Managing Tourism Growth: Achieving Sustainable Success Chris Roberts CEO, Tourism Industry Aotearoa

The Travel and Tourism Tsunami 1.3 billion overseas trips in 2017 7% Another 50% growth expected in next decade 10.4% of global GDP (NZ$11 trillion) 313 million people employed (10% of global employment) A quarter of all new jobs in next 10 years will be in tourism

Tourism’s importance to NZ NZ 0.2% of global tourism GDP 10.5% of GDP 1 in 7 jobs 60/40 split domestic/international Growth in last 4 years: Domestic spend 24% International spend 46% International arrivals 35% NZ 0.2% of global tourism GDP 10.5% of GDP (NZ$26b) 399,000 people employed (14.5%) 60% domestic ($21.4b pa) 40% international ($14.5b pa) Growth in last 4 years: Domestic spend up 24% International spend up 46% International arrivals up 35%

Tourism No1 Export Earner: For 15 of past 20 years

Tourism’s role in NZ Tourism a means to an end, not an end in itself Use it to deliver social and economic prosperity for communities Commercial footprint in every community is larger than it would otherwise be thanks to tourism Creates greater appreciation for our natural and cultural assets A great place to live is a great place to visit

Too much tourism? Annual arrivals v local population: Iceland 5.1 to 1 Croatia 3.3 to 1 Montenegro 2.6 to 1 Ireland 2.0 to 1 New Zealand 0.8 to 1 Growth is good, but has a price – e.g. airport congestion, tourism hot spots, traffic, environmental concerns Tourism growth is a global phenomenon. Most countries addressing concerns about growth – how much is too much? Tolerance has to be self-determined by every destination More a matter of sensibility than numbers.

The widening gap between peak and off-peak

New thinking needed Sustainability Vision and framework Story-telling Investment

Leading the world in sustainable tourism Our Vision We need to be aspirational. New Zealand already has a good reputation as a well managed tourism system, but we know that we can do much more and much better. The vision also reflects the intent to be the best and that we can gain a competitive advantage from being the global exemplar. Leading the world in sustainable tourism

Four Elements ECONOMIC HOST COMMUNITY VISITOR ENVIRONMENT Tourism is delivering prosperity across the New Zealand economy. HOST COMMUNITY New Zealanders strongly support and reap the benefit from tourism operating in their communities. VISITOR New Zealand delivers world leading experiences for both international and domestic visitors. ENVIRONMENT Tourism is recognised for its contribution to protecting, restoring and enhancing New Zealand’s natural environment and biodiversity. In defining Tourism Sustainability we have taken a ‘balanced scorecard’ approach. We have determined that for Tourism there are four interconnected elements: Economic Host Community Environment Visitor For each of these four elements we have come up with Goals, and at an individual business-level, a set of Commitments.

Fourteen Business Commitments Visitor Engagement: Businesses educate visitors about New Zealand’s cultural and behavioural expectations. Community Engagement: Businesses actively engage with the communities in which they operate. Education: Businesses actively engage with their visitors and communities on the importance of restoring, protecting and enhancing New Zealand’s natural environment. 6 9 14

Look for the Sustainability Logo The central premise of the Tourism Sustainability Commitment is for it to be adopted very broadly across the tourism industry. It is a catalyst for change. This is not a Gold Standard approach that can only be reached by some – every tourism businesses should be able to sign this Commitment. TIA itself has signed up, are we a working through how we will tackle the Commitments – some easy, some more difficult.

Reset the Industry-led Framework and align with Sustainability Goals Connectivity Productivity Insight Reset the Industry-led Framework and align with Sustainability Goals Visitor Experience Target for Value

Rapid growth + limited knowledge + inadequate responses = threats to tourism’s social licence to operate How are issues arising from growth being managed? Who really benefits from tourism-generated activity? Need to tell our stories better National guidance but delivered at a local level This is a long term initiative. Ongoing commitment will be needed New Zealanders understand and are supportive of the tourism industry New Zealanders understand their role as hosts Visitors understand New Zealand’s values and want to engage Tourism is perceived as an industry that cares about the country and gives back economically, environmentally and culturally Tourism businesses and organisations are empowered to tell their story. New Zealanders understand the importance of tourism, are good hosts and our visitors respect their host communities.

Funding and Investment New Visitor Levy $25-$35 per international visitor Australia and Pacific exempt Up to $80m pa, split between Conservation and Tourism Collected via Visas and new Electronic Travel Authority Infrastructure not the only issue Policy capability, workforce development, research all important and should be funded Regional Taxes Queenstown a special case and needs government support TIA does not support a bed tax Allow the Productivity Commission to consider local government funding models Provincial Growth Fund Tourism Infrastructure Fund New border tax coming