12 BAY OF PLENTY BUSINESS NEWS <strong>April</strong>/<strong>May</strong> <strong>2017</strong> Part <strong>of</strong> this block on Tauranga’s Durham Street is one <strong>of</strong> the sites being considered for a new hotel and conference centre. Calls grow for top hotel in Tauranga Calls for an internationally-branded hotel and conference centre in Tauranga are growing louder as <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> celebrates its status as New Zealand’s fastest-growing region in terms <strong>of</strong> prosperity. By VIV POSSELT Recent Statistics NZ figures put the <strong>Bay</strong>’s GDP growth rate at 7.7 percent, a figure that topped the country in the year to March 2016 and put it a respectable few points ahead <strong>of</strong> the next two on the list - Auckland on 6 percent, and Otago at 4.8 percent. And while the nod to the <strong>Bay</strong>’s increase in prosperity has been welcomed by all, concerns are mounting that Tauranga is losing big events and conferences to other regions because it doesn’t have an internationally-branded hotel and conference centre. “Not knowing exactly how many conferences we are missing out on is one <strong>of</strong> the difficulties we are facing right now,” said Annie Hill, projects and communications manager at Priority One, the Tauranga and Western <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong> economic development organisation. She said major events now coming to the area were putting the city’s facilities under pressure, and plans for a new tertiary campus – expected to be operational by 2020 – would likely increase the need for suitable hotel/conference venue. Tauranga needs another four-star hotel and conference venue, she said, one with international brand recognition. “There are huge opportunities we are missing because we don’t have that in Tauranga. The brand is <strong>of</strong>ten what drives conference organisers to select a venue, preferably one where their delegates can stay on the same site. We don’t have a branded venue like that here.” At a September 2016 meeting at which Tauranga City Council signalled its readiness to move ahead on its City Heart plan, council gave the thumbs up to an ongoing search for a private developer to build a new hotel in the city. Tauranga City <strong>May</strong>or Greg Brownless, who took over the mayoralty after that meeting, has added his voice to those now keen to move the hotel project forward. He said: “This is something we need here now more than ever. We have the land available; there are a couple <strong>of</strong> ideal sites. If someone chose to build it elsewhere, we’d be open to looking at that too, and we could possibly support more than one [hotel development]. “Every few weeks, people come through my doors with ideas for developing a hotel. It’s now just a matter <strong>of</strong> those ideas taking shape.” He said now is a particularly good time to move that process forward. The economy is good, business is buoyant and Tauranga’s existing hotels are enjoying high occupancy rates. “The idea <strong>of</strong> another hotel has been under discussion for a few years, but the last time it was on the table we were facing the global financial crisis and it all came to a grinding halt. Now we are in a different situation. We’re doing well economically right now … I think we’re pretty confident that we can get it underway.” Two sites are being considered for the development. One is at 91 Willow Street, and the other – favoured by Mr Brownless - is at the 21-41 Durham Street block, opposite <strong>Bay</strong>court and on the footprint <strong>of</strong> the old TV3 site. “The foundations are already there. There is an underground carpark, and another carpark on top. It is an ideal site. “But realistically, this is a long-term thing for investors. It will not be a decision taken quickly.” Mr Brownless described the council’s current zoning requirements as “pretty liberal” and said he believed that council would be co-operative in the event <strong>of</strong> any potential developer seeking more flexibility around issues such as consents. Priority One’s Annie Hill said the difficulty for potential developers is that with hotels, no-one received anything back on their investment until the first rooms were booked. “Several potential investors have done due diligence. Most are looking at mixed use – <strong>of</strong>fering <strong>of</strong>fice space, commercial or retail space as well as hotel accommodation. They would be looking for an anchor tenant <strong>of</strong> sufficient size to make it a viable option.” She said local organisations were working hard together to develop a year-round events programme that would bolster current peak seasonal surges. Tauranga does need more accommodation <strong>of</strong> a certain standard for visitors, especially a branded hotel for international visitors. “We are feeling cautiously optimistic that we are moving closer to getting the hotel underway.” Gillian Houser, business development manager at <strong>Bay</strong> Venues, said the decision to hold conferences and other major events in Tauranga was definitely being impacted by issues <strong>of</strong> accommodation and other limitations around infrastructure - in particular, airline access. “We are bringing conferences and events into the city, but there are accommodation and other restrictions which have cost us several bookings this year alone,” she said. “So yes, we are securing conferences – some <strong>of</strong> them bringing in 400 to 500 delegates. We have to put those delegates into a variety <strong>of</strong> hotels and then bus them to the conference venue … and while that would be the norm in many centres, it is far from ideal, particularly when we cannot <strong>of</strong>fer the quality in accommodation that we should be.” She said accommodation and infrastructure was <strong>of</strong> paramount importance to those seeking to book conferences or major events. “Our conference venues are fit for purpose, but the difficulty we are facing is in trying to accommodate the number <strong>of</strong> delegates or people attending events and transporting them to Tauranga. “It is also a fact that the regions are increasingly on the radar <strong>of</strong> conference and event organisers in Australia. If we don’t prepare for that now, the risk is we will miss out on those events in the long term.” Ms Houser said promoters <strong>of</strong> large concerts also looked closely at accommodation options and the ease with which people could travel to a venue before they considered firming up on a booking. Tauranga Chamber <strong>of</strong> Commerce chief executive Stan Gregec echoed the call for a new hotel development for the city. “Tauranga does need more accommodation <strong>of</strong> a certain standard for visitors, especially a branded hotel for international visitors. “There are all sorts <strong>of</strong> proposals and ideas that are being put forward for this.” Kath Low, head <strong>of</strong> marketing with Tourism <strong>Bay</strong> <strong>of</strong> <strong>Plenty</strong>, said while Tauranga did <strong>of</strong>fer a range <strong>of</strong> high end accommodation and conference options, and the tourism spend in the area had grown 41 percent over the past five years – 5 percent <strong>of</strong> the national average - the lack <strong>of</strong> a branded hotel was an issue. “While Tauranga does have a variety <strong>of</strong> accommodation <strong>of</strong>ferings, not having a known brand hotel limits our ability to attract all markets. There are international markets that have a predisposition to book branded hotels, such as Singapore, India and China. “Tauranga is one <strong>of</strong> New Zealand’s most appealing destinations in which to holiday,” she added. “Visitors come here for leisure, and then try to create an opportunity to come back – conferences provide a good excuse.” Tauranga <strong>May</strong>or Greg Brownless said the time is right for a new hotel development. Priority One’s Annie Hill says Tauranga is missing out on major conferences and events because there is currently no internationally-branded hotel and conference centre. Gillian Houser from <strong>Bay</strong> Venues says current restrictions mean Tauranga may miss out on events long-term.
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