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Tairawhiti Navigational Project

Pre-feasibility Study FINAL

February 2010

Prepared for

Tairawhiti Development Partnership

Prepared by

Tourism Resource Consultants

In association with

Stimpson & Co.

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 i

EXECUTIVE SUMMARY

This is a pre-feasibility study of the Tairawhiti Navigational Traditions Project. It draws together individual light infrastructure and interpretation components that collectively make up a viable cultural heritage product for Tairawhiti. The draft report has been prepared for the Navigational Traditions Working Group for further discussion and feedback.

In summary, the project is worth pursing both from a social and an economic perspective, as it will benefit residents and visitors. The emphasis has been on simplifying the concept and identifying some initial key light infrastructure projects to create a practical and achievable way forward. This creates a starting point, which will over time see other elements of the navigational story and other sites within the region added to the experience.

The Navigational Traditions Project is not only about enhancing and growing Eastland’s tourism industry, but also maintaining its share in an increasingly competitive marketplace. Other regions are investing in infrastructure to stimulate economic growth and encourage tourism business development. Eastland requires this investment too.

The Concept

The proposed Navigational Traditions Project can be described as:

Coordinated light infrastructure and story development at key sites in the region to acknowledge our heritage, generate business opportunities and affirm the appeal of Tairawhiti as a great place to live and visit.

Additionally there are a number of other key elements that further illustrate exactly what the project is and hopes to achieve:

Navigational traditions provide a unifying theme to tie the region together, with the key sites developed under a consistent brand.

The sites developed must read as a connected experience with a consistency of development style that assures visitors of a quality experience.

The proposed infrastructure needs to be supplemented by private sector businesses that provide additional services (e.g. tours, retail, food and beverage, accommodation) that further enrich the visitors’ stay and provide a total experience.

Each site will provide an opportunity for different stories to be told and to reference other sites and activities in the wider region.

While this is a Tairawhiti wide project there is no denying the importance of the Gisborne inner harbour sites and the city’s role as a hub or mooring place (e.g. Te Toka a Taiau) for the Tairawhiti Navigational Project.

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 ii

The Key Project Sites

The developments would include the Gisborne inner harbour and several other sites within the region. These sites will require further consideration prior to being finalised.

Gisborne Inner Harbour Heritage Precinct

The most significant investment for this project would be in the Gisborne inner harbour area including the Titirangi Reserve and the Cook Landing Site. The number of sites, scale of development and the national significance of these sites make this component a priority for the success of the Navigational Project.

Key components for the Gisborne inner harbour include:

River Boardwalk along the existing wall between the river and port providing access to the first meeting point between Maori and European cultures

Turanganui River bridge from the centre wall to the existing walkway near the Waikanae Stream

Airbridge over the road to the Cook Landing from Titirangi Reserve Cook Landing Site National Historic Reserve - enhancement,

interpretation and landscape of the site Titirangi Reserve – rationalisation of existing tracks and

development of new tracks, interpretation and signs. Information/bookings/retail kiosk in the inner harbour precinct Tairawhiti Museum opportunity to incorporate a stronger

navigational theme New sculptures and interpretive signs throughout the precinct Completion of the remaining walkways along the Turanganui,

Taruheru and Waimata

Potential Regional Sites

This would include light infrastructure development such as interpretation displays, sculptures, short walks, lookouts, car parks and possibly shelters and toilets to enhance the experience and connect to the navigational theme. The focus should be on doing fewer sites to a higher quality rather than spreading resources to thinly. Further discussion with the key stakeholders at each site is required, but potential sites could include:

1. Pilots Hill & Rangi-houa Pa, Wairoa

2. Tolaga Bay & Cook’s Cove

3. Whangara

4. Mahia Peninsula

5. Anaura Bay

6. Mount Hikurangi, Ruatoria

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 iii

There have been a number of other navigational traditions concepts, ideas, story themes and initiatives with links to the project discussed over the years. Many of these will add greatly to the overall theme and strengthen the experience for visitors and residents. However, in the short term (the next 5 years) the focus will be on the infrastructure development mentioned above and telling the stories directly associated with those sites to ensure the project remains manageable and achievable.

Rationale

There are a number of compelling reasons for adopting a light infrastructure approach to developing the navigational traditions project, these include:

Practical and achievable – the concept of developing the Navigational Traditions Project through light infrastructure and interpretation creates a practical and tangible approach and the ability to tackle things on a site-by-site basis.

Low risk – development of light infrastructure at key sites provides a fairly low risk approach, in comparison to building a single multi-million dollar facility. The developments can also be phased over several years.

Proven technique – this type of development technique (i.e. light infrastructure as a catalyst for businesses development and indirect economic returns) has a proven track record and has worked in many regions such as the West Coast of the South Island and New Plymouth.

Strong Business Case for Proceeding

The economic impact and cashflow analysis indicate that the project is definitely worth taking to the next stage.

Cashflow analysis

The cashflow analysis illustrates how Eastland can “clip the ticket” and derive wider benefits from the investment of public dollars in light infrastructure at key sites. The costs and benefit assumptions used as the basis for the cashflow analysis err on the conservative side:

annual value added at maturity is estimated at $1.7 million a capital expenditure estimate of $6 million (see capital expenditure

assumptions in Appendix 2) the infrastructure is completed over 5 years the full realisation of benefits occur by year 7 the project is measured over a 20 year time frame

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 iv

The project could yield a net present value of around $4.5 million, which equates to a positive benefit cost ratio (BCR) of 1.71 for the project.

Economic Impact

The overall economic impact anticipated for the navigational project would be $2.7 million in year 7 of the project. This assumes direct value added at 40% of direct output and a type II multiplier of 1.5 This would equate to approximately 44 full time equivalent (FTEs) positions for the region.

Risks

One of the greatest risks for the project as a whole is that certain components outlined in the concept are not completed. This would adversely affect the social and economic impact of the project. As it stands, the impact is derived from the sum of all the parts to the project and needs a critical mass of sites and infrastructure to appeal to people to stay longer and spend more. This is equally true for the uptake by and support from local residents.

Strong Social Argument for Proceeding

A strong case can also be made for doing this development for social benefits and the people of Tairawhiti regardless of its economic outcomes. This development is in many ways a community asset and should enhance the region as a place to live and work.

Agree on Project Coordination and Next Steps

A critical factor in the success of the Navigational Traditions Project will be the ongoing coordination of the project from within an entity that has the mandate, capacity and resources to undertake a management role.

There are potentially three entities under which the project and a project manager could sit:

Tairawhiti Development Partnership Management Trust (TDPMT) Eastland Community Trust (ECT) Gisborne District Council (GDC)

Based on the consultation to date and the feedback from the Navigational Traditions Working Group meeting on the 3rd February 2010, the preferred option is for the project and the project manager to be positioned within the Gisborne District Council.

1 In this form of analysis a project is worthwhile pursuing if it has a Net Present Value of greater than $0 or a benefits to costs ratio greater than 1.0.

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 v

Project Manager

The Navigational Traditions Project requires a project manager who is able to dedicate their time to coordinating all the elements of this project, especially over the next few years to ensure the site selection, design guidelines and development of the individual sites is undertaken in a coordinated and timely manner.

The project manager would be responsible for driving the overall coordination of the project and regularly update the Navigational Traditions Working Group on progress. On a day-to-day basis they would report to the Community Planning and Development Manager of GDC.

Funding

Determining the funding sources for various aspects of the proposed infrastructure development is critical. Funding will be needed to not only cover the cost of developing the six sites, but also fund the initial concept and site planning work and overall coordination of the project at a regional level.

The funding sources include but are not limited to: New Zealand Trade & Enterprise (NZTE), Gisborne District Council (GDC), Wairoa District Council (WDC), Eastland Community Trust (ECT), Eastland Port, Department of Conservation (DOC) and the New Zealand Transport Agency (NZTA).

Following agreement in principal from TDP for this approach the next step would be to obtain GDC approval to recruit, on a contract basis, a new project manager for the Navigational Traditions Project that would be jointly funded by TDP partners (20%) and NZTE (80%) and be located within GDC.

Action Plan

An Action Plan is presented in this report outlining a sequence of development. While the bigger ticket items will require more discussion and planning there are a number of ‘quick wins’ identified where planning and construction could begin almost immediately.

