Formats and related files
APPROPRIATION MINISTER(S): Minister of Tourism (M69)
APPROPRIATION ADMINISTRATOR: Ministry of Business, Innovation and Employment
RESPONSIBLE MINISTER FOR MINISTRY OF BUSINESS, INNOVATION AND EMPLOYMENT: Minister for Economic Development
Summary of the Vote#
Overview#
The Minister of Tourism is responsible for appropriations in the Vote for the 2014/15 financial year covering the following:
- a total of over $7 million for departmental outputs for policy advice and research to promote a high value and sustainable tourism sector, services to support the Minister and monitoring the performance and compliance of Crown entities, and
- a total of just over $124 million for non-departmental appropriations for the promotion of New Zealand to key overseas markets as a visitor and business destination, implementation of the Tourism Growth Partnership initiative, seed and operational funding for the operation of National Cycleways.
Details of these appropriations are set out in Parts 2-4.
Estimates of Appropriations#
Details of Appropriations and Capital Injections#
Annual and Permanent Appropriations
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Titles and Scopes of Appropriations by Appropriation Type | Budgeted $000 | Estimated Actual $000 | Budget $000 |
Departmental Output Expenses | |||
Policy Advice - Tourism (M69)This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters. | 2,309 | 2,309 | 2,552 |
Tourism Data and Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M69)This appropriation is limited to collection, processing, analysis and dissemination of data on tourism; development of operational policies in relation to Tourism issues, research support, services to support the Minister, monitoring the performance and compliance of Crown Entities, and administering grants programmes. | 4,944 | 4,944 | 4,748 |
Total Departmental Output Expenses | 7,253 | 7,253 | 7,300 |
Non-Departmental Output Expenses | |||
Marketing of New Zealand as a Visitor Destination (M69)This appropriation is limited to the promotion of New Zealand as a visitor destination in key overseas markets. | 113,350 | 113,350 | 113,350 |
Tourism Growth Partnership (M69)This appropriation is limited to the support of partnerships with industry that address strategic issues in the tourism sector. | 6,293 | 6,293 | 7,990 |
Total Non-Departmental Output Expenses | 119,643 | 119,643 | 121,340 |
Non-Departmental Other Expenses | |||
Maintaining the Quality of the Great Rides (M69)This appropriation is limited to the provision of financial assistance to maintain the quality of the Great Rides of Nga Haerenga, the New Zealand Cycle Trail. | - | - | 2,000 |
New Zealand Cycle Trail Incorporated Seed Funding (M69)This appropriation is limited to the provision of operational funding to the New Zealand Cycle Trail Incorporated. | 185 | 185 | 349 |
National Cycleway Fund - Extension (M69)This appropriation is limited to the provision of financial assistance for the development of a National Cycleway. | 4,794 | 4,794 | - |
Total Non-Departmental Other Expenses | 4,979 | 4,979 | 2,349 |
Total Annual and MYA Expenses | 131,875 | 131,875 | 130,989 |
Supporting Information#
Part 1 - Vote as a Whole#
1.1 - New Policy Initiatives
New Policy Initiatives
| Policy Initiative | Appropriation | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | Policy Advice - Tourism | - | (47) | (47) | (47) | (47) |
| Tourism Data and Operational Policy, Ministerial Servicing and Crown Entity Monitoring | - | (71) | (71) | (71) | (71) | |
| Vote Alignment | Policy Advice - Tourism | (400) | - | - | - | - |
| Tourism Data and Operational Policy, Ministerial Servicing and Crown Entity Monitoring | (100) | - | - | - | - | |
| Tourism Growth Partnership Initiative | Policy Advice - Tourism | 222 | 222 | 222 | 222 | 222 |
