Minister of Tourism Peeni Henare’s speech at Otago Tourism Policy School 2023

It’s wonderful to be here in Queenstown again.

I was also here in early March to launch the Better Work Action Plan. 

Congratulations on the fifth year of the Tourism Policy School. This kind of gathering – bringing together academia, civil society, industry leaders and government representatives – is exactly what we need because of the nature of tourism. Yes it’s an industry, but it also touches on most industries and most communities.

It will take a range of perspectives and sharing of knowledge to ensure we have the best blueprint for the future.

Theme: Are we Fit for Purpose?

The question ‘are we fit for purpose?’ is a timely one to be considering as we stand here in 2023 with a global pandemic still fresh in our memories – and indeed still very much shaping our daily lives.On top of this the very fresh impacts of a devastating cyclone and floods being felt across Te Ika a Maui.

I am very aware that, while visitor numbers are recovering well post-Covid, there are significant and systemic challenges faced by the industry as it recovers, in particular, labour shortages.

There is no doubt that we are in a time of change. Covid changed many things about the way people want to work and live, their values, and how they want to travel.

Climate change is the other major force shaping our changing world, one that is similarly influencing people’s preferences, habits and travelling styles and testing the resilience of our businesses.

Technology and innovation are also causing sweeping changes to the way we run businesses, and again, the way people travel. My predecessor spoke about how Covid gave us an opportunity to break away from the high-volume model of tourism we had in 2019, and to re-focus in our tourism recovery on a more values-driven model. And while many countries are having this conversation, the vision for ‘where to from here’ is not yet clear. 

Overseas, we are seeing some interesting trends emerge in the tourism space following Covid. Venice has stopped allowing cruise ships into the lagoon; and the Balearic Islands, which include Ibiza, have announced plans to limit tourist numbers. 

Closer to home, we are seeing the Milford Opportunities Project, conducted in close partnership with mana whenua, propose new ways to manage the experience for visitors and community and RealNZ based here in Otago announcing plans to cap the number of skiers and snowboarders at its Cardrona Alpine Resort in the busiest months.

Though each of these are slightly different, they all share a common desire to protect and retain what made these places special in the first place, and to deliver a better and more sustainable visitor experience.

Matariki 

Despite the challenges, there are also many opportunities for the tourism sector to succeed. I am keen to see the sector embrace Matariki this year and in the future and I hope it delivers a successful off-peak tourism offering for our regions and communities. Matariki is all about calling our people home, and this inevitably drives travel and tourism opportunities.

Industry Transformation Plan

Earlier this month, I launched the Better Work Action Plan for Tourism. This completed the first phase of the Tourism Industry Transformation Plan. When I launched the Better Work Action Plan I spoke about the importance of partnership.I said that in these times of change, what we all need is partnership – kotahitanga – and leadership – rangatiratanga.

Industry Transformation Plans are built on the premise that by working together, across industry, unions, Māori and Government, we can better address the longstanding systemic challenges. Tourism is one of eight Industry Transformation Plans underway. They are collectively a deliberate shift away from the model whereby government simply regulates industry, towards a new model of partnership. And I would say that academia is another key part of that partnership. We rely on academia to show us the trends that will shape our future, ask the hard questions, and ensure we are making informed decisions.

Better Work Action Plan

The Better Work Action Plan for Tourism is the result of 18 months of hard work by the ITP Leadership Group, chaired by Grainne Troute, Chair of Tourism Industry Aotearoa, John Crocker, National Secretary of Unite Union, and Heather Kirkham, General Manager of Tourism at MBIE.

Why Better Work? We all know there are some amazing employers out there in the sector, companies who value and nurture their staff, and who offer career pathways. But, as a lot of research has shown, this is not the case across the sector, and we can do better.

The Plan contains six Tirohanga Hou, or new pathways, that together will form a foundation for a stronger, more stable, and better skilled tourism workforce in Aotearoa.

The Tirohanga Hou cover topics such as fit for purpose education and training; lifting the cultural competency of our tourism sector; a Tourism Accord to recognise and celebrate good employers; and measures to increase technology uptake and innovation, plus more.

Please take some time to read the Better Work Action Plan in detail and think about your role in the next phase. Its success will come through everyone playing a role, whether you are a barista, a tour guide, a union organiser, a councillor, or a CEO.