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 vii

TABLE OF CONTENTS

EXECUTIVE SUMMARY I

The Concept i

The Key Project Sites ii

Strong Business Case for Proceeding iii

Agree on Project Coordination and Next Steps iv

TABLE OF CONTENTS VII

1. INTRODUCTION 1

1.1. Background 1

1.2. Objective of Study 1

2. RELEVANCE OF A TAIRAWHITI NAVIGATIONAL TRADITIONS THEME 1

3. THE BIG PICTURE 2

3.1. Tourism in Tairawhiti 3

4. TAIRAWHITI NAVIGATIONAL TRADITIONS PROJECT 5

4.1. The Concept 6

4.2. Rationale 6

4.3. The Proposed Infrastructure Developments 9 4.3.1. Gisborne Inner Harbour Heritage Precinct 9 4.3.2. Tairawhiti - Regional Project Sites 12 4.4. Branding and Marketing 12

5. BUSINESS OPPORTUNITIES 13

5.1. Cultural and Heritage Tourism Products 13

5.2. Food and Beverage, Retail, Accommodation 14

5.3. Links to Touring Routes 14

5.4. Meetings and Conferences 14

5.5. Events 15

6. THE BUSINESS CASE AND ECONOMIC IMPACT 15

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 viii

6.1. The Business Case 15

6.2. Sensitivity and Risk Analysis 17

6.3. Economic Impact 17

6.4. Social and Community Benefits 18

7. COORDINATING THE PROJECT 18

7.1. Navigational Traditions Working Group 19

7.2. Project Manager 20 7.2.1. Role 20 7.2.2. Concept design, site planning, and costing work 21 7.3. Funding 21

8. ACTION PLAN 23

8.1. High Level Project Workplan (2010-2013) 23

8.2. Action Plan 24

APPENDIX 29

A1. Consultation List 29

A2. Estimated Project Capital Costs 31

A3. Business Case, Economic Impact and Visitor Market Assumptions 32

A4. Other related Navigational Traditions ideas, initiatives and stories 39

FINAL Navigational Traditions Project Pre-feasibility Study, February 2010 1

1. INTRODUCTION

1.1. Background

In 2005 Tourism Resource Consultants were commissioned by the Tairawhiti Museum and the Museum Working Group to undertake a tourism and economic assessment of the Tairawhiti Museum: Voyaging/Waharoa and Heritage Trail Project. This work centred on the concept of a new voyaging centre as a key attraction for the region.

Since 2005 the project has moved to the Tairawhiti Development Partnership (TDP). However, for various reasons little progress has been made in developing a cultural heritage product based on the voyaging and navigational themes.

In 2009 the Gisborne District Council through the TDP and with funding from New Zealand Trade and Enterprise (NZTE) commissioned this pre-feasibility study2 to assess the merits of progressing with a project based on navigational traditions.

1.2. Objective of Study

In essence this study is about re-engaging and working with key stakeholders (see Appendix 1) to draw together a set of viable concepts and clearly present these in a document that outlines an action plan for moving the Navigational Traditions Project forward.

Consultation and facilitation to obtain clarity around the concepts has been a key focus, as well as solid practical and impartial advice to justify the concepts with potential that should be pursued.

Solutions to issues or points of disagreement have been addressed where practical, although not all stakeholders will agree with all elements of the proposed recommendations contained within this report.

2. RELEVANCE OF A TAIRAWHITI NAVIGATIONAL TRADITIONS THEME

One of the first study tasks was to again consider the relevance of the navigational traditions theme and consider the question, is this still a project worth pursuing?

2 The consulting team was led by Ross Corbett and Jimmy Young of TRC in association with David Stimpson and Richard Brooking.


The short answer is yes. The national importance of the Turanganui River as the ‘creation of a nation’ site and meeting place of the founding cultures, Maori and European, is a compelling story that all New Zealanders should be made more aware of. Furthermore, the stories of early Polynesian waka and Captain James Cook bring an internationally significant dimension to the navigational theme.

The opportunity to complement and enhance these stories by developing quality authentic cultural experiences and other heritage products presents a worthwhile opportunity for regional businesses, the local economy, and the people of Tairawhiti.

3. THE BIG PICTURE

This section provides a high level overview of some key trends effecting tourism and the economy.

Experiential Tourism – globally, visitors are looking to learn more and connect with local people via stories in the communities they visit. Experiential tourism is the opposite of mass tourism that traditionally focused on package tours and vacations with low levels of personal involvement. Niche areas such as cultural and heritage tourism are well suited to this type of experience.

Maori cultural tourism – provides a unique point of difference for New Zealand in the global marketplace. Approximately 20% of all international visitors to NZ experience a Maori tourism product, while participation by domestic tourists is less than 1%. In 2006 over half a million (567,200) tourists participated in a Maori cultural experience, of which the vast majority (80%) were international visitors3.

Strong central government recognition and support for tourism – New Zealand now has a Prime Minister as Minister of Tourism, which has raised the industry’s’ profile considerably. The $50 million National Cycleway initiative has further heightened tourism’s profile around the country and is beginning to create opportunities within regions.

The government also announced late in 2009 that an additional $20 million would be available for marketing New Zealand internationally. And $5 million of this has been earmarked for joint venture marketing with the private sector.

Opportunities for New Zealand to increase its presence in the global marketplace through the 2011 Rugby World Cup will assist the tourism industry long term.

3 Ministry of Tourism, Tourism Sector Profile Maori Cultural Tourism, March 2008


3.1. Tourism in Tairawhiti

Tourism in Eastland is still relatively under developed. While in the last several years there has been some new investment (e.g. new hotels) there has been little in the way of new experiences and products to refresh and diversify the industry. There remains a heavy reliance on traditional sun, sand and surf holidays, which have limited opportunity for adding further value to the local economy.

Tourism in the Eastland region is under performing. The region has seen only a 1.8% rise in tourism GDP over the last 10 years, compared to the national average of 3.0%. Similarly business units have grown only 0.7% since 1999, while the national average is around 3.0%4.

Current status of the Eastland tourism industry

In 2008, the Eastland Regional Tourism Organisation (RTO) area received 849,600 visits from both domestic and international travellers, with the domestic market accounting for 91% of visits.

From 2009 to 2015, total visits to the Eastland RTO are estimated to grow 4.6%, or 0.6% per annum, similar to the Hawkes Bay RTO forecasts. However, this is well behind the Waikato (6.9%) and Bay of Plenty (5.6%) RTO’s growth over the same period.

Figure 1: Actual and Forecast Visits to Eastland RTO by origin of traveller and trip type (000’s) 2003-2015

Source: Ministry of Tourism (Regional Tourism Forecasts 2009-2015, Eastland RTO)

4 BERL Regional Database (2010), Statistics NZ, Tourism Satellite Account


Key Visitor Markets

The key domestic visitor night markets for Eastland are Auckland (31%), Bay of Plenty (15%), Waikato (15%) and Wellington (12%).

International visitor nights are dominated by Australia (37%) with over one-third, followed by UK (16%) and US (10%).

Cruise Industry

The cruise ship industry in Gisborne has grown over the last few years, the port now attracts around 6 vessels per season between December and March.

The vessels range in size from the 72 passenger Oceanic Discoverer to the 1,950 passenger Dawn Princess. Total cruise arrivals for Gisborne are estimated at 5,600 for 2009/20105.

Product Development

The bulk of the current market is made up of FIT domestic travellers who are primarily coming to the region to enjoy the summer climate and great beaches.

New cultural and adventure products (e.g Tipuna Tours and Dive Tatapouri) have been established in recent years. As a result the demand from the international backpacker market is growing with operators like Kiwi Experience and Magic Bus now touring the region on a regular basis.

However, there is still considerable scope to develop cultural and heritage tourism products and position Eastland as an authentic quality cultural destination.

Under the navigational theme there would be business opportunities for marae stays, cultural performances and local concerts, guided tours and events.

Access to the Region

Eastland is fairly isolated with large driving distances to major urban areas. The closest large urban centres are Whakatane/Opotiki 160km to the north and Napier 216km to the south.

Rotorua is Eastland’s nearest international gateway airport (275km to the west) that offers a regular service between Rotorua and Sydney.

