EASTERN BAY OF PLENTY Subregional Tourism Strategy
Final Report 31 August 2017
EXECUTIVE SUMMARY
Eastern Bay of Plenty is a sub region of the wider Bay Development of the Māori economy through of Plenty that has considerable potential to expand Māori tourism. With a high proportion of Maori the tourism contribution to the regional economy. residents in the region and large areas of land that are under Maori ownership there is The region comprises the areas of Whakatāne untapped potential to increase the cultural and District, Opotiki District and Kawerau District. The nature based tourism experiences that are region covers an area of 7,528Km2 and has a total offered. This is however constrained by the population of 51,000. Whakatāne District is the Reserves Act and truly unlocking the potential largest with an area of 4,400 km2 and a population will require assessment of individual exceptions. of 35,000. Opotiki has an area of 3,104km2 and a With the proximity to the cruise‐ship passenger population of 9,000. Kawerau covers 22km2 and has market from Tauranga, suitable product and a population of 6,800. experience will find a ready market especially The visitor experiences are largely related to the those offering authentic cultural experiences. natural assets of the region with White Island being a growing international attraction. Other key attractors include beaches, forest and rivers in the Additional opportunities in the region include an region. enhanced Whakatāne township connection with the Visitation to the region is over 80% domestic with a river, sea, wharf and cultural precinct, along with high proportion of those beach and holiday improved services for visitors, additional day park/back‐packer style holidays. There is also an experiences and more wet weather and winter increasing uptake of adventure activities around options. mountain biking, rafting and kayaking in the region. The key infrastructure priorities are: Total visitor spend in the region is estimated at Connectivity: Upgrading existing roading, $155M which comprises around 5% of the regional improving linkages to Tauranga and Rotorua and GDP. improving air connectivity With an aspiration of over 4% growth per year in Amenities – Increased demand on quality visitor spend there are significant opportunities in outdoor recreation option, including regional the region. parks and the DoC estate. Improvements The key opportunities that have been identified are: required to harbours, rivers, lakes infrastructure, freedom camping, walking mountain biking and Enhancement and linkage of the mountain urban cycling trails biking experience of the Motu Trail to the sub‐ region. There are also opportunities to link the Cellular and Digital1 Infrastructure: Address trail to other rides and connect across the whole significant regional disadvantages with respect region to other destinations and experiences. to lack of Broadband/ Fibre and Mobile blackspots. The Opotiki harbour development presents a new opportunity for expanded fishing and Capability and Capacity: Additional investment recreational boating in the district. to achieve better tourism skills at the coalface within small businesses, improved networking Enhancing the connection between White Island and resources to drive a compelling regional and Whakatāne onshore will provide additional proposition and enabling Māori tourism to reach opportunities for both domestic and its potential. international visitors so much so this could be viewed as critical infrastructure. Harbour and wharf development along with a land‐based White Island experience centre is one of the region’s biggest and most unique tourism opportunities.
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The infrastructure requirements to enable this level Overlaying these physical constraints is the need for of growth and a significant increase in international the tourism sector to have skilled staff to deliver a visitors include upgrading of existing roads and quality visitor experience. The region is likely to improved access by road in particular. The sub‐ generate an additional 500 jobs based on the region is comparatively isolated from main visitor expected visitor spend growth over the next decade. flows and reduced travel times to and within the Training and skill development to present quality region are important. There is a current deficit in and authentic services will be vital to deliver wayfinding signage to the Eastern Bay and combined sustainable tourism growth in the region. with visitor routes reflecting travel itineraries that The Eastern Bay of Plenty lacks a clear and cohesive are over 20 years old, are not helping to support the position in an overall Bay of Plenty, regional dispersal of self‐drive visitors into the region. proposition, as does the region itself in a greater NZ The Eastern Bay is serviced by an airport in story for international visitors. Developing this will Whakatāne with 3 return flights to Auckland daily by also support prioritisation of investment for Councils Air Chathams. An interline agreement with Air New and private investors and enable a decisive move to Zealand would improve connectivity to international destination management. To support an expanded flights. Improved aviation connectivity and enhanced role as a destination for both international and airport terminal and associated services would domestic visitors, greater awareness of the improve the visitor experience, reduce travel times opportunities and their accessibility is required. and potentially increase visitation. Enhancements to infrastructure as well as more funding to support focussed marketing by regional More remote tourism businesses and experience are and national organisations is required to deliver the unlikely to receive broadband services for at least 5 tourism economic growth that is forecast for the plus years. Also, there are areas of the region that region. still do not have mobile coverage. These constraints are likely to increasingly limit the performance of these businesses and locations as tourism destinations.
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REGIONAL PERFORMANCE
When compared with other destinations in the wider Market Profile Overview (YE December 2016) Bay of Plenty Region, the Eastern Bay of Plenty: EASTERN BAY OF PLENTY REGION has a smaller international spend as a proportion of the total visitor spend than other destinations has experienced the second lowest growth rate when compared to other destinations in the wider Bay of Plenty.
Highest annual percentage growth in
<5% GDP international visitor guest nights compared to the Gross Domestic Product wider Bay of Plenty subregions receives a lower share of the international visitor spend when compared to destinations in the Rotorua and Lake Taupo subregions.
receives the lowest net promoter score of all
500,000 destinations in the wider Bay of Plenty region2.
Visitor nights has a higher proportion of visitors staying in private accommodation and holiday parks. Roughly half of all guest nights are in private accommodation. Has a lower spend on activities and attractions which reflects the largely domestic nature of the visitor population and also the greater focus on 80% of Visitors natural attractions and experiences rather than are Domestic paid attractions and activities.
