Integration of RDA's and RTO's Paul Davis, Northland Inc

The EDA/RTO Journey so far, a tourism perspective “Study the past if you would define the future”. – Confucius

• 1980s– Some history, how did we get here?

• 1990s– Starting an RTO from scratch, what worked then

• 2010– NTOs and RTOs, the fundamentals

• 2013– Entering the EDA space from an RTO background, the learnings

• 2017– RDAs destination focus in the future; plans, dispersal, stimulating demand and

managing supply2

New Zealand’s Regional Tourism Structure- by design, not accident

• 1982/83 - Government control of tourism

• Ran retail travel agencies (domestic focus), acted as an IBO, group tour operations, sold international travel, marketed New Zealand internationally, annual domestic campaign

• Regional, district or local promotional groups promoted destinations; variation of organisational structure, territory, ownership, activity, effectiveness

• Establishment of NZT&P Tourism Advisory Services; regional liaison officers working with promotional groups and operators

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• 1984 and the upheaval. Third Labour government’s radical social and economic reform

• Downscale of central government role included tourism, active devolution of functions to regions and the private sector, sell-offs

• New Zealand Tourist and Publicity Department = worked to deliver more shape, structure and local responsibility into tourism at a regional level

• Support for regions and the private sector, a scaled-back regional office network re-focused on development assistance, continuation of regional liaison officers working with RTOs

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New Zealand’s Regional Tourism Structure- by design, not accident

• Mid-1980s. The Regional Promotions Assistance Scheme (New Zealand Tourist & Publicity Department)

• Funded formation of regional tourism organisations on a regional or united council boundary basis (mostly)

• An incentive to re-structure and refocus• A clear message to regional and local government about

who should invest in regional level destination marketing

• Grant for regional marketing plan• Subsidy for specific marketing activity within the plan• Funding for an Exec Officer for 3 years• Sunset clause• The origin of today’s regional tourism structure

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New Zealand’s Regional Tourism Structure- by design, not accident

• By the early 1990s most regions had an operating RTO• Regionalism was and still is shaky in some locations

(Waikato, Nelson/Tasman), • Scale an issue (minimum effective size) and budget,

inter-regional tensions

• My view - 3 Groups of RTOs; – 5 x sophisticated, well-resourced marketing

agencies– The middle group; brand, sector liaison and

coordination, industry leadership, some great marketing programmes but can not significantly influence demand, or alter visitor flows

– The smaller RTOs; individuals make the difference

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New Zealand’s Regional Tourism Structure- by design, not accident

• A long-history of LG mistrust and petty inter-regional rivalry

• RTO formation driven by two Mayors with foresight, and an inaugural Chairman with impeccable business standing

• Totally inadequate set-up budget

• A move from TNZ to the regions

• A painful restructure, a new Plan, new staff

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Nelson Tasman Tourism Formation - 1995

Who is Northland Inc?Running an RTO c 1990s

• Having a (basic) Plan, consistent delivery of programmes

• Forming relationships / gaining industry trust

• 80:20 approach to relationships, work with those marketing outside the region

• Coat-tailing TNZ and delivering quality service for media and trade

• Visitor Information Centre management – linking the marketing promise and delivery, touch-point for smaller operators

• Industry buy-in to programmes

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Who is Northland Inc?What worked / EDA relationship

• A solid well-run CCO, industry solidarity, an annual pitch to Council owners for greater base resource backed by performance data

• Independent board with directors from outside the tourism sector• Strong governance and ‘friends at court’ within Councils• Strong industry relationships – mates with sector leaders, industry players ‘owned’

the organisation• Hard-working staff who led by example• Working the local media – relationship of trust & valued data source, always having

a view, getting tourism ‘in the news’• But, we never solved the inter-Council rivalry and changed a rural council's view that

tourism was ‘not their business’• EDA formation around 2004, common directors with RTO

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Who is Northland Inc?Another NTO – 2010/2013

• Aid-funded Tourism Advisor to support Ministry/NTO• Tourism as a means to achieve greater independence, less reliance on aid,

increase economic return• Objectives to steer sector and organisational restructure, legislative change• Giving industry greater say and control, efficiency and effectiveness• Development of a comprehensive new 3-year tourism programme; demand,

supply and capability• A complex coordination function; cross-cultural issues, cross-country politics,

bureaucracy, resource control and allocation, advice versus perceived paternalism