Air capacity has increased recently with Eastland Community Trust providing a subsidy on landing costs to the airport since 2008 to encourage Air New Zealand to use its Q300 50 seat aircraft between Auckland and Gisborne.

5 Estimate of cruise passenger numbers from Eastland Port Expected Arrivals 2009/2010.


Visitor Flows

The main visitor flows into Tairawhiti are from the north and Bay of Plenty via State Highway 2. There is considerably less traffic volume around the East Cape route (SH35) via Hick’s Bay and Ruatoria.

Tairawhiti is off the beaten track and not generally a region that travellers pass through – the vast majority are going there specifically.

Figure 2: Indicative 2007 Visitor Flows in Eastland (estimates only)

Source: Ministry of Tourism (2007) flows data

4. TAIRAWHITI NAVIGATIONAL TRADITIONS PROJECT

Early on in the process it became apparent there was a need to clarify exactly what the navigational traditions project is in order to move things forward. While the concepts have been discussed in the community for years many people are still unsure just what “it” is.

Another important element that came through strongly in the initial consultation is that stakeholders just want to see something happen and it did not have to be something big.


4.1. The Concept

The proposed navigational traditions project can be summarised as follows:

Coordinated light infrastructure and story development at key sites in the region to acknowledge our heritage, generate

business opportunities and affirm the appeal of Tairawhiti as a great place to live and visit.

Additionally there are a number of other key points or elements that further illustrate exactly what the project is and hopes to achieve:

Navigational traditions provide a unifying theme to tie the region together, with the key sites developed under a consistent brand.

The sites developed must read as a connected experience with a consistency of development style that assures visitors of a quality experience.

The proposed infrastructure needs to be supplemented by private sector businesses that provide additional services (e.g. tours, retail, food and beverage, accommodation) that further enrich the visitors’ stay and provide a total experience.

Each site will provide an opportunity for different stories to be told and to reference other sites and activities in the wider region6.

While this is a Tairawhiti wide project there is no denying the importance of the Gisborne inner harbour sites and the city’s role as a hub or mooring place (e.g. Te Toka a Taiau) for the Tairawhiti Navigational Project.

There have been a number of other navigational traditions concepts, ideas, story themes and initiatives with links to the project discussed over the years. Many of these will add greatly to the overall theme and strengthen the experience for visitors and residents and are acknowledged in a longer-term workplan in Appendix 4.

To date the sheer size of the project and potential linkages to other themes has made it difficult to define a starting point. The concept outlined above, in the short term (the next 5 years), will focus on the development of several light infrastructure projects at key sites and telling the stories directly associated with them to ensure the project remains manageable and achievable.

4.2. Rationale

There are a number of compelling reasons for adopting a light infrastructure approach to developing the navigational traditions project, these include:

6 Telling more than one story and giving recognition to the different views will enhance the experience and create opportunities for broader participation.


Practical and achievable – the concept of developing the navigational traditions project through light infrastructure development creates a practical and tangible approach and the ability to tackle things on a site-by-site basis.

Low risk – this development of light infrastructure at key sites provides a fairly low risk approach, in comparison to building a single multi-million dollar facility. The developments can also be phased over several years.

Proven technique – this type of development technique (i.e. building light infrastructure as a catalyst for businesses development and indirect economic returns) has a proven track record and has worked in many regions such as the West Coast of the South Island and New Plymouth.

West Coast Site Infrastructure Development Project

In the case of South Westland, a $3.5 million Heritage Highway project was undertaken between 1989 and 1992. Aimed at keeping visitors on the West Coast for longer, the project developed a new visitor centre at Haast and established six new stopping places between Haast and Hokitika. These involved short walks, viewpoints, on-site interpretation and other amenities such as picnic areas, toilets and car parks.

The project achieved its objectives in slowing people down, giving them more things to see and do on the West Coast. Site developments occurred during a time of increasing arrivals to New Zealand and the West Coast by international visitors. Sites such as Ships Creek and Knights Point, north of Haast, now receive over 300,000 visitors per annum.

The rising tide of overseas arrivals to New Zealand coupled with the site improvements in South Westland gave many of the existing businesses and new tourism operators the confidence to establish new accommodation, guided tours and activities, food and souvenir outlets throughout the remainder of the 1990s.


Visitors access the beach at Ships Creek after walking through a shelter and raised lookout having interpretation displays and other information available within

Visitors at the interpretation kiosk and lookout at Knights Point, South Westland

Part of the Knights Point roadside stopping and interpretation site

New Plymouth Coastal Walkway

In the case of New Plymouth, the combination of a new coastal walking path ($7 million), development of the new Puke Ariki museum and I SITE and CBD landscape enhancement has led to a dramatic uptake by residents and visitors of the new walking / biking opportunity and a reinvigorated business community – mainly cafes, restaurants and nearby shops.


Part of the more than 8km long New Plymouth Coastal Walkway as it snakes its way round the Kawaroa Park and Aquatic Centre, less than 1km from the CBD.

4.3. The Proposed Infrastructure Developments

As stated in Section 4.1 all the sites will need to be developed in a consistent manner that pulls the whole network together. This consistency would extend to design guidelines and standards for: colour schemes, style and characteristics of the interpretive materials and any built structures.

The following sections provide an overview of the proposed developments in the Gisborne inner harbour and several other potential regional sites. The regional sites will require further consideration by local iwi and stakeholders prior to being finalised.

However, as a starting point the six sites presented in Section 4.3.2 are already recognised as having significant navigational and cultural value, provide a good geographical spread and most would not require a large investment to enhance their existing appeal and link them to the Navigational Project. The focus should be on doing fewer sites to a higher quality.

4.3.1. Gisborne Inner Harbour Heritage Precinct

The most significant investment for this project would be in the Gisborne inner harbour area including the Titirangi Reserve and the Cook Landing Site. The number of sites, scale of development and the national significance of these sites make this component a priority for the success of the Navigational Project.

The Turanganui River and surrounds has a long association with voyaging dating back to the landing of various waka including the Horouta and then the arrival of Captain Cook’s Endeavour.


Key components for the Gisborne inner harbour include:

River Boardwalk – construction of a boardwalk along the existing wall between the river and port would enable people to walk from the marina out towards the existing slipway. The most exciting possibility here is that it provides access to the point where the first meeting between Maori and Europeans took place.

Turanganui River Bridge – construction of a bridge over the river from the centre wall to the existing walkway near the Waikanae Stream that would link into the existing river trails.

Airbridge to the Cook Landing Site – the bridge would provide access from Titirangi Reserve to the Cook Landing site. It would solve the current safety issue involved with crossing the busy road on foot to access the site. It would also create a very desirable visual connection between the Cook site, Young Nick’s Head, the sea and the western bank of the Turanganui River.

Cook Landing Site National Historic Reserve – undertake enhancements to improve the visitor experience on site through interpretation, landscape design and further developing the stories associated with the area. Some of these may be better told higher up on Titirangi Reserve where the connections between Young Nick’s Head and the Cook Landing Site can be seen.

Titirangi Reserve – rationalisation of trails7, new trail from Williams Cottage site to Kaiti Beach, new trail alignment (and suitable gradient) to summit from Williams Cottage, explore possibility of creating a loop circuit, airbridge to connect to Cook Landing Site, enhancement of existing sites (e.g. Cooks Plaza Lookout) in the reserve and additional interpretation8 and signage.

Information/bookings/retail kiosk – the development of the inner harbour precinct also creates the need for an information kiosk and potential booking outlet for new tours and activities in an existing building (e.g. Shed 3) or a new one. Upgrading or replacing public toilets should also be considered.

Tairawhiti Museum – the museum would serve as a key anchor and entry point for the inner harbour. With the potential expansion of the facility to accommodate the permanent display of C Company Maori Battalion there is also the opportunity to incorporate a stronger navigational theme.

New sculptures – new sculptures in the inner harbour precinct will play a key role in the telling of stories and enhancing the experience.

New interpretive signs – new interpretive signs and associated structures (seats) are needed to help tell the stories and demonstrate to visitors that these sites are important. Current

7 Some trail initiatives for the reserve were proposed in the Walking and Cycling Strategy for Gisborne District 2004 8 The Titirangi Reserve Management Plan (2006) outlines a number of proposed works including track upgrades and extensions, however the LTCCP budget of $20,000pa makes much of the work dependent on external funding.


provision of signs and related amenities are almost totally inadequate and not in-keeping with site significance.