25% growth between 2009‐2016 Average p.a. 3.2%
2 The domestic Net Promoter Score (NPS) is calculated by asking AA Traveller respondents how likely they are to recommend the destinations they visited within the wider Bay of Plenty region as places to visit Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 3
Leveraging growth
New Zealand is going through a strong period of The Eastern Bay of Plenty subregion is part of both tourism growth, fuelled by increased international the Tourism Bay of Plenty and Tourism Eastland arrivals. We need to capitalise on this to strengthen regions and therefore the growth objectives for this awareness of the destination, increase visitor subregion are a part of those for a wider area. numbers and increase the economic benefits flowing From a visitor perspective, the Eastern Bay of Plenty through to the community. To facilitate this growth is a continuous region with common experiences, some key factors need to be addressed to ensure that opportunities and issues. However, strategic continued high levels of satisfaction are maintained. planning for the subregion is divided between the In addition, New Zealand’s domestic tourism market, two tourism Regional Tourism Organisations which which comprises over 60% of total visitor spend is relate to administrative local government regions also increasing with population growth and strong inward migration. GROWTH TARGETS FOR THE TOURISM BAY OF PLENTY REGION (ENCOMPASSES THE EASTERN BAY OF PLENTY SUBREGION)
Grow overall tourism spend in the Grow overall region to $1.45B by 2028 by 4% tourism spend in CAGR the region
From 7500 to 9500 Increase employment
Right visitors at the right time Improve seasonality
Grow capability and increase supply Support new investment
Grow international visitors by 5.3% Grow the visitor CAGR source markets
Sustain tourisms •Increase engagement with Sutainable Toursim Charter contribution to the regional economy
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Issues and Opportunities SWOT ANALYSIS The SWOT analysis below provides a summary of the responses grouped under key themes, for use as an indicator of the sorts of feedback received about the challenges and opportunities facing the regional visitor economy. The aim of the SWOT is not to provide a comprehensive assessment of the issues and opportunities, but rather to reflect the most commonly raised issues across the region and concerns through the consultation process.
STRENGTHS OPPORTUNITIES •White Island is a recognised international •Cycle trails and leisure cycling extension and attraction connection ((Motu) –growing a new visitor market •Attractive destination for outdoor activities •Establish a land‐based White Island experience to grow international, domestic and education •Significant domestic visitor base mainly markets drawn from nearby regions •Establishing a greater connection between •Beaches and camping well known attractions Whakatāne and the sea, fishing and White Island •Summer weather is certain and high •Opotiki harbour development ‐ new marine sunshine hours and mild winters opportunities •Excellent active adventure options of •Te Urewera and Whirinaki underdeveloped . tramping, fishing, rafting and kayaking Establish more 'Great Walks', and 1 day walks such as " Nga Tapuwae o Toi (Toi's Track)" •Close proximity to large vsitor market in •Development of industrial based tourism in Rotorua Kawerau •Growing population in Tauranga as a source •Recent treaty settlements will provide resources of visitors for iwi and hapu and enable potential cultural •Growing cruise ship visitor market through tourism and other opportunities. Port of Tauranga •A more comprehensive and deeper cultural offering. Promotion of cultural heritage stories and sites ‐ Heritage Hikoi. •Culinary tourism connection with horticulture, seafood, honey, and natural resource base •Increased investment in international marketing
WEAKNESSES THREATS •Limited resources for marketing and product •loss of aviation connectivity to AirNZ development domestic and international flights. •Distance from major population centres •Repeat visitors change their travel patterns •Significant parts of the region are in native or plantation forest •Small but growing international visitors •Limited winter attractions and limited land •Narrow outdoor‐only offer – affects based attractions. seasonality and weather dependant •Narrow focus of events ‐ outdoors/summer •Domestic visitors attracted to destinations focus with more choice of experiences especially •Limited broadband/mobile coverage in parts of for longer stays. the district. •International visitors do not stay due to lack •Limited product offer ‐ very few trade‐ready of attractions and or accommodation. products •Strong reliance on domestic visitation ‐ •Dependance on single international attraction that is unique which may change with the economy. •Limited connection of international attraction (White Island) and the domestic market •Limited retail offer, especially in small centres in the region •Air links are limited to Auckland market •Limited accommodation options ‐ lack of hotel
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WHAT DO WE NEED TO ACHIEVE GROWTH? TOURISM OPPORTUNITIES Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks
Cycling Development Motu Trails is one of the Great Trail improvements to the overall Costs are dependent upon the Taking a regional approach to Bay of Connections Regional NZ rides. It has the potential to experience, including multi use of Grade 1 improvements proposed. But cycling with current data on Action Plan be a very important and unique trails, as well as reducing the difficulty of Connectvity expansions and use, develop a current heat Eastern Bay of Plenty Cycling offering in the region and also the trail would enhance its attractiveness enhancement options between map of use. Strategy 2015. attain international to a wider audience. Great Rides and major centres Develop a demand estimate significance. are estimated at $5‐10M. The NZ Cycle Trail Implementation of “connectors” between for the next decade drawing maintenance and Establishing connectivity with trails. The NZ Cycle Trail Maintaining on existing use. enhancement programme. other trails/ destinations the Quality of Great Rides Fund Opotiki – Whakatāne – Tauranga Identify and prioritise linkage including the Tarawera River provides a 50% support for Opotiki District Council Long opportunities for NZCT fund. Trail development. Opotiki – Whakatāne – Kawerau – improvements to Great Rides. Term Plan and Annual Plan Rotorua Identify and prioritise Connectors for the Motu Trails The enhancement and Connectivity enhancements enhancements for the next to the wider region will require A Rotorua connection would enable a extension fund received an likely to need co‐funding from decade and incorporate costs a ferry connection across the diversity of experiences to be had in the additional $25M for Great Rides Whakatāne, Kawerau and into the next council LTP from Ohiwa harbour between Port region, as well as providing access to the and the development of cycle‐ Opotiki Councils through 2018 onwards. Ohope wharf and Ohiwa boat 250,000 mountain bikers who access the safe connections that will Annual Plan and Long Term ramp. Tokorangi (Redwoods) a year. enable cyclists to ride even Development of an Urban Plan commitments. more safely between some of Cycleways programme, to These trails are expected to principally be Engage with Council and NZTA the Great Rides. create cycleways for resident for mountain biking and walking. Multi‐use for funding for an Urban and visitor use. will expand the range of visitors that would The fund has provided $70,000 Cycleways programme. enjoy the facilities of some trails, especially in three grants to Motu Trails in Potential enhancements that grade 1 trails in locations with additional recent years. Further grade will wrap around the cycle attractions and scenic values. improvements to increase its trails – parking, public toilets, attractiveness are also bike wash down facilities, warranted. improved accommodation retail and offering. These two funds are potential Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 6
Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks Potential benefits include: funding sources. However co funding is likely to be expected Increased visitor spend which will challenge the ability Improved seasonality of the Motu Trails trust to raise the local share. Improved length of stay Other potential funding sources Leverage of the wider regions status as include the NZ Community Trust a cycling destination and the Lion Foundation. Components of this proposal have potential for Tourism Infrastructure Funding.
