B.14 (Tourism)
Non-Departmental Appropriation Report
Vote Tourism
Minister of Tourism
Report in relation to Non-Departmental Appropriations’ financial and nonfinancial performance information for the year ended 30 June 2015
Presented to the House of Representatives pursuant to section 19B of the Public Finance Act 1989
Foreword
This non-departmental appropriations report provides a summary of the activities undertaken in relation to
Vote Tourism from 1 July 2014 to 30 June 2015, along with details of the results achieved compared with those
forecast.
Non-departmental output expenses:
 Tourism Growth Partnership
This report does not cover the following non-departmental expenses within Vote Science and
Innovation:
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Contribution to Wero Facilities
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Maintaining the Quality of Great Rides
2
Marketing of New Zealand as a Visitor Destination
1
National Cycleway Fund – Extension
1
New Zealand Cycle Trail Incorporated Seed Funding
Rt Hon John Key
Minister of Tourism
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A reporting exemption was granted under s15D of the Public Finance Act.
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This appropriation is administered by Tourism New Zealand, and will be reported on in its annual report.
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Introduction
This report records the financial and non-financial performance results for the outputs purchased through
selected non-departmental output and other expenses in Vote Tourism for the period 1 July 2014 to 30 June
2015.
The objective and purpose of the appropriation is laid under the Scope of Appropriation, and the
appropriations Intention Statement. Within Vote Tourism all non-financial performance measures were
achieved except for one that was not able to be measured.
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S ta te men ts o f Perf ormanc e
NON- DEPARTMENTAL OUTPUT EXPENSES
T o ur i s m G r o w t h P a r t ne r s h i p
Scope of Appropriation
This appropriation is limited to the support of partnerships with industry that address strategic issues in the
tourism sector.
Intention Statement
This appropriation is intended to achieve the strategic changes required to overcome constraints to growth,
and lift the value that international tourism delivers to New Zealand.
Description of Activities
The following applications were progressed to funding agreement from Round One and Round Two during the
2014/2015 financial year.
China Travel Services Ltd (CTS):
CTS will utilise networks and collaborate with New Zealand Maori Tourism
The Australian Dragon
to promote New Zealand as a holiday destination to Chinese people in
$50,000
Australia.
Southern World Vacations:
Work with existing relationships and channels to raise New Zealand’s
Hunting New Zealand
profile as a sport hunting and fishing destination
Pukeroa Lakefront Holdings:
Building a new spa complex with innovative experiences.
$112,950
$350,000
World Spa Ltd
Omaka Aviation Heritage Centre:
The Omaka Aviation Heritage Centre will extend beyond its WWI aviation
WWII Aviation Exhibition Hangar
collection to include a WWII aviation exhibition hangar
$1,500,000
A further application was ‘received out of round’ from the Christchurch International Airport Limited in
September 2014 and progressed to full funding agreement.
Christchurch International Airport:
Focused on securing long term flights direct from the South Island to
Welcome China
Guangdong
$270,000
The third round of TGP funding opened in November 2014. As at 30 June 2015, 26 applications had been
received and were being assessed.
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Assessment of Performance
Non-Financial
2013/14
Performance Measures
2014/15
Budgeted
Standard
Actual
Standard
Provide advice to Minister on content of Portfolio
Statement to guide investment.
Updated measure
Achieved
Achieved
Undertake minimum of one funding round each year.
Updated measure
Achieved
Achieved
New measure
100%
100%3
Percentage of contracts assessed to achieve their
objectives and critical steps.
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2014/15
Actual
Standard
The time frame for one critical step in one contract was extended by agreement between the Ministry and the contractor.
Round Four of the Fund was expected to open in April 2015 but was delayed to enable the findings of an
operational review of the Fund to be assessed and changes implemented. Round Four is now expected to open
in September 2015.
A monitoring report was also completed for the Fund that concluded that:
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the TGP funding selection process is working well
the TGP is an efficient programme
the TGP will help contribute to reducing seasonality in New Zealand’s tourism sector
it is too early to assess contracted outputs against objectives and critical steps at this early stage.
The China Market Information Programme that allocated to this appropriation was undersubscribed. As a
consequence the remaining funding of $556,150 was expense transferred to Vote Tourism for:
 research that will have wide application throughout the sector and fill gaps in insight about the China
Market
 dissemination of the findings, and assistance for the sector to apply these findings, though interactive
‘readiness’ workshops and online tools.
Financial
Expenses
Total Appropriation
2013/14
2014/15
2014/15
2014/15
Actual
Estimates
Supp Estimates
$000
Actual
$000
$000
1,850
7,990
$000
7,434
3,743
The variance in the amounts not spent or contracted at the timing of the financial year are due to Round Three
applications in pipeline as at 30 June 2015 that will flow over into the next financial year and the delay in
opening of Round Four of the TGP due to implementation of the Operational Review findings.
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