Walkways – complete the remaining walkways along the Turanganui, Taruheru and Waimata Rivers to better connect key sites like the museum to the inner harbour and onwards to Kaiti Hill and the Cook Landing Site. Enhancing pedestrian access and linkages from Gladstone Road (e.g. CBD) into the inner harbour area is also key.

Stories – linked to the various sites within the inner harbour related to the navigational theme could include:

−Landing place of Paoa and Kiwa’s Horouta waka

−Landing place of Cook’s Endeavour

−First meeting of British and Maori cultures and the first hongi

−Hapu and iwi stories of navigation and first encounters from this landing site

−History of the Port of Gisborne

−Potential for contemporary stories around waka ama, cruise ships and super yachts

The finished network should create a seamless pedestrian friendly route from Waikanae Beach to Kaiti Beach, and from the CBD and Museum.

Figure 3: Proposed Gisborne Inner Harbour Infrastructure Development


4.3.2. Tairawhiti - Regional Project Sites

As mentioned earlier the following project sites represent an initial selection that fit within the navigational traditions theme, have stories of significance associated with them and in some cases would require only minimal development to provide a quality experience. However, further discussion with iwi and local stakeholders is required to finalise these sites.

The focus should be on doing a few (e.g. 6 maximum) sites to a high standard initially, before branching out to include other sites in the region.

1. Pilots Hill & Rangi-houa Pa, Wairoa - this site, which the Wairoa District Council (WDC) in association with the community has started planning to develop as part of their Wairoa Township River Walkway, lends itself well to the navigational theme.

2. Tolaga Bay & Cook’s Cove - this site has strong links to Cook as the Endeavour stopped here for six days to replenish supplies. There is an existing walkway between Cook's Cove and Tolaga Bay and supporting infrastructure within the community of Tolaga Bay, including an established guiding business.

3. Whangara – made famous as the filming location for the movie Whale Rider. Development at this site would be small scale and tourism experiences would focus on guided tours of the Whitireia Meeting House and community in close consultation with Ngati Konohi.

4. Mahia Peninsula – the Te Hoe Whaling Station is a site of important early social contact between European and Maori around the mid 1850s that could lend itself to a navigational interpretive theme. The site contains numerous features (e.g. hut footprints, whale processing areas) many of which were uncovered during a 2005 archaeological dig. The site also contains evidence of earlier Maori occupation.

5. Anaura Bay – located on the coast 6km from SH35 and acknowledged as Cook’s second landing site in New Zealand. The bay also has some existing infrastructure with a DOC camping area and a privately operated camping ground and an established native bush walk.

6. Mount Hikurangi, Ruatoria – the most prominent landscape feature in the region and the resting place of Nukutaimemeha, the waka (canoe) of Maui. The mountain has nine massive carvings, carved by students from Toihoukura under the guidance of Derek Lardelli. Ngati Porou manage the access and also offer guided tours of the mountain. Further consultation with Ngati Porou is required to determine how to proceed with linking this site to the project.

4.4. Branding and Marketing

Navigational traditions provides a unifying theme enabling a connection between key sites in the region. This is important for residents as well as visitors. Communicating the navigational theme thus forms an important part of the overall project.


This could be achieved through the integrated design signs and displays at key sites, making them instantly recognisable as a network9. The development of brochures and maps that illustrates the network and how each site provides a piece of the Tairawhiti navigational story would also provide a valuable tool for visitors. A strong on-line presence is also required through linked websites and social network sites.

Tourism Eastland branding – the current regional branding is centred on a ‘First to see the light’ theme and a traditional sun, sand and surf holiday. There is an opportunity through the Navigational Project to create a strong cultural sub-brand that is consistent with Gisborne’s reputation for sun, surf and beaches. A region of firsts, where Captain James Cook first set foot in New Zealand and where the first hongi (meeting of the two cultures) took place on Te Toka a Taiau and the first haka was performed for an international audience. That meeting has had an enduring effect, leading to the founding of a nation, Aotearoa New Zealand.

Further product development and capacity building is needed to create more quality cultural experiences so there is substance behind the proposed brand.

5. BUSINESS OPPORTUNITIES

The following sections provide an overview of the type of business opportunities the Navigation Traditions Project is likely to create and the existing tourism infrastructure and marketing channels it could connect into.

5.1. Cultural and Heritage Tourism Products

The combination of Gisborne inner harbour and related site developments is very likely to stimulate longer stays in the region, increased expenditure and expansion of existing businesses. Development of new small businesses is also likely.

Despite having a distinctive cultural heritage, there is a noticeable lack of opportunities for FIT and commercial group visitors to experience something of that heritage. There is reasonable demand, mainly from international markets, for half and full day tours of local cultural attractions, mainly between October and March.

One small business, Tipuna Tours, has demonstrated this demand for cultural tours including visits to the key sites and related marae. The business is looking to expand. At a runanga and iwi level there is also interest in telling their stories via tours, events and marae visits. There appears scope for other small tour companies.

9 Nick Tupara presented an initial concept sketch for an interpretive marker at the Working Group meeting on 3rd February 2010.


There is generally a lack of authentic marae-based activities in New Zealand and particularly in Tairawhiti, despite strong interest from UK, European, US and some Australian markets. One lesson for Tairawhiti is to provide guaranteed departures so that visitors and the industry have confidence that Tairawhiti is ‘open for business’. Part-time and ‘only on demand’ tours are unlikely to succeed.

Further to this, Te Unga Mai, an organisation established to raise awareness primarily of school children aged 8 – 12 of the region’s unique heritage, is also in a position to offer commercial tours and educational packages based on navigational traditions. Their popular annual event celebrating the landing of Captain Cook could be expanded to include a wider audience with greater national coverage.

5.2. Food and Beverage, Retail, Accommodation

The most obvious beneficiaries of the project are the cafes and restaurants located in the Gisborne inner harbour. Feedback from some of the business owners suggests that they need greater patronage to grow their business. Increasing prices for food and beverage is not favoured given prices are already towards the upper levels of what the market will tolerate.

Inner harbour developments outlined in this report would, more than likely, lead to more people spending more time in the inner harbour area and this should translate to more patronage. It is possible that some visitors who were travelling to Gisborne anyway, will decide to spend more and possibly stay another night, although this would be a very small percentage (2%) of existing overnight visitors.

5.3. Links to Touring Routes

The Great New Zealand Touring Route (GNZTR) is a marketing alliance between seven districts, incorporating the Thermal Explorer and Pacific Coast Highways. Gisborne and Tairawhiti form part of the Pacific Coast highway, promoted internationally as part of the GNZTR.

Navigational themes align very strongly with the Pacific Coast Highway brand, although there is a lack of story telling and visitor amenities at the key sites that make up the Pacific Coast Highway. The project thus provides an improved touring product enabling car hire firms and inbound tour operators to strengthen their marketing efforts around a better touring experience.

5.4. Meetings and Conferences

Although the meetings and conference market for Gisborne is relatively small, the project offers opportunities to add value to this market through delegate partner activities, site visits, cultural performance and one-off activities (such as wakaama, evening cruises or marae visits) centred on the navigational stories and traditions.


5.5. Events

Events can act as a key economic driver and catalyst for business development. The success of Gisborne’s Rhythm and Vines Festival that has grown into an internationally recognised event has proven that Eastland can attract significant numbers of visitors to events. The challenge will be attracting visitors outside of January and February and further maximising returns from the summer tourists.

The ability to create new events and festivals around the navigational theme and expand existing ones like Te Unga Mai will be greatly enhanced by the proposed infrastructure development at the key sites. There is a strong case that celebrating the meeting of cultures could be developed into a significant occasion at least equal to Waitangi Day given the national importance of the events that took place.

6. THE BUSINESS CASE AND ECONOMIC IMPACT

The navigational traditions project is not only about enhancing and growing Eastland’s tourism industry, but also maintaining its share in an increasingly competitive marketplace. Other destinations and regions are investing in infrastructure to stimulate economic growth and encourage tourism business development. Eastland requires this investment too.

The section presents the business case for the navigational traditions infrastructure development projects and also a high level view of the potential economic impacts.

