EASTERN Visitor Economy

Final Report 31 August 2017 EXECUTIVE SUMMARY

Eastern Bay of Plenty is a sub region of the wider Bay • Development of the Māori economy though 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 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 of will require assessment of individual exceptions. 35,000. Opotiki has an area of 3,104km2 and a With the proximity to the cruise 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 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 beach and holiday park/back- improved services for visitors, additional day packer style holidays. There is also an increasing experiences and more wet weather and winter uptake of adventure activities around mountain options. 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 the outdoor recreation option, including regional 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 biking urban cycling trails experience of the Motu Trail to the sub-region. There are also opportunities to link the trail to other rides and connect across the whole region to other destinations and experiences. • The Opotiki harbour development presents a new opportunity for expanded fishing and recreational boating in the district. • Enhancing the connection between White Island and Whakatāne onshore will provide additional opportunities for both domestic and 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.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 1 • Cellular and Digital1 Infrastructure: Address significant regional disadvantages with respect to lack of Broadband/ Fibre and Mobile blackspots. • Capability and Capacity: Additional investment to achieve better tourism skills at the coalface within small businesses, improved networking and resources to drive a compelling regional proposition and enabling Māori tourism to reach its potential.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 2 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-region generate an additional 500 jobs based on the is comparatively isolated from main visitor flows and expected visitor spend growth over the next decade. reduced travel times to and within the region are Training and skill development to present quality and important. There is a current deficit in wayfinding authentic services will be vital to deliver sustainable signage to the Eastern Bay and combined with visitor tourism growth in the region. routes reflecting travel itineraries that are over 20 The Eastern Bay of Plenty lacks a clear and cohesive years old, are not helping to support the dispersal of position in an overall Bay of Plenty, regional 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 still region. do not have mobile coverage. These constraints are likely to increasingly limit the performance of these businesses and locations as tourism destinations.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 3 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 international W ai kat o TR rec eiv es 5 .5 % of t ot al <5% GDP visitor guest nights compared to the wider Bay of vis it o r expendi t u re in NZ ($ 1 .2 3 Gross Domestic Product Plenty subregions b il lio n) • receives a lower share of the international visitor spend when compared to destinations in the 55 % vis it o rs t o Wa ik at o T R wer e Rotorua and Lake Taupo sub-regions. i n t ern at i o n al ( 20 12 ). • receives the lowest net promoter score of all In t erna t io na l ALOS o f 3. 9 ni g ht s in 500,000, destinations in the wider Bay of Plenty region2. reg io n. 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 destinations they visited within the wider Bay of Plenty region as places Traveller respondents how likely they are to recommend the to visit Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 4 Leveraging growth

New Zealand is going through a strong period of The Eastern Bay of Plenty sub region is part of both the tourism growth, fuelled by increased international Tourism Bay of Plenty and Tourism Eastland regions arrivals. We need to capitalise on this to strengthen and therefore the growth objectives for this sub- awareness of the destination, increase visitor numbers region are a part of those for a wider area. and increase the economic benefits flowing through to From a visitor perspective, the Eastern Bay of Plenty is the community. To facilitate this growth some key a continuous region with common experiences, factors need to be addressed to ensure that continued opportunities and issues. However, strategic planning high levels of satisfaction are maintained. In addition, for the sub-region is divided between the two tourism ’s domestic tourism market, which Regional Tourism Organisations which relate to comprises over 60% of total visitor spend is also administrative local government regions 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 5 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 and hapu and enable potential cultural •Growing cruise visitor market through Port tourism and other opportunities. of Tauranga • A more comprehensive and deeper cultural offer. 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 6 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 offer in the region and also the trail would enhance its attractiveness enhancement options between map of use. Strategy 2015. attain international significance to a wider audience. Great Rides and major centres Develop a demand estimate are estimated at $5-10M The NZ Cycle Trail Establishing connectivity with Implementation of “connectors” between for the next decade drawing maintenance and other trails/ destinations trails. The NZ Cycle Trail Maintaining on existing use enhancement programme including the Tarawera River the Quality of Great Rides Fund  Opotiki – Whakatāne – Tauranga Identify and prioritise linkage Trail development provides a 50% support for Opotiki District Council Long opportunities for NZCT fund  Opotiki – Whakatāne – Kawerau – improvements to Great Rides. Term Plan and Annual Plan Connectors for the Motu Trails Rotorua Identify and prioritise to the wider region will require The enhancement and Connectivity enhancements enhancements for the next a ferry connection across the A Rotorua connection would enable a extension fund received an likely to need co-funding from decade and incorporate costs Ohiwa harbour between Port diversity of experiences to be had in the additional $25M for Great Rides Whakatāne, Kawerau and into the next council LTP from Ohope wharf and Ohiwa boat region, as well as providing access to the and the development of cycle- Opotiki Councils through 2018 onwards ramp. 250,000 mountain bikers who access the safe connections that will Annual Plan and Long Term Tokorangi (Redwoods) a year enable cyclists to ride even Development of an Urban Plan commitments.

