WIDER BAY OF PLENTY Regional Tourism Strategy

Transcription

1 WIDER BAY OF PLENTY Regional Tourism Strategy Final Report February 2018

2 SUMMARY BACKGROUND The Toi Moana Bay of Plenty Regional Growth Study 2015, identified the need for central and local government, iwi, industry and the community to work together to identify the regional priority actions for tourism with the goal of growing the visitor economy to $2.5b by Subsequent growth in the visitor economy has resulted in expenditure in the wider Bay of Plenty already reaching $2.34B in This spending growth reflects an improved measurement of visitor spending, as well as rapid increases in visitor expenditure at tourism hot spots in the region. Continued growth in the visitor economy will have a growing need for investment in infrastructure to enable continued growth to be achieved. In response, four sub regional strategies for each destination in the Bay of Plenty (Taupo, Rotorua, Western Bay of Plenty and Eastern Bay of Plenty) have been developed collaboratively. This report is an overarching strategy for the wider Bay of Plenty region that presents the regional visitor economy aspiration and the infrastructure investment that will be required to fulfil the goals of the tourism industry. The purpose of this project is to: Develop five interrelated pieces of work, four sub regional strategies, that would flow into one overarching regional strategy. These identify and set regional and sub regional priorities, estimates of costs and potential sources of funding for implementation. Establish data and insights that form the basis of the plans and priorities at the regional and sub regional level. Wider Bay of Plenty Regional Strategy February 2018 Page 2 of 34

3 REGIONAL OVERVIEW The wider Bay of Plenty region covers a large triangle of the eastern and central North Island. At the northernmost point is Waihi Beach. To the south is the peak of Mt Ruapehu and to the east is Opotiki. Physically the region spans from mountain to sea, with everything in between. The resident population of the region is 268,000 with the two main cities being Tauranga and Rotorua. Tauranga city has experienced significant population growth in recent years and is now New Zealand s 5 th largest city. There has been some increase in population in Taupo and other centres, but the longterm population forecast for the rest of the region is static and smaller centres are forecast to decline in population. The demographic shifts are important to tourism as they influence the trends of domestic visitation through visiting friends and relatives. In addition, major population growth is a contributor to increased business travel and provides additional demand for tourism services. THE VISITOR ECONOMY Visitor spend in the wider Bay of Plenty region was $2.304 billion in the 2016 calendar year, up from $2.131 billion in This expenditure represents around 9% of the total national tourism spend. By way of comparison, the wider Bay of Plenty tourism spend is comparable to the tourism spend in the Wellington region, 1.5 times the visitor spend in Queenstown or around one third of the total tourism spend in Auckland. Domestic visitors accounted for 66% of the visitor spend in the region. This spend represents around 10% of the total domestic sector tourism spend in New Zealand. The international spend at $777M is around 8.9% of the total national spend. The region has successfully managed to maintain its market share of the international visitor spend over the last decade despite the major gateway destinations capturing an increasing share of international visitor spend. The wider Bay of Plenty experienced visitor spend growth of 39% between 2009 and 2016 with a compound growth rate of 4.8% 1. The region has experienced widely differing growth rates over this eight year period. Rotorua has had a 62% increase, whereas Taupo has had 18% growth. These differential growth rates partially reflect the different subregional dependence on domestic tourism, which has been stable over this period, as well as the impact of the recovery of international visitor spend after the global financial crisis of Visitor spend provides direct employment for an estimated 15,000 people in the wider region. There is also additional employment that can t be measured as well as the indirect employment generated by the supply chain effects of tourism in the region. Accommodation is the largest employer, followed by retail, food and beverage and transport sectors. Spend profile for the Wider Bay of Plenty: Retail sale other $586 million Food and beverage services 378 million Accommodation services $273 million Retail sales fuel and automotive $247 million Retail food and beverage $255 million Cultural, recreation and gambling $212 million Other passenger transport $189 million Other tourism products $163 million 1 As measured by the Ministry of Business, Innovation and Employment Monthly Regional Tourism Estimates Wider Bay of Plenty Regional Strategy February 2018 Page 3 of 34

4 Market Profile WIDER BAY OF PLENTY TOURISM 9% Of national tourism spend $2.34 Billion Of visitor spend in total 39% Growth Since % CAGR Over 17,000 Jobs Directly in tourism The region has a typical seasonality of a New Zealand destination with significant domestic visitation. It has a high season over December and January and good visitation over the other summer months of February and March, especially to beach locations such as Waihi beach, Mt Maunganui and Ohope. Visitation then falls over the winter with peaks during school holiday periods. In general, the international visitors have a similar seasonality pattern to domestic visitors to the region. The wider Bay of Plenty s largest overall domestic market is the Waikato and other locations within the Bay of Plenty, followed by Auckland. There are some prominent variances within the region, with Taupo receiving a significant visitation from the rest of the North Island, and the Western Bay of Plenty having very high visitation from Auckland and the Waikato/Bay of Plenty. These variations are influenced by ease of access and proximity, consequently, road infrastructure is important in determining future travel patterns to and within the region. In spend terms, the largest international market for the wider region is visitors from Australia, comprising 8% of total spend followed by North America at 6% and China and UK at 4% each. Overall the wider region has a well diversified international visitor market which partially reflects the diversity of visitor experiences within the region. The Rotorua subregion is the outlier, with significant international visitation and a comparatively high proportion of visitors from China and rest of Asia. By contrast, the rest of the region has a comparatively high visitation from the European and American markets. Travel behaviour within the region indicates that there is a significant untapped opportunity for additional intraregional travel and touring. Twothirds of international visitors stay overnight in only one destination within the region. Another 23% stay in the two subregions of Rotorua and Taupo. This means that the number of touring international visitors that experience the whole wider region is small, less than 15%. Domestic visitors do not traditionally tour and this is reflected in the statistics with 93% of domestic visitors staying in only one sub region. In addition, New Zealand s domestic tourism market, which comprises over 60% of total visitor spend is also increasing with population growth and strong inward migration to the upper North Island. Again, there is an opportunity for domestic visitors to travel more extensively throughout the wider Bay of Plenty region. The traditional visitor flows are reflected in the map below: Wider Bay of Plenty Regional Strategy February 2018 Page 4 of 34

