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The 2024 Budget has presented a mixed bag for New Zealand’s tourism industry, with economic indicators painting a sobering picture. However, TIA’s chief executive Rebecca Ingram remains optimistic about the sector’s resilience and its critical role in the nation’s economy.
“Sobering economic indicators were a feature of Budget 2024. It reinforced for me what a meaningful and needed contribution tourism is making to our economy. We should also be very proud of the over 300,000 people that are directly or indirectly employed by tourism,” she says.
The tourism sector, an anchor of New Zealand’s economy, faces a slightly different financial future.
“The appropriation for Tourism New Zealand has been reduced by 5 per cent, a figure that, while concerning, is still less than the broader 6.5-7.5 per cent cuts across the public sector.
“We can take some heart there. TIA has been a strong advocate for appropriate investment in TNZ, and we are pleased to see that the $15 million cut to TNZ’s budget for 2027 (made in 2023) has been reinstated, though the money will come from the International Conservation and Visitor Levy.”
The IVL’s role has been a focal point of budgetary adjustments, reflecting its increasing importance.
“The use of the IVL for new purposes reinforces the importance of the consultation currently underway,” Rebecca says. “TIA will be making a detailed submission on the industry’s behalf on what we believe is an appropriate rate for the IVL and how the money should be spent.”
In the coming weeks, TIA will dive into the finer details of the budget and its implications for various sectors, including conservation, infrastructure, small business support, and immigration policies.
“This includes unpicking the assumptions in the Budget about the IVL, the funding allocated for conservation, roading and transport, infrastructure, small business support, and immigration including visa charges,” says Rebecca.
“There are also valuable signals of further investment in Te Matatini and in flood protection and resilience, which we are sure will be welcome news to those of you who experienced significant impacts from recent weather and flooding events.”
Despite the budgetary challenges, TIA commitment to a thriving tourism industry remains unwavering.
“TIA remains committed to advocating for a flourishing tourism industry and making progress on the actions we have articulated in Tourism 2050 – A Blueprint for Impact,” Rebecca says.