| Tourism Growth Partnership | (222) | (222) | (222) | (222) | (222) | |
| Establish and Provide Short-term Funding | NZ Cycle Trail Incorporated Seed Funding | 185 | 349 | 185 | - | - |
| Nga Haerenga - the New Zealand Cycle Trail | Maintaining the Quality of the Great Rides | - | 2,000 | 2,000 | 2,000 | 2,000 |
| Total Initiatives | (315) | 2,231 | 2,067 | 1,882 | 1,882 |
1.2 - Trends in the Vote#
Summary of Financial Activity#
| 2009/10 | 2010/11 | 2011/12 | 2012/13 | 2013/14 | 2014/15 | 2015/16 | 2016/17 | 2017/18 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Actual $000 | Actual $000 | Actual $000 | Actual $000 | Budgeted $000 | Estimated Actual $000 | Departmental Transactions Budget $000 | Non- Departmental Transactions Budget $000 | Total Budget $000 | Estimated $000 | Estimated $000 | Estimated $000 | |
Appropriations | ||||||||||||
| Output Expenses | 99,872 | 120,590 | 92,287 | 92,686 | 126,896 | 126,896 | 7,300 | 121,340 | 128,640 | 133,543 | 131,140 | 131,140 |
| Benefits or Related Expenses | - | - | - | - | - | - | N/A | - | - | - | - | - |
| Borrowing Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Expenses | 846 | 5,273 | 29,097 | 8,306 | 4,479 | 4,479 | - | 2,349 | 2,349 | 2,267 | 2,267 | 2,267 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - | - | - |
| Intelligence and Security Department Expenses and Capital Expenditure | - | - | - | - | - | - | - | N/A | - | - | - | - |
| Multi-Category Expenses and Capital Expenditure (MCA) | ||||||||||||
Output Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Other Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Appropriations | 100,718 | 125,863 | 121,384 | 100,992 | 131,375 | 131,375 | 7,300 | 123,689 | 130,989 | 135,810 | 133,407 | 133,407 |
Crown Revenue and Capital Receipts | ||||||||||||
| Tax Revenue | - | - | - | - | - | - | N/A | - | - | - | - | - |
| Non-Tax Revenue | 1,007 | 383 | (1) | - | - | - | N/A | - | - | - | - | - |
| Capital Receipts | - | - | - | - | - | - | N/A | - | - | - | - | - |
Total Crown Revenue and Capital Receipts | 1,007 | 383 | (1) | - | - | - | N/A | - | - | - | - | - |
Note - where restructuring of the vote has occurred then, to the extent practicable, prior years information has been restated as if the restructuring had occurred before the beginning of the period covered.
1.3 - Analysis of Significant Trends#
Total All Appropriations
The changes in appropriations in Vote Tourism are largely driven by movements in non-departmental output expenses due to initiatives which have variances over the years in their funding profiles.
Output Expenses
The following are the key initiatives that impact the trends:
- the funding of marketing NZ as a visitor destination of $15 million in 2009/10 and $25 million in 2010/11 only
- a decrease in funding occurred in 2010/11 and outyears as funding was reprioritised for the Establishment of the Productivity Commission, and
- introduction of the International Growth Package initiative in Budget 2013 marketing international business events and growth partnerships with the private sector with $36.500 million in 2013/14 and 2014/15, and $39 million in outyears.
Other Expenses
The following are the key initiatives that impact the trends:
- from 2009/10 to 2011/12 the trend reflects the spending pattern for the Multi-Year Appropriation for the Cycleway initiative which was introduced in Budget 2009, and
- from 2014/15 to 2017/18 the funding relates to ongoing costs for the cycleway.
Part 2 - Details of Departmental Appropriations#
2.1 - Departmental Output Expenses#
Policy Advice - Tourism (M69)
Scope of Appropriation
This appropriation is limited to the provision of advice (including second opinion advice and contributions to policy advice led by other agencies) to support decision-making by Ministers on government policy matters.
