Francesca Rudkin: Can the Government get tourism numbers back up?

As you probably picked up from Prime Minister Christopher Luxon’s State of the Nation speech on Thursday, 2025 is apparently all about financial growth and saying ‘yes’. Those are two trends I am trying to adopt in our house for 2025 as well, especially saying ‘yes’ when I ask someone to do something...   

I digress, back to the nation.   

Before COVID-19, tourism was New Zealand's largest export industry, so it’s clear why the Prime Minister and his newly minted Economic Growth Minister Nicola Willis have identified it as a priority area for the country to earn more. 

Data released in January reveals that in the year ending November 2024, visitor numbers increased to 3.26 million, an increase of 360,000 from the previous year, and 86 percent of pre-pandemic levels.   

So, the numbers are going in the right direction, but international tourism still remains our second highest export. There is more work to do!  

New Tourism and Hospitality Minister Louise Upston is the fifth minister to hold the portfolio in five years - so some stability in the portfolio is a good place to start. 

Nicola Willis has suggested the new Minister will look at how funding is currently being used, the visa processing system, and marketing campaigns. All good places to start - although you’d have hoped this happened when the coalition came to power over a year ago.  

The Minister will also be looking at how funding from the international visitor levy is being spent, after the levy increased from $35 to $100 in October last year. 

Increasing levies, adding user charges and targeted taxes on visitors has been recommended by MBIE in the past as a way to fund tourism - and we have seen DOC increase hut and campsite fees and the trialling of car parking charges at Punakaiki, Franz Josef Glacier, and Aoraki Mount Cook.  

But what about the visitor bed tax? Perhaps a crude idea in 2020 when hotels were empty; but with the industry recovering - is it time to resurrect the idea? Auckland Council has long advocated to central Government that some form of bed night levy or tax is required to support funding major events, destination marketing and visitor attractions. If one is not implemented by the middle of this year, there will be a budget gap to fund major events. 

The Government is not buying into the idea that tourism needs infrastructure support. In their view, if regions get more tourists then they can deal with it themselves.  

When it comes to one of our busiest tourist spots, the Government is very quick to point out that Queenstown is getting a $250 million roading upgrade.  

But that’s not enough. As Queenstown mayor Glyn Lewers told me on Early Edition this week - “I’d welcome more tourists if there is a proviso that the infrastructure to support and accommodate more tourists and visitors is accounted for”. He pointed out Queenstown’s airport needs to be better staffed with more customs and security staff to function well as an international airport.   

We all want growth and a thriving tourism industry. But we also want it to be sustainable - avoiding the degradation and overcrowding of our wilderness, pressure on infrastructure, and communities carrying the cost.  

So, if the Government wants growth - and tourism back in the number 1 export earner spot - it should perhaps consider putting in a little bit more so it can get more out.   

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Sunday Session podcast with Francesca Rudkin
from News talks'b.

Speaker 2 (00:12):
As he probably picked up from Prime Minister Luckson's Estate
of the Nation's speech on Thursday twenty twenty five. Is
apparently all about financial growth and saying yes, two trends
I'm trying to adopt in our House of twenty twenty
five as well, especially saying yes when I ask someone
to do something. But I digress back to the nation.
Before COVID nineteen, tourism was New Zealand's largest export industry,

(00:34):
so it's clear why the Prime Minister and his newly
minted Economic Growth Minister Nicola Willis have identified it as
a priority area for the country to earn more. Data
released in January relieves that in the year ending November
twenty twenty four, visiting numbers increased to three point twenty
six million, an increase of three hundred and sixty thousand
from the previous year, and we're at eighty six percent

(00:55):
of pre pandemic levels, So the numbers are going in
the right direction, but international tourism still remains our second
highest export. There is more work to do tourism and
Hospitality Minister Louise Upston is the fifth minister to hold
the portfolio in five years, so some stability in the
portfolio is a good place to start. Nikola Willis has

(01:16):
suggested the new minister will look at how funding is
currently being used. The visa processing system and marketing camplagnts
all good places to start, although you'd have hoped this
happened when the Coalition came to power over a year ago.
The Minister will also be looking at how funding from
the International Visitor Levy is being spent after the levee
increased from thirty five dollars to one hundred dollars in October.

(01:38):
Increasing levees, adding user charges and targeted tax on visitors
has been reckoned. Has been recommended by MB in the
past as a way to fund tourism, and we've seen it.
We've seen doc increase hut and campsite fees and the
trialing of car parking charges at Punacaiki and Franz Joseph
Glacier and Araki Mount Cook. But what about the visitor

(01:59):
bed tax? Perhaps a crude idea in twenty twenty when
hotels were empty, but with the industry recovering as it is,
is it time to resurrect the idea. Auckland Council has
long advocated to central government that some forod of bed
night levy or tax is required to support funding major events,
destination marketing and visitor attractions. If one is not implemented

(02:23):
by the middle of this year, there will be a
budget gap to fund major events. The government is not
buying into the idea that tourism needs infrastructure support and
their view if regions get more tourists than they can
deal with it themselves. But when it comes to one
of our busiest tourist spots, the government is very quick
to point out that Queenstown is getting a two hundred
and fifty million roading upgrade. But that's not enough. As

(02:44):
Queenstown Mayor Glenn Lewis told me on early edition this week,
I'd welcome more tourists if there is the provaso that
the infrastructure to support and accommodate more tourists and visitors
is accounted for. He pointed out Queenstown's airport needs to
be staffed with more customs and security staff to function
well as an international airport.

Speaker 1 (03:04):
We all want.

Speaker 2 (03:04):
Growth and a thriving tourism into but we also want
it to be sustainable, avoiding the degradation and overcrowding of
our wilderness, pressure on infrastructure and communities carrying the cost.
So if the government wants growth and tourism back in
the number one export earnest spot, it should perhaps consider
putting in a little bit more so it can get
a little bit more out.

Speaker 1 (03:26):
For more from the Sunday Session with Francesca Rudkin, listen
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