DQ seeking $900,000 boost

Graham Budd. Photo: ODT files
Graham Budd. Photo: ODT files
Destination Queenstown (DQ) is having another crack at getting a funding increase.

The board of the resort's regional tourism organisation is asking its members to back a proposal for a one-off $900,000 funding boost from the Queenstown Lakes District Council's tourism promotion levy for the next financial year.

Members voted against a proposal last April to increase funding 10% over three years.

DQ chief executive Graham Budd said lessons were learned from its handling of the issue last year, particularly a failure to adequately explain to members how the extra money would be used.

"We weren't as clear with our case as we could have been."

This time DQ had consulted carefully, holding one-on-one meetings with more than 40 members, including some who opposed last year's proposal.

He was "optimistic" the funding would be approved.

Members will vote on April 3, with 75% support needed.

The proposed increase to the levy - a targeted rate on commercial and accommodation properties - would increase DQ's annual core funding to $4.5 million.

Its funding in subsequent years would revert to the normal annual incremental increase determined by the council.

DQ board chairman Matt Hollyer said it needed the extra funding to continue influencing the sustainable growth and impact of tourism in the Wakatipu in an increasingly competitive environment.

It would be used in areas where it could see "best value for money".

They were visitor research, insights, data and analysis, Australian market development, domestic shoulder season marketing and the Queenstown Winter Festival.

Its previous non-incremental funding boost was an extra $1 million in 2008, and for the past 11 years its funding had increased at an average annual rate of 2.3%.

Mr Budd said although the additional funding was needed to keep DQ operating effectively in the long term regardless of short-term visitor number trends, there had been a "softening" in some of the resort's visitor markets in the past year.

"That's being felt by some of our key businesses."

If members approved the proposal, DQ would make a submission to the council requesting the levy increase.

The council had already indicated it would support the submission if DQ members backed the proposal, he said.

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