26 May 2022

Tourism industry expecting slow and steady return of visitors

8:31 am on 26 May 2022

The tourism industry says it's ready to say 'Kia Ora' to the world even as it prepares for more hurdles ahead.

Travellers are welcomed at Auckland airport as vaccinated international tourists from visa-waiver countries return to New Zealand, 2 May 2022.

Travellers were welcomed at Auckland Airport as vaccinated international tourists from visa-waiver countries returned to New Zealand, 2 May 2022. Photo: RNZ / Nick Monro

More than 450 tourism operators discussed the future of their industry and its future during the online TRENZ Hui yesterday afternoon.

Before Covid-19, tourism was the country's biggest export earner, worth more than $41 billion.

The pandemic plunged the industry into survival mode, but it was now preparing to welcome back international visitors as borders fully reopen this winter.

Rebecca Ingram, the new head of Tourism Industry Aotearoa, shared a message of hope at the TRENZ Hui.

They expected a slow and steady return of visitors, giving businesses time to ramp up before more travellers arrive from spring, she said.

"Some of you will already be starting to increase your teams or staff hours, put products back on the market, and bring businesses out of hibernation.

"We are ready to get back to contributing to New Zealand, economically and also bringing vibrancy and diversity to our communities."

The event drew a line in the sand to ensure the industry became even more sustainable in the future, she said.

"Tourism that contributes positively to our people and our culture, to our environment and to our economy.

"We all know that we cannot simply pay lip-service to these concepts. Our communities want it and customers want it."

Early results of the first Tourism Sustainability Commitment annual return, showed that 92 percent of respondents felt sustainability was extremely or very important, Ingram said.

About 95 percent of respondents considered the impact of their business on the environment, and 85 percent considered long-term sustainability outcomes when making business investments.

In 2020, Tourism New Zealand shifted into domestic marketing after the borders closed.

Its chief executive René de Monchy said that would continue even as they campaigned harder to attract travellers from around the world.

"The latest research is very positive. It shows that even though borders are open, two out of three Kiwis - 68 percent - are still planning to take a domestic holiday, and what's positive is that that's actually up from 57 percent in February and March."

With the push towards regenerative tourism, he said businesses needed to commit to real change.

"The consumer ultimately will choose and if they get a sniff of green washing, I think this kind of mainstreaming of the trend of regeneration and sustainability, you just won't be able to compete.

"So, I don't think it will be an option. You will see this acceleration of this consumer trend around the world."

Stuart Nash

Tourism Minister Stuart Nash. File photo Photo: RNZ / Angus Dreaver

Tourism Minister Stuart Nash said it was more difficult to sell Aotearoa as a destination because of its location.

"Our own commitment to climate action also raises questions about how we reconcile our exports including tourism with the climate impact of getting goods and people to market.

"These issues are challenging for a tourism industry that is looking to get back on its feet after a once-in-a-generation event."

The industry has an opportunity to become more innovative and sustainable, he said.

"I know it's easy to talk about innovation and entirely different to follow through. Talk is cheap as they say.

"But that's why I've announced the $54 million innovation programme for tourism recovery.

"Innovation is critical to tourism's future success."

It would fund initiatives targeting tourism's climate impacts, resilience, sustainability, and to lift productivity, Nash said.

The programme would be based on a co-investment model to ensure the government and industry could share the risk.

Air New Zealand chief customer and sales officer Leanne Geraghty said trans-Tasman travel has proved popular since the border opened.

"Bookings remain incredibly strong right through to the July school holidays and in fact to the end of holidays and a few months beyond.

"While capacity is currently sitting at 50 percent of pre-Covid levels, it's planned to reach 70 percent by July."

Around the same time, Air New Zealand also expected to be at 65 percent of 2019's international capacity with all except two of its 29 ports operating.

TRENZ 2023 was expected to be an in-person event in Christchurch next May.

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