Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and

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1 Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author.

2 [ START I M A S T E R M I C R 0 F I [ H E PRO [; U C E D 5 '{ rqnawatu MICROFilM SERVICE') LTD P.D, BOA 9094 PALMEP,SlCN NORTH NEW ZEALANC PHONE (063)8. SOl

3 MASSEY UNIVERSITY I. ' I give pernc ;"ion for my [hesis, en[itied An eval up:tion of the Role and Effects of -:'ol.:.rislr. kilicies on the :,evelopment and growth of the tourist industry in t\ew Zealand and in Fiji A"'(:Olll!,a-ra:tt'if "'3tudY- '" to be made availabl to readers in [he Library under the conditions determined by the Librarian. (b) I agree to my thesis. if asked ior by another lostltution. being sen[ away on temporary loan under conditions determined by the Librarian. (c) also agree [ha[ mv thesis may be copied for Librar" use.., to be made avadab!'! to reader or to be s nt to without my WTlltt:P consen7,..ithin the next Date Taal Strike out the sentence or phrase which doe s The Library ssey University t... lmetsron -"orth. N.Z. The copyright of this thesi, belongs to the author. the space below to show that [hey recognise this. permanent add.ess. Readers must sign t eir name tn They are asked to add their Name,""d Address Date NASSEY UNIVI!IlSfTY UIlRA.RY

4 AN EVALUATION OF THE ROLE AND [FFECTS OF TOURISM POLICIES ON THE DEVELOPMENT PND GROWTH l OF THE TOUPIST INDUSTRY IN NEW?EJlLPFD PND III FIJi - A COMPARATIVE STUDY A Thesis Presented in Partial Fulfilment of the Requirements for the Derree of Doctor of Philosophy in Business Studies at Massey University ALIEU BADARA 5AJA TAAL 1982

5 CONTENT S CERTIFICATION ACKNOWLEDGEMENTS LIST OF FIGURES LIST OF TABLES ABBREVIATIONS ABSTRACT viii ix x xi-xv xvi xvii-xxi PART 1 CHAPTER 1 INTRODUCTION: TOURISM POLICY RESEARCH, DESIGN AND STRATEGY A B C D E Introduction Research Hypothesis Method of Analysis Method of Research 1) Observational Method 2) Interviews 3) Official Doc1..mmts and Statistical RetOrJ, _ Definition of C oncepts 1) Structure 2) function 3) System 4) fuj.icy 5) Do!velopJlellt 6) Toorism 7 ) It< Jrism fu1icy 11) Tourism Developnent!. ) '!'ourist 10) Tc:a.Irist Industry 1-7: B CHAPTER 2 PART 11: New Zealand A HISrORICAL BACKGROUND TO GOVERNMENT INVOLVEMENT IN TOURISM DEVELOPMENT IN NEW ZEALAND A Introduction

6 B The Beginnings and Early Stages of Government in Tourist Industry c De velop ent: Pre World War 11 The Post World War 11 Period: Changes in Government Attitude Onward ConclusL"m CHAPTER ;3 THE EFFECTS OF GOVERNMENT POLICIES ON THE GR_wTH AND DEVELOPMENT OF TOURIST ACCOl4MODATION Conclusion CHAPTER 4 THE "1'OURIS'l' PRODUCT": QF IIEW ZEALAND - THE METHODS OF PROMOTION AND MARKETING A Introduction B The Major New Zealand Overseas Tourist Markets C The Tourist Product of New Zealand and Visitor Activities D Promotion and Marketing of New Zealand Tourism Conclusion 90-10B B CHAPTER I> THE ROLE AND POLICY RE UIREMENTS OF THE TRANSPORT SECTOR OF THE NEW ZEALAND TOURIST INDUSTRY A B C D E Introduction International Air Passenger Arrivals Air New Zealand Domestic Air Transport Road Transport 1) The Rental Vehicle Service 2) Coach Toor Service F Tourism Policies for the Transport Conclusion Sector ::' l :'

7 C"APTER 6 NATIONAL PARKS AND RESERVES MANAGEMENT POLICIES AND TOURISM DEVELOPMENT IN NEW ZEALAND A Introduction B COT.cept of National Parks C The Evolution of National Parks in New Zealand D Reserves and Domains J E r Environmental Land Use for Tourism Development The Economic Importance of National Parks and Scenic Environmental Areas Conclusion CHAPTER 7 THE PERSONNEL AND TRAINING REQUIRE- NTS AND TRAINING ORGANISATIONS AND POLICIES OF THE NEW ZEALAND TOURIST INDUSTRY A Introduction B The Employment Content and the C D Training Organisation of The Hotel and Catering Sector Training and Recruitment Problems of Personnel in the Hotel and Catering Sector The Employment Content of the 19f 'totn'ist and Travel Sector Service E Training Problems for Personnel in the Tourist Industry F The Types of Policies Governing Personnel Recruitment and Training for the Industry Conclusion J B-219

