Poised for further growth

New Zealanders are well aware how important tourism is to the economy, but the actual numbers are still eyebrow-raising.

As our second-largest export earner behind dairying, it is worth almost $24 billion to the national economy, comprising almost 9% of the country's gross domestic product and jobs nationwide.

Figures released last week by the Tourism Industry Association, in its 2014 election manifesto, show just over a quarter of Otago's gross domestic product comes from tourism - a higher proportion than any other region in the country - and is worth $2.17 billion to the local economy.

The Otago numbers account for both international and domestic tourism and show how the industry is a key economic driver at local level, creating jobs, business opportunities and growth.

Our outstanding scenery, flora and fauna, culture, heritage and sporting and recreational opportunities, our relaxed way of life, welcoming people and relatively safe society all contribute to the attraction at national and local level. And there is huge potential for further growth.

As the constrictions of the global financial crisis ease, and a rapidly growing middle class of Chinese tourists in particular seeks new travel destinations, New Zealand and Otago have the opportunity to cash in further.

Indeed, the Tourism Industry Association, which represents about 1500 of the country's tourism operators, aims to almost double total tourism revenue (including domestic tourism) to $41 billion a year by 2025.

While such a leap would be an economic boon, there are significant challenges, the first of which may be the investment needed in order to realise the benefits.

When the TIA manifesto was released last week, Destination Queenstown chief executive Graham Budd said investment in infrastructure was ''critical''.

Pressing examples in that area were improvements to the one-lane Kawarau Falls bridge at Frankton and State Highway 6 through the Kawarau Gorge.

The proposed convention centre will be an important part of the infrastructure in the resort, while in Dunedin, high-quality accommodation is one of the biggest factors impeding visitor growth.

Air travel is another key consideration. Much work has been done between Destination Queenstown, the Queenstown Airport Corporation and airlines to increase flights into the resort. There are now tens of thousands more transtasman seats in peak seasons.

A push to allow night flights to and from the resort could be a further game-changer, possibly from as early as mid-2016. Dunedin, though, has constantly battled to attract and retain vital transtasman flights.

Availability and pricing of domestic flights is an issue, too. This was highlighted last week with news of Air New Zealand's continued profit growth.

While that is welcome news given it is our national carrier and these are tough times for the aviation industry, as we said on Saturday there is real passenger, business and tourism sector frustration over expensive regional airfares.

The cruise-ship season, a vital earner, is growing internationally, and Dunedin and Milford Sound are both set to reap benefits from an expected boom season next summer. But infrastructure is again an issue; in Dunedin, shelter, congestion and local transport are less than impressive for passengers disembarking.

Promoting the sector, while keeping it sustainable and safeguarding its reputation, is the other significant challenge. Our natural resources are not only tourism drawcards, they provide huge economic opportunities through the likes of dairying, mining and deep-sea drilling.

Ensuring those industries - and other matters such as changing land use and urban sprawl - do not impact negatively on our environment and our reputation are ongoing and significant challenges. While there are growing pains, none are insurmountable.

Managing the process will though require continued consideration and planning at local body and government level. On an individual level, we must all take care that our interactions with visitors are friendly, welcoming and helpful.

We can contribute to a positive experience for tourists, ensuring they want to come back here, and return home to friends and families with positive tales that promote Otago and New Zealand as must-see destinations.

 

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