White Island/ Whakaari Connection of Whakatane/ Opotiki to Establishing a new attraction Engage with Ngāti Awa about rayNZ Maori Tourism Action White Island through onshore and and experience will significantly their aspirations/plans for Plan (2011‐2014) and its enhanced White Island experiences that lift the offering for the region. White Island Tours extension includes connection to cultural stories. Depending on the location and Engage with Ngāti Awa about He Mauri Ohooho, the Bay of the scale of the offer new White Island/ Whakaari experiential centre their aspirations and plans for Connections Maori Economic product developments of this ‐ Wet weather / land based options eg. a White Island Tours Development Strategy sort generally cost in the range Geothermal/ Volcanic educational centre of $3‐10M depending on the Wharf at White Island for easier access to land costs and complexity of the
Island. offer. Accommodation on Island for overnight This proposal has potential for stays. Tourism Infrastructure Funding
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Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks
Walking The Eastern Bay of Plenty has Develop a new Great Walk in the Te These proposals have the Wayfinding and cultural Public/Private/iwi partnership significant beach, river and Urewera and/or develop some Grade 2 potential for Tourism interpretation signage. forest assets. The development walks. Infrastructure Funding. Engage with New Zealand of family oriented / shared use Leverage off the Lake Waikaremoana Great Māori Tourism and Te Puni trails throughout the Eastern Walk. Kokiri to provide business Bay of Plenty, combined with Māori Tourism Funding. support for development of strong cultural experiences and Enhance Ngā Tapu o Toi Coastal walkway, strategies and new products. stories is a huge opportunity. to develop it in to one of the NZ Great Day Walks ‐ Improve toilet facilities, cultural Create network to provide Potential for partnering with interpretation signage, way finding signage, DoC or iwi or commercial support / mentoring to rest stops, track infrastructure. partners. improve the Māori economy. Opportunity to introduce new Promote a summit walk of Putauaki, which businesses and job offers 360 degree views of the Bay of opportunities for economic Plenty. revitalisation of the smaller Ideal opportunity for new product communities within the development – Marae stays, guided walks, Eastern Bay of Plenty e.g. transportation. Murupara, Te Teko, Minginui, Waimana
Develop satellite i‐SITE for the southern area of the Whakatane District
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Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks
Amenities ‐ Harbour/River/Lake
Developments Ōpōtiki: Throughout the Eastern Bay of Plenty investment in Harbour / The Harbour development has the While there is a wide range of Work with user groups, Iwi, Whakatāne, Kawerau and River / Lakes facilities (including potential to improve the opportunities for opportunities, the economic community to identify Opotiki Councils through boat ramps, parking, freedom marine tourism experiences from Opotiki. benefits of most marine capacity constraints and Annual Plan and Long Term camping facilities, public toilets, opportunities centre around infrastructure improvements Plan commitments. Potential benefits are estimated at $4 ‐ rubbish disposal, picnic and private recreational fishing and for inclusion in upcoming LTP. $6M depending on the degree of utilisation park facilities) is required to commercial sightseeing. Other of the proposed infrastructure. meet increased visitor demand. opportunities such as charter fishing have potential over the There are specific projects longer term. underway throughout the Whakatāne: Eastern Bay of Plenty. Redevelopment of existing commercial Whakatāne Town Centre wharf and game‐fishing wharf ($11m‐ Costs are dependent upon the improvements proposed. vision project. $15m). Whakatāne District Proposed new Quay Street wharf and Development Strategy. Whakatāne Yacht Club development, which
will include a town pier ($15m). Ki Mua (Whakatāne Community Vision). Improved access from Whakatāne to White Island, tour operators and increasing Cultural & tourism precinct recreational fishing and boating demand (WDC Council & Ngāti Awa JV from domestic visitors will support further proposal). harbour development.
Kaweraru Rangitaiki / Tarawera River Rafting.
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Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks
Mt Edgecumbe / Putuaki summit walk.