5 FUTURE ASPIRATION With the recent experience of significant growth in the wider Bay of Plenty visitor economy, there is an expectation and aspiration for tourism to continue to grow, not only in the traditional tourism hotspots but also across the wider hinterland of the region. Combined, the four sub regions expect that visitor growth will increase by around 4% compound annual growth rate over the next decade. This means that tourism will be valued at: $1.45B ( by 2028) in Western and Eastern Bay of Plenty $1.5B ( by 2030) for Rotorua $800M ( by 2026) for Taupo If achieved, tourism will generate around $3.75B in economic benefit to the region within the next decade (relative to the 2015 Toi Moana Bay of Plenty Regional Growth Study goal of $2.5b by 2030). To facilitate this growth some key factors need to be addressed to ensure that continued high levels of satisfaction are maintained. This level of economic growth in tourism for the region will have a major impact on a variety of infrastructure and resources. The traditional visitor flows and locations will need to be expanded and diversified in the region. The aspiration for the region is to be a more widely travelled must see region of the country with a more diverse visitor offer. The region has three existing key cities and towns that act as hubs for significant visitation and offer an international quality experience. Collectively, the region has the scale and diversity of product, which represents the best of New Zealand tourism and offers a complete visitor experience. The three hubs in the region are: Rotorua, with its long historical tourism attractions of cultural and geothermal experiences, will continue to be a major hub for international visitors. It can develop both in quality of offer and quantity of offer and accommodation to continue to be a cultural destination especially for international visitors Taupo, with the lake, Tongariro National Park and surrounding adventure and outdoor activities, also attracts significant numbers of international visitors to the recreational and fishing activities within the region. As visitor numbers grow it has the capacity to further develop and act as a must do point on any north to south journey. In addition, it acts as the link hub between the central North Island, Hawkes Bay and also Ruapehu, Tongariro National park and the regions further west. Tauranga, as New Zealand s 5 th largest city and with a potential to grow even more could be the premier accessible destination for the coastal experiences and also the gateway to the wider Bay of Plenty experiences and the East Coast. To achieve this aspiration hotel development, a vibrant CBD and entertainment options are required. It will continue to be the gateway to the region for cruise passengers, and in this role will be both a destination and a feeder for the wider region. At these tourism hubs and within an hour s drive are a wide diversity of iconic attractions that already draw both domestic and international visitors. The key iconic attractions in and around the wider region that attract significant visitation and are internationally recognised include: Mt Maunganui beach Te Puia and Whakarewarewa Te Urewera and Lake Waikaremoana Skyline Rotorua Agrodome White Island Huka Falls Lake Taupo Tongariro National Park and Tongariro Alpine Crossing Tongariro River With improved infrastructure and connectivity, the suite of current and future iconic attractions within the region is an accessible opportunity to experience most of what New Zealand has to offer within a compact region. Domestic visitors are spread across the wider region, and especially the beach areas near Waihi, Tauranga and Whakatane along the Bay of Plenty coastline. Inland, there are a diversity of other river and lake attractions that draw domestic visitation over summer and school holiday periods. Wider Bay of Plenty Regional Strategy February 2018 Page 5 of 34

6 Wider Bay of Plenty Regional Strategy February 2018 Page 6 of 34

7 All around the region, both at the current tourism hotspots and also in more remote and less wellknown areas, there is a huge variety of attractions and sites that could be further developed. Many of these attractions and activities offer new and unique experiences and often more personalised and closer experiences with the New Zealand environment and culture that are attractive to both international and international visitor alike. The region is in a strategic position in the North Island, and, if developed appropriately could contribute to a set of regional strategic economic development objectives, as well as supporting adjoining regions. It: Is close to the major gateway city of Auckland and the major population triange of Auckland/Hamilton/Tauranga Offers a diversity of experiences within close proximity to each other. Has growth capacity Can offer a high level of connectivity between the major gateway of Auckland and the significant northern population centres and other regions such as Eastland, Hawkes Bay and Ruapehu district. Has the potential to offer an extensive suite of world class experiences within a short distance of each other that showcase the best that New Zealand has to offer, from mountains to coast. The regional aspiration is for a significantly larger tourism industry that is widely spread across the region and utilises all the natural, cultural and built assets that are available. Wider Bay of Plenty Regional Strategy February 2018 Page 7 of 34

8 The key features that will ensure a growing and sustainable tourism industry across the wider region include: Growth and maturing of existing key tourism destinations of Rotorua, Taupō and Tauranga, so that they become part of the iconic NZ tourism experience, and position alongside South Island destinations like Queenstown as international quality destinations with a diversity of experiences that are must see and do for visitors. Expansion of smaller tourism destinations and experiences such as Whakatane, White Island and Te Urewera, Whirinaki, Kaimais and Turangi and inclusion of these locations and experiences as part of international itineraries. Increased visitation to other less well known parts of the region. Increasing the quality of the product and experiences offered in the region to a consistently high quality international standard of service. The region already has established tourism offers that, with additional skills and service development could readily move to a higher quality and price level. From this position, other regional experiences could then expand their offer, both in quality and quantity to a wider international visitor audience. In order to achieve this aspiration for the Bay of Plenty, the tourism industry, local government and central government will need to make significant additional investment over the next decade to ensure that visitors continue to have quality experiences. As part of the development of the subregional strategies key tourism projects were identified that had the greatest potential to increase visitation as well as provide improved experiences for visitors. Some projects are transformational and reflect the growing importance of the visitor economy to the regional and township economies. The eight projects all require a combination of private and public investment and engagement on regulatory approvals to be successful. If all these projects were fully implemented the wider Bay of Plenty Region would offer a significant increase in quality and quantity of experiences for the visitor. Key Subregional Tourism Projects Eastern Bay of Plenty Subregion Western Bay of Plenty Subregion Rotorua Subregion Whakatane Waterfront Development (incorporating White Island Onshore Experience) Iconic Cruise Ship Visitor Hub International Branded Hotel Lake Rotorua Lakefront Development Whakarewarewa Forest Development Taupo Subregion Wairakei/Huka Falls Precinct Development Taupo Airport Development Wider Bay of Plenty Regional Strategy February 2018 Page 8 of 34

9 Across the wider Bay of Plenty region, there is a suite of key investments that are also required in a significant number of areas in the region. The investments are for improvements in: VISITOR ACCOMMODATION, BOTH QUANTITY AND QUALITY With increasing visitors and in particular, international visitors demand for hotel accommodation is rising. With a trend towards more hotel stays, Rotorua and to a lesser extent Taupo has a shortage of hotel stock. Both Tauranga and Whakatane also have limited hotel availability. It is also desirable for quality and brand recognition reasons to have internationally known brands represented in the region. Conferencing facilities are also an important additional requirement in most locations to meet the needs of the business traveller and to attract this less seasonal business. To address the demand for quality accommodation, including other forms of accommodation such as motels, a more detailed Project Palace assessment of demand and investment opportunities needs to be completed. ADDITIONAL ACTIVITIES AND ATTRACTIONS, ESPECIALLY WET WEATHER AND WINTER ATTRACTIONS Tourism in all parts of the region is very seasonal (but to a lesser extent in Rotorua), with a strong summer offering, but much quieter shoulder and winter seasons. The addition of activities/ attractions that are available in poor weather will enable better growth outside peak periods. ADDITIONAL CULTURAL PRODUCT AND IN PLACES COMBINED WITH ECOTOURISM EXPERIENCES The region has diverse environments and a very compelling range of cultural experiences that it could offer. Cultural tourism is a theme on which the region could create a connected story and that could be used to differentiate the region relative to other competing destinations. With a major base of international and cruise visitors, this type of product presents a significant growth opportunity for the entire region. Ensuring that there is an overall approach to exploring and experiencing cultural experiences that reflect the diversity of the region is needed. IMPROVED AND INCREASED MOUNTAIN BIKING EXPERIENCES The region is already internationally known for mountain biking experiences, but this market awareness is largely focussed around Rotorua. However, the Motu Trail, the Great Lake Trail and Timber Trail are also in the wider region. There are additional opportunities to link trails, improve connections, enhance the attraction of existing trails, by improving the grade, as well as new trail opportunities. Developing a longer term view of the wider regional riding opportunities and how they might be better linked and promoted, presents another area of potential competitive advantage for the region. ADVENTURE ACTIVITIES The current product offer includes a diversity of adventure activities which continue to be in high demand. There are opportunities for additional activities that will continue to align with the regional reputation. BETTER RETAIL OFFER AND FOOD AND BEVERAGE OPTIONS THAT MEET VISITOR REQUIREMENTS Aligning retail offers and food services with visitor needs has an important contribution to make in improving the visitor experience. Across the region, there is a need to improve the visitor experience by longer opening hours and alignment of the retail experiences with when visitors are present in key locations. Many of the retail precincts in both the larger and smaller settlements are dated. If the region wants to be recognised as an international standard destination, significant upgrades will be required to CBD retail areas. IMPROVED SERVICES AND ACCESS TO PUBLIC LANDS AND RECREATION AREAS. Public and conservation lands are already used by visitors in many locations. Some of these attractions are under congestion pressure, severely degrading the experience and affecting environmental values. Additional provision for visitors is required including upgrading existing attractions, planning for new facilities and expanding the availability of land for private concessions. Treaty settlements are creating a unique set of land management arrangements across the central and eastern part of the North Island. This presents an opportunity to develop these sites in unique ways to tell both a natural and cultural story. However, there is a risk that these new arrangements are untested from a funding perspective. It will be important for the Crown to remain engaged at these sites across the region, so that funding can be made available quickly, to cope with looming infrastructure issues. Wider Bay of Plenty Regional Strategy February 2018 Page 9 of 34

