Industry shows its unity

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					                                                                                        ITOC annual
                                                                                          issue - 2
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ISSUE 508                                                                                           July 23rd, 2004

Industry shows its unity
THE effects on New Zealand of the         concluded MOUs with a variety of         On work visas, Mr Barnett asked if
new A$360 million Australian              industry sectors.                        the New Zealand Immigration
campaign, work visas, training,           Mr Neels noted that most speakers        Service understands what the issues
yield and a jump in local authority       and delegates expressed similar          are.
rates plus a big rise in the cost of      thoughts on various issues. “While       The 100%Pure campaign is three
power distribution as well as             it does mean sometimes you are           years old. “The competition has
sustainability, infrastructure, low       robbing someone’s thunder it also        seen it. The competition have lifted
cost airlines and the boom in trans       shows unity.”                            their game. What are we going to do
Tasman travel were highlighted                          Questions                  to stay out front? Will it take more
during the ITOC conference in             Summing up, Auckland Chamber of          industry leadership? When (TNZ
Hawke’s Bay.                              Commerce CEO Michael Barnett             CEO) George (Hickton) goes to
A record 220 delegates included top       said Australia believes we lifted the    government with his hand out, do
TNZ managers, Ministry of Tourism         bar with the 100%Pure campaign.          we go with him? Does he want us
GM Ray Salter, TIANZ chairman             But now they have Australia, A           there and what can we do to make
Geoff Burns and CEO John                  Different Light...”Are they the real     things better for him?
Moriarty and 17 RTOs.                     competitors? If they are successful,     “Is the industry attracting the right
             Recognition                  and we are successful will it provide    calibre of employee? Will we suffer
President Stuart Neels said ITOC          more bums in beds and on the             if we don’t get good skills?”
likes to play its part in the industry.   buses? Or will more come but                             Yield
The council is now recognised “in         provide less revenue?”                   On yield, Mr Barnett said the
certain areas where it hasn’t been        He raised questions on increases in      industry should not be afraid to
before...”                                power line charges and asked if the      increase prices “when you look at
There is now a greater appreciation       industry should not be trying to         what people are loading onto you...”
of the distribution system, which         raise its voice so “prices aren’t just   He added: “Auckland Regional
will continue to remain robust.           lumped on top of us.”                    Council’s differential rating means a
“That’s the key: making sure              International English language           hotel paying $600,000 in rates now
margins are there and there’s             schools are a $1,500 million             will have to find $900,000 next
longevity to it all, in terms of yield    industry. But with political             year.” There was also talk of line
and inventory...that’s why we are         interference and mismanagement it        charges increasing and hoteliers
keen on Memorandums of                    could go down. “Do we have               being unable to pass these on.
Understanding (MOUs).”                    enough information to make sure          Qantas regional GM Allan Williams
ITOC is drawing up or has already         we don’t make the same errors?”          said from the floor that the large
                                                                                   increases in visitors from Australia
                                                                                   are not sustainable with such low
            *   Staying out front - on a               pinhead!            pg3     fares.
            *   LCAs and what they mean                  pg4                       He said new arrivals on the Tasman