Enhanced Cultural experiences Eastern Bay of Plenty has a limited range of Existing operators have the Potential to develop Whakatāne Town Centre cultural visitor experiences to offer. In potential to expand their public/iwi partnerships. vision. Potentially combined with particular, it has little product that is either product offering to meet the environmental experiences. Development of Better Cultural & tourism precinct trade ready or targeted at the domestic requirements of this market. Business Case and feasibility (WDC & Ngāti Awa joint While there are Marae and market that makes use of the natural Product development advice studies. venture proposal). other cultural experiences environment (other than beach) or the and support is needed as well offered in the region, many are cultural stories of the region. New Zealand Māori Tourism. as marketing to develop these low volume and require Given the proximity to the cruise ship options. Action Plan (2011‐2014). additional marketing and market from the Port of Tauranga there is awareness to achieve scale. Treaty Settlements will resource an existing market, as well as FIT travellers He Mauri Ohooho, the Bay of some iwi should they seek to that are long stay and exploring the wider Connections Maori Economic invest and develop their North Island. Development Strategy. economic base in tourism Opportunity for product to expand and These proposals have the utilise the natural environment. potential for Tourism Whakatāne Heritage Hikoi (walking tour) Infrastructure Funding and Development Māori Tourism funding.
Hotel Development: Whakatāne currently has no hotel stock of A hotel product cost depends Identification of potential any quantity. The town has significant on the size and quality offer sites. Including additional motel stock and there are a number of that is viable from a return on conferencing facilities that are Identification and supply of large holiday parks in the wider region. investment basis. Assuming a compatible with current required This accommodation profile reflects the moderate sized hotel product offers. services/connections. large domestic weighting in the visitor (estimated at 100 rooms) and a arrivals. If the Eastern Bay of Plenty sub quality offer, it is estimated that Business case that is attractive region is to achieve the desired a hotel with limited to investors . international visitor growth, then additional conferencing facilities would hotel accommodation will be required. If require around $30M. Construction capability. Whakatāne is to develop into an overnight Potential linkage with other Once built – skilled labour. stop for group international visitors then a conferencing options. recognised brand will also be required to Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 10
Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks
meet the wholesale market.
Expanding the Visitor Offer: Improved dining, art, cultural Provide a wider range of options, Generally, the private sector experiences and particularly ones that extend into evening will respond to demand as accommodation. and weekends. developments occur and visitation increases.
Additional demand will be driven by projects such as Opotiki harbour development.
Additional day experiences such as:
Golf Develop golf tour linkages with other
courses; or ‘fly and play’ packages with Air
Chathams.
Kiwi house A Kiwi House or DoC base would support Funding could be either private the conservation work already being sector, or combination of
undertaken with kiwi in the region. Would Government (DoC), Ngāti Awa, leverage the Kiwi Night Walks, Moutohorā Kiwi Trust and Council. Island trips etc.
Events & Conference Centre Development of the Whakatane District War Memorial Hall (Sports, Theatre & Conference facility).
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Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks
All Weather/ Winter product One of the significant deficits in the Eastern Product development support options: Bay of Plenty is a lack of a comprehensive and private sector investors suite of all‐weather/ winter product that have confidence in
suitable for a wide range of visitors. development with a well‐ developed business case is Additional experiences create the potential required. to extend length of stay and also to improve attractiveness as a winter Private Sector investment. destination eg. Family activities / Fun Park
Secondary Opportunities: Whakatāne Waterfront Develop Whakatāne township to face the Whakatāne Waterfront water and harbour. Project is being included in
the 2018 WDC LTP (Harbour Cruise product Develop specific experiences for the cruise development project). market.
Backpacker and Holiday Increase accommodation options at Park development in Kawerau for visitors. Kawerau
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EASTERN BAY OF PLENTY SUB REGION PRIORITIES
Kawerau Whakatane Cycle Trails, esp. the White Island ‘Gateway to White Tarawera River Trail Island Rafting Walking and Cycling Extend Putauaki Walk trails and links Industrial Tourism Hotel Development Events Cultural experiences Opotiki Events and food tourism Port development and fishing Port Development Motu Trails enhancement Fishing opportunities Charter
Motu Trails Extend trails
Link trails
Improve the grade Greater promotion
Te Urewera Increase awareness
Increase accommodation options
Guiding and cultural experiences Cycling and walking trail development
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CRITICAL INFRASTRUCTURE DEVELOPMENT THAT WOULD FACILITATE TOURISM GROWTH
Infrastructure Requirement Linkage with other actions/programmes Potential Costs Priority Action Points (if known)
Improved Roading Connectivity: 1 Improved connection from Tauranga Improved connectivity between Tauranga and Whakatāne Develop a clear forecast of tourism to reduce the travel time. has been commenced with the Eastern Arterial Link. Further growth – focus on visitor need to extension of this link through the Western Bay would access attractions and activities Improved connectivity between reduce travel times and improve visitation, especially for the efficiently – seek insights from Rotorua and Whakatāne along SH 30. cruise ship market. Tourism NZ. Improved connectivity within the Limited NZTA proposals other than safety improvements on NZTA priorities – weight tourism region, especially between SH30. But additional passing lanes (particularly through the demands appropriately. Whakatāne and Opotiki around Ohiwa lakes, rest stops and wayfinding signage would improve this harbour and onwards to SH 35. Promote upgrade of existing routes journey). as first step. Improve Whakatāne and Pekatahi At present, there are no further major roading development bridge connections and upgrade. proposals in this subregion and therefore costs are Improved wayfinding and tourism unknown. signage – Welcome/Brand signage for the ‘gateways’ to the District.
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Infrastructure Requirement Linkage with other actions/programmes Potential Costs Priority Action Points (if known)
Cellular and Digital3 Infrastructure: 2 Broadband/Fibre requirements : The The principal rural communities in the Eastern Bay of Plenty No specific cost Establish extent to which tourism district continues to suffer from a lack of are scheduled to receive UFB by 2024. Proposed coverage estimate. businesses affected by late rollout broadband capability in rural locations in includes, Edgecumbe, Kawerau, Murupara, Ōhope, or no connection. the district. In particular operators in the Coastlands and Opotiki. Develop business case for local Motu and Te Urewera do not have There remains a number of smaller communities in the provider. access. region that will not receive high speed internet for some
time.