10 To achieve this regional aspiration of a significantly larger tourism industry that is more widely spread across the region and utilises all the natural and built assets that are available significant infrastructure will be required and underpinning resources will need to be developed. They include: IMPROVED ROADING CONNECTIVITY FROM KEY VISITOR SOURCE AREAS Increasing road congestion, heavy traffic, and poorquality road infrastructure is in contrast to the natural scenery and offer that is made to international visitors. Access issues are already obvious on main transport routes to the key destinations. Delays and congestion at key intersections and gateway locations are becoming increasingly common in peak periods. Time poor visitors from Asian destinations are limited by the distances that they can travel and the experiences that they can undertake. Infrastructure that is not fit for purpose can have a directly detrimental effect on visitor spend and the tourism economy. Key access roads and intraregional roads require upgrading from an efficiency and a safety perspective to meet future visitor requirements across the wider region. Injecting tourism requirements into NZTA priorities is vital to ensure an attractive destination aligned with the NZ brand proposition. The regional tourism organisations are in a position to ensure that this perspective is taken into account when regional priorities and investment decisions are made. INCREASED AIR CONNECTIVITY TO REGIONAL AIRPORTS Aviation connectivity within the wider region is challenging. There have been reductions in services to Taupo and Whakatane in recent years, reducing the opportunity for business travel, in particular. Withdrawal of jet services from the regions further reduces the accessibility of regions and destinations such as Rotorua. For improved connectivity; greater linkages with Auckland, southern destinations and tourism centres would improve visitor flows. In addition, greater frequency to meet demand will be required in future. This is important to service tourism growth, as many existing services have been developed to serve business rather than leisure travellers. While improved road connectivity may increase access, air connection for business and leisure travellers is still a vital requirement for time short travellers and visitors that have extensive itineraries. The region has previously explored a regional airport option to serve Tauranga, Rotorua and Whakatane. This may need to be revisited as strong visitor growth continues. Taupō as a more distant destination sits outside this proposal and has growing connectivity/infrastructure needs due to skydiving and other recreational aviation needs that differ from surrounding centres. IMPROVED AVIATION INFRASTRUCTURE TO MEET FUTURE DEMAND Aviation infrastructure requires upgrading to meet current requirements across the region. In particular, Taupo and Whakatane require additional investment. Less frequent but larger aircraft have stretched terminal facilities. Future demand will increase the pressure on these facilities. IMPROVED PUBLIC TRANSPORT OFFER AND CONNECTIONS IN MAJOR URBAN LOCATIONS Not all visitors to the region have their own transport and the lack of suitable transport options between accommodation, attractions and activities creates difficulties for visitors. In other smaller locations, the high cost of public transport is a barrier to visitors experiencing a diversity of what the region has to offer. Tourism growth and development will also require appropriate underpinning Infrastructure and capability: CORE THREE WATERS INFRASTRUCTURE TO ENABLE POPULATION AND BUSINESS GROWTH Providing for long term population growth will provide basic infrastructure for tourism and visitors. However, growth projections will need to be accurate to ensure that core infrastructure is in place to meet demand not only from residential development but from tourism infrastructure and activities, often in more remote locations. CELLULAR AND DIGITAL SERVICES WHEREVER TOURISM BUSINESSES OPERATE Digital infrastructure, and especially UFB needs to be rolled out faster in rural locations. While 4G might be an adequate substitute for a period, expectations of visitors and business requirements will increasingly demand high speed service. In some locations mobile coverage remains unavailable. this causes safety and visitor concerns which need to be alleviated. Free broadband is now an expectation among international visitors, but is not consistently available across the region in key tourism hotspots. This needs to be rolled out consistently to meet visitor expectations of connectivity and sharing imagery. INVESTMENT IN SKILLS AND TRAINING TO ENSURE THAT THE TOURISM WORKFORCE IS AVAILABLE AND CAPABLE TO MEET FUTURE GROWTH PROJECTIONS Linking tourism skills demand with education institutions and industry will be vital to ensure that the growth in tourism is sustainable and also presents and authentic experience for visitors. There are limited resources and a limited ability for the industry to play a major role in skills and training offsite. Additional resources are required to execute the Wider Bay of Plenty Regional Strategy February 2018 Page 10 of 34

