Māori tourism industry position for the future. The Minister for Māori Development will announce details next month.

4. The Department of Conservation will extend the fee waiver for around 1,000 operators on public conservation land who pay a tourism concession fee. An extra $10 million allows tourism concession fees to be waived for a further six months. It will ensure important work on conservation and recreational facilities continues despite the loss of revenue. It also enables tourism jobs and businesses to remain active in the Conservation estate.

5. Local councils can apply to another round of the Tourism Infrastructure Fund, with $16.5 million of new investment. Many councils with small rating bases use the fund to help develop tourism assets like carparks, toilet blocks, waste disposal facilities, and cycle paths.

6. A new Tourism Industry Transformation Plan (ITP) will see the government work in partnership with tourism businesses and the tourism workforce, councils, iwi, researchers and independent advisers. The ITP will be developed with $10 million in new funding. It will build on recent work by the Parliamentary Commissioner for the Environment, Tourism Futures Taskforce, Climate Change Commission, and others, to lift industry standards and transform to a more sustainable model.

Before the trans-Tasman bubble allowed for quarantine-free travel with Australia in March, New Zealand had been shut to all international tourists for the better part of a year.

During that time, Minister Nash has repeatedly said the New Zealand Government would attempt to transform the country’s tourism offering - focusing on attracting a smaller number of “high-value” visitors and trying to ease the environmental and social burden that crowds of international tourists placed on small towns.

Image: Tourism Communities: Support, Recovery and Re-set Plan includes having far fewer tourists visit the UNESCO world heritage site Milford Sound-Piopiotahi.