$158 million on tourism

John Key has announced:

“Today I am announcing that, as part of this package, we will be investing an additional $158 million over four years into tourism,” says uriMr Key.

“Achieving growth in tourism earnings requires targeted new investment to position New Zealand as a high value destination in markets with real potential for growth.”

In the year ended March 2012 tourism generated $9.6 billion of revenue and was 15.4 per cent of export earnings. It was 3.3 per cent of GDP and employed 6.2 per cent of the workforce.

“Later this week when I attend New Zealand’s premier tourism conference, TRENZ, I will announce details of where this $158 million will be invested,” says Mr Key.

Tourism is a great export earner, and helps reduce the current account deficit.

Current Vote Tourism is:

• Departmental Costs $7.6m
• Tourism Strategy $1.2m
• Tourism Marketing $83.8m
• National Cycleway $12.1m

A $158m increase over four years is an average of an extra $40m a year which is basically a 50% increase in the marketing budget.