11 Service IQ tourism roadmap which has been developed for the Bay of Plenty. Additional partnering of the tourism industry with tertiary education industry in the region is also required. The importance, impact and broad cost estimates for these infrastructure requirements at a wider Bay of Plenty regional level are presented in Table 1. Beyond these requirements is a more comprehensive approach to regional marketing that ensures the attributes of the wider region are incorporated into destination marketing aimed at an international audience. In particular, the development of more sophisticated and relevant touring options for visitor should be promoted. Tourism New Zealand as the national marketing organisation is well placed to work with the Regional Tourism Organisations of the wider region in a collective approach to research and promotion of the wider region. Conclusion visitor volumes across a greater diversity of markets. It is also critical to support and stimulate infrastructure investment. A ramp up in investment is required at a national and regional level to change long held perceptions around international itineraries. This needs to be led by Tourism New Zealand and supported by the three Regional Tourism Organisations that comprise the wider Bay of Plenty Region. A more coordinated and cohesive marketing approach is warranted that factors in the options of touring routes as well as hub and spoke models of visitor behaviours. To achieve these changes, new approaches to marketing the destination and promoting the diversity of experiences on offer will be required. The Bay of Plenty growth ambition will only be realised if there is a significant improvement in the quality and quantity of key infrastructure to support existing visitation and enable further growth. This will be achieved by increased investment by the public and private sector. The wider Bay of Plenty region has significant potential as a premier visitor destination. It presently attracts significant numbers of domestic and international visitors. Total visitor spend within the region comprises 9 % of national tourism spend and there is the opportunity to increase this percentage by strategic investment in the region, combined with effective marketing of the destination. Greater involvement of the tourism industry is required with the agencies responsible for planning and funding core infrastructure. Long time horizons are involved, and the early inclusion of tourism requirements will assist in supporting tourism economy growth. The wider region will require significant additional product development if it is to remain a destination of choice for both domestic and international visitors. The industry is expected to respond to future demand by developing new attractions and activities across the wider region. Key tourism projects have been identified at the sub regional level which have the potential to act as catalysts for the further growth of the tourism economy Awareness of the extraordinary range and attractiveness of what the region already has to offer, will be increased by significantly investing in market development and promoting awareness of the regions attractions and experiences. This is critical to future success. The key priority; therefore, is marketing investment so that the Bay of Plenty can leverage a greater share of total international arrivals. This marketing effort is vital to building Wider Bay of Plenty Regional Strategy February 2018 Page 11 of 34

12 Table 1: Wider Bay of Plenty Regional Priorities Wider Bay of Plenty Regional Strategy February 2018 Page 12 of 34

13 Appendix A: Infrastructure/Asset/Capacity Improvements Roading Connectivity The principal source markets for the wider region are Auckland, Waikato from the north and Wellington from the south. International visitors are mostly travelling by car and coach from the gateway city of Auckland to many destinations in the wider region. The road network is therefore critical for access to the region by visitors. What are the opportunities or gaps? Scale/distribution/significance? There are a number of major roads that are viewed by tourism industry operators as substandard for the type and volume of traffic now and will be severely constraining on visitors in the next decade. While some are within the NZTA plans, there are also some that will be at least a decade or possibly two decades away. There is an investment of over $1.2B in roading improvements planned in the period in the Waikato and Bay of Plenty region. In addition, there is feasibility and business case development for further projects estimated at between $0.6 and $1.2B. However, a number of these projects are not expected to be completed for some considerable time. Already the travel times and congestion on major access roads has grown and disruptions are increasing as the volumes of traffic increase. Key improvements being sought are SH29, SH30, SH3 and SH1 from the south Improved wayfinding and tourism signage would also benefit the travelling public and international visitors in particular. Directions to smaller attractions and activities are often absent. What is the priority? The priority access issues are detailed in the four sub regional strategies and are outlined in Appendix A. In general, those routes that are currently connecting the region with other northern centres are of highest priority and over the longer term a planning process which takes account of the time and travel requirements of both domestic and international visitors. There are some specific constraints and road improvements that are a matter of urgency for tourism growth. A typical example is SH1 at Bulli Point, where increased traffic throughout the year and in particular during the ski season creates impediments to easy travel between attractions. How should the opportunity/gap be addressed? Who should do it? NZTA have a clear prioritisation process for roads of national importance and freight requirements. While tourism growth is a contributor to increased traffic volumes, the economic value of international visitors and their time restrictions makes ease of travel for this segment of the road using population very important. Major arterial road planning, funding and improvements are the responsibility of NZTA. It is therefore important that tourism growth forecasting and the transport implications are communicated by the region to achieve improvements by NZTA. Wider Bay of Plenty Regional Strategy February 2018 Page 13 of 34

14 Roading Connectivity Linkage with other frameworks/activities What are the action steps and timing? NZTA is the principal state highway management agency. It undertakes the National Land Transport Plan (with the current plan ) and forecasts future demand and revenue to develop the road network. Ensuring the needs of tourism and its economic growth objectives at a regional level are required. Engage with NZTA on its business case development. In particular, tourism trends and visitor requirements need to be well understood in the context of economic benefit. Long term planning such as the NZTA Long Term Strategic View which sets out how transport infrastructure needs to respond to long term issues needs to incorporate tourism forecasts and aspirations as well as other industry sector views. Tourism is currently not well recognised and nor are its requirements incorporated. Incorporate tourism growth and travel patterns into current and future planning. Engage with NZTA on interim measures to improve travel times and safety enhancements such as passing lanes where change is decades away Enhance cycling opportunities between attractions within the cities by completion of the CyWay project by 2018 in Rotorua and Tauranga. Develop future extensions of urban cycling initiatives to link cities with additional attractions and activities. Develop new routes for cycle touring to get touring users off main highways, such as between Tauranga and Whakatane. Wider Bay of Plenty Regional Strategy February 2018 Page 14 of 34

15 Intra Regional Roading Improvements Within the region, road connectivity is vital for visitors to be able to travel between attractions, accommodation and amenities. The road network that visitors use is often different to that used by residents and can involve traffic on small access roads that lead to visitor spots. What are the opportunities or gaps? Scale/distribution/significance? Roads within the region are of variable quality and scale. Parts of the region have had significant improvements in recent years to facilitate the movement of freight to the port of Tauranga. While all travellers have benefitted from these improvements there remains more to be done to provide an improved journey experience for visitors. With the increase in campervans there is also an additional need to improve the number of passing lanes, quality of the road shoulder and overtaking opportunities. The reduced conflict between residents, car drivers and visitors in campervans, is highly desirable from a safety and risk reduction perspective. Improvements also need to take into account other tourism options such as cycle trail connection options and improved opportunities for cycling on major roads. Off road infrastructure such as laybys, rest areas and viewing spots that are well signposted and provide quality visitor amenities are also in need of improvement across the region. Costs for these improvements can be relatively minor, with past improvements costing $ $1M $4M. This cost implies that between 10 to 20 safety and passing lane improvements could be made for $50M What is the priority? Some key routes were identified as warranting significant improvements. These have been identified in Appendix B. How should the opportunity/gap be addressed? Who should do it? Linkage with other frameworks/activities NZTA have a clear prioritisation process for roads of national importance. While tourism growth is a contributor to increased traffic volumes, the economic value of international visitors and their time restrictions makes ease of travel for this segment of the road using population very important. Local roads are the responsibility of local councils and similar requirements apply. Having a good understanding of visitor flows in the region and the particular requirements of visitors can be factored into plans. NZTA and local councils have responsibilities for state highways and local roads respectively. Both should, in their planning take account of the requirements of visitors to the region. Each region has an operative transport plan which sets out its priorities and spending plans. The long term plan establishes a 10 year plan for investment in infrastructure 2. It also set out the priorities for the coming 3 years. 2 Rotorua has developed a 40 year infrastructure plan. council/consultation and public notices/ltp2015/documents/infrastructure Strategy.pdf Wider Bay of Plenty Regional Strategy February 2018 Page 15 of 34