Expenses and Revenue
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 2,309 | 2,309 | 2,552 |
| Revenue from the Crown | 2,309 | 2,309 | 2,552 |
| Revenue from Others | - | - | - |
What is Intended to be Achieved with this Appropriation
This appropriation is to contribute to improved international flows of people, ideas, investment and trade.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| The satisfaction of the Minister of Tourism with the policy advice service, as per the common satisfaction survey. | At least 70% | At least 70% | At least 70% |
| Technical quality of policy advice papers assessed by a survey with a methodological robustness of 80%. | At least an average of 73% | At least an average of 73% | At least an average of 73% |
| The total cost per hour of producing outputs. | At most $155 | At most $155 | At most $155 |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | 2014/15 | - | (47) | (47) | (47) | (47) |
| Tourism Growth Partnership Initiative | 2013/14 | 222 | 222 | 222 | 222 | 222 |
| MBIE-Wide Vote Alignment | 2013/14 | (400) | - | - | - | - |
| China Market Information Project | 2012/13 | 20 | 10 | - | - | - |
| Efficiency Dividend | 2012/13 | (70) | (70) | (70) | (70) | (70) |
| Contribution to the establishment of the Productivity Commission | 2010/11 | (65) | (65) | (65) | (65) | (65) |
Reasons for Change in Appropriation
The increased appropriation is a result of a $400,000 fiscally neutral adjustment in 2013/14 only to reflect the introduction of one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure.
This increase is offset by:
- $100,000 expense transfer in to 2013/14 only to reflect the delays in releasing the Request for Quote for the China Market Information Project
- $47,000 savings due to the formation of MBIE, and
- $10,000 fiscally neutral adjustment from the Tourist Growth Partnership appropriation to support the China Market Information project.
Tourism Data and Operational Policy, Ministerial Servicing and Crown Entity Monitoring (M69)#
Scope of Appropriation#
This appropriation is limited to collection, processing, analysis and dissemination of data on tourism; development of operational policies in relation to Tourism issues, research support, services to support the Minister, monitoring the performance and compliance of Crown Entities, and administering grants programmes.
Expenses and Revenue#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 4,944 | 4,944 | 4,748 |
| Revenue from the Crown | 4,860 | 4,860 | 4,664 |
| Revenue from Others | 84 | 84 | 84 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to contribute to improved international flows of people, ideas, investment and trade.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Meet New Zealand Department of Statistics Official Statistics Standards for all core Tourism datasets published by the Ministry. | Maintain conformity with Official Statistics Standards | Maintain conformity with Official Statistics Standards | Maintain conformity with Official Statistics Standards |
| Responses to Parliamentary Questions, ministerial correspondence and ministerial Official Information Act 1982 requests are to be completed within either specified or statutory timeframes. | 95% or above | 95% or above | 95% or above |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Formation of MBIE Savings | 2014/15 | - | (71) | (71) | (71) | (71) |
| MBIE-Wide Vote Alignment | 2013/14 | (100) | - | - | - | - |
| Future of the New Zealand Cycleway Trail Project | 2012/13 | 25 | - | - | - | - |
| Efficiency Dividend | 2012/13 | (106) | (106) | (106) | (106) | (106) |
Reasons for Change in Appropriation#
The decreased appropriation is a result of:
- $100,000 fiscally neutral adjustment in 2013/14 only to reflect the introduction of one cost allocation methodology following the establishment of MBIE and implementation of the organisation's management structure
- $71,000 efficiency savings as a result of the formation of MBIE, and
- $25,000 reduction in funding for the Future of the NZ Cycleway Trail project.
Part 3 - Details of Non-Departmental Appropriations#
3.1 - Non-Departmental Output Expenses#
Marketing of New Zealand as a Visitor Destination (M69)
Scope of Appropriation
This appropriation is limited to the promotion of New Zealand as a visitor destination in key overseas markets.
