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Sector Profiles 2011 MANAWATU REGION Tourism & Visitor Tourism plays a significant role in the Manawatu region economy even though the region has not generally been perceived as a tourist destination. The region’s greatest strength is in domestic tourism and it accounts for an above average share of domestic day trips and overnight trips by New Zealand residents. Providing you with a better understanding of the different components of the Manawatu region economy and the contribution each sector makes to the demographic and economic growth of the region. Contents Executive Summary 3 Estimating the Economic Contribution of the Tourism and Visitor Sector to the Manawatu Region 5 Definitions and Data Sources 7 An Emerging Destination 9 The Country Road - Manawatu 11 Domestic Tourism 15 Te Manawa/Rugby Museum 24 International Visitors 25 New Zealand Wind Energy Conference Palmerston North 29th – 31 March 2010 28 Conventions 29 Retail 33 Events 37 Broad Groupings for Visitors to the Manawatu 39 Square Affair 2011 44 Student City 45 Tourism & Visitor Tourism Commercial Accommodation 47 Private Accommodation 49 Conclusion 51 MANAWATU REGION MANAWATU Sector Profile 1 2 Images courtesy of Destination Manawatu and Laura Ridley Photography Images courtesy andLaura ofDestination Manawatu Tourism & Visitor Tourism MANAWATU REGION MANAWATU Sector Profile Executive Summary Workforce It is estimated that 4.7% of the workforce in the Manawatu region were employed in tourism related jobs in February 2010, accounting for 2,900 jobs and earnings of $82 million (salaries, wages and self-employed incomes in the year to March 2009). Estimates for the contribution of the sector to the regional economy, based on the tourism satellite account, suggest it had a direct economic contribution of $168 million in 2010 and an indirect economic contribution of $229 million, giving a total estimated economic contribution of $397 million. Visitors Palmerston North is a major destination for domestic visitors, with 1.1 million day visitors in the year to December 2010 (4.0% of the national total) and close to 0.4 million overnight visits (2.5% of the national total). In 2010 30% of overnight visits to Palmerston North (121,000 visits) were for leisure, recreation and holidays, 18% (70,000 visits)) were for business or professional reasons and 50% (200,000) were for visits to friends and relatives.1 The number of overnight trips to the city compares very favourably with other centres recognised as significant tourism destinations. For example the 399,000 overnight visits to Palmerston North was only slightly below the 410,000 overnight visits to Dunedin and 453,000 visits to Tauranga, and higher than overnight visits to destinations such as Napier, New Plymouth, Hastings and Queenstown. The share of international visitor numbers to the region is lower than the national average but they still contribute a significant proportion of total visitor numbers in the region, with an estimated 90,000 international visitors staying in commercial and private accommodation (for example with friends and family) in the region during 2010. International cardholder spending through the Paymark network for the year to June 2011 accounted for $5.7 million of retail spending in Palmerston North, also around 1% of total retail expenditure on the network. Tourism Opportunities The Manawatu region is not currently renowned for its dominance of tourism opportunities that attract significant numbers of international visitors. The presence of the NZ Rugby Museum, however, is a key strength for attracting rugby visitors to the region. Super 15 rugby games and international rugby tests all bring international visitors to New Zealand and the museum is a key attraction for these visitors. Tourists can easily access Wellington, the Hawkes Bay, Taranaki and the Central North Island ski fields from a central base in the region. This “gateway” concept is a strength that is being further developed to enable leveraging of commissionable tourism opportunities located in neighbouring regions. Palmerston North offers a strong retail sector that services a wide region, drawing a high number of visitors from the Tourism & Visitor Tourism surrounding Manawatu-Wanganui region and from Wellington, Taranaki and the Hawkes Bay. MANAWATU REGION MANAWATU Sector Profile 1 Tourism Strategy Group, Ministry of Tourism 3 Events Events are important for bringing visitors to the region. The region has great infrastructure for hosting national and international sports events and has a well recognised strength in hosting conventions and conferences. These build on the region’s central location in New Zealand and key transport hubs. Also important is the growing strength in cultural diversity within the Palmerston North community and the depth and breadth of activities and events associated with this segment. Education It is also important to recognise the influence of the education sector in attracting visitors to the region. This includes Massey University, UCOL Polytechnic, International Pacific College and ETC Learning Centre. Short-term international students visiting the city for language study and professional development are counted as tourists and usually stay much longer in the region than other international visitors. Long-term students are often visited by family and friends and a proportion of international students settle in the region. Domestic extramural students at Massey University are often required to travel to the city for block courses, some of which are timed during the semester breaks when student accommodation is available for visiting students. Medical and Health Providers Events are important MidCentral Health and other medical and health providers play an important role for bringing visitors to in bringing domestic visitors to the city, the region. The region particularly through the cancer treatment has great infrastructure and support services offered in Palmerston for hosting national North. As an example, economic impact and international sports assessments prepared recently for Ozanam House (accommodation for patients, and the events and has a well families of patients receiving radiotherapy recognised strength in treatment for cancer at Palmerston North hosting conventions Hospital) suggest it accounts for approximately and conferences. 28,000 visitor nights a year and an approximate net regional economic impact of $1.5 million. Councils Role The importance of tourism in the economic strength of the Manawatu region influences the type and quantity of services which need to be provided by the two Councils which make up the region (Palmerston North City and Manawatu District). They include water/waste water, solid waste, recycling, roading, parking and amenities such as public toilets, and parks and recreational areas. Additional visitors to the region increase demand for these services so an understanding of visitors to the City and expected increases in visitor numbers are required for Councils to adequately plan for these services. Tourism & Visitor Tourism The Councils play a role in the marketing of the region to visitors and in encouraging more businesses and people to consider the region to be a desirable location to work and invest. Enhancements to infrastructure in the region, and the development of attractions which make the Manawatu a more desirable place to visit, also make the Manawatu a more desirable place to live. MANAWATU REGION MANAWATU Sector Profile 4 Estimating the Economic Contribution of the Tourism and Visitor Sector to the Manawatu Region Measuring the size of the tourism sector is challenging because it does not fit the standard industrial classification used to record employment and economic activity in sectors like manufacturing, agriculture and retailing, which are classified according to the goods and services they produce. Instead the tourism sector is defined by the characteristics of tourists and their consumption of tourism products and services. A “tourism satellite account” is the economic approach used to estimate from above the use of tourism related goods and services across a broad range of industry sectors. The estimates used in this profile are based on “tourism satellite accounts” prepared by Statistics New Zealand. It is estimated that 4.7% of the workforce in the Manawatu region was employed in tourism related jobs in February 2010, accounting for 2,900 jobs. Estimates based on the tourism satellite account suggest that total earnings in the tourism sector were $82 million (salaries, wages and self-employed incomes) in the year to March 2009, 3.2% of total earnings in the region. The earnings share of the sector is lower than its share of total jobs due to the prevalence of part-time employment in the retail, accommodation and food services sectors. It is estimated that 4.7% Estimates for the contribution of the sector to of the workforce in the regional economic activity or gross domestic Manawatu region was product (GDP), based on the tourism satellite employed in tourism account, suggest it had a direct economic related jobs in February contribution of $168 million in 2010 and 2010, accounting for an indirect economic contribution of $229 million, giving a total estimated economic 2,900 jobs. Estimates contribution of $397 million. suggest that total earnings in the tourism Economic Multipliers sector were $82 million in While the direct economic impact from the the year to March 2009, tourism sector in the Manawatu region is 3.2% of
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