Thursday, June 11, 2009

Air NZ's Corporate Welfare Agenda

I was somewhat amused with the latest announcement by Air New Zealand of their Qualmark Environmental Gold Accreditation. The nature of the airline industry dictates this ironic politically correct gesture will never come within a bulls roar of offsetting the carbon that it spews into the atmosphere.

Qualmark Enviro-Green accreditation was a compulsive feel-good initiative forced upon the tourism industry under the Nanny knows best culture of the Clark government.

The unintended consequences of the airline grandstanding its alleged green credentials is that it will unnecessarily raise environmental hysteria and guilt of air travel while promoting the myths of climate change.

The last thing that Air New Zealand needs to focus on right now is a silly green-wash campaign that opens the airline to unnecessary scrutiny from flat-earth environmentalists.

In this dire economic climate, the airline needs to man-up, axe unnecessary "hug-a-polar-bear" programmes and focus on core business activities.

Air New Zealand, a 75% state owned company was first out of the blocks chiding the government for not further contributing to it's marketing by freezing the tourism spend announced in last week's Budget. This was swiftly played down this week by Air New Zealand as they suggested that the New Zealand taxpayer should now be subsidising it's marginal international routes as tourist numbers decline.

Air New Zealand's most recent announcement of achieving Gold Accreditation from Qualmark NZ, a fellow government funded adjunct, rounds off a 2-week period where the airline has attempted to maximise its status as an iconic New Zealand company in order to extract more favour from the New Zealand taxpayer.

It is highly unlikely that the National led government would consider selling off Air New Zealand in its first term, however we suggest that John Key start the process of weaning the airline off corporate welfare and start a series of fireside chats with the New Zealand public to explain why this company should be returned to private ownership in its second term.

Press Release: Air New Zealand
9 June 2009

Air New Zealand achieves Environmental Gold Accreditation

Air New Zealand has been recognised as being amongst New Zealand’s most environmentally responsible tourism businesses with its achievement of Qualmark’s Enviro-Gold accreditation.

Enviro-Gold is the highest rating able to be achieved under Qualmark Green, a responsible tourism criteria designed to extend environmental and socially responsible actions for tourism businesses. The criteria recognises energy, water, waste, community, conservation programmes and monitoring.

Air New Zealand Deputy Chief Executive Officer Norm Thompson today said the airline was delighted to have achieved the Gold standard.

Mr Thompson says as one of the biggest tourism businesses in New Zealand, the airline felt it was important to put itself under independent scrutiny through the Qualmark Green assessment.

“Air New Zealand is committed to becoming the world’s most environmentally sustainable airline and achieving the Enviro-Gold accreditation is another step in recognising the work we are achieving on that journey,” he says.

“Today we have also launched a new website (environewzealand.co.nz) which recognises Qualmark Green enviro-rated tourism businesses, making it easy for travellers to find out more information and plan their itineraries to include these activities. It’s another way in which Air New Zealand is helping to drive awareness of the great services and activities on offer in New Zealand.

Qualmark Chief Executive Officer Geoff Penrose says Air New Zealand’s performance within the responsible tourism criteria was exemplary, with a track record that includes a large number of fuel and carbon emission saving initiatives.

“Air New Zealand’s green programmes cover the spectrum of responsible tourism criteria ranging from water conservation and waste minimisation to an in-house Green Team, customer carbon offsetting programme and conservation activities such as the Air New Zealand Environmental Trust.

Mr Penrose says that Qualmark’s leadership in responsible tourism has to date achieved many tangible outcomes, with a key aim to ensuring visitor expectations of New Zealand’s clean green image is exceeded.

“Air New Zealand’s overall commitment highlights a large tourism business implementing both environmental and socially responsible practices throughout their organisation, and clearly demonstrates guardianship of the industry, which is to be applauded.”