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Who is Northland Inc?Learnings from another country

• Similarities– Main destination versus outer islands– Dispersal versus concentration – Resort versus town/city– Reliance of transport links – air and sea feeders – Seasonality– Quality of experience– Distribution channels– Coordinating many small operators– Destination positioning - Brand agreement/synergy

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Who is Northland Inc?Learnings from another country

• Differences – Industry leaders, locals and expats had different views– Outside investors versus local ownership, confusion over value of

delivery of experiences with local flavour, versus using the best of outside expertise

– Structures and operating methods are not always transferable– Industry-lead a different paradigm v. village and family loyalties– Whole of government approach?; Statistics, customs and

immigration, transport and infrastructure, aid donors– Integrated economic development? Supply, demand, capability

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Who is Northland Inc?Northland – integration of EDA and RTOScene set

• A long-established visitor sector/destination (since the 1830s!)

• Traditional summer destination• Water-based activity• Cultural and heritage overlay• Seasonality and dispersal challenges• Huge region - widely spread industry• Roading and transport connections• Icon resort plus other locations

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Who is Northland Inc?The RTO

• Established from a PRO 1995• Morphed into a combined RTO/EDA, Tourism head became CEO, some

major achievements• Mature organisation by mid 2010• Restructure, industry dissatisfaction• Northland Inc from 2013• On the pathway to becoming a true RDA• Some thoughts from a tourism practitioner angle

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+ =

Who is Northland Inc?Current Structure

• CEO and four GMs, leading;– Regional Promotions and Tourism– Investment and Infrastructure– Business Innovation and Growth– Maori Economic Development

• Not an RTO within an EDA, Regional Promotions is cross-sector• One tourism-only position - Trade Marketing Manager• GM leads projects, PR and Comms, Content, Digital

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Internal servicing for

“Promotions”

Our skills & expertise, combined with others planning and content input delivers activity

Destination Marketing & Development

Programme Delivery

Dual functions

Regional Promotions = dual functions(Have we got it right?)

Who is Northland Inc?What works for tourism

• Focus on both demand and supply• Destination marketing as well as

infrastructure and product development• Destination marketing tightly focused - clear

communication to industry; trade and digital• Clusters with cross-over into tourism

– Marine servicing and yacht visitors, superyachts

– International education– Food and beverage

• Intervention via the Investment and Growth Reserve

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Who is Northland Inc?IGR Project examples

• Tai Herenga Pou - Twin Coast cycle Trail• Twin Coast Discovery revitalisation Project• Waitangi Mountain Bike park• Hundertwasser Art Centre• Assessments;

– Manea Project– BOI Vintage railway– Te Roroa tourism strategy– Hihiaua Centre– Cape Brett / Rawhiti Walk– Whaingaroa tourism strategy

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Who is Northland Inc?What could work better

• Synergy between BIG team and tourism operators – input market demand

• Time and money – stretched dealing with both tourism activity and regional promotions

• Planning in advance, too small to provide internal services ‘on demand’

• Tourism sector feeling they have lost their specialist RTO (but major players drove the change)

• Getting around the region (it’s 344 kmsand four hours Wellsford to Cape Reinga), coordination, regional footprint

• Maori engagement

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Dispersal, how to?

PAST

• Intervention• Touring

= Dispersal

PRESENT

• Market forces• Independent travel

= Concentration

FUTURE

• ?• ?

= Dispersal

Who is Northland Inc?Regionalism and Dispersal

• Expecting change without a change of scenario?• Having a Plan – Regional Growth Plans• Led by regions • “By us, for us” government policy setting and background support• Integration of tourism and other sectors• Working on both demand AND supply• Need for interventions, PPPs

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Who is Northland Inc?EDA/RTO Integration in summary

• The NZ RTO model has been around now for 30+ years• The model is changing fast, regionally-led• Over half are integrated with EDAs• There is no one right structure or model, regional self-

determination• Working to a plan - Interventions in both demand and supply• What’s the right government policy setting, what back-up/support?• What’s the right national level coordinating function, organisational

structure and advocacy role• Dispersal, the challenge for all but the big 5

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