more safely between some of Cycleways programme, to While these trails are expected to Engage with Council and NZTA the Great Rides. create cycleways for resident principally be mountain biking, walking and for funding for an Urban and visitor use. multiuse will expand the range of visitors The fund has provided funding Cycleways programme. that would enjoy the facilities of some of $70,000 in three grants to Potential enhancements that trails, especially grade 1 trails in locations Motu Trails in recent years. will wrap around the cycle with additional attractions and scenic Further grade improvements to trails – parking, public toilets, values. increase its attractiveness are bike wash down facilities, also warranted. improved accommodation retail and offering.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 7 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: These two funds are potential funding sources. However co  Increased visitor spend funding is likely to be expected  Improved seasonality which will challenge the ability of the Motu Trails trust to raise  Improved length of stay the local share.  Leverage of the wider regions status as Other potential funding sources a cycling destination include the NZ community Trust 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 8 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 walks. Infrastructure Funding Engage with New Zealand development of family oriented Leverage off the Lake Waikaremoana Great Māori Tourism and Te Puni / shared use trails throughout Walk Kokiri to provide business the Eastern Bay of Plenty, Māori Tourism Funding support for development of combined with strong cultural Enhance Ngā Tapu o Toi Coastal walkway, strategies and new products. experiences and stories is a to develop it in to one of the NZ Great Day huge opportunity. Walks - Improve toilet facilities, cultural Potential for partnering with Create network to provide interpretation signage, way finding signage, support / mentoring to DoC or iwi or commercial 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 eg transportation. Murupara, , Minginui, Waimana

Develop satellite i-SITE for the southern area of the Whakatane District

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 9 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 opportunities centre around infrastructure improvements Plan commitments. Potential benefits are estimated at $4 - toilets, rubbish disposal, picnic private recreational fishing and for inclusion in upcoming LTP $6M depending on the degree of utilisation and park facilities) is required commercial sightseeing. Other of the proposed infrastructure. to meet increased visitor opportunities such as charter demand. fishing have potential over the longer term. There are specific projects Whakatāne: underway throughout the Redevelopment of existing commercial Eastern Bay of Plenty Whakatāne Town Centre wharf and game wharf ($11m-$15m). Costs are dependent upon the improvements proposed. vision project Proposed new Quay Street wharf and Whakatāne District Whakatāne Yacht Club development, which Development Strategy will include a town pier ($15m).

Ki Mua (Whakatāne Improved access from Whakatāne to White Community Vision) Island, tour operators and increasing recreational fishing and boating demand Cultural & tourism precinct from domestic visitors will support further (WDC Council & Ngāti Awa JV harbour development. proposal)

Kaweraru Rangitaiki / Tarawera River Rafting Mt Edgecumbe / Putuaki summit walk

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

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 as offered in the region, many are cultural stories of the region. New Zealand Māori Tourism marketing to develop these low volume and require Given the proximity to the cruise market options. Action Plan (2011-2014) additional marketing and from the Port of Tauranga there is an awareness to achieve scale. Treaty Settlements will existing market, as well as FIT travellers He Mauri Ohooho, the Bay of resource some iwi should they that are long stay and exploring the wider Connections Maori Economic seek to invest and develop their . 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 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 large that is viable from a return on conferencing facilities that are Identification and supply of holiday parks in the wider region. This investment basis. Assuming a compatible with current required accommodation profile reflects the large moderate sized hotel product offers. services/connections. domestic weighting in the visitor arrivals. If (estimated at 100 rooms) and a the Eastern Bay of Plenty sub region is to quality offer, it is estimated that Business case that is attractive achieve the desired international visitor a hotel with limited to investors growth, then additional hotel conferencing facilities would be accommodation will be required. If estimated to require around Construction capability Whakatāne is to develop into an overnight $30M Once built – skilled labour stop for group international visitors then a Potential linkage with other recognised brand will also be required to conferencing options meet the wholesale market. Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 11 Description Market Assessment and potential benefit Likely cost and appropriate Actions Linkage with other strategic (In no particular order) source of funding frameworks

