Starting a Business

If you're getting into the tourism industry, this section will help you work out what you need to know and where to look for information

Common stages in starting a new tourism business include:

• Research,
• Planning,
• Gaining funding,
• Obtaining licenses and approvals,
• Construction, and
• Marketing.

There are few barriers to entry in tourism, but the industry dynamics are complex. We encourage you to speak to tourism operators and industry associations, read about the tourism industry and research your potential customers.

Research

The first step in starting a business is likely to be assessing the potential of your idea. You can look at visitor numbers and industry growth figures internationally, within New Zealand and within your region.

You can also read about the tourism industry in our overview of New Zealand's tourism industry, including the issues and strategies that will play a part in the industry's future.

Puzzled by industry jargon? Want to know what an RTO is, who TIA is, what the difference between an FIT and a SIT is? See our glossary of terms.

International Tourism Statistics

The World Tourism Organisation (WTO) collects statistics on international travel to and from most countries. Statistics can be purchased in annual yearbooks or from the online database at www.world-tourism.org

The Pacific Asia Travel Association (PATA) also collects visitor numbers for Pacific Asian member countries. Publications can be ordered online from www.pata.org

Tourism New Zealand publishes their analysis of trends in key tourism markets in the Market Guides. These are freely available on www.tourismnewzealand.govt.nz. 

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New Zealand Tourism Statistics

The Ministry of Tourism research website has taken over from this site as the central repository of the core tourism dataset. By doing this, the core tourism dataset is now stored in one place, in one consistent format for the first time. 

The website holds the  Tourism Leading Indicator's Monitor, which gives up-to-date trend information and analysis of New Zealand's key tourism indicators, including international visitor numbers and expenditure, domestic travel and accommodation use.

More in-depth facts and figures can be found in the Data and Analysis section of the website. The Surveys section contains statistics on international visitors, NZ domestic travellers, commercial accommodation usage, tourism's contribution to the economy and tourism forecasts. 

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Planning

If you're new to the tourism industry, see Tourism New Zealand's "Give it 100%". This publication takes you from developing a business plan and understanding industry dynamics through to marketing and quality control. It also includes contacts for National Industry bodies, Regional Tourism Organisations and BIZ providers.

BIZ providers can provide planning, marketing and financial advice, as well as seminars, mentoring and networking. BIZ can put you in touch with:

• People in government who can assist you and offer practical help
• Free management up-skilling training providers
• Business mentors and business assistance programmes
• Management advice from people who know about growing a business

• Organisations with specialist information, for example about tourism.

The BIZ web site provides you with information on:

Enterprise Training Programme (Free Of Charge)
Business & Strategic Planning & Financial Advice
Business Associations & Networking
Business Improvement & Mentoring
Business Start - Ups
Compliance With Laws & Regulations
Government Financial Assistance
Importing, Exporting & Trade
Internet & E-commerce
Markets & Marketing
Personal Development & Skills
Private Sector Funding
Small Business web guide
Quick Guides (Very handy link)

See www.biz.org.nz for more.

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Funding

A sound business plan will assist you in obtaining funding from investors, banks or government agencies. BIZ providers can advise on developing business plans and funding cases - see www.biz.org.nz for more.

• You may qualify for a Tourism Facilities Grant if you are setting up a nationally significant tourism facility that can not be provided on a fully commercial basis. For details, see the Funding section.

• You may qualify for funding from the New Zealand Lottery Grants Board if you are looking to establish community, environmental, heritage or marae facilities. For details, see the NZ Lottery Grants Board section of Department of Internal Affairs website.

• New Zealand Trade & Enterprise's Business Incubator facility is designed to assist businesses to become established and profitable during their start up phase. It does this by providing premises, business advice and services, networking and mentoring to its tenants. It generally employs a full time manager and houses all its start up companies (tenants) in one location.
  Funding grants are made each year, with a total pool of $1.5 million available in the July 2001 - June 2002 financial year. Last year's awards ranged from $10,000 to $130,000 each. See www.nzte.govt.nz/incubators for more recent information.