8 PART Ill: Fiji INTRODUCTION CHAPTER 8 A HISTORICAL BACKGROUND TO THE DEVELOPMENT OF THE TOURIST INDUSTRy IN FIJI A Introduction B Historical Background of Touris Development in Fiji C Growth Trends of the Tourist Industry D Tourism and the Economy Conclusi on ; CHAPTER 9 TOURIST ACCOMMODATION DEVELOPMENT IN FIJI: POLICIES AND STRATEGIES A Introduction B The Hotel Aid Ordinance C The Pattern of Growth of the Tourist Accommodation Sector Conclusion :< CHAPTER 10 THE ROLE OF THE FIJI GOVERNMENT IN TOURISM PROMOTION A Introduction B The Fiji Tourist Commission and the Fiji Visitors' Bureau C Problems and Prospects Conclusion : CHAP'rER 11 THE SIGNIFICANCE OF INTERNATIONAL AIR TRAFFIC ARRIVALS TO THE DEVELOPNENT OF THE TOURIST INDUSTRY IN FI.TI A Introduction B International Air Traffic Flow and Tourist Development in Fiji C Civil Aviation Policies

9 D The Effect of Int rnational Promotional Air Fares on the Tourist Industry in Fiji E The Role and Problems of Air Pacific Conclusion CHAPTER 12 THE EMPLOYMENT CONTENT AND TRAINING NEEDS OF THE PERSONNEl, IN THE PI.! I TOURIST INDUSTRY A Introduction B Tourism Employment in Fiji Conclusion CHAPTER 13 PART IV COMPARATIVE ANALYSIS OF TOURISM DEVELOPMENT IN NEW ZEALAND AND FIJI A Framework for Comparative Analysis B Tourist Accommodation C Tourism Promotion and Marketing D AIr Transportation E Tcurism Employment and Personnel Training Conclusion CHAPTER 14 TOURISM POLIC1 IMPACr: A SrRUCTURAL AND FUNCTIONAL APPROACH A Touri.. Policy Evaluation Process B Tourist Accommodation Development Poli.ci.'!s C Evaluation of Tourism Promotion Policies D Evaluation of Tourist Industry Personnel Training Policies E Evaluation of Tourist Tra!lsport J

10 F Policies 1) Inte:national Air Transport licies 2) Other To\.1['ist Trensport licies Tourism and National Park Policies in New ealand Conclusion APPENDIX BIBLIOGRAPHY 36!C

11 viii CERTIFICATION I certify that this is my own original wjrk. It has not been submitted for any degree at 1y other university. The conclusions arrived cc in the thesis represent my own judgement.

12 ix ACKNOWLEDGEMENTS A work of this nature is not due to the efforts of the author alone. Many people have assisted me in various ways. I am grateful to my supervisors Professor Ralph Ngata a Love and rofesso George Hines of the Business Studies "- q Facutly. Massey University. I am also grateful to Dr J A Bennett for her contributions towards the final L aft of this thesis. I also wish to thank Hrs Jan Gopperth of Woodville for typing the final draft of this thesis.

13 x LIS'!' OF FIGURES 1 A Macro-Model for Functional and Structural Analysis of Government Policies A Diagram Illustrating the Interplay Between Tourism Policies and Tourism Organisations and Tourism Development Areas Using a Structural-Functional Framework Graph Showing Percentage Change of Hotels and Hotel Rooms over Previous Years, Graph Showing Percentage Change of Motels c d Motel Units over Previous Years, a Developnent of Facilities Area, Home Bay, Lake Waikaremoana, Urewera National Park.... lq7 5b Development of Facilities Area, Home Bay, Lake Waikaremoana, Urewera National Park.... 1q8 6 An Indicative Diagram for Environmental Land Use Development and Management and Tourism Development Major South Pacific Tourist Destinations and Air Routes

14 xi LIST OF TABLES Maxirnunl Hotel Tariffs During the Period of Price Control, , New Zealand id Revenue Accounts and Accommodation Returns Average Gro s Income from Sales (Pounds) New Zealand, ::19 ( iii) Estimated Expenditure on Food and Accommodation by Overseas Visitors, Year Ended 31 March iv) Total Employment ir. the Tourist Accommodation Sector in New Zealand, October v) Area and Capital Cost Requj ement for Hotels in New Zealand, vi) A Selective Regional Indicator of Monthly Hotel Room Occupancy, , New Zealand ( vii) Major Market Areas in Terms of Visitor Arri a18 and Annual Percentage Changes in New Zealand, (viii> Number and Percentage Distribution of Visitor Type to New Zeal nd, Year Ended February 1980 and 198 L ' ", ' " SS ix) A Sample of the Market View of the Tourism Facilities in New Zealand x) Promotional nditure for New Zealand Travel in the Five Major Market Areas, ($IIZ)... 90

