New Zealand Government

Policies for progress

14 October 1998

Hon Murray McCully
Minister of Tourism

POLICIES FOR PROGRESS: DESTINATION NEW ZEALAND
$12.5 MILLION MILLENNIUM BOOST FOR TOURISM

The Government has announced a $12.5 million boost to New Zealand's off-shore tourism promotion during 1999.

Tourism Minister Murray McCully described the additional funding as "recognition that New Zealand will enjoy international branding and profiling opportunities next year, the like of which we will not see for several decades".

"The Government is determined to ensure that we capitalise fully on our time in the international spotlight."

Mr McCully said work was under way on a "major branding and profile building initiative to gain maximum leverage from the Millennium opportunities".

He said detail of the plan would be released "in a few weeks".

The Minister said New Zealand should gain immediate benefit during 1999 from tourism growth.

"With the additional funding announced today, we are targetting 1.54 million visitors - up 8% over this year's likely arrivals - and $3.5 billion in tourism earnings (excluding airfares, which are expected to generate an additional $1.125 billion per year) - up 11% on the 1998 forecast.

"The Government is totally committed to seeing the benefits of tourism growth flow to the regions and I will be making an announcement in the next few days to indicate our plans."

However, long term benefits for New Zealand would exceed the immediate benefits "many times over".

"Our key objective is not just to clip the ticket during 1999 as increased visitor numbers are attracted by our sharper promotion and high profile events. The real challenge is to secure a profile and branding presence internationally which provides a base for our tourism ambitions well into the first decade of the next century."

The additional funding announced today will substantially be spent in three markets; North America, Australia and the United Kingdom.

"Well before the collapse of some Asian markets, we had started to give our traditional markets of North America, United Kingdom and Australia much higher priority. Already we have seen the benefits in terms of increased visitors and spend from those markets."

"Work is now advanced on plans to capitalise on the huge opportunity which lies ahead. Today's funding announcement will enable us to mount a high quality, high impact programme which will bring benefits well past the year 2000."

Enquiries:
Chris Major, Senior Executive Assistant Office: (04) 471 9602 Mobile: (025) 443 220



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