            *   Ministerial challenge                  pg5                         must have low load factors because
            *   Govt meets opposition                  pg7                         the bulk of travellers are being
                                                                                   carried by AirNZ, Qantas and
            *   We hit 2.2M    pg8
                                                                                   Freedom Air. “If you look at it, $99
            *   Flight operators in good               heart         pg9           fares do not stack up..”
            *   Lodges launch e-brochure                  pg11                     And, he added, while airlines can
                                                                                   bring in capacity               (over)
                          ITOC conference report
Industry show its unity                                             government.” He joked: “The best thing would be for
                                                                    tourism to go backwards for a while!”
(from pg1) quickly it takes much longer to convince                 He said organisations should approach government
someone to invest in a hotel and then build it. So, can             themselves to make their views known.
we handle such increases in visitors?                               “The strongest indictor I have seen in this job is that we
One coach operator said there were already room                     are going to be passed (by Australia). Until now we
shortages in places like the West Coast. But another                have been able to maintain growth. But now I can see
asked why visitors couldn’t stay in b and bs and with               competition coming. I see what Australia are doing in a
farm and home hosts.                                                single, focused way...and they will be very strong. Our
TIANZ chairman Geoff Burns said that what is                        greatest hope is that the states stop them doing it!”
important is profit and return on investment. “One of the           Ministry of Tourism GM Ray Salter said good
challenges which we have to take up, when we have                   infrastructure is critical to delivering on the promise.
some good information, is what kinds of returns are we              Government has provided money for improved
really getting.”                                                    wastewater, which he considered “the thin end of the
Australian Tourism Export Council MD Peter Shelley                  wedge.”
pointed out that Tasmania is working on a strategy                                          Choke points
which puts a cap on visitor numbers. Former Saatchi                 The Ministry is doing work on industry “choke points”
and Saatchi director Kim Thorp now of Black Barn                    and what infrastructure is required if we are to host
Vineyards said people can’t be forced to visit at times             three million visitors in 2009.
they do not want to come. “But we can broaden the                   “Something the industry can do is to make all decision-
shoulders, ensure they stay way is through             makers aware of its needs - be they electricity,
events as long as they are good, big and famous.”                   broadband, water, or roading. My perception is that the
                     Latent potential                               industry is often a taker of regulatory regimes and
TNZ CEO George Hickton said no one expects the                      services rather than a maker of those facilities and
Tasman market to continue to grow at 25 percent. “But               regulations. That’s important at local government level
what is happening is that it has opened up a market that            as well as at central government level.”
had latent potential. Current levels are sustainable. So                                        Maori
you won’t see it drop 25 percent. We expect growth but              Hastings District Council representative Keriana
not at that extraordinary level. Increased capacity                 Poulain said Maori were glaringly absent from the
simply allowed people who couldn’t travel, to do so.                conference.
They like it and they like the New Zealand experience.”             “We do have a lot to offer industry and I am wondering
Mr Hickton said that while there is a shortage of                   if ITOC or TNZ feel ethnic culture is enough as it is
accommodation more hotels are being built.                          without Maori participating closely in these forums? Is
TIANZ CEO John Moriarty, to a question from Mr                      it enough what we do? Should more be done for Maori
Barnett if the industry is attracting people with the right         people to flaunt, I say that kindly, their wonderful skills,
skills, said tourism’s greatest infrastructure is its people.       talents and attributes?” She said New Zealand has
“When we have an industry only working a peak                       Pacific Island cultures as well.
October-April...we need to broaden the shoulders to                 Mr Hickton replied: “We do not yet have the full quality
keep the people.”                                                   and variety of Maori tourism experience that we want.
                           Threat                                   But that has started...”
He said the greatest threat to quality would likely be a            He cited the Rough Guide to Maori and work being
lack of investment in people and structures.                        done with Maori tourism organisations. But experiences
On price increases, Mr Barnett suggested that the                   must be “export ready” He said product must have style,
industry gets together to increase rates. “But the                  sophistication and be a contemporary creative
industry tends to be its own worst that                  experience.
something which will change? I presume you can pay                  In his summing up Mr Barnett told delegates that the
better if you have better yield. So, as an industry is there        industry is a driver of the economy. It is not a warm,
a need to raise prices? We should not be afraid to ask for          fuzzy experience that looks and feels good and creates
value when we have the product.”                                    employment.
ITOC VP Warren Harford said he doesn’t believe the                  “You are businesses. You create $7,500 million in
industry is attracting the same calibre, or number, of              foreign exchange and you should be taken seriously
people as in the past.                                              whether you are ITOC or any other tourism
Added Mr Burns: “We don’t know our customers well                   organisation. He added: “You deserve to be listened