15 xii List of Tables (Cont'd) Table Page i) Tourist and Publicir? Department Vote Sununary ($NZOOO) (xii) A Sample of P romotion and Advertising Cost in North A1r.erica (xiii) Visitor Arrivals y Mode of Travel, Year Ended (xiv) Tranr,-Tasman Fares, January 19 1 and June 1982, Return ($AUS> xv) Air Fares from Sydney-San Fran' isco, August 1979 and June 1982 ($AUS> (xvi) Some Promotional Air Fa es in the Trans >;cific, Trans-Tas an and Trans-Arlantic.,utes, June 1981 and Jur. : (xvii) Financial Results of Some Major Airlines Servicing the Pacific, (xviii) Domestic Services Includinp. Taxi, Charter and Scenic Flig"lts - Passenger6 Carried from (Excludes Scheduled Passenger Services) ( xix) Rental lehic1es Capital Im"estmen1: and Revenue for the Year Ended 31 rch ? xx) Priva'tely and COIBpany Operated Coach Services in New Zealand for the Year Ended 31 March

16 xiii List of Tables (Cont'd) xxi) Land Acquired Under the Scenic?reservation Act in (xxii) Number and Area of National Parks, Reserves and Domains in New Zealand, (xxiii) Employment Stru ture of Queenstown Borough, xxiv) Income Derived from Government Grants, Donations and from Certain Park Activities, , Year Ended 31 March xxv) Visitors to New Zealand National Parks, (xxvi) National Parks of New Zealand, Size A a , Number of Visitors , ang Hectares per Visitor (xxvii) Employment Data on Restaurants and Hotels in New Zealand, , Year Ended April (xxviii) New Zealand Tourist Acco odation and Catering Sector Employment Level and Percentage Projections (xxix) Employment Levels and Projections, , Travel and Tourist Services xxx) Visitor Arrivals in Fiji, Excluding Cruise Liner and Through Passengers _

17 xiv List of Tables (Cont'd) Table Pa e xxxi) Visitor Arrivals in Selected Pacific Destinations, 1970-l97S ? O (xxxii) Gross Dome stic Product by Activity at Constant Prices of 1977 (At Factor Cost) (SFOOO) (xxxiii) Fiji Foreign Exchange Earnings from Tourism and Major Export Earnings, ($F million) (xxxiv) Value of Imports of Tourist Good s in Fiji ($FOOO c.i.f.) xxxv) Wage and Salary Earners in the Wholesale and Retail Trades and Restaurants and Hotels - Numbers and Percentage Changes: to ( xxxvi) Fiji Visitors' Bureau Income and Expenditure Account for the Year Ended 31 December 1976 and (xxxvii) Visitor Arrivals to Fiji by Mode of Travel, (xxxviii) Shareholders and Percentage Distribution ef Shares in Air Pacific Limited ( xxxix) Air Pacific Visitor Comparative Statistics on Operations xxxx) A Comparative Breakdown 0..: Expense Items 1977 an 1978, Air Pacific Limited. 295

18 xv List of Tables (Cont'd) (xxxxi) Number of Persons Employed, Trained, Undergoing Training and Number Re uired to be Trained - Fiji Hotel and Catering Industry, (xxxxiil Num r of Students Enrolled in School of Food and Fashion (xxxxi ii) Percentage Change in Number of Visitor Arrivals in Selected Destinations

19 xvi ABBREVIATIONS ABC A rican Broadcasting Corporation CBS..... Colurr.bia Broadcasting Service FNTC Fiji National Training Council GDP Gross Domestic Product lata lnternational Air Transport Association ICAO... Internationa! Civil Aviation Organisation NBC... National Broadcasting Corporation NZ..... New Zealand NZCC..... New Zealand Certificate of Commerce OEeD... Organisation for Economic Co-operation and Development TlTC... Travel Industry Training Council UK... United Kingdom UFTAA... Universal Federation of Travel Agents As soc ic1t ion \:'I"C. It... Vo ational Training Council

20 xvii ABSTRACT This thesis is an examination of the proposition that tourism development is to a great extent dependent upon the effectiveness of government tourism policies and government tourism organisations. Put another way, the greater the degree of effectiveness of tourism policies and organisations. the greater the degree of tourist industry development. Tourism policies and organisations are seen here as playing functional roles towards th development of the tourist indust y. There are two basic hypotheses to be tested in the thesis, nan,ely: (a) There are causal relations between tourism organisations and policies, and tourist industry development. (b) There are evaluable functions that tourism policies and organisations play in the development of the tourist industry. To test the validity of the above propositions, government tourism policies and organisations in New Zealand and Fiji are researched. analysed and evaluated.

