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In a meeting last November, Hamilton City Councillors voted in favour of a 50 per cent cut to funding for Hamilton and Waikato Tourism sparking concerns among tourism operators across the Waikato region.
Like many councils nationwide, the Hamilton City Council says it is is dealing with challenging budgeting decisions against a backdrop of inflation, steep interest rates, depreciation concerns, and increasing government regulations. These pressures have caused a hard look at expenditure, with a focus on maintaining essential services while striving for financial balance.
Hamilton City Council highlighted the difficulty of the decisions it faces and says: “Unfortunately, this has meant looking at reducing funding for external partners, including our purchase agreement with Hamilton and Waikato Tourism”.
They say, “The proposed 50 per cent cut reflects the economic environment the council is facing and does not signal any dissatisfaction with the commendable work and achievements of Hamilton and Waikato Tourism.”
Voicing concerns
The decision has not gone without concerns, particularly from those in the tourism industry.
In a recent media release, chair of Hamilton and Waikato Tourism Richard Leggat shared concerns among tourism operators across the Waikato region. He highlighted the potential impact of these funding cuts on Waikato’s tourism industry, and that these potential funding cuts, currently up to 43 per cent collectively, also include similar funding cuts for five other Waikato councils that also partner with HWT, and could cause the organisation’s work to become ‘untenable’.
“Tourism directly employs more than 12,000 people across the region and is a key contributor to the region’s GDP, providing $1.9 billion in visitor spending p.a. It provides jobs, enriches culture and provides community vibrancy through its support for cafes, restaurants, hospitality venues and events in our city and towns,” says Richard.
Seeking community input
Despite the tough decisions made, Hamilton City Council remains committed to engaging with the community on its proposed Long-Term Plan.
“We encourage businesses, organisations and residents to have their say on our proposed Long-Term Plan, and share their feedback on our financial strategy, and any services they think could be cut or reduced to further save costs. Elected Members will consider all submissions before finalising the 2024-2034 Long-Term Plan.”
The Council’s Long-Term Plan can be found on their website here
