Queenstown Lakes District is one of five South Island tourist communities targeted for specialist support in a plan for the immediate survival and long-term transformation of the tourism sector outlined by tourism minister Stuart Nash.

The plan includes a $20M fund to support, diversify and re-set the Queenstown-Wanaka economy. The government support will be through an underwriting role, the minister said, and potential projects include a digital innovation hub and a film studio.

Stuart told the tourism industry’s annual TRENZ conference an all-of-government plan will support the recovery of tourism communities after the impacts of Covid-19, and rebuild tourism on a more sustainable foundation for the future.

“The economic impact of the loss of international visitors is felt beyond the tourism workforce and businesses,” he said. “Whole communities, especially in five South Island regions, are facing new challenges to their way of life.

He noted that reviews by agencies like the Parliamentary Commissioner for the Environment, the Climate Change Commission, and the Tourism Futures Taskforce have all highlighted that transformation is required to rebuild tourism for the future.   

Stuart Nash said this region is over-reliant on international tourism, and needs support to improve its resilience to global economic shocks. PHOTO: Supplied

The $200M Tourism Communities: Support, Recovery and Re-set Plan will be rolled out between now and 2023. There are 12 key points in the Tourism Communities Plan, half of which are focused on “the most vulnerable” South Island regions (Fiordland, South Westland, Queenstown Lakes, Mackenzie District and Kaikōura), and the remaining six are nationwide initiatives, the minister said.

“It will invest in new programmes like small business support, tourism infrastructure, the conservation estate, Māori development, economic and regional development, and mental wellbeing support.”

Stuart reiterated that long-term structural change and short-term targeted support must prioritise the regions and communities who need most help.

Support for the five South Island communities will include:

• $4.5M for psychological and social wellbeing support and training.
• $10M in grants ($5,000 per business) for businesses to get expert advice on planning and decision-making in response to Covid-19.
• $10M ($5,000 per business) in grants to help businesses implement these plans and advice.
• A $49M kick-start fund so businesses that have gone into hibernation or suspended operations can receive grants to help reopen and resume trading once international visitors return.
• A $20 million fund to support, diversify and re-set the Queenstown-Wanaka regional economy by helping develop alternative industries and attract private sector investment.

“The Tourism Communities Plan also offers wide support for the industry as a whole. It is an opportunity for government, councils, iwi, businesses and tourism communities to work together and re-set the industry on a more sustainable model for the future,” Stuart said.

Six additional components of the plan to address longer-term challenges. These include a new round of funding for regional tourism organisations (RTOs), such as Lake Wanaka Tourism; grants for Inbound Tour Operators (ITOs); targeted funding for some Māori tourism businesses; an extension of Department of Conservation fee waivers for operators on public conservation land who pay a tourism concession fee, and an extra $10M allowing tourism concession fees to be waived for a further six months; another - $16.5M - round of the Tourism Infrastructure Fund; and a new Tourism Industry Transformation Plan (ITP) with $10M new funding, which will see the government work in partnership with tourism businesses and the tourism workforce, councils, iwi, researchers and independent advisers to “lift industry standards and transform to a more sustainable model”.

The Tourism Communities Plan is funded through the Covid-19 Response and Recovery Fund. It includes approximately $73 million returned and reprioritised from the 2020 Tourism Recovery Package.

Queenstown Lakes District mayor Jim Boult welcomed the announcement, adding that the council has been supporting a number of diversification initiatives and working alongside central government to help assess which ideas offer the most local and national benefit.