Mobile blackspots. Mobile blackspots – continued Mobile blackspots that have been identified for urgent notification of issues to network action include: Kaingaroa Forest, Rangitaiki and Te Kaha providers. Whanarua Bay and parts of SH2 near Taneatua, and parts of SH 35 and 38. Establish interim broadband service such as wireless fast For other regions there will be a residual need to develop broadband until rollout of broadband/fibre connectivity for health and safety and UFB2/RB2. business capability reasons. For visitors there is an expectation that operators and activities will have available Consult with service providers to connectivity. map priority locations from a tourism perspective (safety issue as lead rationale). Seek to influence next tranche of UFB rollout.
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Infrastructure Requirement Linkage with other actions/programmes Potential Costs Priority Action Points (if known)
Skilled Staff 2 With a desired growth rate for the whole With the aspiration of Tourism Bay of Plenty to achieve a 4% No specific cost Work with Service IQ to specify Bay of Connections of approx. 4% for the CAGR there will be a significant requirement for additional estimate for greatest need to fulfil staffing next decade, Eastern Bay of Plenty will skilled staff in the next decade. overall requirements. require a significant increase in skilled implementatio Service IQ has completed a roadmap for the service sector Establish requirements. staff at all levels and locations within the n of the that covers much of the tourism sector. Their detailed sector. Current direct employment in the roadmap. Support budget and funding for needs analysis requires implementation and acceleration in region is estimated at 1,000 FTE’s. This increased training and workplace the light of recent growth in the sector. Other will need to increase by over 50% to fulfil facilitation by Service IQ and components the growth requirements of the industry. Around 500 additional jobs will require significant tertiary training organisations. would need to investment by the tourism sector, educational institutions be costed. Improved linkage between tourism as well as by private individuals. sector and training / education
There are significant gaps in making the linkage between providers at both governance and education and the workplace that would benefit from operational levels. additional funding and skilled facilitators and tourism Work with education providers / ambassador programme. EDA to develop tourism specific leadership and management training. Increased capacity in RTO / EDA’s for meaningful engagement to drive key education projects and integration for industry upskilling.
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Infrastructure Requirement Linkage with other actions/programmes Potential Costs Priority Action Points (if known)
Aviation Connectivity: 3 Improved terminal facilities. Plans for a terminal upgrade will be included in the WDC $4‐6m for Work with Airlines, existing and 2018 LTP. terminal potential new carriers to develop Establish air connectivity from Wellington upgrade. new routes. Establish business and the South Island. Improved air connectivity for scheduled services would be case for new routes and vital to achieve the enhancement of Whakatāne as a Achieve improved air connectivity from scheduling. conference destination. the north with an improved fleet. Prepare a business case for a new In the longer term review the previous consideration to Interline agreement with Air NZ terminal development at have a regional International airport at Paengaroa. desirable. Whakatāne. To be include in 2018 LTP. Local government to commit to facilities improvements or redevelopment as part of its current commitment to maintaining the airport. Increase promotion of air links from Auckland to Whakatāne. Develop an Air Chathams / Eastern Bay of Plenty presence at Auckland Airport check‐in.
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Infrastructure Requirement Linkage with other actions/programmes Potential Costs Priority Action Points (if known)
Amenities 3 With the growth in visitation to the Improved boat ramps, parking, freedom camping facilities, Identify key sites for focus and Eastern Bay of Plenty region, there is an public toilets, rubbish disposal, picnic and parking facilities prioritisation. increased demand for quality outdoor etc. recreation options – including the ports, Enhance Ngā Tapu o Toi Coastal walkway. By upgrading and harbour, river, lakes and other public increasing toilet facilities, signage, rest stops, track assets. infrastructure. Support is also required to support Mt Edgecumbe / Putuaki,Te Urewera, Whirinaki recreation and natural attraction opportunities for regional and DoC parks.
Pressure on public infrastructure requirements needs to be addressed to meet this demand.
FIT and Freedom Camping infrastructure Fit for purpose management and Improved infrastructure for FIT and Freedom Camping An additional Freedom camping – await LGNZ availability of facilities. (waste management, power, signage etc.) is required $2‐$5M national options to implement. throughout the Eastern Bay, both at end destination sites investment and enroute. may be required to keep pace and unlock potential.
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Infrastructure Requirement Linkage with other actions/programmes Potential Costs Priority Action Points (if known)
Accommodation Development of a 100 room hotel with associated Estimated at 4 Contribute to a “Mini Project conferencing facilities would provide a new source of high $30M. Palace” for the region. The lack of a hotel of scale and with a value visitation for the destination. In addition, the national or international brand limits the Market Assess future visitor flows, visitor seasonality of conferencing (being predominantly winter) is development of the destination and assessment of types and accommodation also attractive for Whakatāne as it is a predominantly constrains group visitation in particular. financial preferences based on future summer destination. feasibility and aspirations. Establishment of a 100 room hotel would At 60% occupancy, such a facility has the potential to appropriate fulfil that requirement. Develop regional opportunities generate revenue of $4‐5M. Much of this would be new scale would be matrix. revenue from business travellers. vital. Engage councils and potentially Develop clear plan for identifying gaps at all levels in Regional private investors/iwi in establishing accommodation in the region that are actionable. characteristics a “chequebook ready” accommodatio development proposition for the n prioritisation region. ‘mini project palace’ estimated at $150k.
Secondary Infrastructure Issues 4 Public Transport – limited availability, Increased levels of service and coverage would be desirable. RTO to engage with councils over expensive and unsuited to visitor Investigate alternative public transport options eg. electric service provision and needs of requirements. vehicles, cycleways visitors. Retail shortfall – trading hours, Retail – Tourism operators to make limited shopping and dining options. case to retailers. Waste Management Services – Waste – Council to resolve with availability and level of service does tourism operators. not match the peak requirements of the visitor industry.