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)

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 12 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 destination eg Private Sector investment 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 13 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 14 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 reduce access attractions and activities  Improved connectivity between travel times and improve visitation, especially for the cruise efficiently – seek insights from Rotorua and Whakatāne along SH 30. market. Tourism NZ  Improved connectivity within the Limited NZTA proposals other than safety improvements on NZTA priorities – weight tourism region, especially between Whakatāne SH30. But additional passing lanes (particularly through the demands appropriately and Opotiki around Ohiwa harbour lakes, rest stops and wayfinding signage would improve this 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 sub-region and therefore costs are  Improved wayfinding and tourism unknown. signage – Welcome/Brand signage for the ‘gateways’ to the District.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 15 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 the rural locations includes, Edgecumbe, Kawerau, Murupara, Ōhope, or no connection. in the district. In particular operators in Coastlands and Opotiki. Develop business case for local the 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 action notification of issues to network include: Kaingaroa Forest, Rangitaiki and Te Kaha Whanarua providers Bay and parts of SH2 near Taneatua, and parts of SH 35 and 38 Establish interim broadband service such as wireless fast broadband For other regions there will be a residual need to develop until rollout of UFB2/RB2 broadband/fibre connectivity for health and safety and business capability reasons. For visitors there is an Consult with service providers to expectation that operators and activities will have available map priority locations from a connectivity. tourism perspective (safety issue as lead rationale) Seek to influence next tranche of UFB rollout.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 16 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 specific 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 needs sector. Current direct employment in the roadmap. Support budget and funding for analysis requires implementation and acceleration in the region is estimated at 1,000 FTE’s. This increased training and workplace 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 investment tertiary training organisations. would need to by the tourism sector, educational institutions as well as be costed. Improved linkage between tourism 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.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 17 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 2018 $4-6m for Work with Airlines, existing and LTP terminal potential new carriers to develop Establish air connectivity from Wellington upgrade new routes. Establish business case and the South Island Improved air connectivity for scheduled services would be for new routes and scheduling vital to achieve enhancement of Whakatāne as a conference Achieve improved air connectivity from destination Prepare a business case for a new the north with an improved fleet terminal development at In the longer term review the previous consideration to have Interline agreement with Air NZ desirable Whakatāne. To be include in 2018 a regional International airport at Paengaroa LTP. Local government to commit to facilities improvements or redevelopment as part of its current commitments 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.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 18 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 (waste An additional Freedom camping – await LGNZ availability of facilities management, power, signage etc) is required throughout the $2-$5M national options to implement Eastern Bay both at end destination sites and enroute investment may be required to keep pace and unlock potential

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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 a predominantly summer constrains group visitation in particular. financial preferences based on future 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, limited Retail – Tourism operators to make 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 20 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 *** *** ** * ****** ***** ****

