Tourism merged into Ministry of Economic Development

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Prime Minister John Key has folded his own ministerial portfolio, tourism, in to another, bigger ministry.

Key this morning announced that the Ministry of Tourism will be fully integrated into the Ministry of Economic Development (MED).

There will still be a Minister of Tourism, a tourism portfolio and a separate Budget appropriation for tourism, despite the change.

"The same approach is taken to other portfolios at the centre of New Zealand's economy such as Commerce, Energy, and Communications," Key said.

The change followed a review of the ministry, which found it could share work and expertise with the MED, including policy, research and monitoring.

It was recognition that tourism was an integral part of the Government's economic growth agenda and not an add-on, Key said.

"This move ensures tourism is positioned at the heart of the Government's economic plans and is a significant player in growing a high-value, productive economy," he said.

"I have made it clear that, just as with all other parts of the bureaucracy, I expect my key tourism agencies to lift their game and provide better value for money."

The structure and staffing of the integration were the responsibility of the chief executive of MED and final decisions were expected to be made in the next few weeks.

Tourism was a rare winner in the May Budget, netting $30 million in new funding for 2010/11.

The MED was created during the first term of the former Labour-led Government.