6.1. The Business Case

The business case analysis treats the light infrastructure development as a business proposal. Assessing the costs and benefits from a wider societal viewpoint over the life of the project can assist Eastland decision makers to answer the question:

“do the benefits to the region over the life of this investment make the initial investment worthwhile?”

The following cashflow analysis illustrates how Eastland can “clip the ticket” and derive wider benefits from the investment of public dollars in light infrastructure at key sites. The assessment assumes a 20-year time frame. The project would provide the basic infrastructure and amenities on which the community and businesses can leverage further growth in economic activity.

The following key assumptions have been used to calculate the net present value of the project over a specified time period:


a capital expenditure estimate of $6 million (see capital expenditure assumptions in Appendix 2)

the infrastructure is completed over 5 years the full realisation of benefits occur by year 7 the project is measured over a 20 year time frame

As a result the net present value of the project would be around $4.5 million, and this yields a positive benefit cost ratio (BCR) of 1.710 for the project (see Table 1).

Table 1: Business Case Assessment using Discounted Cashflow Analysis

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7

Costs

Capex spend profile 100% 0% 10% 30% 40% 20%

Capital expenditure $6,000,000 $0 $600,000 $1,800,000 $2,400,000 $1,200,000 $0 $0

Operating expenditure (% of capital) 5% $0 $0 $120,000 $240,000 $300,000 $300,000 $300,000

Total costs $0 $600,000 $1,920,000 $2,640,000 $1,500,000 $300,000 $300,000

Benefits

Ramp up of benefits to maturity level in Y7 0% 5% 10% 30% 50% 75% 100%

Value-add to region (no multiplier) $0 $88,574 $177,148 $531,445 $885,742 $1,328,614 $1,771,485

Cash flow $0 ($511,426) ($1,742,852) ($2,108,555) ($614,258) $1,028,614 $1,471,485

Business case metrics

Discount rate 8%

a) Net Present Value $4,503,058

b) Benefit cost ratio

NPV of Benefits $11,250,604

NPV of costs $6,747,546

Benefit cost ratio 1.7

The benefit calculations are conservative with relatively low capture rates for extra nights and new visitors to the region as a result of the infrastructure developments. While the capital costs could also be considered conservative.

This analysis is similar to that used by the New Zealand Transport Agency (NZTA) for transportation projects. It takes a wider societal view of costs and benefits across both the public and private sectors.

In the current analysis the public sector is assumed to (mainly) make the initial investment in the light infrastructure. The benefits are expected to be principally received through increased wages, salaries and business profits.

The benefits are estimated in terms of the direct value added in the region, assumed at an average of 40% of the initial visitor spend. This assumption accounts for a proportion of visitor spend that leaks out of the region in terms of the costs of goods.

10 In this form of analysis a project is worthwhile pursuing if it has a Net Present Value (NPV) of greater than $0 or a benefits to costs ratio greater than 1.0. The concept of NPV answers the question of what is a dollar’s cost or benefit in the future worth in today’s dollar terms.


6.2. Sensitivity and Risk Analysis

This analysis examines scenarios where the capital expenditure and benefits are less or more than anticipated. In terms of the capital expenditure the single largest unknown is the potential construction costs for the river boardwalk.

The following tables illustrate the effect on the BCR of increasing or decreasing the benefits by 25% and changes in the overall capital expenditure of the project.

Table 2: Sensitivity Analysis

If the benefits decrease by 25% or the capital expenditure increases to $8 million for the development the project edges closer to that breakeven BCR point of 1.2.

One of the greatest risks for the project as a whole is that certain components outlined in the concept are not completed. This would adversely affect the social and economic impact of the project. As it stands the impact is derived from the sum of all the parts to the project and needs a critical mass of sites and infrastructure to appeal to people to stay longer and spend more. This is equally true for the uptake by and support from local residents.

6.3. Economic Impact

The economic analysis is based on Eastland’s existing tourism market of 850,000 visits in 2008 (Appendix 3) and the assumption that the majority of impact will stem from existing visitor markets through greater spend and a percentage of additional nights in the region. These are the visitors coming to Tairawhiti anyway. Only a very small percentage of new visitors would be attracted, at least in the first 5 years or so. Assuming the project is successful and is implemented as designed, it is not unreasonable to expect a greater share of new visitors will be captured through greater national and international coverage and appreciation of the significance of the events that took place in Tairawhiti.

The capture rates prepared for each market segment estimate the number of existing visits that could be influenced by the new light infrastructure developments and a very small percentage of new visitors (e.g. 1% or less). This equates to a direct output of $4.4 million in year 7.

The overall economic impact anticipated for the navigational project would be $2.7 million in year 7 of the project. This assumes direct value added at

Assumptions BCR Assumptions BCR Assumptions BCR

Decrease benefits 25%. All

other assumptions base case. 1.2 Base case benefits (tourist spend increases) 1.7

Increase benefits 25%. All other

assumptions base case. 2.0

$8.0M capex. All other

assumptions base case. 1.2 $6.0 m capex 1.7

$5.0m capex. All other assumptions

base case. 2.0

Expected scenario / base case Optimistc scenariosPessimistic scenarios.


40% of direct output and a type II multiplier of 1.5 (see calculations in Appendix 3). This would equate to approximately 44 full time equivalent positions for the region.

Table 3: Economic Impact Assessment

Components Year 7 Results

Direct Output $4,428,712

Assumed direct value add as % of direct output (%)

40%

Value added at business maturity in year 7

$1,771,485

Assumed type II multiplier of direct value added

1.5

Total economic impact year 7 $2,627,227

This measure of the economic impact is a snap shot of year seven. It is difficult using this analysis alone to understand whether the project is worthwhile when significant investment is made in the prior years and the benefits will extend for many years after. For this reason, the business case assessment is likely to be a better tool for decision makers.

6.4. Social and Community Benefits

The above analysis presents a business case and economic rationale for pursing the development of light infrastructure for the navigational traditions project. However, a strong case can also be made for doing this development for social benefits and the people of Tairawhiti regardless of its economic outcomes. This development is in many ways a community asset and should enhance the region as a place to live and work.

7. COORDINATING THE PROJECT

A critical factor in the success of the Navigational Traditions Project will be the ongoing coordination of the project from within an entity that has the mandate, capacity and resources to undertake a management role.

There are potentially three entities under which the project and a project manager (see Section 7.1) could sit:

Tairawhiti Development Partnership Management Trust (TDPMT) Eastland Community Trust (ECT) Gisborne District Council (GDC)


Table 4: Comparison of Potential Lead Entities

Lead entity Pro’s Con’s

Tairawhiti Development Partnership Management Trust

Has mandate to undertake the work and is a priority project

Framework in place

Uncertainty around TDP’s future

No existing capacity or resource within TDPMT

Eastland Community Trust

Has a regional mandate

Has the ability following the development of new policy to manage and contract work

Strong connections to Port of Gisborne where much of the work will occur

One step removed from political process

No track record for managing projects

Office and project management systems not yet set up, although heading in that direction

Gisborne District Council

Established systems in place for contracting and managing project

Legal mandate to enable community development

Potential for project to get sidelined amongst other priorities

Political boundary limited to Gisborne District

Limited existing resources for this role

Based on the consultation to date and the feedback from the Navigational Traditions Working Group meeting on the 3rd February 2010, the preferred option is for the project and project manager to be positioned within the Gisborne District Council.

Following agreement in principal from TDP for this approach the next step would be to obtain GDC approval to recruit, on a contract basis, a new project manager for the Navigational Traditions Project that would be jointly funded by TDP partners (20%) and NZTE (80%) and be located within GDC.

7.1. Navigational Traditions Working Group

The Navigational Traditions Working Group would continue to play a key role in the process as the project moves forward. The Group would continue to include representatives from the key agencies who have senior positions and are able to make decisions and drive results.

The individuals in the group would continue to use their expertise and influence to assist the development process and the project manager.

The appointed project manager for the Navigational Traditions Project would update the Working Group on a monthly basis.


7.2. Project Manager

The Navigational Traditions Project requires a project manager who is able to dedicate their time to coordinating all the elements of this project, especially over the next few years to ensure the site selection, design guidelines and development of the individual sites is undertaken in a coordinated and timely manner.

7.2.1. Role

The project manager would be responsible for driving the overall coordination of the project and regularly update the Navigational Traditions Working Group on progress. On a day-to-day basis they would report to the Community Planning and Development Manager of GDC.

