13 July 2011 Tourism report offers formula for beating industry turbulence

“Turbulence” currently characterising New Zealand’s $22.4 billion tourism sector can be calmed by greater unity, education, leadership, expanded partnerships,  and a more proactive approach to change, all of which, taken together, will deliver a “well-connected industry that is smart, technologically savvy, but still retains its soul  -  good people”, says Lincoln University’s Professor of Tourism, David Simmons.

Professor Simmons, project member for the production of New Zealand’s first State of the Tourism Sector Report, produced by the Tourism Industry Association New Zealand (TIA) in partnership with Lincoln University, was speaking at the presentation of the report in Wellington today (13 July 2011).

The 37-page document, written by Dr Jude Wilson of Lincoln University and Steve Riley of TIA, was delivered to the Tourism Summit 2011 at the Museum of New Zealand Te Papa. Its findings and conclusions are based on research data collected by the TIA and Lincoln University within the past 12 months.

Describing the current state of the tourism sector as “turbulent”, Professor Simmons cited factors such as earthquakes, tsunamis, cyclones and volcanoes, political unrest, fuel prices,  financial crises, and exchange rate fluctuations. All of these have impacted on the environment within which tourism currently operates, he said.

Comment from some of the research respondents recorded in the report refers to the industry as “just holding its head above water” and “vulnerable at the moment”.

Despite this, the overall tone of the report is optimistic and Professor Simmons highlighted views that saw tourism’s future in terms of a “dynamic, sustainable, wealth-creating industry”  and New Zealand as rightly able to claim a role as a “high quality, premium destination”.

Problems identified in the report as hindering progress towards these ideals include “vertical and horizontal fragmentation”   -  vertically down through national Government, regional tourism organisations and local government to individual tourism businesses; and horizontally across numerous parameters including businesses of different sizes, scope, geographic spread and segments such as accommodation, activity and transport.

“The sheer scope, scale and spread of the tourism sector as a whole across the New Zealand economy contributes to its fragmentation and to its influence on New Zealand society,” says the report.

But while the “nature of tourism ... presents challenges to the cohesion of the sector ... it is also a positive characteristic” and as one research respondent said, the industry is “massively diverse but is still pretty collegial”.

The Christchurch earthquake was cited as an example of an experience that “forced the sector ...  to work together in a more unified way than is usually the case”.

The report’s points are summarised under six  headings  -  the Christchurch Earthquake Experience; Markets, Delivery; Importance of Tourism; Vision; and Structure of the Sector.

Earthquake Experience:
Christchurch’s earthquake experience showed the importance of having an ability to act quickly; the need for stronger ties between the private sector, central and local government where common interests overlap; the speed with which revenue can dissipate; and the effectiveness of coordination across the sector.

Markets:
The report emphasises that these are changing.   -  “both the market mix and the demands of each market itself”. There is a need for education to so that operators understand the particular requirements of new markets; there is a need for “product development” to respond to market changes; and the report says that the domestic tourism market is being “severely short-changed” by many in the sector overall.

Delivery:
The report says there is a need for greater training and recognition of the value of tourism careers; skill levels are an issue; Information Technology and the use of social media is “very ad hoc and often ineffective”; the sector as a whole does not “embrace all aspects of the market eg. domestic tourism is not always respected”; there is also a “lack of respect for new visitors ie. there is a strong sense that those arriving on budget airlines and from the new markets are not as ‘good’ as those from the more traditional markets”.

Importance of Tourism:
The report says that partnerships beyond the tourism sector and within tourism would both “strengthen the position of the tourism sector and raise its profile”; partnerships and coordination at different levels are required eg. within a region with councils or across scales ie. between regions and at the national level”. There is too a vital need for the tourism sector  to “speak with a common voice”.

Vision:
Included in the report’s vision for the future is the need for stronger leadership and strategic planning. “Strategy is talked about a lot but appears to be rarely followed by tangible action”.

Structure of the Sector:
Education is required across the sector, says the report. This includes education about new markets, product development, service delivery, social media and IT. There is, too, a need for coordination within the industry  “at all levels”.  The industry also needs to address its external connectedness because there is “often little awareness of the sector beyond its own doorstep”.

A key message that emerged from the data collected by the Lincoln University researchers was the need to “protect what we have  -  the multiple environments in which the tourism sector operates and which they represent”.

There appeared to be some tension between presenting visitors with the “real Kiwi approach” as opposed to offering professional levels of service.

The prominence of the physical environment in the New Zealand tourism brand remained high but it is acknowledged that this creates “some tension” with the role played by people in New Zealand tourism.

“The majority view appears to be that as a ‘brand’ New Zealand should remain clean and green and 100% pure”. But some felt that this brand did not always reflect the importance of the cultural and social landscapes of New Zealand and the ways in which these impact on visitors’ experiences.  
   
Attending today’s Tourism Summit 2011 in Wellington at which the State of the Tourism Sector Report 2011 was presented, were political leaders and representatives from all the major parties in New Zealand, including Deputy Prime Minister the Hon. Bill English and the Hon. Maryan Street, Labour spokesperson for Trade. Tourism industry personnel included the CEO of the Tourist Industry Association, Tim Cossar and Tourism Australia’s Chief Executive Andrew McEvoy. Keynote speakers included New Zealander of the Year 2010 Sir Ray Avery, All Whites Coach Ricki Herbert and Westpac Bank Chief Economist Dominick Stephens.