Expenses
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 113,350 | 113,350 | 113,350 |
What is Intended to be Achieved with this Appropriation
This appropriation is to increase the value of international visitors to New Zealand.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| International Growth package: Deliver marketing activity in at least 3 emerging markets or regions - India, Indonesia, Latin America (Brazil, Chile, Mexico and Argentina). | Updated measure | Updated measure | Deliver marketing activity in at least 3 emerging markets or regions - India, Indonesia, Latin America (Brazil, Chile, Mexico and Argentina) |
| International Growth Package: Undertake activity to bring international business events to New Zealand. | Deliver activity to support conference and incentive travel to NZ from at least 4 markets (Australia, US, China, South East Asia) | Deliver activity to support conference and incentive travel to NZ from at least 4 markets (Australia, US, China, South East Asia) | Deliver marketing activity to promote conference and incentive travel to NZ from at least 4 markets (Australia, US, China, South East Asia) |
| International Growth Package: Increase the yield from visitors to New Zealand. | Measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Deliver marketing activity to support special interest travel in core and emerging markets |
| International Growth Package: Grow the value of premium travel segment to New Zealand. | New measure | New measure | Deliver marketing activity to promote (high net worth) travel to NZ from at least 4 markets (Australia, US, Japan and Europe) |
| Campaign: Develop and run brand advertising and partnership campaigns in target markets. | 100% Pure New Zealand will be implemented in at least 6 major markets | 100% Pure New Zealand will be implemented in at least 6 major markets | Deliver 100% Pure New Zealand Brand and Partnership campaigns in at least 6 core markets and at least 3 emerging markets |
| International PR Activities: Run an international media programme and report on the results of that programme. | Media targets will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Media targets will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Deliver media/PR activity in at least 6 core markets and at least 3 emerging markets |
| Information for Visitors Websites: Maintain and update Tourism New Zealand's consumer website. | Consumer website output measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Consumer website output measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Maintain and update at least 20 editions of Tourism New Zealand's consumer website (newzealand.com) |
| Information for visitors: Support i-Site New Zealand to ensure quality of i-Sites to provide assurance that visitors receive quality and relevant information. | Updated measure | Updated measure | The i-Site network is supported with strategy development, marketing and training and all centres are regularly assessed to ensure they meet the networks memberships requirements and standards |
| Quality Assurance: Support Qualmark Ltd to provide quality accreditation ratings. | Updated measure | Updated measure | 100% of Qualmark licence holders are regularly assessed to ensure they meet the required Qualmark standards and criteria for their category |
| Working with travel trade, business events and aviation sectors: Travel trade training - provide familiarisation experiences to overseas travel sellers to enhance their ability to sell destination New Zealand. | Measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Undertake education (training, famils), business development and partnership programmes with travel trade in at least 6 core markets and at least 3 emerging markets |
| Informing and Engaging with New Zealand Tourism Industry: Publications, Websites, Webinars and Workshops. | Measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Measures will be included in Tourism New Zealand's Statement of Service Performance in the 2013-2016 Statement of Intent | Drive alignment of public/private activity by engaging with industry through at least 4 corporate channels including: 1) Websites (China toolkit, corporate, business events, and trade); 2) e-newsletters; 3) Industry updates; 4) webinars |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Tourism New Zealand in its annual report.
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| International Growth Package | 2013/14 | 29,500 | 29,500 | 32,000 | 32,000 | 32,000 |
| Three-Year Marketing Strategy | 2011/12 | 15,000 | 15,000 | 15,000 | 15,000 | 15,000 |
| Contribution to the establishment of the Productivity Commission | 2010/11 | (151) | (151) | (151) | (151) | (151) |
Tourism Growth Partnership (M69)#
Scope of Appropriation#
This appropriation is limited to the support of partnerships with industry that address strategic issues in the tourism sector.