Their role would include the following tasks:

Project Management

Manage day-to-day operational aspects of a project and scope Create and execute project work plans and revises as appropriate

to meet changing needs and requirements Identify resources needed and assigns individual responsibilities to

partners where appropriate Prepare and manage the request for proposals process for

selecting the site planning and design team. Coordinate with key partners on the selection and subsequent

development of their sites Develop protocol with GDC Maori Liaison for engaging with the

individuals/groups who have manu whenua to ensure the stories they wish to share are shared with integrity

Manage the site planning and design team workplan Enforce project standards Minimize exposure and risk on project Ensure project documents are complete, current, and stored

appropriately

Reporting

Reports directly to the GDC Community Planning and Development Manager on a day-to-day basis and takes process and strategic direction from the Navigational Traditions Working Group

Manages project budgets Identifies funding sources and business development opportunities

as they relate to the project Plan and schedule timelines and milestones using appropriate

tools.


Track milestones and deliverables. Develop and deliver progress reports, proposals, requirements

documentation, and presentations.

Communications

Maintain relationships with the key partner organisations at the operational and strategic levels

Build, develop, and grow any relationships vital to the success of the project.

Regularly communicate the status of the project to partners and periodically to the community

7.2.2. Concept design, site planning, and costing work

The next phase of work to follow on from the pre-feasibility study will lay the foundation for the construction phase. The concept planning and design work will ensure that the sites are developed in a consistent manner that enables unique stories to be told under a broad navigational theme.

The success of the project rests on getting the planning and design phase completed to a high standard to ensure the quality and consistency of experience.

The project will require a multi-disciplined team including: a landscape architect, architect, interpretive specialist, engineer, heritage, tourism and Maori advisors to complete this work. The team should be retained for both the concept design and planning and the subsequent detailed costing and design to ensure consistency.

The stories are a key component of the project. The use of an interpretive specialist working closely with manu whenua and other stakeholder groups to clarify appropriate stories to be shared and help put these into physical form on a story panel is key. The interpretive work undertaken in the Waioeka Gorge is an example of the process and quality of interpretation needed for this project.

7.3. Funding

Determining the funding sources for various aspects of the proposed infrastructure development is critical. Funding will be needed to not only cover the cost of developing the six sites, but also fund the initial concept and site planning work and overall coordination of the project at a regional level.

The funding sources include but are not limited to:

New Zealand Trade & Enterprise (NZTE) – potential 80/20 funding for the project manager role and initial design and site planning work contingent on 20% from regional commercial stakeholders.


Gisborne District Council (GDC) – the council could look to fund aspects of the development on council lands around the inner harbour. GDC would also have a role in other sites within the region in their jurisdiction.

Wairoa District Council (WDC) – in a similar capacity to GDC the WDC would potentially look after funding relating to site development on their council lands including Pilot Hill.

Eastland Community Trust – the ECT owns the port and much of the land in the inner harbour precinct. It also has funding available for community based transformational projects that can benefit the Tairawhiti region.

Eastland Group – funding from the Group could be encompassed within the ECT funding above. However, scheduled maintenance work on the retaining wall and slipway between the port and Turanganui River if tied into the development of the boardwalk could lead to cost savings and the use of engineers for design. The Eastland Group may also play a role in the enhancement of the Cook Landing Site.

Department of Conservation (DOC) – funding for development of the Cook Landing Site, linkages to Titirangi Reserve and potentially other regional sites on the DOC managed estate (e.g. Anaura Bay).

New Zealand Transport Agency (NZTA) – NZTA could be a potential funding source for the Cook Landing Site Airbridge because of the road safety concerns and possibility through their pilot Gisborne Integrated Planning Project.


8. ACTION PLAN

8.1. High Level Project Workplan (2010-2013)

The following workplan provides an overview of the key tasks to develop the infrastructure for the navigational traditions project.


8.2. Action Plan

# Recommended Actions Tasks Roles Timing 2010-2015 Potential Funding Source(s)

1 Tairawhiti Navigational Traditions Project (NTP) Pre-feasibility Study, 2010

• TDP approve Final Report in principal

TDP February 2010 NA

2 Finalise navigational traditions project coordination

• GDC to approve project manager role within council • Application to NZTE for project manager funding support (see below)

GDC February 2010 NA

3 Prepare NTP project for year 3 regional application for NZTE

• GDC to prepare NTP project application to NZTE for project management, concept design and planning work • Confirm funding of 20% from regional commercial partners for NTP

GDC, NZTE By start of March 2010

NA

4 Finalise 6 regional sites to be developed

• Coordinate finalising the regional sites for initial funding

Navigational Traditions Working Group

March 2010 NA

5 Use report as a vehicle to advance Cone of Vision discussions

• Coordinate meeting with Historic Place Trust, Eastland Group and GDC

GDC, HPT, Eastland Group

March 2010 NA

6 Refine funding partners • Meet to determine roles and funding for Inner Harbour infrastructure projects

GDC, Eastland Group and ECT

March 2010 NA



7

Review project title • Finalise “navigational” versus “voyaging” as a title and scope for sites and interpretation

Navigational Traditions Working Group

March 2010 NA

8 Councils prioritise NTP work streams into 2010 Annual Plan

• GDC to incorporate relevant NTP work stream into annual plan • WDC to incorporate relevant NTP work stream into annual plan

GDC WDC

March 2010 NA

9 Recruit project manager for Navigational Traditions

• Advertise for and recruit a manager GDC April 2010 NZTE

10 Commission concept and planning work

• Prepare an RFP for the Concept and Site Planning including engineering of structures • Prepare RFP for the detailed site design and costings • Select contractors • Project manager to oversee this work

Project Manager, Eastland Group

June 2010 NZTE, GDC, WDC

11 Develop protocol for engaging with iwi and stakeholders

• Develop protocol with GDC Maori Liaison for engaging with the groups who have manu whenua to ensure the stories they wish to share are done with integrity • Develop IP protocols

GDC (project manager, Maori liaison)

June 2010 NA

12 Engaging with Iwi • "kanohi ki kanohi" discussions with Iwi, Hapu and whanau at a very practical level about the project

GDC (project manager, Maori liaison)

July 2010 GDC



13 Contractor to complete Concept and Site Planning

• Complete site plans for all regional sites and Gisborne harbour

Project Manager, contractors

August 2010 NZTE, GDC, ECT

14 Contractor to complete detailed site design and costings

• Develop design guidelines and standards for all sites • Prepare interpretation plan for region • Engineering reports for structures - boardwalk and bridges • Work with community and iwi to develop site stories

Project Manager, contractors

November 2010 NZTE, GDC, ECT

15 Resource consents • Obtain any consents required at key sites

GDC, WDC, DOC

2010-2011 GDC

16 Turanganui River Trails • Quick wins project • Complete river trail sections including Peel Street bridge to Tairawhiti Museum • Gisborne Inner Harbour Master Plan. Walkway alignment on Esplanade (Wharf Café and Sport Fisherman’s Club) and Rail bridge upgrades

GDC 2010-2013 GDC

Titirangi Reserve enhancements 17 Trail to Kaiti Beach • Build new trail from Kaiti Beach

along foot of Kaiti Hill to Williams Cottage site

GDC 2010 GDC

18 Upgrade and realign Kaiti Hill Summit trail

• Realign and form a new trail from Williams’s cottage to Cooks Plaza

GDC 2012 GDC



maintaining a gradient of 5-7%. 19 Upgrade Cooks Plaza • Upgrade the Cooks Plaza

monument GDC, ECT 2013 GDC

20 Begin development and enhancements at regional sites

• Pilot Hill WDC 2011 WDC

21 • Mount Hikurangi GDC, Ngati Porou

2011-2012 GDC, ECT

22 • Whangara GDC, iwi 2011-2012 GDC, ECT 23 • Tolaga Bay GDC, iwi, Tipuna

Tours 2011-2012 GDC, ECT

24 • Anaura Bay DOC, GDC, iwi 2011-2012 DOC, ECT 25 • Mahia Pennisula WDC, iwi,

community 2012 WDC, ECT

26 River Boardwalk • Work with Eastland Port to coordinate with their maintenance schedule • Engineer report to be included in concept design brief