Source: Click HERE

Wednesday, June 10, 2009

The Motel Industry Has No Sick Leave

For several weeks I have been downing a cocktail of pills to try and avoid the flu. I was feeling fairly cocky for a while, but inevitably it has finally gotten to me.

In the motel industry the front office is a stage. You smile, offer empathy are positive and always hospitable. Behind the scenes away from our audience is the only place where moteliers can let their guard down and feel sick between gigs.

Flicking on the hospitality switch at each ring of the bell has gotten a little bit more difficult.

Tuesday, June 9, 2009

The Motel Association Take Another Jump To The Left?


Part of the Holidays Act Review will be to investigate trading annual leave for cash at the employee's request. This would mean employees would be entitled to choose to take payment as opposed to taking the fourth week off.

For business owners you would think that the support for this proposal that gives increased flexibility and choice in the workplace would be a no-brainer. The proposal is after all supported by mainstream business groups led by Business New Zealand.

So what is the position of The Motel Association (MANZ)?

Well, MANZ that claims to represent 1000 motel businesses is joining the Council of Trade Unions and Socialist Workers Party of New Zealand in their opposition to this proposal.

Quite frankly we are dumbfounded and saddened with a further example of woolly thinking by MANZ.

Thank goodness for Fergus Brown, head of the Holiday Park Association of New Zealand that was able to speak some common sense on this issue.

WILL HINE in Queenstown
The Southland Times
08/06/2009

Leave changes could hurt motel industry - MANZ

Moteliers could lose business if workers are allowed to take money from employers in lieu of annual leave, the head of the Motel Association of New Zealand says.

The Government is considering amending the Holidays Act to permit workers to trade annual leave for cash.

Association chief executive Michael Baines said 72 per cent of moteliers' business came from domestic holidaymakers.

"If you take away those people's opportunity to take holidays, then you take away our potential market. That could create problems."

The association represents about 1000 motels, or 70 per cent, of those operating in New Zealand, Mr Baines said.

"We've already got too many beds and not enough customers. If we have fewer people taking holidays, it's going to get a lot tougher."

But Holiday Park Association of New Zealand chief executive Fergus Brown said he supported the legislation review.

The association represents about 300, or 75 per cent, of New Zealand holiday parks.

Allowing workers to cash in leave would enable Kiwi families to finance their holidays, Mr Brown said.
"If someone decides they want to give their family a holiday, they could trade back some leave, get the money and go on holiday."

A review could also benefit holiday park operators by helping them to manage the entitlements of seasonal workers, Mr Brown said.

A five-person working party overseeing the Holidays Act review is expected to report back to Labour Minister Kate Wilkinson in December.

Source: Click HERE

Monday, June 8, 2009

Best Bain Joke So Far?

The topic of conversation with guests at our motel has been all about the Bain trial. Everybody seems to have an entrenched opinion!

I guess like you, we have been all getting the obligatory txt and email jokes, however in our opinion this has been the best so far:


Hat tip: WhaleOil

Is A Shake-up At Tourism New Zealand Eminent?


Tourism New Zealand Chief, George Hickton appears on TV3 News and discusses the opening of TRENZ in Auckland this week, tourism arrivals to date and the potential for the summer season ahead. Interestingly Hickton is still loyal to the 100% Pure branding and hopes that it will stick around for at least another 10 years.

Watch the video HERE

The expensive mainstream media "Coke style" campaigns used by Tourism NZ that showcase our fantastic NZ landscapes and stirring NZ music are inspiring to local tourism operators, however the reach on a world stage and effectiveness to attract potential tourists is frustratingly limited.

Tourism NZ has recently entered the domain of social media with its mobile film studio that is a converted shipping container where tourists were able to send online postcards to friends and family via YouTube. Again, this initiative created great localised feel-good publicity as it toured throughout New Zealand, however it can be argued that the uploaded videos hardly caused a ripple in cyberspace.