enough to know when we can say ‘no’.”                               to for policy is not just about
Asked what support TNZ needs in order to obtain more                tourism. It is about taxes, rates, energy,
money from government, Mr Hickton replied: “We are                  are a voice, you are a business. You deserve to be
always careful not to lobby industry before lobbying                heard!”
                         ITOC conference report
Hickton says we will be successful                               people enjoy 30 percent more activities that non-
                                                                 interactive travellers, so they spend more - and that’s
if we keep our focus                                             good!”
IF the industry can continue to keep its focus it will be        Asked what will happen after the effects of Lord Of The
very successful, according to TNZ CEO George                     Rings has waned, Mr Hickon said he thought the effect
Hickton. He pointed out that in the last five years alone        would be around from some time and joked that he had
there had been a 60 percent growth.                              seen Lord Of The Rings 4, starring Jackie Chan, when
“We are heading to three million (visitors) in the not too       he was in a market in China recently. “We have had a
distant future. That means an increase of 800,000 with           good run,” he agreed. “The DVD is coming out and an
an average spend of $3,344 will pour an additional               interesting element is the long-term benefit. I am told
$2,600 million into the economy. TNZ not only wants to           that in the future, when children are given the book to
bring in more visitors but wants them to stay longer and         read they will also be handed the DVD. So we will
spend more.                                                      always be recognised as the home of Middle Earth. We
Mr Hickton said the increase in last year’s international        are probably nurturing a whole new market.”
visitor arrival numbers contributed an extra $580
million to the economy.                                                  We must stay out front -
“That’s twice the total contribution of wine. Yet look at
the profile that industry has!”                                             with a pinhead!
Mr Hickton said it was important to keep reemphasising            OUR competitors are catching up - and we need to
the value of tourism beyond the direct benefits to the            consistently keep ahead of the game, TNZ GM
industry.                                                         marketing Tim Deane said.
                         Coffee test                              “No doubt the increased spend from Australia will have
He cited the example of the purchase of coffee by                 a significant impact on the markets we are interested
visitors. “Hawke’s Bay had 167,852 holiday visitors last          in. The upside is that we will get more visitors to
year who stayed an average five nights. If they drank             Australasia. But there is a possibility that we will end
one cup of coffee a day to the value of about $3.50 a             up with more dual destination visitors. Numbers will
cup they would have drunk $3 million in coffee alone!             go up, but length-of-stay and spend will go down.”
Expand that to the other products they buy, the beds              What is TNZ doing? He added: “There is increased
they sleep in, the laundry required and you see how far           requirement for us to focus on PR and the International
reaching the tourism industry actually is.”                       Media Programme to try and leverage what we have -
Mr Hickton said the quality of the experience the                 and to increase our focus on how we can influence the
industry delivered to visitors would be an important              distribution channel outside New Zealand...additional
factor in the future and that was why TNZ was strongly            investment may be required to ensure a continuation of
supporting Qualmark.                                              growth rates”
Qualmark had reached a number of milestones and was               Mr Deane said New Zealand should take Tourism
attracting some significant players from the tourism              Australia’s new campaign seriously. We have a small
industry.                                                         budget on relative terms so, we have to think hard about
                         All aboard                               what we do.
“Its started - everyone is coming on board - Huka Lodge           “To illustrate the size of our marketing budget - if the
has joined! Blanket Bay has come on board” he said                total amount of money spent on marketing in each
with delight.                                                     market is the size of a basketball then what is spent by
 “We are past the critical stage. Qualmark is here for the        the industry is the size of a marble - then our budget is
future and we are giving it our all.”                             the size of a dressmaker’s pinhead. We have to maintain
Tourism New Zealand is committed to its strategy of               a consistent message and do things smartly. Even if
increasing a certain type of visitors to New Zealand. Mr          we start to become tired of the message our markets
Hickton said TNZ has called them “interactive                     won’t, as they don’t hear it as often.”
travellers” and has trademarked the term.                         In Australia A$6,800 million is spent on advertising
Already around 58 percent visitors coming to New                  each year. Tourism represents 0.81 percent of the total.
Zealand fitted the interactive traveller profile.                 And TNZ’s share is but four percent of that. “In the
“Some 67 percent of all UK visitors are interactive               UK, the figures are 8,300 million pounds with tourism
travellers, while it’s 62 percent of all North American           representing 0.4 percent, of which the TNZ spend is
visitors, 60 percent of Australians and about half of all         but 0.4 percent of the 0.4 percent.”
Singaporeans, Indians, Japanese and Germans.                      Some 5.7 trillion yen is spent on advertising in Japan
“The overall average is just under 60 percent,” Mr                and tourism is 0.081 percent of the total. TNZ’s share
Hickton added.                                                    of that is 1.5 percent. Added Mr Deane: “I’m not
“But we want that to grow to 70 or 80 percent and in              grizzling about what we have or have not got...we
doing so that will end up benefiting the industry. These          can do a lot with a dressmaker’s pinhead!”

