Southland’s regional tourism organisations have been given $1.1 million in grants to boost the region’s tourism industry, gutted by the post-Covid-19 recession.

Destination Fiordland manager Madeleine Peacock says she’s grateful for the $400,000 that will go to the Te Anau-based regional tourism organisation, but it is not enough.

Further help for Fiordland is on the way later this week.

A spokesman for Tourism Minister Kelvin Davis told the Southland App today (July 28) that applications have been received from Fiordland operators for support from the Government’s Strategic Tourism Assets Protection Programme (STAPP). 

“There will be further announcements about STAPP recipients later in the week, so I can’t talk further about these,’’ the spokesperson said.

The Southland App and Radio New Zealand reported this week that Fiordland’s business operators face 40% unemployment and an uncertain future, as the continuing closure of New Zealand’s borders has ended international tourism for now.

Fiordland earned $156 million from international visitors and $81 million from domestic visitors in the year ended June 30, 2019.

Fiordland’s top five overseas markets were the United States, Australia, Germany, United Kingdom and China. There were 533,079 international guest nights, compared to 194,258 domestic guest nights.

The road to Milford Sound, packed with tourist traffic. PHOTO: SUPPLIED/FILE

Tourism Minister Kelvin Davis announced on Monday that 31 regional tourism organisations (RTOs) around the country had received help.

“In June we announced up to $20.2 million would be available to them, and following the application process, I’m pleased to announce all the RTOs have had their funding confirmed,” Mr Davis said.

The funding has been handed out in chunks of either $1 million, $700,000 or $400,000.

Destination Queenstown was one of five RTOs to receive $1 million. The others were Auckland, Rotorua, Wellington and Christchurch RTOs.

Great South, which represents all of Southland, has received $700,000. Other RTOS to receive this amount include Lake Wanaka Tourism, Dunedin City Council and Central Otago District Council.

Other RTOs to receive $400,000 include Clutha Development, Venture Timaru, Tourism Waitaki and the Mackenzie district.

Destination Fiordland will spend its $400,000 on destination management and a domestic marketing campaign. 

Some of the funding will go towards employing two staff members in roles related to those portfolios, Ms Peacock said.

Details of the jobs have yet to be finalised. Ms Peacock hoped to advertise ‘’in the next four weeks’’.

“We are grateful for this. It certainly boosts our funding this year,’’ she said.

The Kepler Track in Fiordland National Park. PHOTO: Paul Huisman/Unsplash

Destination Fiordland has two funding sources: Southland District Council and its members (about 290).

Ms Peacock would not comment on this year’s budget, other than to say that as one of the smallest RTOs in New Zealand, “our budget is very small’’.

“We have one pot of money. Everyone contributes. Out of that we manage operations and marketing,’’ she said.

“The council funding is secure, but our membership funding is not. We are looking at a reduction in revenue. We would argue $400,000 is not enough. We put a case for more because Fiordland strategically important. But the funding was not contestable,’’ she said.

The term “destination management’’ involves the management of all aspects of a destination that contribute to a visitor’s experience, including the perspectives, needs and expectations of visitors, iwi, the tourism industry, wider businesses, local residents and central and local government. (Ministry of Business, Innovation and Employment).

Ms Peacock said Destination Fiordland’s destination management project would involve pulling together “all those pieces that make up who we are as a destination’’ so Fiordland remained a viable destination for when international tourism returned.

Destination Fiordland also needed to switch its focus onto the domestic tourism market and create a new marketing campaign aimed at New Zealanders.

Some of the funding would be used to develop video and images for content and some “really tight’’ marketing campaigns across multiple channels, she said.

Mr Davis said the funding would allow RTOs to support their local communities and tourism operators, stimulate regional demand, leverage Tourism New Zealand’s national marketing campaign and increase the industry’s capability. 

The Southland App today invited Mr Davis to respond to ongoing economic concerns expressed by Fiordland businesses this week.

Mr Davis’s spokesperson said the Government “continues to consider what assistance could be provided to businesses and workers still affected by the economic impact of COVID-19 once the second tranche of the wage subsidy runs out on September 1’’.

Additional Government funding of Fiordland activities was available through several programmes:

• The Milford Opportunities Project (underway), including developing Te Anau as a gateway to Fiordland. Stage Two involves $3 million from the International Visitor Conservation and Tourism Levy to be spent on developing a master plan.

• Targeted, sector specific support through the $400 million Tourism Sector Recovery Package.

• $25 million support for 1,000 tourism concessionaires operating on public conservation land, including waiving most Department of Conservation tourism-related concession fees until 30 June 2021. 

• Over 740 tourism businesses have also signed up to the free Tourism Transitions Programme since it launched in May. An additional $10 million investment in this programme will support up to 3,000 more small and medium tourism businesses impacted by COVID-19 to get expert advice.

• The COVID-19 Income Relief Payment for workers who lost jobs as a result of COVID 19, paying the equivalent of the wage subsidy payment.

• The Small Business Cashflow Loan Scheme has been extended to the end of the year.

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