Estimates Debate — Vote Tourism

Tēnā koe, Mr Chair. I am pleased to make a contribution in this appropriations debate. Can I draw the Committee’s attention to the low-budget movie set known as the tourism portfolio. It is a “best supporting actress” in the John Key show. The tourism industry deserves much, much more. The Prime Minister, just like Prime Ministers of the past, has been entitled to pick his portfolio as a matter of priority. Robert Muldoon had finance, David Lange took foreign affairs, and Helen Clark made a name for herself in the arts. For better or for worse, these areas became their legacies. John Key gave himself the tourism portfolio as a matter of priority, and yet 4 years on he has let it languish.

💬 Hon Annette King: Flop.

It is a flop. Talk about taking his job too seriously! In colloquial Te Reo we say that John is taking a tiki-tour on the job. He is taking a tiki-tour. I am reminded of that memorable New Zealand ad, which I am sure members of this Committee will remember, of a generation ago, where Kiwis were reminded: “Don’t leave town until you’ve seen the country.” On that ad, there was a Kiwi bloke—

💬 Hon Trevor Mallard: Tell that to John Key. His country’s Hawaii.

That is right. On that ad, a Kiwi bloke is paddling down a river and he is asked by a local if he knows where the Victoria Falls are. Our intrepid Kiwi kayaker replies: “Somewhere near Taupō.” Or in those days he said “T-ow-poe”. But Mr Key’s efforts to date remind me of that punchline, because the Prime Minister is taking tourism over the Huka Falls. In colloquial Te Reo we say he has gone tipi haere.

If we look at the tourism portfolio and at the tourism industry, $63 million a day is contributed to New Zealand’s economy. It employs—directly and indirectly—180,000 Kiwis. It is our second-biggest export earner. It provides jobs, money, and vibrancy to our communities. But it is not getting the leadership it deserves under this Minister. If we look at what is in this appropriation, there are no significant changes to the tourism funding, only $97.5 million on international marketing, and a fraction on policy advice and research.

But I think, in terms of the reaction from the industry itself, we just have to look at the mood of the industry in terms of its tourism sector report, which was reported recently. If we look at the wording from tourism operators themselves, right across the country, they are saying that the sector has lost its edge, it is in holding-on mode, and it is economically flat. Tourism has fallen off the radar with this Government. New Zealand is no longer the desirable destination that it was amongst our key visitor export markets. We are stuck in a rut and the industry needs to change.

The industry is calling for change, and it has called Martin Snedden. He did a fantastic job leading the Rugby World Cup last year, in addition to his heroics when he was on the cricket pitch in the 1980s. But Martin Snedden alone cannot pull the industry out of the doldrums. There needs to be leadership from the Prime Minister on this portfolio. We need some more hard graft being put into the tourism portfolio. We are not getting that hard graft, and the tourism sector is suffering as a result, and those comments are being made by operators up and down the length of the country.

The tourism sector is made up of small businesses—large and small businesses the length and breadth of the country, and they are hurting. We are not seeing leadership, and we are definitely not seeing resources and funding being put in to stimulate the sector. So tourism is not where it needs to be. Unfortunately, this Government does not have a plan, and it has not got the right amount of resources that it is putting into such an important sector, our No. 2 export earner—$63 million a day, as I mentioned, and 180,000 jobs. It is a vitally important sector for our country, and we need to have more leadership taking place.

We want to see that tourism is no longer the supporting actor of this Government. We want to make sure that tourism is at the forefront and that we are seeing growth, because the comments that are coming out of the sector are not encouraging. We need only to turn to Rob Fyfe, the outgoing chief executive for Air New Zealand—

It is a real privilege to stand on behalf of the Government to shape up our debate in this wonderful estimates debate. It has taken us half an hour to get to some substantive debate in this. Up until now it has been about playboys, pies, and conspiracy theories from Mr Mallard on the other side of the Chamber.

But I want to shake up the debate on how our team will be approaching this going forward, because there are four key priorities for this Government in this estimates debate—four key priorities. The first is to responsibly manage the Government’s finances, the second is to rebuild Christchurch, the third is to deliver better public services, and the fourth is to build a more competitive and productive economy. Just on each of those issues—before I get into the substantive part of the tourism debate—if we think about responsibly managing the Government’s finances, well, if there is a Government that is right for the moment it is this National Party and its coalition parties. We have set an agenda to get us back to surplus by 2014-15 and to keep our debt under 40 percent of GDP. On any measure, that is putting us amongst leaders in the globe.

On a second point, in terms of rebuilding Christchurch, you saw the Prime Minister and Gerry Brownlee present that wonderful plan down in Christchurch to take it forward. At the moment I hear the Opposition members not saying too much about that, because they support that plan, too. They do not want to get out there and talk too much about it, but they support that plan. In terms of delivering better public services, across the Public Service we are seeing a commitment, a real focus, to taking public services forward, whether it be in health or in police. They are doing a fantastic job, and I congratulate them on that. The 10 result areas that we have rolled out will back up that and provide key targets as we try to improve the statistics going forward.

The key area that I want to focus on—which many of my colleagues will also join me on—is in building a competitive and productive economy. If there is a part of the economy that is important in that, it is our second-biggest export earner, tourism. The direct contribution to GDP for the year ending March 2011 was some $6.9 billion. This industry is a fantastic industry in the country. I had the pleasure this morning of opening the international events management conference down at the Wharewaka and talking about the priorities of our Government in that tourism space. What could the Opposition say about that? Mr Tirikatene-Sullivan stood up and talked about it being a low-budget movie set. I am not sure how $84 million is low budget, Mr Tirikatene-Sullivan. And what does that party do to support the promotion of our country? The Hobbit set of movies—the trilogy of movies—has the opportunity to promote this country like never before, and what did that party do?

💬 Chris Auchinvole: What did they do?

It voted against The Hobbit. These are the Hobbit haters over that side of the Chamber. Will Labour members be lining up at the premiere for their tickets? Do you think David Shearer will be there? Do you think Clayton Cosgrove will be lining up for his premiere tickets? They will be there. They want to be at those Hobbit premieres. That set of movies will promote this country like never before.

We have a business growth agenda that will drive that productive economy. Within that business growth agenda, tourism is a huge player, and there are a number of initiatives that I want to talk about today. Firstly, in terms of the $84 million that goes to Tourism New Zealand, we have seen a new strategy that will roll-out, focusing on the markets that are growing, particularly China. We have seen a 20 percent growth—a 20 percent growth—from the Chinese market. It is somewhat low value at this point in time, so we are looking at how we can increase the value out of that market, away from the shopping tours, and improve the fit independent traveller market. It is a fantastic initiative and a wonderful opportunity. We continue to see growth from Australia coming across here. They love our tourism opportunities—absolutely fantastic.

I know that Mr Cosgrove is waiting and dying for me to talk about the wonderful New Zealand Cycle Trail. Nineteen trails, including the Otago Central Rail Trail, have been rolled out. The Otago Central Rail Trail was launched in 2000. By 2003-04, there were 6,000 riders; after 10 years there will be 12,000 riders. A huge number of jobs are attached to the Otago Central Rail Trail. It is an absolutely sensational opportunity in terms of tourism. We are rolling out 18 other rides as part of our initiative. People around this country love the cycle trails.

Vote agreed to.

Vote Finance