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INTERDEPENDENCIES Cycling White Island Walking Trails Amenities: Water Cultural Hotel Expanded visitor Development /Whakaari based Experiences development offer and wet weather product
Roading Connectivity *** **** **** **** **** **** ***
Aviation Connectivity ** *** *** ** *** **** ***
Accommodation *** **** *** ** **** ***** ***
Freedom Camping and **** ** *** **** *** ** ** other recreation amenities
Cellular and Digital ***** **** **** *** * * ***
Skills and Training *** *** ** * ****** ***** ****
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DISCUSSION ON PRIORITIES Skills and Capability Eastern Bay of Plenty is largely a domestic longer stay beach and coastal destination. There are many One overarching infrastructure shortage that is likely untapped natural and cultural resources that could to arise is staff with the appropriate skills and be developed for a more diverse tourism clientele. training. In particular, more remote and rural tourism businesses will have difficulty in attracting White Island / Whakaari is the iconic “must see” suitably qualified people if there is a shortage of staff. experience in the region for international visitors, Having authentic staff with an ability to present however White Island is an attraction that suffers regional stories and experiences warrants a strong from weather and travel constraints. In the same focus on developing the skills of local people. This manner as Whalewatch Kaikoura is affected by will require increased investment in relevant training weather and sea conditions, there is an urgent need and a clear pathway to employment for tourism staff. to develop onshore and wet weather experiences to Businesses do not have the resources to enable this unlock this unique tourism product and enable process to occur in an efficient manner and additional visitors to extend their length of stay. resources in the process from education to Connectivity employment will be required. Key infrastructure is required to be developed to In the long term having the right skills in the regional reduce the perceived time and distance to experience visitor industry will be vital. The Eastern Bay of these tourism products. Many of the attractions are Plenty region will rely on a product offer that is within one hour of large concentrations of authentic and draws on its natural resources and international visitors in Rotorua and Tauranga, but cultural assets. Ensuring that these elements are perceptions of road travel times limits visitation. presented in a high quality way with skilled people Many of the higher value visitors are time poor and will be necessary to ensure that high value visitors therefore long travel times to sparse experiences are continue to grow the regional economy. The Eastern a strong disincentive to visiting the region. Bay of Plenty has many unique stories to tell, and Roading infrastructure that improves access to the making these stories more accessible, while still subregion as well as improving the experience retaining their uniqueness and authenticity is critical. through the subregion is the critical initial visitor Investment in product development / infrastructure, requirement. Incorporating tourism infrastructure plus capability building and leadership for new into NZTA priorities is critical to ensure improved operators is crucial. Priorities should include NZ connectivity is achieved with our key local markets, Māori Tourism and Te Puni Kokiri programmes and to provide a roading system that is fit for purpose strengthening their support to the Māori tourism – safe, attractive, appropriate rest stops, passing economy lanes and wayfinding signage. Similarly aviation connectivity is important to the business and leisure traveller, and will respond to demand. Partnerships to stimulate demand is an option. Leisure travel requires the availability of ancillary services such as rental cars and quality accommodation to improve its attractiveness. Improved airport terminal and additional services and packages will improve the visitor experience as well as provide incentives for the weekend leisure market from major cities. Eastern Bay of Plenty is mainly a touring destination for international visitors and therefore generating aviation leisure business will be a long‐term issue.
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Product Development Cycling has been identified as a key priority for the region. Additional investment is required to link and improve the Mōtū Trail, as well as develop cycle trails to connect from Ōpōtiki through to Whakatāne, Kawerau, Rotorua and Tauranga. There are considerable untapped opportunities in adventure tourism and cultural experiences that could draw on or be developed from the existing natural resources of the region. Te Urewera, Whirinaki and the Tarawera and Rangitaiki rivers offer opportunities for additional tourism experiences to both domestic and international markets. To further the development of the tourism sector in the region, recent treaty settlements present an opportunity for iwi and hapu to become more involved in tourism. This is already occurring and is expected to increase over time. With a partnership approach and collaboration between marketing organisations and operators, iwi tourism business has the potential to be the core of the regional tourism offer. Diversifying the product offer and developing a wider range of accommodation choices will extend the diversity of reasons to visit and will enable conferences and business travel to expand. An actionable plan for the development of a range of accommodation options and support local investment would help greatly. Digital Meeting the needs of tourism businesses in more remote locations is also an important requirement in this sub‐region. In particular, mobile and broadband is not expected to be available to these businesses for some time, possibly a decade away. Digital and UFB needs to be rolled out faster throughout the region Destination Management and Marketing Whilst not within the remit of infrastructure, the region lacks the capacity and insights to develop a compelling regionally linking and leveraging destination management proposition. The region contains some compelling tourism experiences but is distant from domestic markets, and travel times to the region are comparatively long. Without ready connectivity and strong marketing, the region will continue to not draw the visitation it is capable of supporting. With targeted tourism product investment, quality marketing and deeper engagement with Tourism New Zealand, Air New Zealand (though Tourism Bay of Plenty) and international tourism partners, the Eastern Bay of Plenty tourism economy could thrive.
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PRIORITISATION MATRIX FOR INFRASTRUCTURE ACTIONS
High Accommodation Improvements Product Public Sector National Development Responsibility.
