Registration for adventure tourism operators

A compulsory registration scheme featuring upfront safety audits will be developed following the review of New Zealand's adventure tourism industry, Labour Minister Kate Wilkinson announced today.

 

"The Prime Minister called for this review after concerns were raised over the number of recent tourist deaths from accidents in the adventure tourism sector.

 

"We pride ourselves on hosting tourists and providing them with the experience of a lifetime. We have a fantastic international reputation and it's important we make it clear that our safety practices are world-leading," Ms Wilkinson says.

 

"The industry has grown rapidly and continues to innovate. What this review found is that our adventure tourism operators take their responsibilities seriously and manage risks effectively.

 

"However, for some activities there are gaps in the safety management framework that could allow businesses to operate at a lower standard than industry experts consider acceptable.

 

"There is support within the sector for a registration scheme for commercial land-based and non-certified water-based activities to ensure all businesses have a strong safety focus. 

 

"For most operators, the scheme would include a requirement that an upfront safety audit be obtained based on the risk profile of their business.

 

"By introducing a registration scheme we will know exactly what adventure activities are on offer and all users, whether they are tourists or New Zealanders, can be assured that any associated risks are being managed.

 

"This review has been comprehensive and reflects the Government's desire to make sure we have a system that instils confidence in this dynamic industry and protects our reputation as an outdoors destination."

 

The Government has instructed the Department of Labour to work on further complementary initiatives discussed in the report, including:

 

• Facilitating the establishment of an industry-led entity focused on the safety management framework for the sector;
• Investigating developing a register of government-accredited adventure tourism-related safety auditing schemes; and
• Investigating whether instructors and guides should be required to hold qualifications and work only within the scope of those qualifications.

 

The Department will report back by November 30 with detailed proposals on the design of this new system.

 

A copy of the report can be found at http://www.dol.govt.nz/consultation/adventure-tourism/final-report/.

 

 

 

Questions and Answers

 

 

What gaps in safety practices have been identified that need addressing?

 

For a variety of reasons, businesses can start up and operate at a different standard than is accepted across the sector as best practice. It's possible for passionate operators to start a small business without the skills or knowledge to implement appropriate risk management systems. The review team's analysis of the controls in place for activities shows that some with high inherent risks are controlled only by the Health and Safety in Employment Act, or with added industry guidance, while others are covered by activity specific rules. With different approaches across multiple agencies there is also a risk that safety standards could fall between jurisdictional cracks.

 

Will a compulsory registration scheme fix this?

 

Yes. Compulsory registration will ensure that all operators have a strong risk management plan in place. A safety audit will be required upfront and further periodic audits will be required. Adventure aviation, commercial jet boating and rafting will be exempt from this registration as rules-based requirements already exist to protect customers.

 

How many businesses will need to register and how much will the scheme cost to set up?

 

The Department of Labour estimates there are currently about 1500 businesses that would fall under the proposed registration scheme and it will cost between $150,000 and $250,000 to establish an online database. On-going costs would be recovered through a modest registration fee.

 

What further costs do you anticipate operators will face?

 

Many operators already undertake safety audits as part of good business practice or because they require a Department of Conservation or local authority concession to operate on public land or in certain areas, so this requirement will not affect them. For new operators or those who have not undertaken a safety audit, the cost will be based on the risk of the activity and complexity of the operation. The typical cost of a one-off upfront audit is roughly between $1000 for a medium risk business and $2,200 for high risk activities. Periodic audits will typically cost about half that. Some low-risk activities may not require an audit in order to register.

 

What impact will this have on clubs or non-charging organisations?

 

The registration scheme is specifically targeted at commercial operators, which offer the vast majority of activities covered by this review. The Department's detailed design report due in November will consider any implications for other organisations such as clubs.

 

Is the proposal justified by the problem?

 

In one year alone, an estimated 850,000 international visitors take part in at least one adventure activity (commercial and recreational), and that does not include the number of New Zealanders involved in adventure and outdoors sports annually. The industry is worth $3 billion to the New Zealand economy. The report found that our safety record is very good, but that there are gaps in the framework. It's essential that our international reputation isn't compromised by perceptions that our adventure activities aren't safe. Addressing these gaps will reinforce tourist confidence in the industry and protect our reputation.

 

Can these recommendations ensure safety?

 

It is impossible to eliminate all accidents as many of these activities carry some risk. For example, with mountaineering the risks can be quite high. But it is reasonable for people to expect that all practical efforts are made to minimise the risk of accidents. The report showed that 39 people have died in New Zealand undertaking outdoor activities in the five years between 2004 and 2009. No death is acceptable and that is why the review was undertaken.

 

Does this suggest the industry has been unsafe?

 

No, the review found that there were high levels of safety. However, there will always be areas for improvement. Most operators are already managing risk well and the data shows that the accident and fatality rate on adventure tourism activities is relatively low. Awareness of safety in the sector has never been higher. Operators have been involved in the process, and those not involved have been watching the process carefully.

 

Doesn't the review show that adventure tourism operators lack qualifications?

 

Unqualified does not mean unskilled.  For many newer activities, appropriate qualifications have not yet been developed. The Department of Labour has been asked to do further work on whether guides and instructors should be required to have qualifications. International trends show that regulation is moving toward better management of the business rather than requiring individual qualifications.

 

Will the review stifle innovation?

 

Providing operators can meet the auditing criteria and expected safety levels, we are sure people will continue to innovate and develop new activities.

 

How does New Zealand compare to international adventure tourism sectors?

 

The registration scheme we will introduce will see New Zealand leading the way in ensuring all activities are as safe as possible. Like the majority of other countries considered in the review, New Zealand has primarily relied on voluntary accreditation of providers to oversee risk management and safe delivery of activities, backed up by generic health and safety legislation for all businesses. 

 

Why did you not opt for a licensing scheme?

 

There is no need to go to licensing.  It is costly and it doesn't confer any real benefits in addition to those that come from the registration scheme being introduced.

 

The report noted that submissions from victims' families had raised a number of other concerns with New Zealand's laws, will these be addressed?

 

The review sought input from families who had lost a loved-one in an accident and has recorded their recommendations. A number of these, such as placing controls on media reporting, speeding up the justice system and amending New Zealand's no-fault accident compensation scheme, fall outside the scope of this review. The chief concern raised was the need for safety practices to be prioritised when an activity is established. The input from these families has been valuable and their concerns have been taken onboard by the Government.