21 xviii A Method of Analysis The methog of analysis used in the thesis is based on structural functionalis. This method of analysis is a derivative of systems analysis. This approach is suited to the study of the function of tourism policies and organisations because it enab!es one to identify the activities of the tourist industry as a sys:em with structures and functions. It also enablc3 O1,t to idem: ify and isolate the relevant tourism policie3 tmd t 1e "activity areas" for which policies are fclr1i\ulated d'l(i to evaluate the role or functions which they play in the L'ev;elopment of the sectors or activities of the tourist indust:-y. 'The model also allows for the identificat ion of in'. rest groups or pressure groups and the eyf2cts these have en politicians Who make governments that create policies. The starting point in this method of analysis is te view the tourist industry as an on-geing s."stel'l generated by structures. activities and pro ce ss es. inc!l'd::'"g tourism p licies which perform functions for the main enance &.d development of the whole tourist indugt'ry system. The method o analysis also allows for the study and evaluation of fa tors and interests that influence policies. such as pclitical forces. pressure group orces. econoaic considerations and other human factors.

22 xix B Research Method To evaluate the role and effectiveness of tourism policies and organisat ions, their application and effects in the follow ing sections have been examined. both for New Zealand and Fiji: Tourist Accommodation Tourist Transportation Promotion and Marketing Personnel Training and Recruitment In the New Zealand study. national park policies and organ isations have also been examined as a special area study to highlight the problem between tourism develo ment and public policies that are de6igned for national park land use. C Findings The case studies show that tourism policies and organisations can be isolated and evaluated in terms of the effects they have on the sectors and activities they are designed for. In the research and analysis of The tourism poli cies concerned wit h the growth and development of the tourist accaa.od&tion sector in New Zealand and Fiji, it was found that growth in the sector had occurred in the period after the aove nt had provided policie s to aid

23 xx the growth of tourist accommodation. In the New Zealand study. it was f und that the 1962 government budget was regarded as a turning point in the history of the development of the tourist industry. The effects of the budget are discussed in Chapter 3. The budget provided a Iq,OOO.OOO loan guarantee scheme for hotel development and relaxed the restrictions on the repatriation of foreign capital. From the scheme, a total of l,q20 beds were provided in the vital tourist centres of Auckland, P.otorua and Wellington. The New Zealand government loan and guarantee scheme was continued until 1973 when it was abandoned. Between 1972 and 197Q. the hotel accommodation sector in New Zealand experienced a decline in both the number of hotels built and the number of hotel rooms. The details of this decline are illustrated in graph 3 of Chapter 3. But when the loan and guarantee scheme was reintroduced by the New Zealand government in 1976, which provided for $14.775,000 in the form of guarantees and $13,918,000 in the form of loan, a growth in the number of hotels and hotel rooms followed. These sums helped finance twenty tc rist accommodation projects that provided 3.'193 beds. The detailed effects of these policies are discussed in Chapter 3 of the New Zealand case study. It would suffice here to mention that not all tourism policies have had such dramatic effects of stimulating the growth of particular sector of t:he industry. The ana1ysis on the growth and developaent of the tourist accaa.odation sector

24 xxi in Fiji shows that although at the initial stages when the Hotel Aid Ordinance was passed, it stimulated a growth in hotel investment and growth in the number of rooms and beds. There also have been periods of decline in the rate of growth of hotel rooms and beds while the hotel aig policy was in operation. The decline in the rate of growth of hotel rooms and beds in Fiji was, however, due more to the effects of decline in the rate of growth of visitor arrivals than to the ineffectiveness of the hotel aid policy. The details of the effectiveness of the hotel aid policy in Fiji are discussed in Part I I, Chapter 9 of the Fiji case study. The conclusion is that in both New Zealand and Fiji tourism policies and organisations are designed to play f ctionaj roles in tl.e growth and development of the tourist industry in the respective countries. These policies can be evaluated by examining the direct and indirect effects they have on the respective sectors and activities of the industry they are designed for. These effects are evaluated as the outputs of policies or the functional effects of tourism policies and organisations. The case studies show that tourism policies and organisations are basically instrumental to the developaent of the tourist industry. It is the extent of instruaentality or functionality that this thesis seeks to establish through the evaluation of so.e touri.. policies and organisations in Ifew Zealand and in Fiji.