Praneeta Mahajan
Hamilton, April 5, 2024
Tourism operators across the picturesque Waikato region are sounding the alarm as proposed funding cuts threaten the vitality of the local tourism sector.
The decision after Hamilton City councillors voted in favour of a draft Long-Term Plan budget, signalling a staggering 50% reduction in funding for Hamilton & Waikato Tourism (HWT), has sent shockwaves through the region, with other Waikato councils considering similar measures.
Grave concerns
Hamilton & Waikato Tourism Chair, Richard Leggat, alongside concerned stakeholders, have expressed “grave concerns” regarding the potential impacts of significant budget slashes on the region’s visitor industry.
Waipā District Council is eyeing a 20% cut, Waikato District Council proposes a 50% reduction, while Waitomo District Council hints at a substantial decrease. Matamata-Piako District Council is contemplating a funding freeze, and Ōtorohanga District Council is yet to finalise its decision.
Mr Leggat has warned that these cuts, amounting to a collective reduction of up to 43%, could render HWT’s operations “untenable,” resulting in dire consequences for numerous Waikato businesses and residents whose livelihoods depend directly or indirectly on tourism.
“Tourism directly employs over 12,000 individuals across the region and significantly contributes to the GDP, injecting $1.9 billion in visitor spending annually. It not only creates employment but also enriches our cultural fabric and enhances community vibrancy by supporting local establishments such as cafes, restaurants, and hospitality venues,” Mr Leggat emphasised.
Impressive numbers by sector
Despite the current share of the tourism market placing Waikato as the fifth highest in visitor expenditure, averaging $5.1 million daily, the proposed funding cuts could jeopardise this standing. Moreover, the region hosts 9.7% of all New Zealand business events, attracting 94,400 delegates last year alone.
Russell Alexander, CEO of Hobbiton Movie Set, echoed Leggat’s concerns, highlighting the strong summer visitor numbers and stressing the risk of losing momentum due to funding reductions. He emphasised the importance of council support in maintaining Waikato’s appeal as a tourism destination.
Similarly, Nick Andreef, founder and CEO of Waitomo Adventures, warned of the region becoming a “poor cousin” if funding cuts proceed. He praised HWT’s efforts in promoting Waitomo globally and providing crucial support for local operators.
Sanctuary Mountain Maungatautari, another beneficiary of HWT’s support, emphasised the pivotal role the tourism organisation plays in promoting eco-tourism destinations like theirs.
Helen Somerville, the General manager for Sanctuary Mountain said, “We are on a growth journey and a pivotal part of realising our ambitious plan is to leverage the skills and expertise from Hamilton & Waikato Tourism. Simply put, without them and their support, we believe the growth of our tourism business will slow, which has a direct impact on our ability to maintain the sanctuary for future generations. We are only now coming back to pre-Covid tourism levels and now is the time we most need the connection and capability of the Hamilton and Waikato Tourism team.”
Jobs at risk
Mr Leggat underscored the impact of the proposed 50% funding cut by Hamilton City Council, amounting to $357,000, which he argued could imperil millions of dollars in visitor spending, risking business sustainability and jobs.
As public consultation on the city and district’s draft Long-Term Plans unfolds in March and April, Hamilton & Waikato Tourism urges all stakeholders to voice their concerns. Mr Leggat stressed the need for robust advocacy, stating, “Now is the time for people to stand up for tourism, events, and hospitality sectors and the multitude of flow-on benefits they provide to Waikato communities.”
In the face of these challenges, stakeholders are rallying to safeguard the future of Waikato’s vibrant tourism sector, recognising its pivotal role in the region’s social, cultural, environmental, and economic well-being.
Praneeta Mahajan is an Indian Newslink reporter based in Hamilton.
