Government urged to reconsider funding decision for Inbound Tour Operators
The Tourism Export Council of New Zealand has urged the Government and decision makers to reconsider
their decision to not fund any Inbound Tour Operators through the Strategic Tourism Assets Protection
Programme grants programme.
“We acknowledge the Government has done its best to provide support for some parts of the wider
tourism sector,” says Chief Executive Lynda Keene.
“But it was hugely frustrating to be informed by officials at the last minute that there will be no grant
funding made available for Inbound Tour Operators (ITOs). The decision to offer loans will not help our
members, as they have no income coming in for 18 months.”
“On behalf of our members, we urge the Government and decision makers to reconsider this decision.
Failure to do so will lead to a huge loss in Intellectual Property across the sector and leave us unable to
support local operators once borders re-open.”
“Our inbound members are an integral part of the tourism sector. They link offshore travellers and agents
with onshore product suppliers and will be a vital element to recovery when borders re-open.”
Information provided by Tourism NZ through its Research and Insights team suggests that 55% of all
international visitors pre-COVID were booked through trade (offshore) and Inbound Tour Operators in New
Zealand which equates to $9.46bn of $17.2bn that international tourism export receipts earned for the
New Zealand economy.
Ms Keene says the decision by Government to not provide Strategic Tourism grant funding to ITOs was
completely unexpected. We are a little perplexed that Inbound Tour Operators are not considered to be
strategic tourism assets considering the Government’s heightened emphasis on health and safety and
contact tracing. Inbound Tour Operators have always (pre-COVID) being able to trace every client/visitor
that is travelling around NZ of every hour of every day. Tourism NZ’s own research and insights supports
the enhanced and expected role that Inbound Tour Operators will play in the future when visitors return to
NZ and that Inbounds will be crucial to delivering on a visitor experience that meets new expectations
under a post-COVID environment.
“Operators were led to believe they would be eligible to receive grants through this process. We are
confused why this decision to offer loans instead of grants has been made.”
Ms Keene says TECNZ is keen to learn more about how the proposed Government-backed loan scheme will
work for operators. No business can forecast or plan for 18 months with no revenue. COVID-19 is an
unprecedented event.
“Our members have done all they can to keep their businesses afloat over the past six months in the
expectation that some Government funding would be made available. The complete lack of support for this
part of the sector means many of these companies will now shut down completely.
“We recognise that not every job and business can be saved, but the Government and the wider industry
need to recognise the important role played by Inbound Tour Operators.
“Maintaining the intellectual property and commercial business to business relationships that Inbound Tour
Operators have with offshore tour wholesalers is critical for the wider sector and rebound of NZ’s economic
recovery.
“That is why we applied on behalf of our members to the Government’s Strategic Tourism Assets
Protection Programme to support them through the COVID disruption. Sadly it appears we were misguided
that we did not meet the criteria, but it is extremely disappointing that not a single Inbound Tour Operator
will receive any grant funding either.
We are keen to discuss this further with Ministers of the Tourism Ministers Recovery Group. The
opportunity to share with Ministers or MBIE staff the critical and strategic role that Inbound Tour Operators
play in generating $17.2bn of NZ’s international tourism export earnings is vital to their survival ” says
Lynda Keene.
For more information please contact:
Lynda Keene, Chief Executive
Tourism Export Council of NZ
027 664 4836