Long Term Community Plan 2012-2022 - Hurunui District Council

www.hurunui.govt.nz
After taking into account public views, we will look at how we
might phase out the current targeted tourism rate in 2013/14
when a new model would take effect. We do not have any detail
on a possible alternative model at this stage and plan to develop
this thinking after consultation during the 2012/13 year.
Along with a new funding model, we also want to explore
how to govern and lead district promotion. That may involve
a new board such as a possible ‘Investment and Promotion
Advisory Board’, or it may be through an enhanced Hurunui
Tourism Board. We will continue with our current models while
considering this, until an alternative district promotion model is
developed.
While considering our new model, we plan to look closely at
the role of ENC and what actual benefit is delivered to and
derived for our district. Although we have continued to budget
to retain our services with ENC through the life of this Long
Term Plan, it is an opportune time to ensure that we are getting
best value from our annual spend. We do not have the answers
yet, or any alternative models, but this will come as we develop
our future district promotion model.
Funding
Operational Costs:
• Currently, tourism is funded via a targeted tourism
rate from ratepayers and businesses who are involved
directly in the tourism sector. This rate is planned to
be phased out after 2012/13 and replaced with a new
funding model yet to be designed.
• An additional contribution of $45,000 is used toward
tourism from the Hanmer Springs Thermal Reserve
surplus.
• General district promotion when undertaken is funded
via a District Rate or Targeted Tourism Rate.
• Council provides an annual grant of $50,000 to Enterprise
North Canterbury for economic development services.
This is 100% funded through the General Rate.
Capital Costs:
• Currently through the targeted tourism rate as
described above
Council Assets
Maintenance and Operating Implications
The Hurunui Tourism Board contracts the delivery of most of
its services including specialist advice, and some work is done
in house by a Council Officer dedicated to tourism marketing.
Economic development is provided by Enterprise North
Canterbury which is a Council controlled organisation.
Assumptions and Risks
The continuation of the grant made to Enterprise North
Canterbury is dependent on there being continued returns and
gains made. Council’s plans regarding economic development
are based on the assumption that New Zealand’s economy
will continue to be buoyant (while acknowledging the global
economic crisis), and that the benefits to the District’s businesses
are in excess of the costs incurred by the Council.
Little in the way of growth has occurred within the district over
the last few years and economic downturn has had a marked
impact on overseas tourism. It is assumed that growth will
begin to return, however, not necessarily at the same high rate
as in earlier years. We have seen that external factors, such as
natural disasters (earthquake) do have an impact on tourism.
What we had not necessarily anticipated was that visitor
numbers continued to be high, but mainly from people within
the Canterbury area.
We are making assumptions that the targeted tourism rate
is still not popular and that those affected will support us in
seeking an improved funding model.
Shared Services
Hurunui and Waimakariri District Councils jointly support
and fund Enterprise North Canterbury (ENC) to help boost
economic development in North Canterbury. We have
budgeted $50,000 to contribute for the 2011/12 year. ENC
work with businesses in both districts, providing business
support, development and training, and special projects with an
economic focus.
• District promotion boards in main townships.
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