Eastland Group. ECT, GDC

2011-2012 ECT, Port

27 Bridge over Turanganui River from Slipway

• Work with Port to link into maintenance schedule and boardwalk • Engineer report to be included in concept design brief

Eastland Group. ECT, GDC

2012 ECT

28 Cook Landing Site enhancement • Commission landscape design and interpretive plan for the site

DOC, Eastland Group, HPT

2013-2014 DOC

29 Airbridge to Cook Landing site • Work with key partners to construct DOC, NZTA, 2013-2014 ECT, NZTA, DOC



bridge • Engineer report to be included in concept design brief

Eastland Group, GDC

30 Information/bookings/retail kiosk • Determine an appropriate site or existing building for the kiosk • RFP for potential joint venture interest to operate visitor services along with retail and bookings

GDC, Tourism Eastland, operator

2014 GDC, ECT, private business

31 Capacity building program • Create a program to assist businesses and individuals in developing experiences around the site • Contract advisors with tourism business startup experience

TPK, GDC, NZTE, Tairawhiti Polytechnic

2012-2013 NZTE, TPK

32 Develop interactive website • Develop a website that highlights the key sites with an interactive map • Create stories and links to key sites

Tourism Eastland

2013 Tourism Eastland, ECT

33 Create navigational traditions collateral

• Produce a navigational traditions brochure with map for the key sites

Tourism Eastland

2013 Tourism Eastland, ECT, private businesses

34 Develop marketing campaign and collateral

• Develop marketing campaign around Tairawhiti heritage and culture • Create cultural packages (e.g. accommodation and a cultural activity)

Tourism Eastland, operators

2013 Tourism Eastland, ECT, private businesses


APPENDIX

A1. Consultation List

Name Company

Andrew Gaddum Eastland Port, GM Logistics Andy Bassett DOC Area Manager Annie McGuire Tipuna Tours Apirana Mahuika Chairman – Te Runanga o Ngati Porou Awhita White DOC

Barney Tupara and other representatives

Ngati Oneone

Brian Wilson Councillor, Gisborne District Council Chris Lankshear Go Gisborne, Tourism Eastland Board

Clare Radomske Chamber of Commerce

Dale West Gisborne District Council Dame Anne Salmond Historian

Dame Sheryl Sotheran NZTE

David Hatfield Gisborne District Council

David Lee (Jackie Blake) NZTA – Gisborne Integrated Planning Project

Denise Elers NZTA – Napier/Gisborne Dr Monty Soutar CEO – Te Runanga o Ngati Porou

Duncan Rothwell Gisborne District Council Frank Murphy Motu Lodge/Cruise Ships Gary Alexander Chair Eastland Community Trust

George Kenton Emerald Hotel Graeme Butts Director Tairawhiti Museum Graham Breckell Tourism Eastland James Baty Wairoa District Council James Blackburn Historic Places Trust

Jason Morgan New Zealand Transport Agency

Joan Gerritise Portside Hotel, GM John Clarke Director Eastland Community Trust/President

Gisborne grape growers society/ex Mayor Katie Thomas Casablanca Motel Liz McMaster NZTE

Mark Davies DOC Matt Todd Eastland Infrastructure Ltd/Eastland Port Meng Foon Mayor of Gisborne Mere Pohatu Te Puni Kokiri Michael Muir Business Representative/Owner Gisborne Herald Michael Spedding Te Umga Mai/Historic Places Trust


Nadine Thatcher Gisborne District Council Nick Tupara Maori Liaison Officer - Gisborne District Council

Paku Kingi Waka Toa Pam Bain DOC Archaeologist Peter Freeman CEO Wairoa District Council

Phil Wauchop Gisborne District Council Rangi Manuel Kahungunui ke Te Wairoa Ronald Nepe CEO – Te Runanga o Turanganui-a-kiwa

Sherry Reynolds Historic Places Trust

Steve Nayda BDO Spicers

Yvette Kinsella Gisborne District Council


A2. Estimated Project Capital Costs

Navigational Traditions Project

Rough Order of Costs - Initial Guestimates Only

Amount

Project Coordination and Planning 700,000$ 1 Project Manager (5yrs at $80k) 400,000$ 2 Concept Plan 100,000$ 3 Detailed design & Costings Plan 200,000$

Gisborne Sites 3,110,000$ 4 Boardwalk 1,500,000$ 5 Bridge 500,000$ 6 Cook Landing Site 250,000$ 7 Airbridge 170,000$ 8 Kaiti Beach Trail 60,000$ 9 Realign summit trail 100,000$

10 Upgrade Cooks Plaza 200,000$ 11 Inner Harbour Sculptures 250,000$ 12 River trails 80,000$

Other Regional Sites 1,000,000$

Marketing & Capacity Building 190,000$ 19 Interactive website development 50,000$ 20 Brochure 40,000$ 21 Capacity building program 100,000$

Grand Total 4,300,000$

NOTES:

Why we have used a figure of $6 million in the analysis.

1) The higher figure will help manage expectations and avoid conflict when actual costs are higher than expected2) If it can be completed for $4.3 million the cost benefit ratio will be considerably more favourable (e.g. greater than 2.0)3) Cost estimates for the Boardwalk are a best guess it is difficult to know what this component might cost including the design and engineering work.4) The overall cost estimate for the regional sites are considered reasonable given that many of the sites have current infrastructure in placeand further discussions are needed with local partners.However, cost for new walking tracks, car parking and toilets (can range from $20,000 to $200,000) can significant increase the per site cost of development5) Inevitability there will be cost increases and price fluctuations for materials


A3. Business Case, Economic Impact and Visitor Market Assumptions

Key Overall Product Development Assumptions

! The six infrastructure projects (e.g Gisborne and five other key sites) could cost something in the order of $5-7 million to complete.

! The infrastructure projects at the six key sites would all be completed successfully within 5 years.

! The benefits could be largely maximised by year 7 given that the majority of the market is existing visitors.

! The stakeholders within the region would work together effectively and agree to share/tell their stories.

! The project has a strong lead entity with the resources to coordinate the development of the infrastructure and keep all players informed of progress.

! The key sites are linked through a common theme/brand that connects Gisborne and the other sites. The sites are developed in a consistent style.

! Tourism Eastland develops a strong cultural/heritage sub-brand to further promote the navigational project.

! The Cone of Vision is resolved to enable the enhancement of the Cook Landing site.

! Over the first five years visitor growth will be very gradual. However, if the national importance of the Gisborne Inner Harbour sites is recognised over time the region.

could begin to attract significant numbers of new visitors.

Estimated/Projected Total Yearly Visits to Tourism Eastland region

! The estimated number of total visits to Eastland was 850,000 in 2008.

! The 2008 actual figures have been used as the base case for the calculations. This figure has not been adjusted in the calculations to reflect the 0.6%pa growth rate forecast for the region to 2015.

! The majority (91%) of visits are domestic, of which 443,000 are overnight and 327,000 are day visits.

! Visiting Friends and Relatives (VFR) for domestic visitors has been estimated at 35% of overnights.

! International visitors account for 9% of total visits, of which 64,000 are overnight and 16,000 are day visits.

! Visiting Friends and Relatives (VFR) for international visitors has been estimated at 30% of overnights, the national figure is 36%.

! The majority of domestic and international visitors to the region are FIT.

! There is a growing backpacker market travelling through the region with Kiwi Experience, Magic Bus and Stray.


Estimated Capture rates and uptake for the proposed Navigational Traditions infrastructure developments

! The majority of the economic and visitor benefits should come from the existing visitor markets. This would likely be in the form of additional spend or an extra night's stay by those already visiting the region.

! The developments could attract a small portion of new visitors to the region. Approximately 1,700 new visitors or around another 5 vehicles a day over the Dec-Mar period.

! The development of new infrastructure can encourage visitors to spend more time in the region and as a result spend additional dollars or stay another night.

! Daily and overnight expenditure figures have been scaled back from the Ministry of Tourism national figures obtained from the International Visitor Survey (IVS) and Domestic Travel Survey (DTS).

! TRC have developed % estimates of potential additional spend by various markets. These are based on the likelihood of increased expenditure on food and activities as a result of the increased number and

availability of products and services.

! Capture rate for visitors' additional spend range from 10% for domestic day visitors to 30% of international overnights. The estimated value of additional expenditure ranges from $10 for VFR to $40 for

international overnight visitors.

