Report urges Tourism Ministry rethink

The Tourism Ministry appears set to be folded into the Ministry of Economic Development (MED) following a review of the Government's role in the sector.

A report by consultants Martin Jenkins recommended the Tourism Ministry, currently a semi-autonomous organisation under the MED, be fully subsumed into the larger government body.

The Dominion Post has been told that the MED has put the recommendation to the Government and that Prime Minister John Key, who is also the Tourism Minister, has been briefing some in the industry to expect significant structural changes at the organisation.

Sources linked to the Tourism Ministry said job losses were expected. At the start of the year the ministry had around 30 staff but some have left and not been replaced in recent months.

There are concerns in the tourism industry that such a change would lead to a loss of influence within the Government.

A spokesman for Mr Key refused to comment last night, but expected an announcement in coming days.

Tourism Industry Association (TIA) chief executive Tim Cossar said Mr Key had given his word that notwithstanding the changes, tourism would "remain a dominant part of any government which he leads".

"We've taken his word on things so far and he's been pretty right so we'll take his word on this one."

Mr Cossar said the TIA would prefer that the ministry remained, but would work constructively with MED if not.

"It seems seems pretty clear that there's going to be some change."

The industry would have "major concerns" if there was any damage done to the research which the Tourism Ministry undertakes, such as the visitor satisfaction survey, a key measures of the performance of the sector.

Martin Jenkins submitted the report, which covers the central government's involvement and funding of tourism, at the end of May. It was quietly added to the MED website at the end of June.

Liz MacPherson, the MED deputy secretary responsible for tourism, did not respond to requests for comment.

The report also suggests that the Tourism Ministry, which was established in 2002, should divest its land management responsibilities to Land Information New Zealand and end a programme under which it awards $300,000 in grants and scholarships, arguing that they do not represent value for money.

It recommends that marketing agency Tourism New Zealand should sell its majority stake in quality monitor Qualmark, consider cutting the size of its board of directors and seek more private sector funding for marketing.

Fiona Luhrs, the former chief executive of the TIA, said the report did not demonstrate an understanding of the needs of the industry or how competitive tourism was.

"I don't think it mentions competition once. It feels like it was developed in a vacuum without an understanding of how tourism needs driving."

The international trend was for dedicated ministries with specialist staff being established, she said.

- © Fairfax NZ News