DQ seeking funding rise; public forums on proposal

Queenstown's regional tourism organisation is looking for a funding increase to help market the resort.

Destination Queenstown will hold two public forums this month to discuss the funding proposal, which would result in an annual 10% increase in commercial rates in the Wakatipu over the next three years, raised through the targeted tourism promotion levy.

While the Queenstown Lakes District Council draft long-term plan, approved for consultation this week, proposed an annual 3.2% increase  over the next three years — a 1% increase on its average funding over the past 10 years —  DQ is seeking an additional 6.8%.

If agreed,  the regional tourism organisation’s funding would increase from $3.491million this year to $4.646million in 2021.

DQ’s funding was last increased  in 2008, the 60% increase resulting in a $1million annual boost.

A discussion document said since then, the visitor volume had increased 57%, visitor spending was up 108% at $2.157billion and Queenstown Airport arrivals had grown 256%.

"Over the same time DQ funding has increased by a total of only 20%, or 2.2% average per annum," the document said.

Staffing levels had increased from 11 in 2009 to 15 this year and in 2015 it relocated to a new commercial premises in the CBD — those two costs had largely absorbed the funding increase, meaning its marketing campaign and business development investment had remained "static".

"Despite this, we have achieved some excellent results, with strong sector tailwinds, but our ability to participate and influence the growth opportunities ahead in a potentially more challenging environment will require an increased investment," the document said.

DQ chief executive Graham Budd told the Otago Daily Times the tourism tailwind had been spurred  by "relatively cheap" airfares, which were a result of low fuel prices.

There was also a growing middle class in countries such as China and India which could afford to travel and did so.

However, it was imperative not to be complacent given "you just don’t know what’s around the corner", Mr Budd said.

This week the Queenstown Lakes District Council released its draft long-term plan to the public, which outlined almost $1billion in spending over the next 10 years.

Mayor Jim Boult described it as an affordable plan but stated the council was saying "clearly and loudly" to central Government "our residents cannot continue to sustain the cost of visitor growth".

Mr Budd said while, on the surface, that statement and DQ requesting additional funding for promotion "might look contradictory, they’re absolutely not".

The council was lobbying the Government for support to ensure the district’s infrastructure and environment could cope with  existing and future demand, while DQ was working to create the future demand.

It was "really dangerous" to stop marketing while dealing with existing infrastructure issues and  the two had to work together, Mr Budd said.

"The other thing is that if we don’t have sufficient funds to participate in the messaging about Queenstown ...  it’ll just happen to us.

"Other people will apply what they want you to be, rather than you managing your own destiny."

Two public forums are planned to discuss the proposal before a general meeting at which DQ members would vote.

Subject to approval, DQ would then make a submission to the draft long-term plan for the funding increase.

tracey.roxburgh@odt.co.nz

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