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 6,293 | 6,293 | 7,990 |
What is Intended to be Achieved with this Appropriation#
This appropriation is to help drive some of the strategic changes required to overcome constraints to growth and lift the value that international tourism delivers to New Zealand. This contributes to productive and successful people, communities and regions; and improved international flows of people, ideas, investment and trade.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Provide advice to Minister on content of Portfolio Statement to guide investment. | Updated measure | Updated measure | Achieved |
| Undertake minimum of one funding round each year. | Updated measure | Updated measure | Achieved |
| Percentage of contracts assessed to achieve their objectives and critical steps. | New measure | New measure | 100% |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Tourism Growth Partnership Initiative | 2013/14 | (222) | (222) | (222) | (222) | (222) |
| International Growth Package | 2013/14 | 7,000 | 7,000 | 7,000 | 7,000 | 7,000 |
Reasons for Change in Appropriation#
The increase in this appropriation for 2014/15 is mainly due to a $2.403 million expense transfer from 2013/14 to 2015/16 to reflect the additional time required to assess proposals for the grant funds established in 2013/14. This is partially offset by an expense transfer from 2012/13 to 2013/14 for $716,000 to reflect timing in specific work on implementing recommendations arising from the China Market Review.
3.4 - Non-Departmental Other Expenses#
Maintaining the Quality of the Great Rides (M69)#
Scope of Appropriation
This appropriation is limited to the provision of financial assistance to maintain the quality of the Great Rides of Nga Haerenga, the New Zealand Cycle Trail.
Expenses
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | - | - | 2,000 |
What is Intended to be Achieved with this Appropriation
This appropriation is intended to maintain the quality of the 23 Great Rides throughout New Zealand and contribute to productive and successful people, communities, and regions.
How Performance will be Assessed and End of Year Reporting Requirements
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Application round undertaken during the year based on agreed guidelines and selection criteria. | New measure | New measure | Achieved |
| Contracted Great Rides met the milestones and objectives outlined in the funding agreements. | New measure | New measure | Achieved |
End of Year Performance Reporting
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Nga Haerenga - the New Zealand Cycle Trail | 2014/15 | - | 2,000 | 2,000 | 2,000 | 2,000 |
Reasons for Change in Appropriation
This appropriation was established during the 2013/14 year with funding commencing in 2014/15. This is a contestable fund over four years for the purpose of maintaining and enhancing the "Great Rides" of Nga Haerenga, the New Zealand Cycle Trail.
New Zealand Cycle Trail Incorporated Seed Funding (M69)#
Scope of Appropriation#
This appropriation is limited to the provision of operational funding to the New Zealand Cycle Trail Incorporated.
Expenses#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Budgeted $000 | Estimated Actual $000 | Budget $000 | |
| Total Appropriation | 185 | 185 | 349 |
What is Intended to be Achieved with this Appropriation#
This appropriation is intended to provide operational funding for the New Zealand Cycle Trail Incorporated society to promote the long term sustainability and success of the Nga Haerenga, the New Zealand Cycle Trail. This contributes to productive and successful people, communities, and regions.
How Performance will be Assessed and End of Year Reporting Requirements#
| 2013/14 | 2014/15 | ||
|---|---|---|---|
| Assessment of Performance | Budgeted Standard | Estimated Actual Standard | Budget Standard |
| Delivering the business plan and objectives as outlined in the funding agreement. | New measure | New measure | Achieved |
End of Year Performance Reporting#
Performance information for this appropriation will be reported by the Ministry of Business, Innovation and Employment in its annual report.
Current and Past Policy Initiatives#
| Policy Initiative | Year of First Impact | 2013/14 Budgeted $000 | 2014/15 Budget $000 | 2015/16 Estimated $000 | 2016/17 Estimated $000 | 2017/18 Estimated $000 |
|---|---|---|---|---|---|---|
| Approval to Establish and Provide Short-term Funding | 2013/14 | 185 | 349 | 185 | - | - |
Reasons for Change in Appropriation#
This appropriation was established during the 2013/14 financial year to establish and provide short-term funding to meet the operational costs of New Zealand Cycle Trail Incorporated and the increase reflects the policy initiative.