                         ITOC conference report
LCAs and what they may mean to                                   incumbents who are carrying the traffic. They are
                                                                 winning the market share and in February were still
us...                                                            carrying 88 percent of the traffic.”
IF TNZ GM Operations Tim Hunter had said a year ago              He said that 62 percent of the capacity out of Australia
there would be a 30 percent increase in traffic trans-           comes through Auckland, with Christchurch at 21
Tasman New Zealand operators would have told him to              percent and Wellington 11 percent. In the first four
change his medication. “But it’s happened,” he told              months of 2004 growth from Australia was up six
delegates.                                                       percent for Auckland, 39 percent for Christchurch and
Mr Hunter joked that the first low cost airline (LCA) in         56 percent for Wellington.
New Zealand was the National Airways Corporation                 “There will be 55,000 extra Australian holidaymakers in
(NAC), which put off using air bridges for 40 years -            New Zealand this year, meaning about 11,000 extra car
and kept catering costs down by ensuring packets of              rentals - and an estimated $1.8 million in extra coffee
cheese and biscuits were hard to open!                           sold!”
The first LCA in the world was Southwest Airlines in                                   Unsustainable
the US which was launched 30 years ago, and today has            But Mr Hunter said that neither capacity nor pricing can
a fleet of 400 737s with another 100 on order. It is now         be sustained on the Tasman. “If you do the arithmetic,
the fourth largest carrier in North America. This is an          fares of less than $150 are not even break-even. There is
indication of what’s possible with this model, Mr                a need to move back up to sustainability.”
Hunter added.                                                    But growth out of Australia will continue. Mr Hunter
                           Cheap                                 said passengers travelling longhaul are not looking for
“People on short-haul simply want a cheap experience.            LCAs because comfort - and meals - become more
Travel is a commodity. So it’s about delivering air travel       important than price.
at the lowest possible cost. But that doesn’t mean the           One delegate said during question time that Tasman
lowest possible quality as some LCAs use new aircraft            flights are twice as long as those in Europe and we do
and have direct satellite TV. They also have catering,           not have the population to sustain so many services.
but you must pay for it.”                                        But Mr Hunter said that while a population base of
He said LCAs use under-utilised airports where costs             100,000 is required for LCAs to fly, in Australia
are lower than large hub airports. Turnarounds are               communities as small as 50,000 still do well for such
quicker, which enables extra sectors to be flown each            carriers.
day. Successful ones are not buying second hand aircraft         TIANZ chairman Geoff Burns said everyone should
but the highly efficient new generation 737 and A320             acknowledge the investment put into trans Tasman
aircraft.                                                        services and the industry by Qantas and AirNZ.
“The secret is that their costs are 35-50 percent below                 Industry full of energy - Neels
full service airlines. They also achieve lower costs by           IN the last 20 years it is hard to remember when the
pushing internet sales with no commissions, high                  industry has acted with the energy it has today, or been
density seating configurations - there are 180 on the             so united in the promotion of Destination New Zealand,
new one-class 737s, and no lounges or frequent flyer              ITOC president Stuart Neels said at the opening of the
programmes.”                                                      conference.
Mr Hunter said Ryanair have even removed the pocket               “We have all had to face huge challenges in our
in the back of each seat - because they have to be                businesses over the last few years. It is the boldness
cleaned, which slows the turnaround times.                        with which we have faced these challenges that has
Ryanair are also looking at providing larger bins in the          enabled the inbound industry to continue its success.”
cabin so passengers can carry their own luggage on                A significant factor in growth has and will be the
board to further speed up the loading. And LCA staff              increased airline activity into New Zealand.
tend to be more motivated and want to make the new                “We have seen Emirates, Asiana Airlines, Royal Brunei
business work. They are prepared to share business risk           and Pacific Blue aggressively enter the market and Air
with management.                                                  New Zealand, Qantas, Freedom Air and Korean Air
“LCAs are often led by charismatic CEOs who use                   putting additional capacity on key routes. This,
public relations more than straight advertising.”                 combined with cheap Trans Tasman airfares, has
In Europe, Mr Hunter added, there has been a six-fold             resulted in strong growth. The question now is - how
increase in LCAs, which now service 160 airports.                 sustainable is this from an airline perspective?”
Across the Tasman there has been 41 percent overall               Mr Neels pointed out that travel agents and tour
capacity growth in the last year but 74 percent of                operators worldwide continue to process 80 percent of
capacity is still operated by Qantas, AirNZ and Freedom           international travel business, despite the rapid growth
Air.                                                              of the internet and technology.        To be continued
“But that doesn’t tell the full story because it’s the

