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EASTERN BAY of PLENTY Visitor Economy

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EASTERN BAY of PLENTY Visitor Economy EASTERN BAY OF PLENTY 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 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 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 Waikato TR receives 5.5% of total <5% GDP visitor guest nights compared to the wider Bay of visitor expenditure in NZ ($1.23 Gross Domestic Product Plenty subregions billion) • receives a lower share of the international visitor spend when compared to destinations in the 55% visitors to Waikato TR were Rotorua and Lake Taupo sub-regions. international (2012). • receives the lowest net promoter score of all International ALOS of 3.9 nights in 500,000, destinations in the wider Bay of Plenty region2. region. 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 New Zealand’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
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