16 Intra Regional Roading Improvements What are the action steps and timing? Engage with Councils and NZTA on its planning and long term plan development. In particular, tourism trends and visitor requirements need to be well understood in the context of economic benefit, safety and improvements in amenity. Incorporate tourism growth and travel patterns into current and future planning. Engage with Councils and NZTA on interim measures to improve travel times and safety enhancements such as passing lanes where change is decades away Wider Bay of Plenty Regional Strategy February 2018 Page 16 of 34

17 Air Connectivity Connectivity in the region is considered to be constraining the development of further travel and conferencing in the region. In addition, the poor connectivity also limits the regional spread within the wider region by international visitors in particular. Both Taupo and Whakatane have significant capacity limits on some routes, and timing /frequency of flights is not optimised around leisure travel, impacting the ability of international visitors to fly to the destination (via Auckland). This is particularly important for special interest travellers like ski/fish/bike visitors, who do not tour and often prefer to fly directly to a destination, rather than driving from Auckland. Other routes are indirect and in particular, southern connections from Rotorua are limited. Sustainable connectivity with Australia would open new markets and has the potential to significantly grow visitation to the region by direct flights in the long term. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? Linkage with other frameworks/activities What are the action steps and timing? The opportunity to better connect the region to Auckland for leisure travellers, and to better connect to other visitor destinations would open up new visitor flows around New Zealand, improve regional spread and also improve the visitor experience and efficiency of their travel. While in the longer term, if a whole of region approach was taken the option of international connectivity could become an option as the regional population and the visitor numbers to the region grow as forecast. While of high impact to the region, the ability to influence aviation connectivity is limited. With a strong correlation between population size and air travel demand, increasing the resident and visitor population is the key driver of improving air connectivity. From a tourism perspective, the development of itineraries with wholesalers and achieving seasonal connections to other tourism destinations would be an important first step. The main beneficiaries of improved connectivity are the key visitor destinations and the associated airports. Airport companies combined with RTO s could take the lead with airlines and wholesale travel sellers to assess opportunities for increased connectivity. The principal locations that have the volume to undertake such an exercise are Tauranga and Rotorua. There is also potential in Taupō for improved connectivity, linked to demand from the Australian ski market. The viability of increased connectivity will depend on the profitability and sustainability of the route from an airline perspective. Improving demand and reducing seasonality of the destinations will enhance this opportunity. Consideration of new or increased capacity of aviation routes is an ongoing process involving airlines and airports, with inputs from RTO s and other tourism operators. As visitors increase, these options will need to be addressed on an ongoing basis. Wider Bay of Plenty Regional Strategy February 2018 Page 17 of 34

18 Aviation Infrastructure The region has four airports that service the wider region. Whakatane is the smallest and has limited scheduled services. Taupo has scheduled services to Auckland and Wellington and significant non commercial tourism volume associated with charter and skydiving aircraft. Rotorua has connectivity to a number of destinations and approximately 225,000 passengers/year. Tauranga has approximately 300,000 passengers as well as significant general aviation activity. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? Aviation demand is largely driven by two factors: visitor growth and population growth. For the Bay of Plenty region, population growth of Tauranga is likely to continue to drive additional aviation demand, although improved travel times to the major market of Auckland is expected to subdue this driver of demand. International and domestic visitor growth is expected to continue to drive additional aviation demand for the foreseeable future. Development of terminal services and additional capacity is required, especially in Taupo (to accommodate larger aircraft and increased security requirements) and Rotorua and Tauranga to meet additional demand. Whakatane airport also requires an upgrade of its terminal facilities. At present, there are no jet services to the region and with the existing network, this is unlikely to change in the near or medium term 3. The opportunity exists to have a larger regional facility servicing Rotorua, Tauranga and Whakatane, that could improve regional connectivity with new facilities, a greater diversity of connections and improved flight frequency. Connectivity with Australia is also a possibility, however, this would depend on there being significant traffic both ways. Taupō has a different demand trajectory, given the predicted growth in North Island ski and large volumes of skydive/charter aircraft. The Taupō terminal will need significant upgrading to cater for the predicted growth. Other than responding to immediate upgrade and maintenance requirements, substantial change to the regional network facilities is a longer term issue of low priority. The exception to this is the Taupō airport, where the terminal is in critical need of an upgrade to cope with existing visitation, let alone predicted growth associated with winter/ski out of Australia. In the longer term, review the previous proposed regional airport at Paengaroa is warranted. Given the current aviation market, this may be one option to achieving international connectivity for the region and Australia. Existing terminal infrastructure at Taupō airport is inadequate to meet current demand and is an urgent priority. The previous review was carried out by the Bay of Plenty Regional Council (which services the Bay of Connections) and given the regional nature of this task the same entity is well positioned. Taupō District Council will lead work around the Taupō airport. Whakatane District Council will lead work on Whakatane airport. 3 Domestic Airports Network Analysis Report.pdf Wider Bay of Plenty Regional Strategy February 2018 Page 18 of 34

19 Aviation Infrastructure Linkage with other frameworks/activities What are the action steps and timing? There are opportunities as competitor airlines seek new opportunities and these should continue to be explored by the region as a whole as well as individual councils and airports. Demand will be the driver for new services in most instances. Maintain a watching brief and should circumstances change because of changes in the aviation market, or airport land or maintenance of infrastructure issues arise a comprehensive revisiting of the options for a regional airport are warranted. Otherwise, within the next 5 years,the review of the existing network should be updated. Wider Bay of Plenty Regional Strategy February 2018 Page 19 of 34

20 Public Transport Public transport for visitors, both domestic and international is an important component of delivering a quality and efficient experience. Provision of accessible services that meet the needs of visitors rather than commuters is important as visitor numbers grow. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? Linkage with other frameworks/activities With continued congestion on key arterial routes and limited public transport in most locations and especially smaller centres, there is an opportunity to change the perception of New Zealand tourism as being dependent on the car to one that provides choices of transport modes in most locations. While the current incentives continue, the increasing independent travel nature of our international visitors will continue. Parking congestion and a public transport system that depends principally on commuter volumes will be unsuitable for visitors. Opportunities exist to provide some tourism oriented public transport between major attractions, activities and accommodation. Criticism of existing visitor related public transport was raised at Rotorua, Taupo, Whakatane and Tauranga. Key concerns included: lack of transport between attractions and accommodation and urban centres; poor facilities and locations for public transport hubs; expensive taxi services in small locations and the absence of viable public transport in some locations. Public transport to meet a diversity of needs including visitors needs to be further considered as visitor volumes in the region increase. While $45M is forecast to be spent on public transport in the next 3 years in Rotorua and Tauranga, little seems to be directed at improvements for visitors. At present the priority is expected to be low, however, given the increased visitation and expected congestion, the needs of visitors and their travel patterns warrant additional consideration and investment. Innovative new routes and approaches to meeting visitor requirements would be needed to significantly enhance the experience. Seasonal services, hop on hop off services, circuit based routes between principal visitor attractions and amenities could all be utilised to improve the visitor experience 4. Transport planning is the responsibility of the District and City Councils, with the Regional Council and NZTA being funding bodies for aspects of public transport services. The NZTA programme in the Bay of Plenty includes significant investments in public transport 5 The Tauranga Transport strategy draws on tourism forecasts that are now over 5 years old and are likely to be underestimates of the demand generated by visitors based on the trajectory of recent tourism sector performance. Similarly, the 4 It should be noted that there are already initiatives to improve visitor experiences such as free busses to event locations such as Crankworx in Rotorua. Other tourism centres such as Queenstown are initiating improved public transport to meet visitor and local demand as pressures on infrastructure grow. 5 and investment/docs/nltp bop factsheet.pdf 6 Wider Bay of Plenty Regional Strategy February 2018 Page 20 of 34