                         ITOC conference report
Minister challenges on seasonality                                Mr Burton said it’s important that there be good yield
HOW to tackle seasonality in an integrated and cohesive           management. “As inbound tour operators, you are in a
manner. That was the challenge thrown ITOC members                key position to influence yield. Getting the best out of
when Tourism Minister Mark Burton addressed                       any business sometimes means asking some pretty hard
delegates.                                                        questions.
“The benefits of smoothing seasonality are widespread             “It may mean taking a hard look at current practices and
for the sector, particularly in terms of better use of            finding new ways to do business. In order to reinvest in
infrastructure and the care and protection of our natural         our products and industry, we must price accordingly.”
environments, where we are seeing a number of                     The goal is to offer innovative, quality products and
potential ‘hot spots’ starting to develop.”                       services that live up to our reputation as a premiere
He said that with more than two million overseas guests           destination.
a year, and growing, some icon destinations are coming            “If we are going to deliver this, we must have a
under increasing pressure.                                        sufficient return on investment, and sufficient ongoing
“New Zealand has over 16,000 tourism businesses                   reinvestment in our people, our products, and our
spread across the country, with a stunning array of               infrastructure.
choices on offer. The to identify, develop,        “We must continue to work together to maximise the
and market those quality products that will assist in             economic benefits of tourism, while still protecting the
smoothing out regional spread while at the same time              people, cultures, and environments that we treasure, and
increasing visitor yield.”                                        which bring our guests here in the first place,” he added.
Mr Burton said the Ministry of Tourism is investigating                 Industry legend acknowledged
where key infrastructure bottlenecks are likely to occur           ITOC Operator of the Year is Qantas. Regional GM
over the next seven years. These include roads, airports,          Allan Williams, in collecting the award, also called
water and wastewater networks.                                     forward inbound sales manager Ruth McIntyre
“We are also working closely with the Department of                who, he said, was an industry legend who had really
Conservation on destination marketing as a way to                  won it for the company.
manage visitor pressure. Our goal is to target guests
who will stay longer, spend more, and, perhaps most               Hawke’s Bay in world class
importantly, get off the beaten track and out into the            IT took the arrival of Aucklander Graeme Avery and the
regions of New Zealand. We must also spread year                  development of the Hawke’s Bay Wine Region brand
round demand for New Zealand as a destination...                  before tourism took off in the region, according to
“We have already made some gains in this area by                  Napier Mayor Barbara Arnott at the opening.
successfully extending out the shoulder seasons, but we           “He came six years ago. He’s one of those useful Jafas
need to keep building on these changes and on our                 who spread themselves around...when he saw what we
achievements so far. Since you drive 50 per cent of our           had he decided he would set a new standard for this
visitor arrivals, inbound tour operators of course have a         region...”
crucial role to play in influencing travel patterns.”             The brand brought in large and small companies and the
                          Copying                                 region has retained high standards in service while
The Minister said that indications are that Australia is          building facilities for all to enjoy.
taking a leaf out of our book, with its new tourism               “Wherever visitors go they will see fabulous products,
strategies “echoing those that we have pursued so                 facilities and service. But what they remember is the
effectively over the past four and a half years.”                 welcome they get from the people in the streets. The
But imitation is the sincerest form of flattery, and he           people of Hawke’s bay well-know the value of tourism
wished Australia well with the new campaign.                      and their welcome is second to none.”
“It takes hard work, dedication, a willingness to know            She said that 90 percent of jobs in central Napier are in
what you do best (coupled with an unwillingness to                the service industry and art deco is the city’s point-of-
compromise it), and a real passion for excellence to get          difference.
your message heard over the deafening noise of the                “We’d like to think that Hawke’s Bay is no longer New
international tourism market. And, as we have learned-            Zealand’s best kept secret. But for international visitors
the message must ‘ring true’ with target visitors-it must         perhaps it still is...”
be authentic.                                                     ITOC president Stuart Neels said the fact that 220
He added that without international visitors, New                 were attending the conference showed the region is
Zealand would have to double the size of its dairy herd           world-class. And Tourism Minister Mark Burton
- that’s 4.5 million cows - more than double the forest           said the region “embodies the spirit of New Zealand
production - an extra 5.3 million ha - increase the size of       tourism with culture, outdoor activities and genuine
the kiwifruit industry 12- fold, or the wine industry 23          Kiwi hospitality sitting in a stunning landscape.
times over.
Kaikoura lodge for sale                                          THL means quality on and under land
FYFFE Country Lodge, Kaikoura, currently used to                 and water - even in Oz!
provide luxury boutique accommodation, is for sale.              THL has gained Qualmark endorsement for its Great
The lodge was built in 1993 and has walls of rammed              Sights and Johnston’s Coachlines. The company’s Kelly
earth blocks and roofing of hand split Canadian cedar            Tarlton’s Antarctic Encounter and Underwater World in
shakes. Recycled native timbers have been used for               Auckland, Maui Motorhomes, Britz and Backpacker
beams, doors and windows to give a timeless                      Campervans, Waitomo Glowworm Caves, The
atmosphere. It is surrounded by English cottage-style            Legendary Black Water Rafting Co. and Milford Sound
gardens with perfumed old fashioned roses and pebbled            Red Boat Cruises are already Qualmark licensed.
paths.                                                           Maui and Britz are also seeking Qualmark accreditation
There are six deluxe rooms with ensuites. There is also a        for their Australian operations, which will be a first in
restaurant with a Victorian decorated dining room and a          that Qualmark was previously restricted to New
house bar. The restaurant can seat up to 80 people and           Zealand.
opens on to a large brick courtyard, which can seat
another 40 people.                                               Zorb and others join IT
Stuart Parker, of Bayleys Marlborough, says the                  ZORB, Rotorua; Shand Thompson Ltd, Balclutha;
property attracts a good number of international and             Venture Taranaki; Ruapehu Alpine Lifts; Flag
New Zealand tourists. He says Fyffe Lodge is also a              Choice Hotels; BTM, Auckland and Contiki
popular venue for weddings due to its gardens and                Holidays (NZ) Ltd, Auckland, are the latest to
onsite restaurant facilities, which have a full commercial       subscribe to IT. Welcome to you all.
kitchen. Details: 03-5787700 or


                                Chief Executive - Qualmark

 Qualmark is New Zealand tourism’s official mark of quality, backed by leading tourism
 organisations Tourism New Zealand, the Automobile Association, and the Tourism Industry

 Currently enjoying significant growth, Qualmark seeks an exceptional Chief Executive to
 lead and manage an innovative and dynamic team of passionate professionals based in
 Auckland. As a high profile brand within New Zealand, the role of Chief Executive will
 lead and develop the strength of the quality mark further. The key focus of this organisation
 is to set the benchmark for quality within the New Zealand tourism industry. Qualmark’s
 integrity as a professional and trustworthy partner of quality excellence is embraced by
 the international community, and licence holders recognise the reputation confidence it
 gives their businesses in meeting the expectations of their clients.

 Integral to this position is the ability to provide vision, people leadership, strategic
 planning, quality assurance savvy, commercial nous, and brand management within the
 tourism environment. Also to display and ensure exceptional communication and liaison
 between the Qualmark Board, Qualmark staff and Tourism Operators at a national level
 to enable the Qualmark brand to be a highly successful, visable, and valued demonstration
 of New Zealand’s commitment to quality.

