Proposed changes to local government and national funding settings are creating renewed uncertainty for the tourism sector, particularly for Regional Tourism Organisations (RTOs) whose work directly supports regional economic performance.
Nicola Greenwell
Hamilton & Waikato Tourism is funded through a mix of local council investment and direct industry contributions, and while this diversified model provides a degree of resilience, it also means any tightening of council revenue has immediate consequences for what we can deliver on behalf of the region.
The government’s proposals to introduce a national rates cap and replace regional councils with combined territory boards have intensified the conversation. RTOs across New Zealand are structured and funded in very different ways, so the impacts of any structural reform will inevitably be uneven. For regions like ours, where recent Long-Term Plan decisions have already reduced investment, further constraints risk compounding existing pressures.
When councils are required to operate within tighter revenue settings, non-essential expenditure often comes under scrutiny – and tourism funding is consistently at risk. Other regions have already experienced this.
Hawke’s Bay Tourism, for example, has faced significant reductions and had to reconsider its priorities, structure and delivery as a result. Their experience is a reminder rate caps, even if well-intentioned, can directly influence the viability and effectiveness of regional tourism functions.
The economic stakes are high. Tourism remains a critical lever for regional growth, supporting jobs, generating business activity, enhancing community vibrancy and strengthening resilience. Funding enables RTOs to deliver destination marketing, visitor-experience development, industry capability building, event acquisition and support, and destination management, all essential components of a thriving regional economy. When investment diminishes, so too does the capacity to drive these outcomes.
It is important to acknowledge the current proposals sit within a much wider reform environment. Central government is reassessing how best to streamline local government, optimise regional investment, and leverage tourism as part of wider economic development. From this perspective, the rates cap and governance changes may represent one piece of a much larger system redesign. However, the full implications remain unclear until more detail is released.
What we can say with certainty is this: as we prepare for the next round of Long-Term Plans, the need to advocate for stable, strategic tourism investment has never been more important. We support efforts to improve long-term efficiency and deliver value for communities, but any structural changes must continue to recognise tourism as a major economic enabler. Protecting investment in tourism is essential if regions like Waikato are to maintain momentum, attract visitors, support local businesses and drive sustainable economic growth.
Kereta Hill in the Coromandel. Photo: Petra Reid, pexels.com