21 Public Transport Rotorua Transport strategy 7 acknowledges the importance of tourism as a significant component of the regional economy but draws on dated data. Public transport planning and provision is also linked to walking and cycling strategies in most locations. Visitors have a high utilisation of these facilities and modes of transport. What are the action steps and timing? The inclusion of revised forecasts of visitation to the region is required by transport planning agencies within the region. Addressing the specific needs of visitors as part of the tourism experience, rather than solely as a transport issue is also required by councils and funding entities. 7 council/council publications/standardsandstrategies/documents/strategies/transport%20strategy% pdf Wider Bay of Plenty Regional Strategy February 2018 Page 21 of 34

22 Public Land Recreation and Conservation Upgrade 8 Many of the major attractions of the region are on public lands. These attractions are an important ingredient in the offer of the region for both international and domestic visitors. Some of these attractions are iconic internationally and are an integral part of the national marketing of New Zealand as a visitor destination. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be New Zealand s landscapes are the main the main drawcard for international visitors and are also the key ingredient of many domestic holidays. In the Bay of Plenty region, outdoor related holidays to the beach, lake, river or mountain are vital attractors for the region. Over half of international visitors visit a national park during their stay and around 40% of residents visit a national park in any year. With increasing international visitation and increasing domestic tourism, as evidenced by an uplift in spend, there is going to be increased pressure on all recreational resources. The opportunities to invest in sustaining and enhancing public recreational assets covers the wider region. Achieving high levels of use with high levels of visitor satisfaction is critical to word of mouth endorsement of NZ as a visitor destination. At present, there is a deficit of the order of $100M in expenditure on Conservation assets in the region. Council parks and reserves across the region could also readily invest up to $50M in enhancements to meet future demand. There are also significant private sector developments occurring on these public lands 9 as well as many opportunities for further development. The potential improvement in visitor experience from improved facilities, activities experiences and access to conservation lands, public parks and recreation areas across the region is high. Existing data indicates major growth in mountain biking across the whole of the region, steady growth on walking tracks and visitation to sites such as Huka Falls, Maunga, Tongariro Alpine Crossing. The priority is to address the current pressure points across the region. Taupo has identified Huka Falls as a priority project in this sub region. With over 1 million visitors per annum and rising, this destination presents a significant opportunity to enhance the experience, improve facilities and offer an expanded level of interpretation. The second priority is to expand existing opportunities such as mountain biking and trails across the region. The third priority is to plan for and develop opportunities, for the future, in areas such as the northern Kaimais and the park network of the Western Bay of Plenty. Recreational demand and activities sought by visitors can be assessed from current information about visitor behaviours. This 8 While the focus is on public lands, there are also significant opportunities on private and iwi owned land. Examples include Te Urewera, Tarawera and Lake Taupo. 9 Ruapehu Alpine Lifts are currently proposing to invest $100M in new Skifield facilities for Tongaririo National Park. Other concession opportunities are also potentially available in other locations in the region. Wider Bay of Plenty Regional Strategy February 2018 Page 22 of 34

23 Public Land Recreation and Conservation Upgrade 8 addressed? Who should do it? Linkage with other frameworks/activities What are the action steps and timing? information can be used to determine future expected demand if the goal of 4% compound annual growth rate is achieved across the wider region. Using this future forecast demand the need for and location of additional facilities and experiences can be developed. Engagement with the Department of Conservation., Iwi landowners and local government is necessary to determine how and where future investments should be made to meet this future demand. Public lands are largely the responsibility of the Department of Conservation for National Parks and reserves with Local Government responsible for parks and reserves in their respective regions. Long term planning and investment is required to enable sustainable management these assets for the purposes for which they were acquired. However, it should be noted that significant sites are starting to transfer to iwi through treaty settlements. There is a long term issue around the funding of these sites, as they will not necessarily sit within the jurisdiction of either councils or the Department of Conservation, but infrastructure will be required to meet visitor demand. There are existing management plans for infrastructure and reserves across the region. Plans such as the Kaimai Ward Reserves Management Plan 2016 and Tauranga Infrastructure Strategy set out management for the existing assets in the locality. Kawerau, Rotorua and Taupo have a suite of management plans for the reserves in their region. Opotiki has a comprehensive coastal reserves management plan and Whakatane District has a draft district reserves plan that set out the management and decision making processes for reserves across its district. National Park management plans are in place for each National Park. However, these plans are generally out of date and do not relate to current and future demands from visitors. Pressure on the conservation estate is increasing rapidly, especially where there are iconic attractions such as Huka Falls, Tongaririo Alpine Crossing. The region already has facilities that present an opportunity for development. Future actions could include developing an informed perspective of future demand given population growth, recreational trends and visitor demand. This information from a visitor perspective could be integrated into park management plans. There is the potential to offer opportunities for concessions to existing and new tourism operators as ready made business opportunities. The requirement to achieve a good understanding about future demands is urgent. Development, funding and delivery will take some time to achieve and this is reflected in the high potential beneficial impact and the high negative impact if nothing is done. There is a need for a broader regional discussion with Ministry of Business, Innovation and Employment/Office of Treaty Settlements and Department of Conservation on the funding of key tourism attractions that will vest/have transferred to iwi through settlement processes. Wider Bay of Plenty Regional Strategy February 2018 Page 23 of 34

24 Digital Capability and Connectivity The ability for tourism businesses to operate effectively in the future is increasingly dependent on access to broadband. In addition, visitors, both domestic and international expect to have connectivity wherever they are. Social media and connectivity with friends and family are an important component of word of mouth marketing for experiences. Free Wi Fi services will be key to this in key tourism hotspots. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? Linkage with other Each of the sub regions has identified significant constraints to the distribution of ultrafast broadband to encompass all of the tourism businesses that are operating across the region. For some areas, broadband is not likely to be available before the current commitments to roll out are completed in The costs of the additional rollout are unknown as are the number of businesses. However, given the likely increase in visitor activity across the region, the demand for ultrafast broadband is expected to continue to increase. Mobile blackspots continue to be identified across the roading network of the wider region. In addition, there are some locations where mobile coverage is inadequate. Some locations such as the Motu Trails area are experiencing significant increases in visitor usage. Lack of mobile coverage in these areas creates safety risks and should be of priority to address. Accessible Wi Fi is now an expectation among international travellers and is critical to support social media marketing. Rolling out this service to all key tourism hotspots should be a key priority for the region. Ultrafast broadband rollout is presently being addressed in the areas of highest population density. The next phase is concentrating on smaller communities and locations of high activity. Priority is necessary to achieve coverage of those businesses in remote locations that have high visitor numbers. Mobile coverage in locations of high tourism activity is of highest priority for safety reasons. Consideration needs to be taken of the business demands for broadband in more remote locations as an important factor in deciding the next phase of the broadband rollout. While the government is responsible for the national programme of the rollout, councils have also been invited to partner to achieve a greater spread in the region. Councils, in partnership with RTO s, could increase the understanding and business case for greater penetration of broadband and accessible Wi Fi rollout in high visitor activity locations. This approach is currently used for mobile coverage and could be extended for broadband rollout prioritisation. The needs of tourism businesses and visitors needs to align with the current policy frameworks: 10 Recent announcements by the Government to increase broadband rollout may address some of this issue in the region, but is unlikely to provide service across the whole region. Wider Bay of Plenty Regional Strategy February 2018 Page 24 of 34