Skills and Roading Connectivity Training
Impact Air Connectivity
Private Sector Retail Improv Responsibility. ements Public Transport Low
Low Urgency High The size of the bubbles represents the relative costs of the actions on a regional basis
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Appendix: Eastern Bay of Plenty Sub Region Outline OVERVIEW come up through the sands. Big game fishing and marine sports are also on offer in the region. The Eastern Bay of Plenty sub region incorporates the One of New Zealand’s youngest towns Kawerau is a Whakatāne District, the Opotiki District and the planned township, founded in 1953 specifically to Kawerau District. cater for the activities of the Tasman Pulp and Paper The region comprises the areas of Whakatāne mill. Kawerau is the industrial hub of the Eastern Bay District, Opotiki District and Kawerau District. The of Plenty and is recognised as having the world’s region covers an area of 7,528Km2 and has a total largest application of geothermal energy for direct population of 51,000. Whakatāne District is the industrial use. The local economy is based on wood– largest with an area of 4,400 km2 and a population of processing, geothermal, engineering and service 35,000. Opotiki has an area of 3104km2 and a industries. Before that the district was known as population of 9,000. Kawerau covers 22km2 and has Onepu. Kawerau was a grandson of Toi Kai Rakau, a population of 6,800. with many local tribes of the Bay of Plenty claiming The landscape of the district is diverse, with descent from Toi Kai Rakau. There are several unspoiled coastline featuring white sand beaches and archaeological sites in the Kawerau District that surf along the coast, the Raukumara mountain range indicate a large community occupied the area. and Te Urewera in the interior and rugged hills and Inland around Kawerau there are a diversity of rockier beaches to the east. There are a number of tourism attractions and activities that utilise the offshore islands in this subregion, the largest being rivers of the region. The Tarawera and Rangitaiki Moutohora / Whale Island which dominates the view rivers both support rafting, kayaking and trout fishing out to sea from Whakatāne. As well, the iconic tourism experiences. marine volcano Whakaari / White Island is an Kawerau is within easy reach of lakes, beaches, important feature of the region. forests, major cities and thermal areas. Maori comprise around 50% of the population, and The Opotiki District’s economy is heavily agriculture culture and heritage are a very strong feature of the based, with over 400 farms growing beef and dairy subregion with many historic sites and authentic cattle, planted forest, and a small amount of visitor experiences on offer. horticulture, chiefly kiwifruit4. The Opotiki district has The most populous town in the area is Whakatāne, over 10,000 square kilometres of native forest, and the main commercial and business centre of Eastern there are many excellent biking and walking trails in Bay of Plenty. Whakatāne is located about 90km from and around Opotiki, from short walks to multi‐day both Rotorua and Tauranga on the edge of the mouth hikes. The Dunes Trail section of the Motu Trails, part of the Whakatāne River, on which Maori sites in the of the New Zealand Cycle Trail, can be ridden from District date back to the first Polynesian settlements. Opotiki. From about 1880 the town was a shipbuilding and Opotiki is located 45km east of Whakatāne, around trade centre, and the Rangitikei swamp was drained the Ohiwa harbour. in 1904 to create productive farmland. Dairy currently dominates. The sub‐region’s most well‐known geothermal visitor attraction is the marine volcano Whakaari (White Island), the inner crater of which can be explored on foot. The island is about 50km offshore from Whakatāne and can be reached by boat or helicopter. Moutohora (Whale Island) also sits offshore from Whakatāne and is home to several of New Zealand’s rare and endangered plants, birds and reptiles, as 4 http://www.odc.govt.nz/our‐district/about‐our‐ well as Sulphur Bay where geothermal hot springs district/Pages/default.aspx Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 24
EASTERN BAY OF PLENTY SUB REGION VISITOR ECONOMY STRATEGY The Toi Moana Bay of Plenty Regional Growth Study provide infrastructure to support community and 2015 identified the need for central and local visitor quality of life expectations government, iwi, industry and the community to work together to identify the regional priority actions branding around ‘authentic experiences of for tourism with the goal of growing the visitor untouched NZ nature and culture’. economy to $2.5b by 2030. In response four More recently Opotiki has also developed a specific subregional strategies for each destination in the Bay visitor strategy with the objective of increasing visitor of Plenty (Taupo, Rotorua Western Bay and Eastern spend to $25.1M by 2018. Bay of Plenty) have been developed collaboratively. The priorities in each subregion were then analysed Key actions are: and presented in The Bay of Plenty Region Visitor Developing a strong and positive profile Economy Strategy. The strategy identifies the regional priorities that will drive the visitor economy Quality experiences and services and achieve the stated growth targets. Support for business development. The Eastern Bay of Plenty comprises three district A number of tourism development opportunities councils, Whakatāne and Kawerau which come within the Tourism Bay of Plenty area, and Opotiki District have been identified in a recent Tourism Eastland report in the Opotiki District, particularly around the Council which is within the Eastland Regional Tourism new harbour development, cycleways and also Organisation area. connecting to the honey industry. Strategic planning for the subregion is therefore The Whakatane District Long term plan 2015 – 2025 divided between these two tourism RTO’s. However identifies economic development as a key focus area physically and from a visitor perspective the Eastern for the District. With projects to improve the Bay of Plenty is a continuous region with common economic wellbeing of the district through issues, opportunities and characteristics. encouraging investment, tourism and district The Kawerau District Long Term Plan 2015 ‐ 2025 promotion, supporting local business and industry. includes the proposal to develop a Tourism Growth Including: Strategy as part of the Economic Development Strategy for the town. Council promotes the District and regional both The Opotiki District Long Term Plan 2015 – 2025 nationally and internationally. contains proposals to build on the success of the Facilitate and supports events that attract people Motu Trails by developing more cycle trails, including to the District. linking of Motu Trails and the Dunes Trail west of Redevelopment of the Whakatāne Museum and Ohiwa for a multi‐day ride Research Centre new trails – Tirohanga Military Track, Ohiwa, Redevelopment of the Whakatāne District War Waioeka stopbanks, Waiotahe Coast Memorial Hall (Sports, Indoor sports and integrated Eastern Bay of Plenty Trail linking conference centre) Opotiki to Ohope and beyond. Development of the Wairaka Centennial Park Within the Ōpōtiki District growth of the visitor (including waterfront recreational amenities) economy is a major priority. Strategies include: collaboration with neighbouring districts and promotion of visitor attractions (especially Motu regions on business and visitor tourism Trails) Improved harbour facilities collaboration with neighbouring districts and Provides information, advice, bookings for the regions on business and visitor tourism local community and visitors, through the Visitor advocate for and support accommodation centre (i‐Site) – which also showcases the best of development the region. events development Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 25
Eastern Bay of Plenty Overview
The Eastern Bay of Plenty subregion incorporates the The region has comparatively low visitation, largely as a Whakatāne District, the Opotiki District and the result of its distance from major population centres and Kawerau District. The region comprises a diversity of the main international visitor touring routes. landscapes and visitor offerings. They range from surf and swimming beaches on the coast, volcanic islands to pristine native forest and rivers inland.
