Minister on possible public sector tourism cuts: ‘They make dollars stretch’
Thursday, 21 May 2026
Public sector tourism teams will potentially be affected by broader public sector spending cuts announced this week, but tourism has already shown it can make do with less, the sector heard in Auckland this week.
Tourism NZ, a crown entity primarily funded through Budget allocations, may be impacted by the Government’s plans to streamline the public sector, with tourism promotion, policy research and industry roadmap planning not as yet classified as being protected from the wider cuts signalled by Finance Minister Nicola Willis.
But the broader message to the sector from ministers and industry heads appearing at a briefing at TRENZ, the sector’s largest annual gathering, in Auckland this week was upbeat.
After her speech, The Post asked Tourism Minister Louise Upston if the public sector overhaul might impact on Tourism NZ and the tourism policy team at MBIE.
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Upston said there had been requests for savings since the Government came in.
But it was actually about efficiency, she said, adding she was proud of the way the teams at Tourism New Zealand and at MBIE had stepped up.
“We've set some challenging targets, they've rethought the way they operate and how they make the dollars stretch further, and they're delivering results.”
Tourism NZ chief executive Rene de Monchy said that as the organisation was government-funded it was conscious of delivering real value for the money that it made and that it spent.
They had made some changes over time, and had actually received a boost in funding this year from the International Visitor Levy, he said.
“The more we have, the more we can do, but we have to just cut our cloth to what we receive.
“But over the last 18 months we’ve been really buoyed by the Government’s focus on growing tourism, and its importance to the economy.”
He was also encouraged by the strong growth in international tourism, with international visitor arrivals over the year to March growing by more than two times the rate of the year before.
“In the medium term New Zealand as a brand is incredibly well placed. The offer we have is strong, desired, and possibly even more desired than it was before the conflict in the Middle East.”
However, the Middle East conflict and its impact on fuel prices continues to cast a shadow over the economic outlook, and that was front of mind for many at TRENZ.
At the briefing on Wednesday, Prime Minister Christopher Luxon acknowledged industry concerns about the fuel shock, and said the Government continued to engage with many in the sector on what the crisis meant for tourism.
But the changing reality around travel was an opportunity for New Zealand, he said.
'Visitors are looking for safety, they're looking for stability, they're looking for places where they can relax and escape some of that global noise, and there's no better safe haven than New Zealand. It’s where we stand out.
“We can build on what we do well by offering our famous calm and tranquillity, but also some incredible experiences across the country for people to enjoy - at a time the world is increasingly volatile and uncertain.”
As New Zealand’s second largest export industry, tourism was a key part of the economy, and momentum in the industry over the last year had seen visitor numbers rise to about 93% of pre-Covid levels, Luxon said.
“Both the industry and Government have been working hard to boost the sector’s growth … We need to make sure New Zealand is at the top of people's travel list, and to turn that desire into reality as we go forward from here.”
The Government’s job was to back the industry up so it was successful, and it had invested widely in the sector - with funding for major events, cycleway trails, and regional tourism boosts some examples, he said.
“All of these investments show we're trying to build a more diverse, more resilient tourism sector. Let's make sure the sector continues to keep going to get there by working together in the way that we are.”
Upston also spoke at the briefing, and she said the sector was well on track to meet the “ambitious” target of doubling the value of tourism exports by 2034, set by Government in its tourism roadmap.
That was due to a number of initiatives, and the work done by everyone in the sector to amplify the message that New Zealand was open for business and wanted people to come and visit, she said.
“It’s why I’m confident in not just the numbers we are seeing today, but that those numbers will continue.
“New Zealand is seen as safe and secure, and people are planning to have overseas holidays anyway. So part of the game for us is to make sure that we're at the top of the list.”
She pointed to the the joint announcement from Air New Zealand and Christchurch Airport of three new non-stop international routes from Christchurch to Singapore, Tokyo and Perth earlier in the day as an example of the sector’s confidence.
But it was important to ensure that instead of just setting targets in the roadmap, a plan on how to achieve those targets, and to sustain growth long-term was being built, she said.
To that end, the Government was working on a tourism policy statement, which would build on the roadmap and be a shared reference point to ensure the system moved forward and grew.
It was due for release in the second quarter of this year, but the minister shared part of it - a clarification of the roles central, and local government, and industry play in the system.
“We have been working more closely together over the last 12 to 18 months, and that's a significant part of what's seen our results improving.
“But once we've delivered the tourism policy statement, it's then about breaking it into further actions and an action plan, and we can then deliver even greater results.”