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Waikato Lakes Tourism Development Feasibility Study

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Waikato Lakes Tourism Development Feasibility Study South Waikato Regional Partnerships Programme: Waikato Lakes Tourism Development Feasibility Study Prepared for the South Waikato Economic Development Trust The New Zealand Tourism Research Institute September 2004 1 Table of Contents Executive Summary...........................................................................................................................3 Introduction........................................................................................................................................5 The Strategy Context .............................................................................. 5 Research Approach ................................................................................. 7 1. The Case for Tourism................................................................................................................9 2. Lakes Assessment ....................................................................................................................11 Situation Analysis - Arapuni Town & Area .................................................... 14 Current Tourism Activities around Lake Arapuni and the district ....................... 14 3. Product Development.............................................................................................................18 Activity Evaluation ............................................................................... 18 Core Activity Evaluation......................................................................... 20 Trails & Community Tourism products ..................................................... 21 Other Key Themes ............................................................................. 22 Communities and Trail Users – Case Studies ................................................. 24 Individual Products ............................................................................... 26 Potential as coach stopover..................................................................... 28 4. A Way Forward.........................................................................................................................29 An Action Plan..................................................................................... 29 1. Community consultation over possible tourism development options............. 30 2. Cluster development ....................................................................... 30 3. Marketing .................................................................................... 31 4. Product and Business Development ...................................................... 31 Beyond 2005..................................................................................... 32 5. References................................................................................................................................33 2 Executive Summary There are six major dams on the Waikato River (Atiamuri, Whakamaru, Waipapa, Maraetai, Arapuni and Karapiro) located within the South Waikato district. The hydro lakes created by the dams offer numerous recreational and tourism opportunities. This study examines the potential for tourism development based around a hydro lake, and takes into account current regional and local initiatives. These include the establishment of a River Trail along the Waikato River, the first stage of which is under construction at Arapuni. When assessing the hydro lakes, Arapuni is the lake and township offering most potential for economic benefits to accrue to the South Waikato District. It is located on a tour bus route and the swing bridge is a unique historic feature which already attracts visitors. There are numerous other factors which support Arapuni including existing or potential businesses and skills within the community. The South Waikato District lies close to the tourism centres of Waitomo, Rotorua and Taupo. The target market for tourism around Arapuni is the Interactive Traveller, who is more likely to be a free and independent traveller who is attracted off the ‘beaten path’ into more remote regions, desire authentic experiences revolving around the unique culture and environment of this area, and use the Internet to research their destination and plan their trip. International experience and research indicates that for communities such as Arapuni, an integrated approach to product development is required. The tourism product mix which can be used to boost economic development for the area is based around the combination of the lake, river trail and community assets. Promotion of heritage, arts and natural resources are vital components to local success. The integration with products in the broader region is also crucial. Research indicates that trails, and communities which have embraced their role as a gateway to a trail, have reaped significant economic benefits from the visitors that utilise a trail. There is real potential for clustered products that also mesh with external trails and products. By using a cluster approach and nurturing a variety of small scale quality products that are networked together to create a critical mass, a unique experience can be created for visitors to Arapuni. A tentative vision for Arapuni could be said to embrace high yield, low impact tourism that creates sustainable economic benefit for the community without compromising Arapuni’s unique quality of life’. In order to take tourism development to the next stage and meet the type of vision outlined above, the following core aims need to be taken into account: • To create a local economic situation which attracts and supports sustainable businesses. 3 • To build linkages, clustering and networks featuring tourism-related business and experiences. • To provide information that will support tourism-related decision-making. • To ensure the service level expectations of visitors are realistic and are met or exceeded. • To provide quality visitor information and build lasting relationships with visitors. • To provide, package and market a quality, diverse, sustainable and innovative tourism experience. • To engage community and stakeholders in the planning and development of tourism. The following are the core actions to be undertaken, and a suggested timeframe for each is based on progression of these actions without delay: • community consultation (public meetings, interviews with tourism operators, and visitor surveys); • cluster development with people involved or interested in the various tourism products; • marketing through business support and internet tools for facilitating community networking and regional marketing; • product and business development through further infrastructure support, technology developments, community networking and local champions to drive the process. 4 Introduction The South Waikato district is rich in underdeveloped tourism resources. In particular, the hydro lakes along the Waikato River represent a visitor environment with considerable potential. There are six major dams on the Waikato River (Atiamuri, Whakamaru, Waipapa, Maraetai, Arapuni and Karapiro) located within the district. Current tourism development on these lakes is limited - largely consisting of poor quality camping facilities and water sports access areas. Much of the land along the river/lakes is Carter Holt Harvey administered in forestry use. Mighty River Power owns land around the power stations and these core sites have easements and conservation covenants associated with them. Environment Waikato and the District Council administer the lakes/river in terms of resource consents, bylaws and related issues. Farms make up most of the remaining bordering land. In August 2003 the South Waikato Economic Development Trust sought capability building funding from New Zealand Trade and Enterprise. The funding project had the initial aim of completing a feasibility study on a major project, which will attract investment, and serve as a pilot providing a model for further development. This was to involve establishing an integrated set of outdoor tourism and commercial opportunities based on one of the six hydro lakes that is in the district. The ultimate objectives were to license the concept to an investor with proof of concept opening up similar approaches on the other dams/lakes, which border on South Waikato. The lake selected was to be the one that gives the best potential for economic return and the most experience relevant to developing the potential of the other lakes. The scope of this tourism development feasibility study has evolved from the initial concept, with circumstances having resulted in the following terms of reference for the study to be conducted by NZTRI over July/August 2004: To conduct a feasibility study that will underpin the development of recreation facilities and high yield outdoor tourism in the South Waikato District. The following aims are addressed: • Determine which of the 6 hydro-lakes has the most potential for developing economic benefits for the district. • Develop a set of tourism products for possible development at the selected lake. • Assess the feasibility of at least 2 major product opportunities. • Provide an action plan for further development steps. The work was conducted by Simon Milne, Vanessa Clark, Carolyn Nodder, Tone Gjengsto, Magdalena Rungaldier, Chen-yi Ho, and Bérengère Crouzet. The Strategy Context The report and the research which underlie it must be viewed against the backdrop of relevant regional and national policy. 5 The South Waikato
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