25 Digital Capability and Connectivity frameworks/activities What are the action steps and timing? Rural Broadband Initiative Government Broadband Action Plan Identify tourism business that are not covered Develop a map of future requirements Seek additional service suppliers or alternative means of service provision Partner with other commercial users Seek reprioritisation of UFB rollout Address mobile coverage issues as a matter of urgency, especially where health and safety issues arise. Wider Bay of Plenty Regional Strategy February 2018 Page 25 of 34

26 Visitor Accommodation Improvements 11 The wider region has a diverse mix of international and local visitors, depending on location. In some locations, such as the Western and Eastern Bay of Plenty there is a high visiting friends and relatives component that stays privately. In other locations such as Rotorua with high international visitation, hotel and motels are the main accommodation What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? Linkage with other frameworks/activities With a significant increase in visitation expected for New Zealand for the foreseeable future and with the wider Bay of Plenty region expected to capture an increasing share of this growth, the demand for additional visitor accommodation is expected to increase across the region. While around half of all accommodation is in private homes there remains over the next decade demand for additional commercial visitor accommodation. With lead times of 2 5 years to develop new facilities, planning and initiation of new proposals is a matter of urgency. With the demand for over 4 additional hotels in the wider region, there is an investment requirement of over $100m. As a complementary development to improved accommodation offer, the urban areas of Rotorua, Taupo, Tauranga and Whakatane require future focussed development. Visitors are expecting comprehensive dining and entertainment options in the CBD and also good connectivity to the attractions of the region. Forecasting demand and identifying suitable development opportunities is urgent. Development needs to be on a planned basis with the avoidance of boom/bust cycles by having a good understanding of future demand. Not only is demand for accommodation required but also an understanding of the changes in visitor markets and visitor flows around the region. Developments such as CBD revitalisation of Tauranga, Lakefront connection with the CBD in Rotorua, waterfront development in Whakatane and Taupo lakefront development all require long term planning and integration with district plans and commercial area plans. All of these types of proposals need to be addressed now to ensure their completion within the next decade. The private sector will respond to demand for new accommodation by building new facilities. However, there needs to be good information to base commercial decisions upon. De risking commercial decisions will enable more rapid decision making to meet forecast demand. Public facilities and CBD redevelopment are the responsibility of councils in conjunction with private developers. While the private sector is expected to fund and develop new accommodation in the wider region, there is an important role for local government and Regional Tourism Organisations. The New Zealand Trade and Enterprise study of Hotel Demand Project Palace 12 has identified future demand in key tourism locations. Rotorua and Taupō were assessed in this project with an unmet demand of 340 and 100 rooms respectively identified. 11 More specific information about demands and current proposals are contained in the Subregional strategy documents Wider Bay of Plenty Regional Strategy February 2018 Page 26 of 34

27 Visitor Accommodation Improvements 11 Expansion of this evaluation would assist private investors in the region. What are the action steps and timing? Develop a Mini Project Palace for the region, covering all accommodation types. Assess future visitor flows, visitor types and accommodation preferences based on future aspirations. Incorporate future developments in district plans and long term plans for the region. Engage councils and potentially private investors/iwi in establishing a suite of chequebook ready development propositions. Work with investors to attract high quality hotel management companies to the region us/news/news and features/market research shows a compelling case for investment in new hotels Wider Bay of Plenty Regional Strategy February 2018 Page 27 of 34

28 Three Waters Infrastructure Population growth in the region and increasing standards mean that many communities need to continue to develop additional core water infrastructure to meet these changing standards and additional demand. Additional visitation and employment generated by the growth in the tourism economy add additional pressure on the water infrastructure in parts of the region. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? Linkage with other frameworks/activities Almost all of the projected population growth in the Bay of Plenty is expected to occur within the western Bay of Plenty subregion. Tauranga is one of the fastest growing cities in New Zealand and is estimated to grow by over 50,000 residents in the next decade. However, water quality issues associated with the Rotorua Lake mean that significant water management activity will be required in this catchment. Taupo has recently invested significantly in water infrastructure and is, therefore, less affected by this issue. Tourism growth, through increased visitation by domestic and international visitors, will stimulate additional employment, estimated at 8500 additional jobs. This will create additional migration throughout the wider Bay of Plenty region. Provision of core infrastructure in advance of demand is vital to ensure that water services do not act as a constraint to forecast growth in the region The planning horizon for major tourism development such as hotels and other accommodation supply have significant lead times. The additional employment demand generated by the additional forecast tourism growth will also generate foreseeable increases in population in many locations. Lack of infrastructure development in advance of construction will delay and limit the ability of the tourism sector to grow at the expected rate. Accommodating this level of growth will require substantial investment in the core infrastructure of water, wastewater and stormwater management. While tourism is not a large direct consumptive user of water, the economic activity associated with tourism growth at 4% compound annual growth rate will increase demand for resources and infrastructure. With an estimated additional 8500 tourism related jobs, more pressure will be placed on infrastructure as these jobs are created. There will also be additional indirect employment created by the requirements of an increased tourism workforce in the region. Planning design and implementation of water and wastewater infrastructure is the responsibility of local councils. Bay of Plenty Regional Council also has a regulatory and planning role where water quality of lakes and rivers is involved. Funding for specific initiatives to improve water quality has also been provided by Central Government. Current council planning instruments is the appropriate mechanism to ensure that tourism generated demand, either from visitors or economic growth generated by visitors is factored into planning projections. Addressing the population growth and associated tourism sector growth and its impact on core infrastructure is undertaken in the development of the Tauranga City Council and Western Bay of Plenty District council long term plans. Addressing Lake Rotorua water quality issues will be factored Wider Bay of Plenty Regional Strategy February 2018 Page 28 of 34

29 Three Waters Infrastructure into the long term plan for this district under the Rotorua Te Arawa Lakes programme. What are the action steps and timing? As detailed in these plans for Tauranga City, the period substantial commitments have been made (over 57% of all capital in the case of Tauranga City). For Rotorua ongoing implementation of wastewater treatment improvements, regulatory action and other measures in the rural environment will continue. Should growth exceed forecasts and or degradation of water bodies continue additional investment may be required. Taupō has looming water supply issues if current rates of growth continue. Wider Bay of Plenty Regional Strategy February 2018 Page 29 of 34

