Cycle trails have been hailed as a major contributor to Otago's economy after a report showed they generated about $20 million in revenue for the region.
Prime Minister and Minister of Tourism John Key released a report yesterday showing the New Zealand Cycle Trail generated about $37 million in economic benefits and was used by more than a million people last year.
The report included a breakdown of the economic impact of each trail for last year and showed the Queenstown Trail led the way nationally with 211,901 visitors, and $9 million in revenue from international visitors and $5.4 million in revenue from domestic visitors.
This made up the lion's share of total revenue of just over $20 million for Otago trails, including the Alps to Ocean Cycle Trail, which starts in Canterbury.
Queenstown Trails Trust's chief executive Mandy Kennedy was ''delighted'' it was the most popular trail in the country, but the numbers were not a surprise, as they had been building steadily since the 120km network opened in 2012.
''The opportunity we have with international visitors to Queenstown is wonderful, but also we do have really great support from domestic [tourists] and also from local residents,'' Ms Kennedy said.
There was undoubtedly more room for growth, especially when it came to ''multi-day ride opportunities'' linking the Queenstown Trail with the Around the Mountains Trail and the Otago Central Rail Trail.
Otago Central Rail Trail Trust chairwoman Kate Wilson was thrilled with the results, which showed the trail had 17,164 visits and brought in $1.35 million in revenue.
''I think the Government investment in cycle trails, led by the Otago Central Rail Trail, is a great investment.''
She stressed the importance of continued investment and, like Ms Kennedy, said there was the opportunity to link cycle trails in the region.
Tourism Waitaki general manager Jason Gaskill was pleased with the success of the Alps to Ocean Cycle Trail, which had 18,163 visitors and brought in $2.16 million.
''It's having an impact in a lot of different ways,'' Mr Gaskill said.
Apart from the economic impact, it also had the effect of connecting communities and linking Mt Cook with the Oamaru coast.
Mr Key said cycle trails had been ''very effective in attracting high-value visitors to our regions''.
''Part of the Government's tourism strategy is to ensure all regions benefit from the exceptional growth occurring in the tourism sector, and the New Zealand Cycle Trail is clearly a major contributor,'' Mr Key said in a statement.
The trails had directly resulted in 1300 people being employed across the country.
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Comments
The Central Rail Trail is a great facility, but one should always take these economic impact reports with several grains of result. The outcomes are always pre-ordained, failing to take account of substitution effects, counter-factuals, and associated costs.
The only reliable test is this: how would such projects get on if all taxpayer support were removed?
The trails are infrastructure assets and need to be viewed that way. Do roads get built without taxpayer support? Also a lot of the initial cost has been fund raised from Trusts and other bodies.
They provide a resource that is used by local people and further act as a tourist attraction.
You only need to look at the revitalisation of the small settlements along the Otago Rail Trail to see the economic benefits. Its a win - win.