 Successful applicants will demonstrate those attributes outlined in the job description,
 as well as sound knowledge of quality systems, assessment strategy and methodologies
 or quality assurance.

 Please forward your CV and covering letter to Debbie Anderson at PO Box 95, Wellington
 by 5.00pm, Friday 6 August 2004. For more information and a full job description please
 visit, Ph 04 917-5443, or Email
Urupukapuka may develop                                                              Govt meets opposition to
URUPUKAPUKA Island, Bay of Islands, could soon be the site of a major                proposed RMA changes
tourist accommodation development able to host 178 guests a night.                   THE Government might rank
Zane Grey Resort Ltd has lodged a resource consent to transform its                  economic concerns alongside
existing facilities at Otehei Bay from basic huts and cabins able to sleep up        environmental ones in changes to a
to 80 people, to a modern, environmentally friendly resort. The company              key section of the Resource
has owned the resort since 1999.                                                     Management Act (RMA). Associate
Co-owner Wayne Dunning says a major international chain, which he had                Environment Minister David
met at TRENZ, is “very, very keen” to market and possibly manage the                 Benson-Pope says the change, hotly
resort once it was redeveloped. He declined to name the chain.                       opposed by environmental and
                                                                                     conservation groups as giving
Three Sydneysiders die on Treble Cone road                                           precedence to big business, is “on
THREE Sydneysiders died when their 4WD left the Treble Cone access                   the table” in a review of the act.
road on Sunday, about 4km from the base. One was Anna Gwynnedd                       Claims by Treasurer Michael Cullen
Somerville, 23, daughter of Treble Cone shareholder Richard                          that resource consents take “an
Somerville, of Dunedin.                                                              average period of five to six years”
                                                                                     to process have been contradicted
Doyle solves mystery of Fisherman’s Wharf?                                           by statistics on the Ministry for the
BARBARA Doyle, founder of Agatha Christie murder weekends at the                     Environment’s website and
Brian Boru Hotel, Thames, says she isn’t surprised TV personality Suzanne            promoted by Mr Benson-Pope.
Paul’s Maori village venture at the Fisherman’s Wharf, Northcote, has gone           Forest and Bird has written to Dr
broke. Her business - Doyle’s restaurant, at the same venue - also went bust.        Cullen pointing this out to him.
And it’s all because the building is haunted - and cursed.                           The Ministry for the Environment’s
She said she had to sell the Brian Boru and other property because she was           website shows that of the 49,000
financially gutted by Fisherman’s Wharf.                                             resource consents processed in
But Neville Waldren, of the Restaurant Association, says although it’s               2001/02: 41,000 were minor and
beside the Auckland Harbour Bridge “it’s a bit off the beaten track, that’s the      dealt with by a council officer;
reason it hasn’t made it.”                                                           46,000 consents were processed
                                                                                     without public notification; fewer
                                                                                     than 900 resource consents were
Series of events may replace Wow                                                     appealed to the Environment Court;
NELSON Mayor Paul Matheson says no single event will replace the                     fewer than 300 were declined.
World of WearableArt Awards, when they move to Wellington next
year. Instead, there will likely be a series of them.
                                                                                     Holiday park for sale
                                                                                     THE Mangawhai Village Holiday
Big carriers veer away from the Bay                                                  Park, 90 minutes north of
AIRLINES are not interested in flying jets into Hawke’s Bay Airport, even            Auckland, is on the market. There
if the runway is extended, according to PricewaterhouseCoopers analyst               are 16 units in the middle of the
Richard Forgan who has been studying the potential for Napier and Hastings           1.5 ha property. An office, spa,
councils.                                                                            sauna, games room and
Extending the runway would cost $1 million per 100 metres, Mr Forgan                 manager’s home are also there,
says, and it would need to be at least 1,950 metres to handle jets.                  together with 30 powered and 40
If the airport were to handle international flights it would need a second           tent sites. Bayleys Mangawhai’s
terminal as well as extra facilities for security, customs and other services.       Dianne Christiansen say tourism
Mr Forgan suggests that the airport authority and the councils should                is a drawcard with the population
reexamine the situation in five years. No airline is interested in flying jets in.   trebling in summer.

                                          Taupo, 23-25 August 2004

                                Tourism - Proudly Made in New Zealand

            Applications close 13 August, subject to limited availability.


Queenstown most popular NZ destination                                        We now hit 2.2M!
QUEENSTOWN is considered the third best “city” in the South West              INTERNATIONAL visitor arrivals
Pacific, according to readers of Travel and Leisure magazine.                 reached 2,248,129 in the year to
Christchurch was fourth and Auckland fifth. Top was Sydney, then              June, a rise of 9.7 percent. There
Melbourne.                                                                    were 19.3 percent more Australians
And readers have voted The George, Christchurch, Taupo’s Huka Lodge,          (782,126), 2.4 percent more
and Queenstown’s Millbrook Resort as being among the best in the world.       Americans (212,854), 6.5 percent
                                                                              more Koreans (118,229), 6.9
           Freedom camping on Otago peninsula                                 percent more Germans (54,714),
 OTAGO Peninsula is not attracting huge numbers of freedom campers,           11.6 percent more from the UK/
 but some sites are coming under serious pressure, according to Dunedin       Ireland (294,281) and 5.1 percent
 City Council.                                                                more Chinese (74,329). But there
 A four-month study on freedom camping has found that between 600 and         were 1.6 percent fewer Japanese
 800 freedom campers visit the peninsula between December and March.          (160,844) and 8.9 percent fewer
 Up to nine campers a night are seen at Taiaroa Head. And a lack of toilets   Taiwanese (26,689).
 there after 5pm, is concerning councillors.                                  Overall, there were 7.6 percent
 The study also found that campervans make up 40 per cent of vehicles         more on holiday (1,151,321) and 17
 used for freedom camping on the peninsula, with most campers using           percent more VFR (627,639) with
 private cars or vans without toilet or grey water holding facilities.        22 percent more Australians coming
                                                                              on holiday (310,869) and 21 percent
May record for guest nights                                                   more VFR from that market
A record total of 1,808,000 guest nights were spent in commercial             (275,057).
accommodation in May, up 68,000 or 3.9 percent on the same month last
year.                                                                         Hilton eyes Mainland
Some 15 of 28 RTO areas recorded an increase in guest nights, led by          HILTON plans to build $45
Christchurch-Canterbury (up 39,000 or 18 percent) then Auckland (up           million hotels in Christchurch and
25,000 or seven percent), Queenstown-Central Otago (up 14,000 or 11           Queenstown. But Hilton
percent), Rotorua (up 7,000 or 6.7 percent), McKenzie/Timaru (up 3,700        Auckland GM John Ingram
or 12.5 percent), Hawke’s Bay (up 2,500 or 4.9 percent), Hurunui (up          warns it will likely be years before
2,600 or 18 percent), Bay of Plenty (up 2,300 or 3.9 percent) and West        they open.
Coast (up 2,300 or 3.9 percent).
But Lake Taupo was down 7,000 or 11.6 percent, Latitude Nelson
dropped 5,700 or 9.6 percent, Wellington region was down 5,500 or 3.8         Backpackers meet
percent, while the Coromandel was down 2,600 or 8.3 percent, Taranaki         THE Backpacker Tourism
dropped 1,900 or six percent. Eastland was down 1,700 or 7.8 percent          Marketing Network is holding a
while Northland dropped 1,400 or 1.6 percent.                                 meeting in the Tourism Auckland
                                                                              boardroom on July 30.