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 21 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 be to arise is staff with the appropriate skills and training. developed for a more diverse tourism clientele. In particular, more remote and rural tourism businesses will have difficulty in attracting suitably White Island / Whakaari is the iconic “must see” qualified staff if there is a shortage of staff. Having experience in the region for international visitors, authentic staff with an ability to present regional however White Island as one of those attractions that stories and experiences warrants a strong focus on suffers from weather and travel constraints. In the developing the skills of local people. This will require same manner as Whalewatch Kaikoura is affected by increased investment in relevant training and a clear weather and sea conditions, there is an urgent need to pathway to employment for tourism staff. Businesses develop onshore and wet weather experiences to do not have the resources to enable this process to unlock this unique tourism product and enable visitors occur in an efficient manner and additional resources to extend their length of stay. in the process from education to employment will be Connectivity required. Key infrastructure is required to be developed to Over the longer term having the right skills in the reduce the perceived time and distance to experience regional visitor industry will be vital. The Eastern Bay these tourism products. Many of the attractions are of 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 will Many of the higher value visitors are time poor and 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 sub-region as well as improving the experience retaining their uniqueness and authenticity is critical. through the sub-region 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 Māori connectivity is achieved with our key local markets, Tourism and Te Puni Kokiri programmes strengthening and to provide a roading system that is fit for purpose their support to the Māori tourism economy – safe, attractive, appropriate rest stops, passing 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.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 22 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 thought to Whakatāne, Kawerau, Rotorua and Tauranga. There exists 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.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 23 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 24 Appendix: Eastern Bay of Plenty Sub Region Outline OVERVIEW Whakatāne and can be reached by boat or helicopter. Moutohora (Whale Island) also sits offshore from The Eastern Bay of Plenty sub region incorporates the Whakatāne and is home to several of New Zealand’s Whakatāne District, the Opotiki District and the rare and endangered plants, birds and reptiles, as well Kawerau District. as Sulphur Bay where geothermal hot springs come up The region comprises the areas of Whakatāne District, through the sands. Big game fishing and marine sports Opotiki District and Kawerau District. The region are also on offer in the region. covers an area of 7,528Km2 and has a total population One of New Zealand’s youngest towns Kawerau is a of 51,000. Whakatāne District is the largest with an planned township, founded in 1953 specifically to area of 4,400 km2 and a population of 35,000. Opotiki cater for the activities of the Tasman Pulp and Paper has an area of 3104km2 and a population of 9,000. mill. Kawerau is the industrial hub of the Eastern Bay Kawerau covers 22km2 and has a population of 6,800. of Plenty and is recognised as the world’s largest The landscape of the district is diverse, with unspoiled application of geothermal energy for direct industrial coastline featuring white sand beaches and surf along use. The local economy is based on wood–processing, the coast, the Raukumara mountain range and Te geothermal, engineering and service industries. Urewera in the interior and rugged hills and rockier Before that the district was known as Onepu. Kawerau beaches to the east. There are a number of offshore was a grandson of Toi Kai Rakau, with many local tribes islands in this sub region, the largest being Moutohora of the Bay of Plenty claiming descent from Toi Kai / Whale Island which dominates the view out to sea Rakau. There are several archaeological sites in the from Whakatāne. As well, the iconic marine volcano Kawerau District that indicate a large community Whakaari / White Island is an important feature of the occupied the area. region. Inland around Kawerau there are a diversity of tourism Maori comprise around 50% of the population, and attractions and activities that utilise the rivers of the culture and heritage are a very strong feature of the region. The Tarawera and Rangitaiki rivers both sub region with many historic sites and authentic support rafting, kayaking and trout fishing tourism visitor experiences on offer. experiences. The most populous town in the area is Whakatāne, the Kawerau is within easy reach of lakes, beaches, main commercial and business centre of Eastern Bay forests, major cities and thermal areas. of Plenty. Whakatāne is located about 90km from both The Opotiki District’s economy is heavily agriculture Rotorua and Tauranga on the edge of the mouth of the based, with over 400 farms growing beef and dairy Whakatāne River, on which Maori sites in the District cattle, planted forest, and a small amount of 4 date back to the first Polynesian settlements. From horticulture, chiefly kiwifruit . The Opotiki district has about 1880 to town was a shipbuilding and trade over 10,000 square kilometres of native forest, and centre, and the Rangitikei swamp was drained in 1904 there are many excellent biking and walking trails in to create productive farmland. Dairy currently and around Opotiki, from short walks to multi-day dominates. hikes. The Dunes Trail section of the Motu Trails, part of the New Zealand Cycle Trail, can be ridden from The sub-region’s most well known geothermal visitor Opotiki. attraction is the marine volcano Whakaari (White Island), the inner crater of which can be explored on Opotiki is located 45km east of Whakatāne, around foot. The island is about 50km offshore from the Ohiwa harbour. EASTERN BAY OF PLENTY SUB REGION VISITOR ECONOMY STRATEGY

