9 October 2015
Let's become wealthy - Agri-tourism strategy

Taranaki will not progress until it diversifies its economy.  My goal is to add $200 million to the South Taranaki economy. This is not a random figure, it is something achieved by another remote New Zealand town.

The picture shows the relative importance of Chinese tourism in different parts of New Zealand. The circle around Queenstown is what counts for us. It indicates Chinese tourists spend $200,000,000 a year. If they can attract the Chinese to Queenstown we can attract them to South Taranaki. All we have to do is to create the attraction.

Get real
Taranaki not going to get new income streams unless we force the issue. So far the government’s Taranaki strategy has been to ignore the people and to go for the low-hanging-fruit. The low-hanging fruit exploits the regions natural resources, oil, gas, easy land and rain.

Need to think a bit
The well-known, Harvard University, business strategist Michael Porter (whom my students love but whom I hate) talks about the basic level of economic development. That is when a country exploits its natural endowment. The country simply profits from what it has. That is the level of strategy in Taranaki. We have never taken seriously the higher levels of economic development.  If you want evidence of this read the reports from Venture Taranaki.

Shame it did not work
There has been no strategic thinking about the needs of Taranaki since Rob Muldoon. He adopted new thinking and had the ability to implement initiatives on a scale that could make a difference. Okay, so much of what he did was a disaster, but I admire his spirit. It is the spirit we need in South Taranaki. It is time we faced up to our economic plight – it is time we had some leadership and some strategic action.

Two key strategies
There are two strategic initiatives South Taranaki could adopt – rural tourism and farm conversion.  Both are expensive, both are long-term, involve overseas partnerships, will only be achieved to a significant extent with government assistance, and both entail risk. This week I will focus just on rural tourism.

Dr Robert Shaw

My friend visits
Earlier this year, I brought a Chinese colleague to a conference at Waikato University. It was a fine conference and there were many Chinese speaking people present. We visited the School of Business and began new joint ventures.
Then, we went on a tour. I showed him thermal areas, lakes, mountains and wonders of many kinds. He slept through most of it. At Tirau he was not interested in the tin sheep but did invite groups of school children to have their photograph taken with him. When I showed him our beach at Opunake he said: “Phuket is better”. We easily forget that the Chinese are sophisticated and travelled.

Sheep & cows
When I drove my Chinese friend through the Forgotten Highway we had to stop because we met a mob of sheep. He became excited and animated. He jumped out of the car to interview the farmer. The guy was riding a quad bike behind a small mob. Photographs were taken.
            My friend asked me lots of questions about cows and did not seem to believe my answers (cows must go into a house at night). A walk towards the cows on the Opunake Walkway was the highlight of his visit to New Zealand.

Agri-tourism on the Opunake Walkway.
This was as close as my friend would go to cows.
When they made a little noise he said “they are getting angry”.
Agri-tourism is a terrific opportunity for South Taranaki.
We are just two flights from Guangzhou, which has a population of 20 million people.  

Opportunity
Everything about livestock, farming and food production is of great interest to the Chinese.  If there is one Chinese person like my friend you can easily find a million others with the same interests. The Chinese have seen volcanic activity, mountains, beaches, and lakes at home and abroad. They love their panda bear. They have no experience of agriculture and they are vitally interested in food. This is the basis for a major industry in South Taranaki.

Rural tourism
Rural tourism or farm tourism or agri-tourism – to me they all mean pretty much the same thing.  South Taranaki could make millions of dollars a year if we worked with niche tourists from southern China. We have good air links between Guangzhou and New Plymouth – I know, I use them. It is a two-flight trip.
South Taranaki could become the world hub for New Zealand’s agri-food-tourism business. Guangzhou has 20 million people. They live in high-rise apartments and have no experience of the open country-side. We do not need to look elsewhere for our tourists.

Foods
Tell a Chinese friend you have been on holiday and they will ask about the food in that place. The distinctive cuisine of a region is always a topic of extended conversation. Fresh, traditional New Zealand cuisine will be attractive. Locally produced products and dishes will be popular. The gardens where the food is grown will afford fascination, particularly if they can pick and eat some edibles. Sheep dogs and puppies could create a whole industry as do a fewer than 100 panda bears in Chengdu.

The investor theory
In theory an investor could fund the whole thing. Marketing overseas to find such an investor is the government’s strategy. It has been the government’s strategy for at least twenty years. I know this because I was once involved. However, it is highly unlikely that we will find an investor for a new enterprise in South Taranaki, and any investment we do get will not necessarily be in the full interests of Taranaki (witness oil and gas).

Council initiative
The South Taranaki District Council could form a task force (perhaps best for this sort of work is a special purpose council committee, with co-opted people) to drive the development. A way to ensure progress is to put this project into the chief executive’s performance agreement and make half his annual bonus depend on progress.
All this actually needs to make it happen is 7 votes at the council table. Do we have the leadership necessary to bring economic development to fore and to set the wheels in motion?

Negotiate support
If STDC began such a project, central government would be obliged to assist, given the recent rhetoric of Minister Joyce about the needs of the regions. Joyce said the plan was to “build on each region’s strengths and attract new investment”. That will be insufficient to lift Taranaki, but I do believe the Government is genuine in its desire to support regional development. They just need us to show them how.

Robert Shaw
robert@porirua.net