Steve Armitage: Hospitality New Zealand CEO on mayor Wayne Brown disestablishing Tātaki Auckland Unlimited

Published Sep 30, 2024, 5:24 AM

Auckland mayor Wayne Brown aims to disestablish the city's tourism and economic development agency.

The mayor is progressing plans to fold Tātaki Auckland Unlimited back into council control and reduce its functions.

He says the agency spent more than $700,000 on a campaign promoting Auckland to Aucklanders.

He says these things need to stop happening with ratepayer money.

Hospitality New Zealand CEO Steve Armitage Tātaki says is essential - and plays a pivotal role for the city's tourism.

"There are a lot of ancillary benefits, there are jobs created - particularly off the strength of Auckland's visitor economy in recent years."

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You're speaking of getting back to basics that government directive. Auckland Mayor Wayne Brown is pushing forward with his quest to shut down Auckland's council controlled organization. So, according to leak papers, he's progressing plans to disestablish the city's tourism and economic development agency Tatuki Unlimited. Wayne Brown says, quote major events, destination marketing and visitor attractions are not a required activity for the council. But what impact would the closure have? Hospitality in Z's CEO, Steve Armitage is with the suce evening Calder.

Steve Calder Jack.

So what does Auckland Unlimited actually do.

Well? In simple terms, an economic development agency promotes the region that's as an attractive destination for businesses, investors and visitors, but it also provides an important point for people who live there. You know, we all want to live in vibrant places. We all want to ensure that there's our high quality content that we're engaged with on a day to day basis. And as a result of that, there are whole lot of ancillary benefits. There are jobs created, particularly off the back of the strength of Auckland's visitor economy in recent years, but also the work that they've done around sectors like the screen sector for example, which is you know, one of the key strengths and a sector of competitive advantage for the city.

Is an organization like Tartaki Unlimited are nice to have.

No, I'd consider it's being essential and I think if you have to look across the ditch to see that there are similar organizations that are playing a pivotal role helping respective states in Australia get back on their feet. Yeah, we routinely look at Melbourne and Sydney and talk about how well they are performing. You know that doesn't happen by accident. They have similar agencies that are well funded and well supported and ultimately end up ensuring that they're generating successful and generating and delivering successful events and driving visitation which supports their local economies.

Is this the council's responsibility though? Why can't the privates to pick this up?

I think for a long period of time there has been a desire and a willingness, even from within Tataki Unlimited to look at alternative funding models, and to be fair to them, they've done an incredible job. In recent times, money has been hard to come by, but they've established a fund with the private sector and they've been able to generate around two million dollars of support to help promote Auckland as a destination into Australia in particular. Now I think seems a pretty clear signal that they're already thinking about how they reduce the dependency on the ratepayer. But I think central government also has a key role to play. A lot of this results in increased GST take, but at the moment, central government's not playing a pivotal role in supporting how Auckland is performing as a sector.

Right, How could that change? What would you like to see?

I think there's a conversation to be had around whether there's alternative funding arrangements like an accommodation levy or a bed text if you like, which we've seen and play in other regions and other cities around the world. Most key wes are pretty familiar with that type of approach to things, and a proportion of that funding can obviously be held at a central level to potentially support development of visitor infrastructure at a national level, but it would be great to see some of that funding being returned to the region. That's generated in to help stimulate demand.

Hey, thanks for your tome, appreciate it. Steve that is Steve Armitage, the CEO of Hospitality in New Zealand.

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