After spending $600,000 on the YouTube campaign it was reported: "Viral marketing was new ground for the tourism marketing body, and chief executive George Hickton had no idea how to measure whether it worked."

In our predictions for 2009 post, we wrote that we expected to see a "freshening and reinvigorating" of the 100% Pure NZ. brand. We predicted that there will be a subtle move away from reliance on solely marketing natural landscapes.

As an industry, tourism is being crushed by publicly funded institutionalised bureaucracy that is out of proportion to the industry it is supposed to serve. The tourism industry is at risk of becoming too dependent on the productivity of others and needs to become more innovative and self reliant. Quite simply, in our opinion the New Zealand taxpayer is not getting an acceptable ROI for their tourism spend.

We predicted that there would be a necessary shakeup at Tourism NZ and in order for this to happen, Hickton needs to go. An industry insider has informed us that this will likely occur before the end of this year.

Watch this space.

Our One Is Bigger Than Your One


New Zealand's dream of becoming an iconic South Pacific destination for lycra lovers has been dealt a serious setback by a Johnny-come-lately announcement from Tasmania.

We are amused by the "vision" of Australian Premier, David Bartlett to build a 450km dedicated cycleway from Smithton to Hobart.

Hang on, haven't us Kiwis already announced that we were going to corner the snail-trail market?

Apparently Mr Bartlett has other ideas and believes that "Tasmania can become an iconic destination for cyclists." The shrewd little devil has used all the the usual qualifications to promote the project: climate change, health and wellbeing and tourism. Bugger!

The Australian Federal Government has $40 million set aside for cycling projects and further substantial funding can be raised by councils.

In the race as to who can spend more public money and build the most impressive cycleway, we appear to have an advantage.

The Fush n Chups blog respectfully points out that John Key’s one is longer than David Barlett’s. What is not clear at this stage though, is which one has the bigger width?

Sunday, June 7, 2009

The Power of Social Networking

Being part of Generation X is not all it's cracked up to be. We are known as the "forgotten Generation." We are like the annoying middle child in the family stuck in no-man's land between the more favored older Baby Boomers and the younger Generation Y .

One of the trending bits of media doing the rounds of online social media at the moment appealed to me and probably many other Generation Xers that had to endure an era of 1980s music that was at best embarrassing. How could a man dressed in canary yellow, baggy parachute pants ever be cool!?!

A viral video that is promoting MC Hammer's entry into the reality show business has succeeded as an extremely successful promotion.

Picture a typical scene in a clothing store that is suddenly turned upside down by gatecrashing silly-pants wearing performers that have created a classic guerrilla advertising ambush.

You may not like MC Hammer or reality television, however by the power of social networking you now know that a new reality show is pending and you will now second glance any further mention in the mainstream media. God forbid, some of you may even watch it!

Friday, June 5, 2009

Air New Zealand Goes Viral

Good to see that Air New Zealand's "nothing to hide" ad campaign has gone viral.

To date over 1.7 million viewers on YouTube have enjoyed the body painted Air New Zealand staff doing their thing to Gin Wigmores misic track, under my skin:

AA Still Dominates Domestic Traffic for Travel Websites

AA still dominates, however the gaps seem to be narrowing in the race for Kiwi's favorite travel website.

Source: Click HERE

Wotif Founder Makes It To Rich List

One of the best parts about reading any new rich list is looking at the new members on the list.

Despite the dire state of the Australian economy – or perhaps because of it, given the cut-off for inclusion on Australia's BRW’s Rich 200 has fallen from $200 million to a mere $150 million.

There are some interesting new members of Australia’s wealthiest club including, Accountant Andrew Brice who was one of the seed investors in online travel company Wotif.com.

Wotif is proving to be one the best downturn-beaters on the Australian sharemarket – its shares are actually up 6 per cent in the last 12 months, against a 35 per cent fall in the broader market. Brice retains a big shareholding and joins the list with $170 million.

Good on ya mate!

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