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THE VISITOR ECONOMY Visitor spend in the Eastern Bay or Plenty sub‐region Spend Profile for Eastern Bay of Plenty reached $155 million in calendar year 2016, up from Retail sales – other $34M $142 million in 2015. Domestic visitors accounted for 77% of this spending, down slightly from 78% in 2015. Food and Beverage serving services $17M The region captures 7% of all visitor spend in the wider Bay of Plenty region. Accommodation Services $13M The annual spend in the sub‐region has grown 25% Retail Sales – Fuel and Automotive $24M since 2009, a compound annual growth rate of 3.2%, Retail – Food and Beverages $28M however compared to other destinations in the wider Bay of Plenty region this represents a declining market Cultural, Recreation and Gambling $10M share. Other passenger transport $17M Spending patterns in the subregion are highly seasonal with prominent peaks in December and January during Other tourism products $11M the longer period of elevated demand between October and April. May and August are the two months with the lowest spend. The Eastern Bay of Plenty received 256,000 guest nights Retail ‐ Other F & B serving in commercial accommodation in the 2016 calendar Accom Services Retail ‐ Fuel & Auto year, up from 229,000 in 2015. Commercial accommodation has been growing strongly since 2012, Retail F & B Cultural, Rec & Gambling although there had been a significant decline in Passenger Transport Tourism Products commercial accommodation between 2009 and 2012. The volatility in accommodation is largely related to the domestic market and changing trends and levels of economic activity. However, recent increases in 7% international visitors have the potential to support 22% continued growth. 11% The subregion comprises 5% of all guest nights in commercial accommodation in the wider Bay of Plenty 7% region. Guest nights in commercial accommodation are supplemented by domestic visitors to the subregion 11% staying in private accommodation, with 49% of visitors to the subregion staying in this style of 5 18% accommodation . 8% Retailers, transport providers and food and beverage serving services are the biggest beneficiaries of visitor 16% spend in the subregion, with 56% of the visitor spend in the subregion being on retail items, and 11% on both food and beverage serving services and passenger transport. This spending profile indicates that there are few significant paid attractions and activities within the subregion that attract significant visitation. Direct employment sustained by visitor spend in the subregion is 1,280 jobs, or around 5.5% of total employment in the subregion6.
5 AA Traveller, AA New Zealand/Fresh Info 6 LEED employment data, Stats NZ, Card transaction data, Marketview Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 27
ACCOMMODATION RETAIL AND RESTAURANTS Almost half (49%) of Eastern Bay of Plenty visitor The Eastern Bay of Plenty has limited retail shops and nights are spent in private accommodation, a slightly restaurants and has more of a ‘boutique’ retail feel, higher proportion than in the region as a whole where rather than being inundated with national chain it is 47%. Holiday parks were the second most popular stores. Improvements in retail and restaurant style of accommodation with 21% of visitors staying in offerings – particularly hours of trade, improved levels this type of accommodation, and this is the most of service and improved night time food and beverage favoured style of accommodation in the subregion. offerings is required. The subregion has a lack of hotel accommodation with less than 1% of total accommodation in the area being provided by hotels. These are older smaller establishments, which are of backpacker standard. While there is significant motel accommodation in Whakatāne that is 4 star and above there is limited accommodation of this quality in the rest of the subregion. Of the other major towns in the region, Kawerau has two motels, and Opotiki to Te Kaha offer five substantial motels. ATTRACTIONS The region’s major attractions are the domestic summer visitor who seeks a beach/coastal low cost holiday. With high sunshine hours and a mild climate this region attracts a significant domestic leisure market. The differences to this general low cost coastal attraction and activities provision is the recently established Motu Trails which offers a range of mountain biking experiences in the sub region. White Island/Whakaari is becoming an important international drawcard and is being actively marketed offshore, along with boutique and authentic cultural experiences. Whakatāne also offers big game fishing, swimming with dolphins and eco tours to Whale Island/ Moutohorā. Additional, adventure and outdoor activities that the region offers are kayak and rafting adventure experiences on the Tarawera and Rangitaiki rivers near Kawerau. The spectacular Tarawera Falls/ Outlet and associated walking tracks are very popular camping and visitor experiences. Fishing is very popular off the coast of Whakatāne and Opotiki and trout fishing experiences are also offered in the forest and rivers in the southern part of the sub region.
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EASTERN BAY OF PLENTY DESTINATION APPEAL
Strong Maori cultural offering
Temperate climate and high annual sunshine
Family oriented surf and beach experiences (Ohope Beach is NZ's most loved beach)
Unique marine attraction of White Island (Whakaari) and Whale Island (Moutohora)
Picturesque and highly accessible sights and attractions (cycling and walking track)
Te Urewera and Whirinaki a great walk and natural and cultural attractions
Volcano and geothermal activity
River and Forest experiences
Safe and Accessible fishing and boating opportunties
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