                                                                    “Heritage&Character Inns of New
                                                                 Zealand” , comprising over 70 unique
                                                               lodges and B&Bs all Qualmark graded,
                                                                   are looking to appoint a Marketing
                                                                        Person or Company to assist in
                                                                                  marketing the group.

 We are looking for a person or Company who has extensive background in the lodge/
 hotel/travel industry who can assist the group in developing its brand, raising media
 profile, sales calls on agents and organizing marketing activities on behalf of the
 It is envisaged that the position would require 7-15 hours per week, and could suit
 someone working from home, or as an additional Marketing Accountfor a smaller
 company involved already in Tourism Marketing.
 Applications are invited in writing by email by 23 July to H&C Marketing c/-

                                                   Flight operators in good heart,
      ctzxá ctáàAAA                                despite the weather
                                                   THE worst prolonged period of bad weather in at least
                                                   35 years has caused havoc for South Island flightseeing,
TEN years ago in IT...                             80 delegates to the third Tourist Flight Operators New
                                                   Zealand annual conference were told. But despite this -
* WE need a masterplan for tourism, Deloitte       everyone was in good spirits!
Touche Thomas says in its submission to the
                                                   In opening the conference, chairman Geoff Ensor said
Commerce Select Committee inquiry into NZTB
(now TNZ).                                         he believes the industry is positioning itself well “for
The chartered accountant and management            the good times that are around the corner.”
consultancy company says there appears to          He reported that a number of operators have bought new
be a lack of planning or policy framework          aircraft - “a vital component of building an industry
within which tourism marketing fits.               reputation for safety and quality.”
It suggests that with NZTB being a
marketing organisation it may be
                                                   He added: “We have developed a professional
appropriate for another agency to have the         relationship with DoC, and strengthened our
responsibility for the overall direction           relationship with the CAA, as evidenced by the
of New Zealand tourism. This organisation          contribution both groups are making to this conference.
can then address issues such as high               “The development of these relationships is in line with
spending visitors versus mass tourism,             our belief that a common understanding of all the issues,
environmental management, development and
investment needs and community acceptance.         and regular constructive communication, are the key to
                                                   resolving issues and confidently moving ahead.”
*  MASSEY University lecturers have asked          The theme was “Management, Maintenance, and the
the committee if NZTB has considered if            Environment” with emphasis on discussion and
there are alternatives to accepting more           feedback.
tourists. “It is surely wise to consider           The programme included presentations on wilderness
just how many visitors are desirable...”           areas and Milford Sound, aircraft maintenance, business
write Dr Keith Dewar and Kaye Thorn. They
say government must consider social and
                                                   management, Qualmark and marketing. There was a
environmental and not just the economic            visit to Queenstown airport.
benefits of tourism. NZTB is marketing the         The group now has 45 members with 20 operators
conservation estate over which it has no           Qualmark endorsed. Two new members joined at the
control and to which it contributes                conference, and some operators signed up for a
little, they add.                                  Qualmark assessment.
                                                   John MacPhail from Wings over Whales in Kaikoura
*  IT’S better to work with NZTB than
                                                   says that the group has been proactive in encouraging
against it. That’s Fiordland Promotions
CEO Jan Wilson’s reasons why fellow RTO            every tourist flight-seeing operator to join and be part of
Keith Walker should not have criticised            the initiative. “I was keen to attend the first few
the board in a select committee                    meetings we had as a group where the focus was on
submission. Mr. Walker, CEO of Southland           safety and how we could improve as an industry. We
Promotions, had attacked the board for             took on-board the Qualmark standards and developed an
representing Queenstown at a Malaysian
trade show when eight other regions had to
                                                   industry best practice model that still stands,” he added.
go to the expense of representing
themselves.                                        Minister names TRC members
                                                   TOURISM Minister Mark Burton has just announced
*  WHAT was it all about? Nothing was              the full line-up of the Tourism Research Council New
achieved. There were no recommendations or         Zealand (TRCNZ).
conclusions. The format stifled
discussion. These were comments on a
                                                   Apart from chairman Lex Henry of Minter Ellison Rudd
conservation/tourism forum in Wellington,          Watts there are: Gordon Wilson, chairman, Hotel
attended by 50 invited by NZTB and DoC.            Council New Zealand; Wally Stone, chairman TNZ;
Tourism Taranaki CEO Elaine Gill said that         Geoff Burns, chairman TIANZ; Ralph Norris, MD and
whether conservationists like it or not,           CEO AirNZ; Adrian Januszkiewicz, CEO Shotover Jet;
three million visitors will be coming here         Ann Sherry, CEO Westpac Bank; Ian Ewing, Deputy
each year. “It may not be in the year
2000. But it’ll certainly be soon                  Government Statistician, Paul Yeo, chairman RTONZ;
afterwards.”                                       Ray Salter GM Ministry of Tourism.
                                                   Says Mr Burton: “TRCNZ’s new membership, made up
*  SOME 97 percent of New Zealanders               of pre-eminent industry leaders, is a clear illustration of
believe tourism is either “important” or           the strong government/sector partnerships we have built
“very important” according to an NZTB              over the past four and a half years. Together, we will
survey. “Results show that Kiwis are aware         continue to identify and meet the challenges
of the benefits of tourism,” says board PR
manager Chris
                                                   surrounding a truly sustainable tourism sector for New
Skycity now has 70% of Riverside                                And he adds: “Simply relying on our reputation,
SKYCITY Entertainment Group Limited has settled the             heritage and attractions is not enough.”
$10.5 million purchase of Tainui Group Holdings’ 15             Mr Tobias is demanding tax incentives to encourage
percent share of Riverside Casino Limited, owner of the         investment in skills training for staff in the tourism and
SkyCity Hamilton gaming and entertainment complex.              hospitality sectors “because there is still much to be
This increases Skycity’s equity to 70 percent.                  done to match the performance of some of our
Group MD Evan Davies says the company’s interest in             competitors.” He says local councils should be
acquiring the shareholding is a logical move in a               persuaded that investing in tourism infrastructure brings
company where it is already majority shareholder and            benefits to communities as well as the industry.
the operator of the business.
SkyCity Hamilton reported a strong performance for the          Cruisey season in 2005
2004 interim result period. Revenues were up 23                 THE 2005 New Zealand cruise season promises to be
percent from the second half of 2003, with EBITDA at            even bigger than 2004 with a record eight cruises to
44 percent of revenues.                                         and from Auckland next winter on P&O Cruises’
                                                                Pacific Sky.
Even Brits want more for tourism...                             In addition, the number of available berths on P&O
THE British government has been urged to invest more            Cruises ships based in Australasia will more than
in supporting the UK’s multi-billion pound tourism              double with the arrival of Sky’s sister ship Pacific
industry.                                                       Sun.
The call came from the Tourism Alliance, a group of 60          P&O Cruises’ business development manager
bodies, which promote Britain’s tourism.                        Shannon Currie says: “When this year’s record New
Alliance DG Richard Tobias says efforts to drive                Zealand season ends in August, nearly 60,000
Britain’s tourism trade up from £76 billion a year up to        passengers will have spent an estimated $43 million
a value of £100 billion by 2010 “can only be achieved if        in Auckland with visitor numbers for 2003-04 up
government investment in marketing England and                  5,000 on last year.” P&O Cruises and its sister line
Britain increases to keep pace with competition from            Princess Cruises were the major contributor to these
other destinations.”                                            figures.


