Some local tourism operators have written to the Tourism Industry Authority and Ministry of Business, Innovation and employment (MBIE) complaining about elements of the government’s Strategic Assets Protection Programme (STAPP).

While STAPP, created to protect New Zealand’s core tourism assets, has been a lifeline for some businesses, concerns have been raised about the eligibility criteria, application process, and whether the distribution of the $400M fund has been equitable.

A local tourism operator, who wished to remain anonymous, told the Wanaka App they were misled by the early allocation of STAPP funding to large operators, such as Queenstown’s AJ Hackett Bungy which controversially received $5.1M.

“...this gave us the strong impression that the funding was not for smaller businesses and hence not worth us applying for, which unfortunately for us and many other tourism operators who thought the same was an incorrect assumption,” they said.

The operator said the short timeframe to apply (from June 4 to June 18) also made it difficult for small operators with few or no staff to assist with the application process. Businesses were also meant to show they had explored all avenues of alternative funding, such as bank loans, which was difficult to do in such a short timeframe, they said.

Tim Barke said some eligible operators did not realise they met the funding criteria. PHOTO: Supplied

Wanaka businesses aren’t the only ones with concerns: More than 20 tourism companies around the country who missed out on funding are considering seeking a judicial review of MBIE’s funding process.

Radio New Zealand reported last week that the STAPP fund was nearly abandoned after MBIE struggled to properly assess applicants. Recently released ministerial briefing documents show MBIE officials also urged against capped grants of up to $500,000, citing concerns it would “create perverse outcomes”.

Lake Wanaka Tourism general manager Tim Barke told the Wanaka App the STAPP funding was put together as a rapid response to help the tourism industry survive, and “as with any emergency response, more is often learned over time as to how it could be improved and I believe this is the current situation”.

“...either there was a misunderstanding of the criteria or the criteria changed without people realising,” he said.

Patsy Nolan of Backcountry Helicopters said the STAPP funding will help the business focus on the domestic market, offer access options into Aspiring National Park, and keep their crew employed. PHOTO: Backcountry Helicopters

A number of Wanaka operators have been grateful for the STAPP boost.

To date the following local operators have been granted STAPP funding: Alpine Helicopters & Southern Lakes Heliski - $500,000; Backcountry Helicopters - $500,000; Puzzling World - $500,000; Southern Alps Air Ltd - $500,000; Wanaka River Journeys - $215,101; and Wilkin River Jets - $500,000.

Backcountry Helicopters and Wilkin River Jets are owned by Harvey Hutton and his partner Patsy Nolan, who told the Wanaka App they were “thrilled” to get the funding.

“Both businesses, as was the wider tourism industry in Makarora, were hit hard due to the borders being closed,” Patsy said. “The funding will enable us to focus on the domestic market, and continue to offer access options into the national park, while keeping our crew in employment.”

An MBIE spokesperson told the Wanaka App MBIE has received around 80 queries, including OIA requests, on the STAPP process.

She defended the funding process, saying information about the application process was provided, and contact details were listed for businesses which needed more information.

As the economic conditions and realities changed (for example, the anticipated trans-Tasman or Pacific bubble hasn’t eventuated, the wage subsidy has been extended, and domestic tourism has been stronger than expected in many parts of the country), the support offered also changed, she said.

“While the operating environment has changed, the process of determining successful STAPP applicants did not change. STAPP applications were based on a high trust model,” she said.

“The assessment criteria was the same for all applicants in the round. Applications were assessed, peer reviewed and moderated according to the criteria laid out on the MBIE website.” 

MBIE assessed the applications in consultation with a range of government departments, including the Treasury, and the tourism recovery ministers group reviewed the advice MBIE provided and made the decisions, she said.