30 Tourism Product Development Developing quality attractions and experiences will be pivotal to attracting additional visitors to the region, retaining current visitation and increasing yield. What are the opportunities or gaps? Scale/distribution/significance? With a goal of over $1B of additional spend in the next decade into the visitor economy, there are enormous opportunities to expand the range, quality and quantity of tourism product. While the domestic market is expected to grow at a slower pace than the international market there are still major opportunities to deliver new and different experiences for domestic visitors. Developing new locations and attractions can have a profound influence on visitor patterns of travel, accommodation and spend. Recent examples include Hobbiton which is now on many international itineraries. While the traditional destinations of Tauranga, Taupo and Rotorua are expected to receive the majority of additional visitation, there is considerable opportunity to achieve a greater regional spread with existing attractions and new development in different locations within the wider region. Product development opportunities within the wider region include: Multiple mountain biking opportunities. These include improvements to existing great rides, grade improvements, new rides, linking tracks and connectors to urban areas. Walking tracks multi use tracks provide more opportunity that single purpose tracks. New opportunities exist in the Rotorua sub region, around the edge of Lake Taupō, in the Kaimais and around the Eastern Bay of Plenty. Adventure Parks, ziplines and canopy walks are also opportunities to expand on successful businesses that are already operating in the region. Additional cultural experiences combined in places with ecotourism experiences. These are under consideration in a number of locations throughout the region. Greater connectivity and facilities at existing attractions that are unique to the region such as White Island and the connection to Whakatane. Most of the new products being considered are of comparatively low costs and impacts. They range from $1 20M in capital costs and are comparatively easy to establish. Major new developments such as the Ruapehu Alpine Lifts redevelopment of the ski fields are more substantial undertakings and are estimated to cost $100m in total. These types of product development have the ability to address structural issues such as developing new markets and changing seasonal patterns of visitor travel. The wider region will need a continuous stream of new developments to meet visitor demand. In addition, there is still a shortage of new winter/ wet weather product offers that can address seasonality issues that are of concern across the region. Wider Bay of Plenty Regional Strategy February 2018 Page 30 of 34

31 Tourism Product Development What is the priority? Continued product development is vital if visitors are to experience new and additional attractions in the region. In addition, effective marketing will be required to ensure that existing attractions also receive their share of the expected visitor growth. The RAL investment will provide a catalyst opportunity at the regional scale, helping grow visitation to the wider region outside existing peak periods. The proposed $30 40M aerial tramway project is the key priority in this suite of developments. How should the opportunity/gap be addressed? Who should do it? Linkage with other frameworks/activities What are the action steps and timing? Analysis of the current visitor consumption of activities and attractions would provide a basis for assessing which areas are likely to be in demand in future over the next decade as our visitor numbers grow and the visitor mix changes. Developing a demand case is important to enable investors to better understand future opportunities. RTO s and local government are well placed to facilitate this type of product development demand assessment. Product development is an ongoing process for many tourism businesses. Either new opportunities are established or redevelopment of existing businesses. The private sector has the ability to raise capital with good business plans founded on quality information. RTO s and Government agencies can support these processes by having good information about visitor characteristics and future demand. It is up to the tourism industry to take advantage of the opportunities by developing new visitor product. It is up to RTO s and Government agencies to recognise the importance of quality information in the business investment process and ensure that quality information is available at the scale and level of detail to enable quality commercial decisions to be made. The individual RTO strategies set out the goals and directions of the three RTO s. Product development is one of the activities being carried out by these organisations. Cooperation would provide more in depth information about competitors and best location on a regional basis for new investments. Regional Tourism Organisations in their product development role are best placed to facilitate and support private developers wanting to develop new product. While this is largely an entrepreneurial activity RTO s could be more active in seeking developers and investors and then working closely with them to progress proposals through the regulatory requirements. Wider Bay of Plenty Regional Strategy February 2018 Page 31 of 34

32 Skills and Training Tourism is already a major employer in the wider region with over 17,000 people directly employed in tourism. This represents around 10% of all jobs in the wider region. In addition, the indirect spend as a result of tourism would be expected to add an additional 8500 jobs dependent on the tourism economy. What are the opportunities or gaps? Scale/distribution/significance? What is the priority? How should the opportunity/gap be addressed? Who should do it? With the desired tourism spend growth rate across the wider region of 4% CAGR, an additional spend of around 50% increase in spending will occur over the next decade. The additional $1.1B will generate a significant demand for skilled staff at all levels and locations within the sector. Employment is expected to increase by around 50% to fulfil these growth requirements. This means an additional 8500 tourism jobs within the wider region. While tourism comprises a greater proportion of the workforce in Rotorua and Taupō sub region, all parts of the wider region will require additional staff. There are significant gaps in making the linkage between education and the workplace that would benefit from additional funding and skilled facilitators and ambassadors. Attracting, training and retaining skilled staff requires the training pipeline to operate well with suitable candidates entering and undergoing training required by the industry. In addition, the region aspires to a significant increase in the tourism economy for the region. Much of this increased spend will be from an increase in international visitors. To achieve this outcome the region will have to offer an internationally high standard of customer service in every product and experience. This step up in service standards and achieving a consistently high standard will require additional training and development. The additional skill development will not just be at the front line but across the board and will include management training as well. The priority is to establish a viable and funded pipeline of training and skills development to ensure that there are suitable candidates for jobs as the tourism economy grows. Service IQ has developed roadmaps which set out the requirements for attracting the right people to developing business and management skills. Implementation of the roadmaps is the key requirement. In particular engagement of industry and supporting their involvement in every component of workforce development is a key priority. While there has been a strategy developed for the Bay of Plenty tertiary institutions 13 and tourism has been identified as one of the sectors where the Bay should strive to differentiate itself, little progress appears to have been achieved with this goal in relation to the tourism sector. Effective development of the required workforce for the future economy requires coordination and contribution from industry and government through industry training organisations, and education and training institutions %20summary_final_web.pdf Wider Bay of Plenty Regional Strategy February 2018 Page 32 of 34

33 Skills and Training Linkage with other frameworks/activities What are the action steps and timing? There are two Service IQ roadmaps that have been developed for the sub regions in the wider region. These documents set out the requirements for the service sector. Implementation requires resources to be available to all parties to contribute to its implementation. The Bay of Connections Regional Tertiary Intentions Strategy proposed that a regional tertiary implementation group be established to implement and monitor the execution of the strategy. This group and the Bay of Connections tourism governance group need to collaborate to ensure that there is a pathway to effective implementation. Partner with Service IQ and providers to develop funding case Bay of Connections tertiary implementation group work collaboratively with the tourism governance group to develop a funded pathway for implementation to meet tourism skills and training requirements Seek additional funding for Education via tertiary institutes Co funding from students and industry Resources to enable businesses to participate fully, especially in the transition to work and intern components Development/Bay Of Plenty Regional Roadmap v1 Apr17 web.pdf 15 The Taupo roadmap is currently being completed (as at May 2017). Wider Bay of Plenty Regional Strategy February 2018 Page 33 of 34

34 Appendix A: Priority Feeder Roads Appendix B: Priority Intra Regional Roads Wider Bay of Plenty Regional Strategy February 2018 Page 34 of 34