HDC announced its commitment to contribute $462,500 to funding HB Tourism, provided the CHB and Napier City Councils also agree to fund.

CHBDC approved a $75,000 contribution at its meeting this week. NCC had approved $300,000 for HB Tourism for 25/26 at its 12 Dec 2024 council meeting. At its upcoming 20 Feb meeting, Council will make a decision on increasing this to $450,000.

Wairoa District Council will not be contributing.

Says HDC: “The cost to Hastings District Council would be $462,500 – to be paid for out of operational savings rather than an increase in rates. Chief executive Nigel Bickle had been charged with finding those savings. Some would come from reducing the Hastings District Council’s contribution to regional programmes that were the responsibility of the regional council.”

Wow, how easy to find a spare $462k! 

This contribution is on top of $85,000 per year that HDC presently spends in partnership with HB Tourism on tourism activity. The staff paper indicated it was likely that additional amounts would be requested on a project-specific basis (e.g., familiarisation tours, event sponsorships). KPIs to be determined.

Wow, what a commitment with no public consultation!

HDC has committed $925,000 over two years. Says the staff paper: “Council has engaged with internal stakeholders in economic development and destination marketing, attended HBTIA meetings on the future of the RTO, and collaborated regionally to come to an agreed position on the value of retaining an RTO for Hawke’s Bay.”

Wow, notice the tit-for-tat in reducing HDC’s contribution to HBRC’s “regional programmes”! HDC cut $167,700 in funding from the Clifton to Tangoio Coastal Hazard Committee, the Cycle Network Coordinator, and money towards HB Biodiversity.

Where’s the rest of HDC’s contribution – $589,600 – coming from? What are Hastings ratepayers losing on HB Tourism’s behalf?

This decision was taken at an extraordinary HDC meeting held 13 February. Only Councillor Marcus Buddo opposed the funding, citing a general aversion to supporting industries with ratepayer funds, and more pressing needs to be met associated with cyclone recovery, particularly for rural residents.

None of the councils deem their contributions to require public consultation.

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7 Comments

  1. “paid for out of operational savings rather than an increase in rates.”
    Wow!! That reads like a Tui billboard!! That $925,000 over two years should be invested in paying down debt to reduce the massive negative impact of the ever increasing compounding interest on a mountain of debt. If the council reduced its ‘investment’ to zero tourism numbers would likely remain largely unaffected. Why is tourism (a low wage economy) given special support subsidies over over industry sectors. Kudos to the tourism industry in HB for it’s lobbying to achieve this, more so given the economic hardship being experienced by many ratepayers.

  2. Public consultation? Yeah right, let’s be honest here, it’s mostly a ‘tick-box’ exercise anyway…maybe they are quietly being honest about it by not bothering.

  3. Maybe the NCC’s portion comes from their plans to close the library.
    “Hey tourists, welcome to the city with no hospital, no AH health care, no post office and now…. no library”

  4. Why do these councils Not introduce a Bed Tax / Visitor Tax, call it what you will? On the prime receiver?
    As opposed to forever flogging the dead horse iratepayers! Like try thinking outside the box?

    1. The councils have agreed to a 2-year support package for HB Tourism because only Central Government can impose a bed tax/visitor tax, which the industry, right across NZ is seriously lobbying for already. This will enable the visitor to indeed pay for the privilege of visiting our regions, rather than it being a ratepayer ‘responsibility’. However, those central wheels turn incredibly slowly, but at least they have started to turn. Previous governments haven’t had the courage to do what so many other visitor destinations across the world already do and impose a tax/levy in visitors.
      Our local councils are stepping up in the interim, as not only does the Regional Tourism Organisation promote visiting HB, but it is also actively promoting brand “Hawke’s Bay” which benefits a myriad of other businesses, including growers, manufacturing etc. by showcasing their region of origin. It’s an interlinked web of regional support, and not an isolated entity, and these three councils thankfully can see that there is benefit in that. I for one congratulate them!

      1. Hi Megan
        Thanks for all your information re your lobbying for some form of visitor/ bed tax.
        All sucess with your keeping on lobbying.
        Cheers

  5. I believe these amounts of money for promotion are excessive in today’s economic climate. There are more pressing essentials needing funding. Most people know what a great place H. B. is to visit.

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