West Coast Cycle Current Status & Strategic Direction Trail Review for www.beca.com Partnership Tenacity Enjoyment Care These tools are the start of a journey that will translate into a better connected, integrated and funded network of trails. That will underpin the intention of more New Zealander recreational cyclists, coming to the West Coast to cycle, more Outcomes/Findings often – which will help transition the West Coast region to a new economy. Finish what we’ve got Secure funding for maintenance and operation Create groups to initiate operation model The Journey 1 The West Coast region is in an economic transition 2 To achieve this transition from extractive mining economy/ 3 primary produce to a tourism there has been significant public destination. sector investment in tourism, This initial investment including cycle trail establishment. by public and private 4 sectors is generating cycle Funding the maintenance tourism visitation and operation of the 5 Creating a sustainable across the region, primarily for New established trails now Zealanders, and starting to generate (and into the future) is trail network a wider economic benefit. a major operational risk Engagement, investigation and • achieving a successful transition research has been completed by Development West Coast, Beca and • attain the forecast economic Select Contracts together with a benefits representative group of Stakeholders. • bring about the direct spend This has developed: to local businesses and the community • A sustainable trail network strategy • Cycle Trail Factbook • Sustainable operational models Contents Customer 8 Host 12 These four strategies are our areas of focus in this document Experience 14 Operations 16 The document illustrates There is an opportunity to develop a strategy to link the cycle trails • Existing Facts together and address ongoing • Focus on the customers • Network model maintenance and operational costs. • Identifying gaps in the model and Barriers to investment This strategy and the recommendations • How to enhance the Customer Experience have been developed to address this • Sustainable model opportunity. • Pre investment appraisal The strategy has been developed through engagement • Strategy actions with stakeholders. Destination Management Customer Experience • New Zealanders, young & old • Finish the current trails (investment) • Outdoor family adventure • Amazing scenery and heritage story • Repeat visitation • Choose your level of adventure • Distinct clusters West Coast • A mix of trail grades • Safe journeys Strategy • Improve amenity value Supercharge our growth through s Destination Management of the s Hosts Wild West Coast Trail Network Operations e • The best hosts • Value the product we have n • A network of amenities • Monetise our assets r • Quality not quantity • Sustainably fund trail operations e • Leverage through destination • Connected experiences d l development & management • Resilient infrastructure i W Cycle Tourism Growth d e Transitioning from extractive mining economy/primary produce to a tourism destination m The initial public sector and private sector investment in Cycle Trails across the West Coast region has generated increased cycle tourism a visitation, primarily for New Zealanders, and it is starting to generate a wider economic benefit. This section identifies the opportunities t for further growth in the West Coast economy based around enhanced and developed cycle and walking trails. n U # Visitation mix 90:10 Future (10-20 years) 70:30 1 Size of the prize Cycling and walking numbers growth* Tourism spend in 20 years *Basis $ 28,720 39,000 48,000 • 4% growth per annum up to year 5 15.2M - Cycle numbers 2021 10 years (2026) 20 years (2041) • 2.5% growth per annum to year 10 $ • 2% growth per annum to year 20 25.4M ** Based on an average spend of $142 pp over 20,200 27,900 34,000 an average of 3.0 days on the trail and includes a multiplier of 73%. Walking numbers 2021 10 years (2026) 20 years (2041) A change from rate payer to user pays model can provide potential revenue for operations Step 1 Step 2 Step 4 On trail Establish a story to sell the cycle trail Develop a West Coast Trails app and website Businesses contribute via a licensing model. Accommodation can generate revenue, development journey. Identify key pressure that promotes the trails, the benefits and Associated businesses contribute a percentage but limited trails have this option. points on the trails where clear improvements connects the dollar donated to the outcomes of annual earnings (3%) towards the can be made. Introduce signage, QR Codes on the trail. sustainability of the trails. Permit options and links across the network including A significant portion of West Coast trails are associated