4 http://www.odc.govt.nz/our-district/about-our- district/Pages/default.aspx Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 25 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 for • branding around ‘authentic experiences of tourism with the goal of growing the visitor economy untouched NZ nature and culture’. to $2.5b by 2030. In response four sub regional More recently Opotiki has also developed a specific strategies for each destination in the Bay of Plenty visitor strategy with the objective of increasing visitor (Taupo, Rotorua Western Bay and Eastern Bay of spend to $25.1M by 2018. Plenty) have been developed collaboratively. The priorities in each sub region were then analysed and Key actions are: are 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 and • Quality experiences and services achieve the stated growth targets. • Support for business development. The Eastern Bay of Plenty comprises three district councils, Whakatāne and Kawerau which come within A number of tourism development opportunities have the Tourism Bay of Plenty area, and Opotiki District been identified in a recent Tourism Eastland report in Council which is within the Eastland Regional Tourism the Opotiki District, particularly around the new Organisation area. harbour development, cycleways and also connecting to the honey industry. Strategic planning for the subregion is therefore divided between these two tourism RTO’s. However The Whakatane District Long term plan 2015 – 2025 physically and from a visitor perspective the Eastern identifies economic development as a key focus area Bay of Plenty is a continuous region with common for the District. With projects to improve the issues, opportunities and characteristics. economic wellbeing of the district through 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 Strategy as part of the Economic Development Including: 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 Motu • Facilitate and supports events that attract people 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 to 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 | 26 Eastern Bay of Plenty Overview

The Eastern Bay of Plenty sub region incorporates the The region has comparatively low visitation, largely as a Whakatāne District, the Opotiki District and the Kawerau result of its distance from major population centres and District. The region comprises a diversity of landscapes the main international visitor touring routes. and visitor offerings. They range from surf and swimming beaches on the coast, volcanic islands to pristine native forest and rivers inland.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 27 THE VISITOR ECONOMY • Retail sales – other $34M Visitor spend in the Eastern Bay or Plenty sub-region • Food and Beverage serving services $17M reached $155 million in calendar year 2016, up from • Accommodation Services $13M $142 million in 2015. Domestic visitors accounted for 77% of this spending, down slightly from 78% in 2015. • Retail Sales – Fuel and Automotive $24M The region captures 7% of all visitor spend in the wider • Retail – Food and Beverages $28M Bay of Plenty region. The annual spend in the sub-region has grown 25% since • Cultural, Recreation and Gambling $10M 2009, a compound annual growth rate of 3.2%, however • Other passenger transport $17M compared to other destinations in the wider Bay of Plenty region this represents a declining market share. • Other tourism products $11 Spending patterns in the sub-region are highly seasonal with prominent peaks in December and January during the longer period of elevated demand between October and April. May and August are the two months with the Retail - Other F & B serving lowest spend. Accom Services Retail - Fuel & Auto The Eastern Bay of Plenty received 256,000 guest nights Retail F & B Cultural, Rec & Gambling in commercial accommodation in the 2016 calendar year, up from 229,000 in 2015. Commercial Passenger Transport Tourism Products accommodation has been growing strongly in recent years since 2012, although there had been a significant decline in commercial accommodation since 2009. The 7% volatility in accommodation is largely related to the 22% domestic market and changing trends and levels of 11% economic activity. However, recent increases in international visitors have the potential to support continued growth. 7% The sub-region comprises 5% of all guest nights in commercial accommodation in the wider Bay of Plenty 11% region. Guest nights in commercial accommodation are supplemented by domestic visitors to the sub-region 18% staying in private accommodation, with 49% of visitors to 8% the sub-region staying in this style of accommodation5. Retailers, transport providers and food and beverage 16% serving services are the biggest beneficiaries of visitor spend in the sub-region, with 56% of the visitor spend in the sub-region 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 sub-region that attract significant visitation. Direct employment sustained by visitor spend in the sub- region is 1,280 jobs, or around 5.5% of total employment in the sub-region6.

Spend Profile for Eastern Bay of Plenty

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 | 28 ACCOMMODATION RETAIL AND RESTAURANTS Almost half (49%) of Eastern Bay of Plenty visitor nights The Eastern Bay of Plenty has limited retail shops and are spent in private accommodation, a slightly higher restaurants and has more of a ‘boutique’ retail feel, proportion than in the region as a whole where it is rather than being inundated with national chain stores. 47%. Holiday parks were the second most popular style Improvements in retail and restaurant offerings – of accommodation with 21% of visitors staying in this particularly hours of trade, improved levels of service type of accommodation, and this is the dominant style and improved night time food and beverage offerings of accommodation in the sub-region. is required. The sub region has a lack of hotel accommodation with less than 1% of total accommodation in the sub region 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 sub region. 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 and 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. Marine 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.

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 29 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

Eastern Bay of Plenty – Subregional Strategy Final report, prepared by TRC Tourism 31082017 Page | 30