Recognising the Tourism Industry
National have recognised the economic contribution of the tourism industry of $8.8 billion of foreign exchange earnings annually, producing 9.2% of New Zealand’s GDP and contribution of $14 billion to the economy. Tourism employs one in ten of NZ's workforce and is a key player in presenting the New Zealand brand.
National has acknowledged the importance of small and medium-sized enterprises and the part they play in the tourism sector.
Although a "patsy" position, it is significant that the tourism portfolio will be held by John Key.
Economy
The motel industry relies upon a vibrant, stable and free economy. The state of the economy is the number one driver for the motel industry with over 70% of guest nights spent by domestic trade.
National is widely perceived to be more able to manage the economy and reduce the impact of the international credit crunch.
Positive perception can turn into reality and already the markets have responded well to National's election success.
National proposes a three-year programme of personal tax cuts on 1 April 2009, 1 April 2010, and 1 April 2011 that will hopefully benefit moteliers personally and encourage domestic tourism spend.
Funding
The Tourism Industry Association (TIA) must be somewhat embarrassed by issuing a fawning press release before the election congratulating Labour with their proposed increase in Tourism funding.
National has not appeared to have promised any increase in Tourism funding. As with other government agencies, National will be requesting that Tourism NZ find economies in the back office in order to reallocate more funding into tourism marketing.
Although it is easy for tourism industry bodies to simply request more public spending, it is difficult to argue with the rhetoric of cost cutting and finding efficiencies across all bloated government ministries.
Local Government
Moteliers have capital intensive properties in prominent areas throughout New Zealand and have absorbed the brunt of rampant local body rate increases over and above the rate of inflation.
It is pleasing that National intends to coordinate a national infrastructure plan to set clear directions for vital infrastructure investment by local government. A review is also proposed on the legislation that central government imposes on local government.
National will also be more open to private enterprise partnerships with councils that will allow local government to focus on core services.
Employment Relations
The motel industry relies on a flexible workforce and ease of employment relations. National intends to introduce a 90-day trial period for new employees by agreement between the employer and the employee, for businesses with fewer than 20 staff.
During the trial period, either party may terminate the employment relationship for performance, without a personal grievance claim being brought.
Reduction of Bureaucracy
National’s plans to reduce red tape, reform the Resource Management Act and improve infrastructure will provide a more business-friendly environment for tourism businesses will be encouraging to the motel industry.
It is also proposed that the Building Act is to be amended to reduce building compliance issues
Efficiencies through amalgamation
National has identified duplication in services provided by Tourism NZ, Ministry of Foreign Affairs and Trade, and New Zealand Trade and Enterprise. Expect these entities roles to be tweaked and some services to be amalgamated.
Pure NZ
It is interesting to try and second guess how National may try to influence the "Pure NZ" branding campaign.
The National Party sees the current branding as sound but believes it will need "freshening and reinvigorating" over time. It remains to be seen what this means?
National have stated that faced with the challenges of an uncertain global economy, the industry will need to increasingly focus on the yield rather than volume; on quality rather than quantity. Again it would appear as if a fresh cost benefit analysis will need to be undertaken on various market promotions.
Events
National will commit to a major events strategy to assist this improvement in yield. A priority will be our drive to maximise the benefit brand that New Zealand draws from hosting the Rugby World Cup in 2011.
DOC
National have pledged a review of the interface between the Department of Conservation and the tourism industry, and a review of the current approach to DOC concessions in order to promote improved investment, higher-quality visitor experiences, and successful commercial partnerships.
Emissions Trading Scheme (ETS)
Labour's reckless crusade of environmental rhetoric at the expense of the economy by passing the ETS will be stunted by National's proposed legislation to amend the act.
National intends the amended ETS to "strike a balance between NewZealand’s environmental and economic interests".
The Tourism Industry and environmentalism appear to have been on a collision course for some time. Tourism Trade Associations may need to make a stand and choose between environmental rhetoric or the economic sustainability of the small businesses they represent.
Many folk within National privately hold the view that the ETS should be dumped. Act is the only party that has publicly announced that it wishes to scrap the ETS and its influence on this issue will be interesting to follow.
