New Zealand’s tourism sector has received a significant boost in today’s Budget announcement, supporting the industry and helping the country avoid a recession. The allocation of $18.2 million over four years towards implementing the Better Work Action Plan has been welcomed by Tourism Industry Aotearoa (TIA), highlighting the plan’s potential to bring about positive changes and transform the tourism industry.
Rebecca Ingram, Chief Executive of TIA, expressed her appreciation for the funding, emphasizing the importance of effectively implementing the Better Work plan. “Delivery of the Better Work plan has the potential to be transformative for our industry and our ambition for more tourism businesses to become employers of choice. This funding ensures the plan doesn’t sit in a top drawer,” said Ms Ingram.
Furthermore, the Budget forecasts released by the Treasury indicate that New Zealand’s economy will steer clear of a recession, partially due to the tourism sector’s contribution. Recognizing tourism as a crucial contributor, Ms Ingram stated, “Tourism is an important contributor to New Zealand. Our ambition is to be a regenerative industry. Investment that supports us to progress towards this goal is welcome and appreciated. We look forward to working with the Government to achieve it.”
The tourism industry plays a vital role in New Zealand’s employment landscape, with more than 145,000 Kiwis directly employed by tourism businesses. Notably, 76% of these businesses pay their staff a Living Wage or above, as revealed in a recent workforce survey conducted by TIA. The funding allocated to initiatives such as the Better Work Action Plan will support businesses, operators, and workers nationwide.
TIA has also expressed satisfaction with other significant investments outlined in Budget 2023. Firstly, substantial investment in infrastructure resilience is essential to combat climate-related weather events’ growing impact on communities and businesses. A resilient road network is crucial for supporting the visitor economy and local communities, especially considering New Zealand’s popularity as a touring destination.
Continued funding for significant event planning has also been recognized as a positive move. Ensuring long-term planning and prospecting for major events allows New Zealand to compete and secure significant events, which not only enhances community vibrancy but also benefits the tourism industry as visitors flock to attend these events.
TIA sees the commitment to establishing an electric vehicle (EV) charging network as a welcome development. As the tourism transport sector, including rental cars and campervans, increases its investment in EVs, the availability of nationwide charging facilities becomes crucial for a smooth transition to sustainable transportation.
Furthermore, additional funding for New Zealand Māori Tourism and The New Zealand Māori Arts and Crafts Institute has been allocated, further positioning the Māori tourism sector for future success and supporting the continuation of their commendable work.
However, Ms Ingram expressed disappointment over the reduction of $10 million in funding for the Innovation Programme for Tourism Recovery Fund. Launched in November of the previous year, this program aims to foster transformation, innovation, and progress toward regenerative tourism. The reduction in fund size limits the potential positive impact of innovative projects within the tourism industry.
In conclusion, the support provided to the tourism industry in Budget 2023 is expected to be crucial in driving economic recovery and avoiding a recession in New Zealand. With investments directed towards initiatives such as the Better Work Action Plan and the recognition of tourism’s significance, the country is moving towards its ambition of becoming a regenerative industry.
Written by: Jason Smith