! Capture rates for visitor types spending an extra night in the region ranged from 1% to 5%. The extra night expenditure figures also factor in the potential additional spend for each market segment.

! The capture rates for attracting new visitors to the region range from only 0.1% to 1.0%.

! Long term there is potential to attract larger numbers of new visitors. If the significance of the Cook Landing site and supporting infrastructure can be positioned in New Zealanders minds as an

important part of our nation's history on a similar level to Waitangi.

Note: numbers above are for visits NOT visitor nights

Source: Ministry of Tourism

New Zealand Regional Tourism Forecasts 2009-2015, Eastland RTO)

Key Tourism Statistics, December 2009

Tourism Sector Profile - Maori Cultural Tourism, March 2008

International Visitor Survey (IVS) Key Data, September 2009

Domestic Travel Survey (DTS) Key Data, September 2009


Economic Impact - assumptions and notes

Direct output. Value of tourist purchases or business turnover.

Direct value-added as a percentage of direct output.This is the value-added in businesses selling directly to tourists. 'Value-added' includes wages, salaries, self employed income, interest, depreciation, tax and profits and excludes the costs of goods and services sourced for sale.

While estimates of the ratio of value-added to total output are available (Statistics New Zealand 2002 New Zealand Inter-Industry Study 1995/96), national averages may have significant variability at the local level. Comparisons from other economic impact studies suggest a range of 34% - 53% shown in Table 1 below. An average of 40% has been employed, similar to Rotorua.

Table 1: Comparisons of direct value-added to output ratio and total value add to direct value-added


Total economic impacts are the sum of:

direct impacts above.

indirect economic impacts or flow on effects. The spending in businesses selling directly to tourists creates

spending in other supporting businesses such as the local garage, electricity company and plumbers.

induced impacts. As wages and salaries are spent, there are further increases in business turnover.

A type II multiplier calculates the ratio of total impacts or value-added (direct + indirect + induced) to direct

impact or direct value-added.

For the purposes of this desktop analysis, comparisons of the ratio of total value-added to direct value-added

have been identified in Table 1 and an average of 1.5 selected as not unreasonable.

Table 1 shows comparisons of the amount of tourist direct spending (output or business turnover) indicated to

support a full time equivalent employee after allowing for direct, indirect and induced employment.


Business Case, Economic Impact and Visitor Market Calculations

Market Type Visits (2008)Daily Spend

($)

Potential

Additional

Spend

Potential Extra

night spendSource

Domestic Day 327,000 35.00$ 15.00$ n/a TRC estimate

! The six infrastructure projects (e.g Gisborne and five other key sites) could cost something in the order of $6-8 million to complete.287,950 95.00$ 30.00$ 120.00$ Ministry of Tourism - domestic average spend per day trip $103 (Dec 2009)

VFR 155,050 60.00$ 10.00$ 70.00$ TRC estimate that approximately 35% of domestic overnights are VFR

International Day 16,000 35.00$ 15.00$ n/a TRC estimate

Overnight 44,800 115.00$ 40.00$ 130.00$ Ministry of Tourism - international average expenditure/person/day $124 (Dec 2009)

VFR 19,200 70.00$ 10.00$ 80.00$ TRC estimate that approximately 30% of international overnights are VFR

TOTAL visits 850,000

Source: Ministry of Tourism Regional Forecasts 2009-2015 Eastland RTO

Note: Visits based on Ministry of Tourism actuals for 2008

1) Capture rates for existing and new visitors after infrastructure developments completed

Additional

Spend Extra Night

Domestic Day 10.0% n/a 0.1%

Overnight 20.0% 2.0% 0.2%

VFR 20.0% 1.0% 0.2%

International Day 10.0% n/a 0.1%

Overnight 30.0% 5.0% 1.0%

VFR 25.0% 2.0% 0.2%

2) Numbers of Existing and New Visitors that would spend more, stay longer and be motivated to visit

Additional

Spend Extra Night

Domestic Day 32,700 n/a 327

Overnight 57,590 5,759 576

VFR 31,010 1,551 310

International Day 1,600 n/a 16

Overnight 13,440 2,240 448

VFR 4,800 384 38

TOTAL 141,140 9,934 1,715

3) Additional Expenditure of existing and new visitors

Additional

Spend ($)

Extra Night

($)

Domestic Day 490,500$ n/a 16,350$ 506,850$

Overnight 1,727,700$ 691,080$ 69,108$ 2,487,888$

VFR 310,100$ 108,535$ 21,707$ 440,342$

International Day 24,000$ n/a 800$ 24,800$

Overnight 537,600$ 291,200$ 58,240$ 887,040$

VFR 48,000$ 30,720$ 3,072$ 81,792$

TOTAL 3,137,900$ 1,121,535$ 169,277$ 4,428,712$

Total ($)

Existing visitors New Visitors

($)

Existing visitors

New Visitors Visitor Type

New Visitors

Market

Market

Market Visitor Type

Visitor Type

Existing visitors


ECONOMIC ANALYSIS - two methodologies

Direct Output 4,428,712$

40%

$1,771,485

1.5

Total economic impact year 7 2,657,227$

Possible Employment impacts

FTEs / $ direct ouput 100,000$

Possible employment impacts - year 7 44

Note: The economic impact assessment above does not account for the timing of capital investment costs and the visitor spend benefits

The business case analysis below using discounting of costs and benefits from a wider societal viewpoint is a methodology that may better assist decision makers

answer the question, "do the benefits to the region over the life of the investment make the initial investment worthwhile"?

In this form of analysis a project is worthwhile if the Net Present Value is greater that $0 or the benefit cost ratio is greater than 1.0.

a) Economic impact assessment - in year 7 when facilities have assumed to have reached their target visitation

Assumed direct value add as % of direct output (%)

Value added at business maturity in year 7

Assumed type II multiplier of direct value added

For discussion of economic

concepts and asumptions - see

Notes sheet


b) Business case assessment using discounted cashflow analysis

Visitor expenditure begins in Yr 2 and ramps up as tourism development and marketing efforts take effect and facilities are developed

Visitor expenditure will largely be driven by the facilities on the Gisborne waterfront - expenditure increases more rapidly as these facilities are developed

100% visitor expenditure will occur from the second year (Yr 7) of all visitor facilities being completed

Value added to region acknowledges that 60% of additional expenditure flows out of the region as for the economic impact assessment above

No economic multiplier is applied to the value added to the region. These are the direct benefits.

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Yr 13 Yr 14 Yr 15 Yr 16 Yr 17 Yr 18 Yr 19 Yr 20

Costs

Capex spend profile 100% 0% 10% 30% 40% 20%

Capital expenditure $6,000,000 $0 $600,000 $1,800,000 $2,400,000 $1,200,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Operating expenditure (% of capital) 5% $0 $0 $120,000 $240,000 $300,000 $300,000 $300,000 $300,000 $300,000 $300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Total costs $0 $600,000 $1,920,000 $2,640,000 $1,500,000 $300,000 $300,000 $300,000 $300,000 $300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Benefits

Ramp up of benefits to maturity level in Y7 0% 5% 10% 30% 50% 75% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Value-add to region (no multiplier) $0 $88,574 $177,148 $531,445 $885,742 $1,328,614 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485 $1,771,485

Cash flow $0 ($511,426) ($1,742,852) ($2,108,555) ($614,258) $1,028,614 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485 $1,471,485

Business case metrics

Discount rate 8%

a) Net Present Value $4,503,058

b) Benefit cost ratio

NPV of Benefits $11,250,604

NPV of costs $6,747,546

Benefit cost ratio 1.7


A4. Other related Navigational Traditions ideas, initiatives and stories

There have been numerous stories, initiatives and ideas associated with the navigational traditions theme that have been discussed over the years. This table attempts to acknowledge many of these and illustrate how they fit into the process of development.

As mentioned in the body of the report, the goal has been to simplify the concept and identify a practical and achievable starting point to getting things going.

While many of the initiatives listed here have merit and will in time add significantly to the cultural experience in Eastland, there is a need to start somewhere. In the short term the focus will be on the development of light infrastructure at key sites. This development would also include interpretation and the stories directly related to the sites.

Tairawhiti Navigational Project - Gisborne District ... · Pre-feasibility Study FINAL February...

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