With COVID-19, New Zealand’s tourism industry has taken a bit hit. This sudden collapse of international tourism, coupled with massive job losses, has urged the Government to re-think its tourism strategy.

Though travelling will not be the same again, a post-covid tourism industry will play an important role in New Zealand’s economic recovery. While domestic tourism in itself cannot fill the gap, innovative plans are needed now more than ever to help sustain the sector as it recovers.

Government help

After much delay, the Government sprung into action last week, with few major announcements to help the tourism sector.

It has set aside $2 million to accelerate Rotorua’s two development projects to assist with the district’s post-COVID recovery. The funding from the Provincial Growth Fund (PGF) will go towards the development of the museum and the visitor centre, to get them both underway quicker. This could lead to more jobs and revival of the local economy which has seen a 7.8 percent contraction, with unemployment rising to more than 10 percent.

Queenstown’s tourism has also received about $85 million to recover. Of that, $35 million is headed towards town centre redevelopment, and the remaining towards arterial route improvements.

There has been targeted funding of niche tourist spots as well.

A Waitomo caving operator will receive $4 million from the Government. ‘Discover Waitomo’ is a world-renowned iconic tourism attraction that generates significant economic, cultural, and employment benefits. This investment will help safeguard and enable ‘Discover Waitomo’ to retain a highly-skilled workforce with specific skills and experience, according to the Government. Kiwis encouraged to travel locally A new tourism video, “Do Something New New Zealand”, has sports stars, broadcasters, and ordinary Kiwis visiting places in New Zealand from their bucket-lists and promoting local travel.

Cricketer Martin Guptill, his wife, radio host, Sam Wallace, and America’s Cup champion Peter Burling are among the other famous faces to feature in the campaign, which is running on mainstream media to encourage Kiwis to travel locally.

Notably, between $7 billion to $9 billion was spent by Kiwis on overseas trips last year, and with no international leisure travel in the foreseeable future, the tourism industry is hoping to capture some of this spending.

Though it is widely acknowledged, with projections of New Zealand economy going into a recession, this might not be so feasible.

Affordable and sustainable

Another important point to note is – while it is essential to back our country’s tourism, is it pocket-friendly for New Zealanders?

A recent Research First survey of 270 New Zealanders showed almost 40 percent were planning a domestic holiday within three months of the restrictions being lifted, but 60 percent found the cost of tourism activities too high.

Tourism Minister, Kelvin Davis has acknowledged operators would also need to come to the party, and avoid overpricing to attract customers.

While some operators, particularly at the higher end of the market, have said high operating costs make it difficult, if not impossible, to lower prices, others have offered big discounts to make it economical for Kiwis to explore their nation’s backyard.

While trails in the Kauri forest or a walk in the Redwoods may be perfectly affordable for a family of four, taking the family on a whale watch, a bungee jump or a cruise on Milford Sound may not be a part of the fit in the budget of a big holiday plan.

As it is, pricing is the major decision-making factor for 30 percent of New Zealanders when it comes to holidays, either international or domestic.

Future

This pandemic has given a wonderful opportunity to Kiwis to now truly discover what this country has to offer, not only for a weekend getaway, but also for their main summer holiday.

Granted the absence of international tourists will be a huge challenge, but it’s also an opportunity.

If we get it right, when the foreign visitors are allowed to return, most likely with the trans-Tasman bubble opening up, we would have found ways to grow – or limit – the numbers and their expectations so that our tourism industry can thrive as well as survive.

– by Shivangi Bose, an experienced media professional and writer, who recently moved to Auckland, and has a special interest in script-writing for brand videos.

Tourism in New Zealand by the numbers

Total annual tourism expenditure is $40.9 billion – $112 million per day.

Annual international tourism expenditure is $17.2 billion – $47 million per day.

Annual domestic tourism expenditure is $23.7 billion – $65 million per day.

Total annual tourism expenditure has increased by $13.8 billion, or 50%, in the past six years.

Tourism is New Zealand’s biggest export industry, contributing 20.4% of total exports.

Tourism generates a direct annual contribution to GDP of $16.2 billion, or 5.8%, and a further indirect contribution of $11.2 billion, another 4% of New Zealand’s total GDP.

229,566 people are directly and another 163,713 indirectly employed in tourism in New Zealand – 14.4% of the total number of people employed in New Zealand.

The annual GST paid by tourists is $3.8 billion, including $1.8 billion collected from international visitors.

Source: Statistics NZ Tourism Satellite Account year ended March 2019 (issued December 2019).