Environment phase

The second phase of the ITP focuses on another major challenge we must face together: caring for our environment. This is key for the overarching goal of creating a regenerative tourism system. We need tourism to give back more than it takes. As Cyclone Gabrielle highlighted, there is an urgent need to prepare for such extreme events.

That is why the Environment phase of the Tourism ITP focuses on three key areas: climate change adaptation; climate change mitigation; and fostering positive ecological outcomes. This means we prepare for such events and build our resilience, reduce our own impact on the environment, and do what we can to protect and restore New Zealand’s diverse flora and fauna.

There are many in the industry who are leaders in this space already. The adaptation pillar has been led by the Aotearoa Circle, and you will hear more from them on this shortly. Their work on scenarios and creating a roadmap is integral to what we are trying to achieve. We have a fantastic Leadership Group to steer this mahi. I know the group has already put in a huge amount of time and effort. I would like to mihi our three co-chairs, John Crocker from Unite Union, Laurissa Cooney, independent director for Air New Zealand, and Heather Kirkham from MBIE. 

To make this plan as transformational as possible, we need to understand the two key stakeholders in tourism – the operators, and the consumers. Research underway will help the group address some of the tough questions – for example, whether our industry is fit for purpose, and what the optimal visitor mix looks like.

The Leadership Group aims to share the draft plan publicly in the middle of this year. Your views, and questions will be key to ensuring the action plan is fit for purpose and truly transformational.

Innovation Programme

Another key component of support to transform the foundations of the tourism system is the Innovation Programme for Tourism Recovery, with a total of $54 million in contestable funding announced by my predecessor in 2022.

This programme was carefully designed to invite new ideas that have the potential to transform the whole tourism system. And while there are some criteria, notably a requirement for projects to be truly innovative, the potential scope of this programme is deliberately broad. This reflects the simple notion that we want to see the best ideas this sector can come up with. Perhaps the conversations you’ll have over the next two days will inspire some of these.

International Visitor Conservation and Tourism Levy

The International Visitor Conservation and Tourism Levy (IVL) was introduced in 2019 for the purposes of ensuring international visitors to Aotearoa directly contribute to ensuring tourism benefits communities and the environment.

Since its introduction, Covid was a major interruption in the inflow of funds but nonetheless it has successfully funded 19 projects or investments, 13 for tourism and six for conservation. To name a few projects, the IVL has supported the Kākāpo recovery, the i-SITEs network, and Regional Tourism New Zealand in their work on destination management.

I have heard that the industry wants to take this conversation to the next step, and that there is interest in exploring the options available to us to lift visitors’ contribution to the infrastructure they use and the conservation of the environment they enjoy.

The IVL is just one tool in a large and varied toolkit for achieving this outcome, some with a local and some with a national focus. We need to think carefully about what is the best fit for Aotearoa, while looking at how other countries are doing it.

Destination Management Plans

During the pandemic, Government funded the development of Destination Management Plans via the Regional Tourism Organisations. I know that lately Regional Tourism New Zealand has been working on Project Tōnui – strategically considering the structure and functions of Aotearoa’s RTOs. I commend them for this forward-thinking and brave kaupapa.

I am also delighted that almost all Aotearoa’s RTOs have completed Destination Management Plans, with the final few coming soon! Destination Management Plans are how New Zealanders make sure tourism in their region reflects their values. The plans aim to maximise the benefits that tourism brings while managing any negative impacts. They provide a living strategy and blueprint for the future of tourism around the motu. I want to commend all Regional Tourism Organisations for their work on this. They lay an excellent foundation for the future of our industry.

Conclusion

What I think you’ll see as a common theme in our approach – whether it’s in partnering with industry for the ITP, supporting the development of Destination Management Plans, or opening up the Innovation Programme for Tourism Recovery – is that the role the Government sees for itself is to support and enable the aspirations the industry and regions have for itself.

I am not here to tell you what those aspirations should be – that’s what this hui, this wananga, is here to do. I will leave you with this thought: when you ask, ‘are we fit for purpose?’ make sure that you have an eye firmly on being fit for the future, not just the now. Research the big trends that are changing our world, because the future is coming to us faster than many think.

I hope you enjoy the conference.
Ngā mihi ki a koutou.