• New Zealand Trade and Enterprise also administers the Regional Partnership Programme. This is open to "communities of interest" - groups involving a cross section of agencies such as local government, iwi, economic development agencies, community and business groups. The programme provides up to $2 million in funding for regional initiatives. Regions are also required to contribute to funding. See New Zealand Trade and Enterprise for further information.

• Work and Income New Zealand clients may qualify for a Business Training and Advice Grant, or an Enterprise Allowance Grant.

  Business Training and Advice Grants allow investigation of self-employment options. Clients must be registered with WINZ and intend to take up, or already be receiving an Enterprise Allowance. There is a maximum grant of up to $600 per person per project.

  The Enterprise Allowance Grant is a lump sum payment available for capitalisation of essential start-up costs. The Grant can be given on its own or in conjunction with the Enterprise Allowance Subsidy to a maximum of $5,000 per client project. Where a subsidy and grant are used in combination, the total cannot exceed $10,000 per client over 52 weeks.

  See Work and Income New Zealand for more details and application forms: www.winz.govt.nz

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Obtaining Licenses and Approvals

Before you get into a tourism business, you need to find out about relevant laws, licensing and approval requirements. Most commercial businesses in the tourism industry require an operating license. You should factor the costs of compliance into your business plan.

Licensing and permit requirements and procedures vary from centre to centre, so check your local government website first - via www.localgovt.co.nz

• For air-based products, contact the Civil Aviation Authority - www.caa.govt.nz

• For land-based passenger transport, contact the Land Transport Safety Authority - www.ltsa.govt.nz

• For water-based products, contact the Maritime Safety Authority - www.msa.govt.nz

• For products that will use the Conservation Estate, contact the Department of Conservation - www.doc.govt.nz

• For safety and health requirements, contact the Occupational Safety and Health division of the Department of Labour - www.osh.dol.govt.nz

Industry Associations often lobby government on legislation and licensing issues. They should be able to provide further advice on legal requirements particular to your business. They may also have a Code of Practice relevant to your business area. See the list of industry associations in Getting Started in Tourism.

Some of the key tourism-related acts to be aware of include:

• Conservation Act
• Land Act
• Reserves Act
• Resource Management Act
• Historic Places Act
• Wildlife Act
• Sale of Liquor Act
• Food Act

View these Acts on the Interim Website of New Zealand Legislation.

Local government administers much of the legislation. View legislation relevant to your region on the BIZ website

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Construction

If you are building a tourism business, you'll need to check out local government building approval requirements. Access your local government's website from www.localgovt.co.nz.

Check with the New Zealand Fire Service on fire safety requirements for your development: www.fire.org.nz

You may also need to be familiar with the Factories and Commercial Premises Act. View this Act on the Interim Website of New Zealand Legislation.

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Marketing

Tourism New Zealand and Regional Tourism Organisations work to market New Zealand as a tourist destination. The main ways you can work in with them and get maximum exposure for your business are by:

• listing on their websites,

• listing in their publications,

• attending tourism conferences and trade shows (such as TRENZ),

• participating in their media or travel trade familiarisation trips, and

• participating in marketing alliances.

Check Tourism New Zealand's trade site or your local RTO for more details.

Getting Started in Tourism has helpful information on marketing tourism products and industry dynamics. It also includes contacts for National Industry bodies, Regional Tourism Organisations and BIZ providers.

Visitor Information Centres are another key marketing outlet. The Visitor Information Network (VIN) is the officially recognised provider of reliable New Zealand information, with centres in 94 locations throughout New Zealand. Services offered include:

• Information and bookings for accommodation, transport (air, road, rail and ferry), attractions and activities

• Itinerary planning and advice

• Gifts, souvenirs, stamps and phone cards

• Restaurant information

• Local events and entertainment

• Maps and guide books

Independent and self-drive visitors to New Zealand are faced with a wide range of tourism options and places to visit. They often leave bookings until the last minute and make final purchase decisions at Information Centres.

Having your brochures available and your business connected to the Visitor Information Network will increase your exposure and business opportunities. 

The Ministry of Tourism does not have a direct role in marketing New Zealand. We provide tourism policy advice to the Minister of Tourism and work with other government departments on key tourism policy issues. Read more information about what we do.