Growth on the cards for Tourism Auckland

Auckland City Council's Economic Development and Sustainable Business Committee has called for major changes to the governance and funding of Tourism Auckland including establishing a new board appointment process.

The council will work with Manukau City Council, which also provides funding, to restructure the tourism body after a review found there were areas in the current management structure that inhibited effective delivery and economic growth potential, including lack of funding.

A report to the committee has recommended that options for further funding be considered, including a three or five-year budget, as part of the council's 2008-2009 annual plan process.

The organisation is currently funded by Auckland City Council ($1.654 million), Manukau City Council ($600,000), and North Shore City Council, ($100,000). Together they fund nearly half of Tourism Auckland's total $5 million budget with the other funds coming from income from visitor information centres and the private sector.

The recommended changes to the Trust and Tourism Auckland's structure will see it focus on three key components of the visitor industry - destination marketing (both domestic and international), visitor services and convention services. Other suggested changes include:

the development of industry specific growth objectives and strategies to achieve them
robust performance and reporting measures specific to each delivery group
sufficient resources.
Councillor Richard Northey, chairperson of the Economic Development and Sustainable Business Committee says a new governance structure will bring significant benefits.

"Tourism Auckland's current governance and operating structure has performed well but the move to restructure the organisation is necessary for the sustainable growth of the industry.

"By creating distinct functional delivery groups and robust reporting measures with measurable key performance indicators, we will strengthen the board's ability to direct management, provide leadership and demonstrate transparency and accountability.

"We hope these changes will lead to an increase in visitor numbers with flow-on effects for the region's economic growth," says Mr Northey.

Mr Northey says funding is a crucial issue for the future of Tourism Auckland.

"Tourism Auckland is currently under-funded in relation to the size and population of the region. If the funding is not increased, tourism growth will be seriously confined.

"This is where the restructure is important. Once complete, Tourism Auckland should be able to attract an appropriate level of funding from other local authorities and private sector organisations across the region that stand to benefit from the enhanced service."

He says the council would consult on any proposal to use alternative funding mechanisms.

"Tourism is a core element in the economic development of the region. The issue of the cost of tourism will be worked through and consulted on to determine how best to proceed," said Mr Northey.

He said that the new board appointment process would be competency based. Sector representation would be considered as a secondary goal to ensure some continuity with the current board.