Tourism operators lose patience with Milford Sound tourism 'masterplan'

After waiting more than six years for a $18.25 million project to create and assess the feasibility of a tourism masterplan for Milford Sound Piopiotahi, frustrated tourism operators there have come up with their own plan.

Milford Sound is a World Heritage Site and the country’s number one tourism destination, the Milford Sound Opportunities Project (MOP), established in 2018 through a multimillion-dollar Government investment, wants to radically control visitor numbers and reduce traffic into Milford Sound by charging overseas visitors an entry fee, shifting the visitor hotel focus from Queenstown to Te Anau, and close the Milford airport to fixed wing aircraft.

Tourism operators are now stepping up to the plate to provide an alternative and united way forward through their own group, Destination Milford Sound.

“I guess our frustration has been the MOP project took quite a few years to pull together and it is quite a lot of money,” Destination Milford Sound chairman Mark Quickfall told Crux.

“I think the budget will be around the $20 million and we haven't seen too many outcomes and while we wait we're concerned that the investment is lagging.

“Obviously, during that time we've had various ministers come and go but we've been liaising with Minister of Conservation, Minister of Tourism and that engagement has been constructive and we've put forward our views and I'm pleased to say that we've had a positive hearing from both those ministers and we'd like to think that we'll see some action to move things forward.

“So, obviously Covid interrupted everything, but we're still waiting.”

DMS was formed to provide operators with a unified voice after “limited constructive engagement” from MOP - a project the DMS group says was “out of step” with reality.

Mr Quickfall pointed to MOP’s proposals to ban cruise ships and reduce parking as evidence of that view.

Its suggestion to stop using Milford Airfield runway, for one, “would be a disaster,” Mr Quickfall said.

“Ten years earlier, we negotiated with Department of Conservation to upgrade all the aircraft. “You’re talking operators spending US$3 million. It's no small commitment, but to do that, you need security.”

Mr Quickfall said MOP had produced reports, which were being consulted on with the industry, which was good news.

“We totally agree that the current conservation system needs to be modernised.”

The biggest issue was security for operators but it was an issue MOP did not address.

“Many, many operators operating New Zealand without current concessions and that doesn't provide any security particularly if you want to invest more money in your business. So that's one area that certainly needs to be tidied up. So that applies across New Zealand, not just in Milford Sound.”

The industry was picking up well following the impacts of Covid-19, he said.

“I was in there in Milford Sound yesterday, beautiful day, flights coming and going. The terminal was busy and everybody there that I reserved were having a great time.

“So, it's all good, positive stuff. We just need to start addressing the things that we know need to be done. It's a matter of being in a position to get on and continue to invest.

“We just want the security of tenure and to continue to invest and have sustainable tourism.”

The group’s own solutions include establishing a new airport terminal and community centre, repurposing the existing visitor terminal, along with a stronger management of visitor flows. View the DMS solution here

Conservation Minister Tama Potaka confirmed that the Milford Opportunities Project delivered a “comprehensive” set of options for government in a Business Case, which was based on extensive research, feasibility testing and stakeholder engagement.

“I fully appreciate the importance of this work to the people and businesses in Fiordland, the broader Southland and Otago Regions and for Tourism and Conservation across Aotearoa New Zealand.

 “Decisions on next steps will be made in due course.

 “Work is underway that may address some challenges for the area. I released two discussion documents in November that include proposals to streamline the concessions process and explore introducing access charges (for Piopiotahi and four other popular visitor destinations).”

The discussion document states if it introduced access charging at five popular sites across

New Zealand it could generate additional funding per year for conservation from between

$36m to $70m, depending on which of three options was selected. Those options are to charge everyone the same fee, or to charge everyone an entrance fee with a reduced fee for Kiwis, or to only charge overseas visitors.

“These proposals support delivery of the Government’s priorities for the Conservation portfolio, which are generating new revenue, recalibrating costs for conservation, targeting investment into high-value conservation outcomes, strengthening relationships with Iwi/Hapū, and fixing the concessions process,” Minister Potaka said. 

“We will endeavour to keep everyone informed as we work through this next phase, especially the stakeholders and communities involved.”

Department of Conservation Heritage and Visitors Director Catherine Wilson said the Milford Opportunities Project involved three stages:

• • Stage 1: establishing context, vision and objectives (completed in September 2018).
  • Stage 2: consultation, engagement and research to develop a Milford Opportunities Masterplan (launched in July 2021).
  • Stage 3, Phase 1 (June 2022 to June 2024): testing the feasibility of the masterplan’s recommendations.

“Stages 1 and 2 was led by Southland District Council and received $3.25m ($3m of this from the IVL and $250,000 from the Regional Growth Fund). 

“Stage one was to establish context, vision and objectives and was completed in September 2018. 

“In stage two, consultants carried out research to inform options for a Masterplan. Alongside the research work, engagement with the community, key stakeholders, national interests and the New Zealand public was held over 18 months including two nationwide surveys carried out in July and October 2020. 

“The masterplan went to ministers in May 2021 and then to Cabinet  in June 2021 and was launched to the public in Te Anau on 28 July 2021.

“The Milford Opportunities Project received a total of $15m of government investment, for Stage 3 Phase 1 (June 2022 to June 2024) to test the feasibility of the masterplan’s recommendations. “Work covered detailed planning, consenting, and research, in particular around policy implications, technical and engineering feasibility, and economic modelling. 

“Community and stakeholder expertise was a key consideration in testing the feasibility of the masterplan’s proposals and the project undertook over 600 engagements with tourism operators, experts and community members over this phase of the work.  

“$14.2 million was spent to complete this work and deliver a Business Case for Ministers.

“The Milford Opportunities Project was a collaboration between Ngāi Tahu, the Department of Conservation, Southland District Council, the Ministry of Transport, Waka Kotahi, the Ministry of Business, Innovation and Employment and Environment Southland.

“For Stage 3, (June 2022 to June 2024) the project was comprised of an independent Unit, a Board and a Ministerial Oversight Group which included the Ministers of Conservation and Tourism, and the Associate Transport Minister.

“The Milford Opportunities Board had 13 members with expertise on the tourism, business and conservation and – including the Chair, two Ngāi Tahu representatives and a representative from each of the local and national government agencies. 

“The Milford Opportunities Unit numbers fluctuated depending on work and resourcing requirements at any one time - averaging approximately 8 – 12 staff during the project delivery phase. Consulting contractors were used independently for technical reports. 

“Staff from DOC and MBIE also supported the project.”

Main image (File Photo): Tourism operators have their own solutions as they get frustrated with a government-funded masterplan.