                                      Chief Executive Officer
 Destination Marlborough is the umbrella destination marketing and tourism organisation for the Marlborough region.
 The Regional Tourism Organisation also runs the two i-SITEs in Marlborough - Blenheim & Picton.

 Applications are invited for the position of Chief Executive Officer who is part of a small team promoting the region
 as one of New Zealand’s premier tourism destinations. Reporting to the Board, the role is responsible for strategic
 and operational business planning and management of the Regional Tourism Organisation & the two
 i-SITES. It also includes relationship management with the tourism sector. The role is to forge strong relationships
 within the industry and stakeholders, and the Marlborough community.

 This role is suitable for a person with experience in business management / tourism industry or related service based
 industries, who is highly organised, has strong marketing experience in a tourism related role, financial and budgetary
 management skills, strong communication skills and enjoys being an integral part of a highly focused team. The
 person we require must have a passion for the tourism industry with an ambition to succeed and make a real contribution
 to the positioning of Marlborough as a visitor destination.

 For a job description please phone Lyn Porter on (03) 577-5523, or email

 Applications for the position should be sent by email to or posted to:
 Appointments Committee
 Destination Marlborough
 P O Box 29
 Blenheim                                  Applications close on Wednesday 30th July 2004

Lodges launch electronic brochure                                 Jets raise the temperature
THE New Zealand Lodge Association (NZLA) has                      JET exhausts add to global warming, according to a
launched an international marketing initiative - an               NASA team. The researchers show that contrails can
electronic brochure.                                              stretch 1,600 km and be 60km wide. Together they can
It has been produced as part of a joint venture with              create a blanket effect trapping heat radiating from the
ANZCRO aimed at promoting members’ lodges in the                  earth. The result? A rise of half a degree in the average
Australian market.                                                world temperature every decade.
NZLA marketing manager Garrick Emms says: “It is a
truly trans Tasman venture with the pages being                   Explore Franz Josef
produced in a Wellington art house and the e-brochure             FRANZ Josef Glacier Guides is now using the brand
itself hosted on a Sydney based computer.”                        name Explore. Under it will be the new scenic rafting
The initial appeal of the e-brochure was as an answer to          trip on the Waiau River, Franz Josef River Experience,
help overcome the high cost of brochure printing and              and the existing Okarito Boat Tours to the white heron
distribution.                                                     colony at Okarito.
Last season NZLA in association with its partners,                Franz Josef Glacier Guides CEO Mark Mellsop is
printed and dispatched to international markets, 85,000           behind the new Explore Franz Josef venture.
copies of its Blue Book directory.                                He says that with the town growing fast, the demand for
“Although many of these booklets may have a long                  visitor activities is outstripping that offered by the
shelf life the wastage is high and postage/distribution           glacier. And he has long since seen the need to redirect
costs far exceed the cost of the actual booklets,” Mr             the enthusiasm for the glacier, opening up access to the
Emms tells IT.                                                    area’s many other unique attractions.
The target audience is seen as web smart clients. But it
also needs to be user friendly.                                      ADVERT
 “As the product developed there was increasing interest
from international agents who indicated that they would
be happy to host the e-brochure on their own web sites.
ANZCRO installed an ANZCRO branded edition on
their website for use in the Australian market.                       If you need expert marketing assistance
                                                                     but are too busy running your business to
Before the e-brochure went international NZLA sought
                                                                     find it, or just can’t find the right person,
market feed-back from the industry and it was                               then here’s a solution for you.
demonstrated at Kiwilink UK, TRENZ and Kiwilink
LA.                                                                    Red Marketing has been created to assist with your
Mr Emms says the response was so positive that the                   marketing needs. We provide cost effective, professional
largest uptake of the e-brochure, to date, has been by               marketing for companies in a flexible way that works for
industry members and agents.                                                each businesses individual requirements.
 “Agents could see the e-brochure adding value to the
service they already offer their clients. Good, up-to-date          Our mission is to provide a level of professional marketing
                                                                     services previously not available, in a part or full time
information that is the advantage of e-brochure.
                                                                     manner. We adapt our service to suit your needs and
Contacts, location, activities, graphics are all there and                          importantly your budget.
kept current at no cost to the agent.”
                          Ability                                                  Red Marketing can provide:
NZLA has the ability to up-date copy and graphics
overnight. Agents or clients who have installed e-                 •        Relationship building – with customers, core
brochure can request automatic up-dates which are then             suppliers suppliers and agents nationwide
down-loaded whenever a new edition is formatted.                   •        Day to day marketing – a hands on approach
The e-brochure has now become by default, the draft for            •        Research and recommendations
                                                                   •        E marketing – newsletters, web sites and email
the next hard copy edition of the Blue Book. The classic
                                                                   comm communication
problems associated with producing camera ready copy,              •        Media – booking and recommendations
proof reading, correct graphics, rates and the like have           •        PR – media releases and press kits
now been identified and rectified before the art hits the          •        Launches
press, by each individual lodge. There is also the ability         •        Marketing plans – creation and implementation
to undertake limited edition print runs in specialist              •        Brand building
markets or for one-off events as the NZLA copy and art
is available on line anywhere in the world. Details: 06-            If you would like a friendly obligation free chat, to discuss
3088289 or                                   your marketing needs please feel free to call Sue Marshall or
                                                                                            Toni Smith.
                                                                                         TIANZ Member
New look centre to have the edge?                                          P (09) 529 1056 W
THE Auckland Convention Centre at The Edge is                                       E
due to open on August 2 after a $7 million upgrade.

YHA five star -again, again and                                   Secrets worth sharing....
again                                                             ONE of the best one day walks in New Zealand. That’s
AUCKLAND International YHA has been recognised                    how Secrets Worth Sharing and Hidden Trails author
by Qualmark as five-star accommodation for the third              Wally Hirsh describes day one of a three-day walk being
year in a row. Their rating improved from last year and,          promoted by avid tramper Maureen Baker, 66, of
despite the intense nature of the process, manager                Edgecumbe.
Katrina Scopas says staff enjoy the opportunity to “tip           She runs Tramplite Walks from her home where she and
the product on its ear and give it a real shake and put it        hubby Len host guests during their stay.
back together again.”                                             “The three day walk takes you through forest, beside
Qualmark assessors and YHA guests alike appreciate                Lakes Okataina and Tarawera. There are stunning views
YHA’s ‘delighters’ - which are colourful as well as               of Mount Tarawera which guests enjoy as they continue
cultural!                                                         on alongside the river to reach the Tarawera Falls.
We’re trying to make travellers from different cultures           Many people say that they cannot believe they have
feel more comfortable,” says Ms Scopas.                           never heard of these before! “
Special features include fresh herbs, a range of                  She explains: “The river gradually flows underground -
international cookbooks, Asian wok and dinnerware,                to emerge from the middle of a huge granite cliff-face.”
and Italian pasta bowls. Guests also appreciate the               Day two continues through native forest while the third
hostel’s milkshake maker, juicer, a restaurant review             day starts in Whakatane and provides views of Whale
book in which staff and guests share comments, and a              Island and White Island.
new traveller message board. Two ensuite rooms now                “Over the three days we accommodate, provide all
have TV and all ensuites have radio alarm clocks.                 meals and move guests on and off the tracks, all with
                                                                  warm, old fashioned hospitality.
                                                                   “We have been told by Dutch, Germans and English
SIA increases Chch capacity 40%!                                  that this is what most walkers want, somewhere they are
SINGAPORE Airlines (SIA) is increasing its                        comfortable and well fed, with some of the best scenery
Christchurch capacity by 40 percent from November                 in New Zealand.” Details:
with the addition of two new flights. The extra         
services provide an extra 570 seats a week.

Ski enduro race competitors due
                                                                    If you want to know about us, how
WORLD class racers from nine countries arrive in                     to advertise, send news, or simply
Queenstown on Tuesday in preparation for the gruelling                 look up some back issues visit:
overnight 50K of Coronet Peak race on August 2.
It is said to be Australasia’s leading international ski      
endurance event.

                       Tourism & Lifestyle Opportunities
 AUCKLAND - Modern motel complex. 39 well equipped units, large restaurant, excellent security
 system, close to shopping complex, cinemas, restaurants and bars. Room for expansion. Could be
 run under management FHGC $6 million plus Carolynn Crawford 027 247 8716 Tom Crawford 027
 278 9199

 WAIHEKE ISLAND - Tourist Apartments for lifestyle holidays or investment, contact me for a range
 of options. Studio to three bedrooms. Oneroa to Onetangi Beaches. Many excellent rental returns
 $155,000 1.65m. ID#33215. Pat Regan a/h 09 372 5501 or 0274 483 348

 ROTORUA - $595,000, Freehold land buildings/business. 7 units, two bedroom, owners
 accommodation, thermal heating to units, indoor mineral pool and outside pool. 430 square meters
 buildings on 1012 square meters land. Mark Slade 0274 988 911 office 07 349 5360.

 NELSON/TASMAN DISTRICT - Investors looking for a profitable business, and a leisurely lifestyle,
 should not go past this 5 star opportunity. Beautiful surroundings and immaculate presentation will
 not disappoint. Enquiries over $3 million. John Greenwood 027 497 0077.

0800 BAYLEYS           


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