National proposes $100m Tourism Accelerator

The National Party says it will launch a $100m Tourism Accelerator to help fund projects that will help drive demand in the sector.

The $100m would be allocated over four years for new tourism products and would require a 30% co-investment from applicants.

Todd Muller

“Covid-19 has posed a direct challenge to the tourism industry and our Tourism Accelerator is one tool we can use to help the industry rebuild and bounce back,” National leader Todd Muller said in a statement on Friday.

“While the Government is talking up the need to plan for the future, National is providing ideas that will make a difference now.”

Tourism operators, iwi, or groups of investors could apply for funding with a business proposal that outlined the costs of the project and how it would meet the aims of the fund.

National said viable projects must aim to increase the demand for tourism in the region, where the project was based and was likely to be profitable.

There would be no maximum or minimum amount of funding that could be applied for, however, the money was not to be used for covering current operational costs but for new tourism components aimed at driving increased or new demand.

The grants would be managed by an independent board appointed by the tourism minister.

The details released in a fact sheet by National follow:

What is Tourism Accelerator?

• Tourism Accelerator is a grant programme that provides assistance to our tourism sector by co-funding projects with industry that will help stimulate demand and increase productivity.

Who can access the fund?

• Businesses, tourism operators, iwi, or groups of investors can approach the fund with a business proposal that outlines the costs of the project and how it meets the purposes of Tourism Accelerator.
• There is no maximum or minimum size of project or grant amount.
• The proposal will be assessed against a set of criteria, with final decisions on funding being made by the independent board that manages the grants.

Who will sit on the board?

• The Minister of Tourism will appoint a board that includes a wide range of expertise from across the New Zealand tourism sector.

Can the Minister influence funding decisions?

• No. The Minister will appoint an independent board to manage the fund. The Minister may issue a priority statement on the programme to provide clarity to the board on what the Government’s priorities are for stimulating demand and increasing productivity in the sector. These statements will be developed in consultation with industry stakeholders.

What does co-investment mean?

• Tourism Accelerator will provide 30% of the funding for a project that meets the criteria of the programme. The grants will help the tourism industry establish new projects that will drive demand as it rebuilds after Covid-19.
• The Government will not take a stake in the equity of the project or in the intellectual property of a project.

How much is being invested?

• The proposal will see $100m invested over a four-year period. Because project must have at least 30% private investment, this could result in at least $130m worth of investment in the tourism sector.