businesses that tell this story Step 3 Step 5 located on DOC land. The purchase of permits and encourage donations. Associated businesses charged a fee to Opportunities to increase donations as the for use of the trails may be appropriate for advertise on the App and website. network service offering is enhanced. some parts of the network (ie. private or public land). This option will not provide a consistent future income regionally. Donation Capture by users So what? In 10 years $426 average spend x 10%* In 20 years $450 average spend x 20-25%* *Basis Growth in trail network users means higher potential revenue • Ability to 30% charge to the trail user and expenditure on the West Coast. $ $ on top of their Visitor expenditure Progression towards a user pays model 42pp 100pp • this percentage represents an increasing will provide revenue that could enable a sustainable operating model for the $ $ donation capture that could be realised Donation capture of 2m Donation capture of 8.2m trails into the future. per annum for trails per annum for trails Matched Funding undertaken at a cluster or destination level Expenditure = Average $ Spend $142 walkers & cyclists) Expenditure = Average $ Spend ($142 walkers & cyclists) will increase outcomes. * Average no. of days (walkers & cyclists = 3.0) * Average no. of days (walkers & cyclists = 3.2) 2 Macro-economics of West Coast Population Lonely Planet Website identifies West Coast at: 34,608 No.12 of the ‘Top Sights in New Zealand’ (list of 20) New Zealand Cycle Trust 10,150 13,550 8,890 ‘Best family rides’ Buller District Grey District Westland District #2 Wilderness trail New Zealand’s longest and highest singletrack Living Visitors Annual spend per year #1 Old Ghost Road 43.3% $200.4m Tripadvisor Top West Coast Rural Domestic Outdoor activities 350,000 Domestic #1 Old Ghost Road 520,000 #12 WCWT International $ 56.7% 269.2m #46 Point Elizabeth Walkway #65 Kawatiri River Trail Urban International #89 Paparoa Track 3 New Zealand cycle trails Top cycling markets International visitors go cycling 179,000 53% Growth since 2015 2 USA 3 CHINA 4.9% growth since 2015 International visitors ride NZ cycle trail AUSTRALIA % 1 49,000 96 Growth since 2015 New Zealand cycle trail riders Female to male ratio Cyclists 23% 77% 49% 51% 57% Local Visitors Female Male 50 - 69 years old Visitors Average spend for rider / day Visiting the area 13.5% 86.5% $207 $173 82% 57% International Domestic International Domestic Visited because of the Spend 2 days or cycling/walking trail more on the trail 4 West Coast cycle trails Visitors to the area 12% 14% 24% Wellington International 8% Other 8% 31% Germany 16% West Coast 50% 8% Canterbury Australia Canada Buller 88% 8% 16% Domestic UK 12% Grey Auckland Netherlands Westland Average spend Average length of stay rider per day 2.9 3.9 Grade 3 $ days on trail days on coast 208 35% Grade 1 West Coast Wilderness trail Cyclists 21% Grade 2 Grade 4 % # 18% 16% 59 1 Grade 5 $ % of established reason people 134 77 10% trails are the ride the trail is Old Ghost Road Trail 50 - 69 years old great rides for the scenery 5 Current Cycle trails End to end trail offerings 1 2 3 4 5 West Coast Old Ghost Heaphy Paparoa Kawatiri Coastal Wilderness Trail Road Track Track Trail 132km 85km 78.4km 56.2km 55km 1 2 3 4 5 Predominantly Grade 2 Grade 4 Grade 3 Grade 4 Grade 2 with some Grade 3 sections with some Grade 5 with some Grade 4 Estimated cyclists per annum (current) Not available Not available does not include commuter trips 8,500 9,500 2,000 Estimated walkers per annum (current) Not available Not available does not include commuter trips 3,000 3,000 10,000 Total individual users (average) 11,500 12,500 12,000 Not available Not available Other cycle trail destinations include: – Denniston Plateau – Charming Creek – Blue Spur Tracks 6 Non-financial benefits Social capital World class Community identity The social contribution Mental health and road safety Enhancing local communities Cycling and walking trails that West The economic benefits of the Well-being benefits Coast towns can be proud of Enhanced by cycle trails and based NZ Cycle Trails was estimated to on qualitative evidence be $12.0M. These benefits were derived from reduced mortality benefits, commuting benefits and cost savings from diseases associated with physical inactivity. Natural capital Financial and physical capital Human capital • Cycle and walking trails can help protect and showcase the • Cycling and walking trails act as catalysts to wider economic • Build capability skills that are directly involved in trail natural environment on the West Coast benefits construction • Trails can be used to run surveys and pest trapping and • Infrastructure to support trail users will also benefit other •