Published HBT 27 Feb 2016
My recent talking point headlined “tourism expensive for ratepayers” in response to a request by Tourism Hawke’s Bay for a further $900 000 of ratepayer funding may have given the impression I was hostile to the visitor industry. Nothing could be further from reality.
I consider the visitor industry to be a vital part of our local economy and my commitment to this sector includes two years on the board of Wine Country Tourism an organisation funded solely by its members not ratepayers, plus for the past 12 years I have battled against the inexplicable resistance of our civic leaders towards better air services. Whilst these individuals are now clambering for recognition they deserve no credit.
Thank goodness Jetstar have arrived, not because of the actions of our leaders, but because it was apparent to the airline that Hawke’s Bay offered the best opportunity for additional passengers. Why else would we and Nelson be the first to receive the new services and the only places to get four daily return flights to Auckland? The reality is the 50 seat Q300 Bombardier aircraft being used became surplus to Qantas/Jetstar needs following the severe down turn in demand transporting fly in/ fly out mine workers in Australia.
Their four new daily return flights have added 20% or 135 000 additional seats annually between Napier and Auckland. This is more than 4 times the increase promised by Air New Zealand at a recent parliamentary select committee hearing. That all flights still seem full despite this huge increase in capacity is surely proof that Air New Zealand have been under providing seats at affordable prices for a very long time.
Some of these new passengers will be first time flyers, some will be Hawke’s Bay people on business or visiting friends and family. Perhaps half will be visitors bringing money into our region to spend on accommodation, food, retail and elsewhere. If each spends just $500, our economy will be better off to the tune of $20 million a year .
Of course had the former Mayor of Napier Barbara Arnott and current Hastings Mayor Lawrence Yule not created so many impediments we might have built the runway necessary to attract either Qantas/Jetstar or Virgin Blue many years ago. Others were also unhelpful but it was our community leaders who demonstrated the greatest lack of vision. The proof of how poorly they understood the need is that Jetstar have added 135 000 extra seats and Air New Zealand are promising 29 500 more seats in the space of just one year.
Whilst showing so little enthusiasm for better air services the Mayor of Napier was championing an $18 million museum extension that is attracting just 38 000 visitors annually, actually less than the older smaller museum, plus supporting a $2 million spend on the now failed Art Deco bus venture that struggled to attract a single passenger per trip. At the same time the Mayor of Hastings was spending $15 million upgrading the Opera House and Municipal Buildings which now need a further $10 million for earthquake strengthening for the Opera House alone and $6 - 8 million for the Municipal Buildings. All for just 60 000 patrons a year.
Interestingly whilst Tourism Hawke’s Bay has been highly visible since Jetstar first announced they might fly into Hawke’s Bay I cannot remember them previously commenting about high airfares, lack of competition, or the need for better air services.
Despite the clear benefits arising from Jetstar’s arrival, rather than committing to further improvements in our air connections Napier now wants to spend $15 - 25 million building a Velodrome whilst the Hastings council is promoting Tehei Heretaunga a $40 million spend up that will do little to improve the local economy. Unlike the airport both will need significant ongoing ratepayer support.
It’s pleasing to see Air New Zealand scheduling an additional12 flights in the two days prior to the International Marathon in May, plus a similar number in the two days following the event. Interestingly there is no evidence of increased capacity being provided for for Art Deco, Horse of the Year, the Festival of Hockey or any other event. Of course as sponsor of the Marathon Air New Zealand would hardly want to see people having to use Jetstar because of lack of seats.
Right now tourism is booming. Over 30 000 visitors arrived for Art Deco and no vacancy signs are becoming the norm. But let us be honest the whole country is on a roll and we are simply being dragged along for the ride. At the end of every upswing is a downturn and we need a plan to create continued growth to ensure we are still doing well when the inevitable happens.
Competition is a wonderful thing as Jetstar have already proved. It is time for those who are tying to claim credit for having already bought Jetstar here such as our Mayors, Councillors, business and tourism heads to demonstrate real vision and take what ever steps are necessary to get Jetstar to also link Napier to Wellington and Christchurch.
Instead of more flights to Auckland we need improve our image and upgrade to pure jets.
Then we need to go for the jackpot, direct flights to Australia.
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