Marketing budget cut, but commitment confirmed

Ruapehu Bulletin, Volume 15, Issue 689, 3 June 1997, Page 5

Marketing budget cut, but commitment confirmed

Even though the RuapehuDistrict Council's marketing budget is to be cut by $67,000 in the 1997/98 financial year this does not mean that the council is any less committed to the marketing and promotion of the district. Instead, it signals a change within its own administrative activities to allow for more of the available time to be allocated to its own in-house administrative and customer service functions, according to the acting CEO Chris Ryan's commentary which accompanied the presentation of the 1997/98 Draft Anriual Plan on 13 May. In a review of its marketing unit prepared by the Ruapehu District Council ' s Marketing Sub-committee for the 1997/98 Draft Annual Plan, the sub-commit-

tee "expressed concern to Council aboutthe increased administrative functions (which had been) placed on the limited resources allocated to the Marketing Unit" and recommended that "when senior management issues are resolved, that a focus on a full-time tourism marketing role be resumed." The marketing unit had been set up with the appointment of Bruce Rollinson in 1992 with the purpose of promoting the Ruapehu District as a quality destination to the travel trade and visitor industry both in New Zealand and off-shore. The cost of providing these services in 1997/98 will total $357,000 compared with $424,000 last year. The biggest reductions are being made in the area of district marketing (down

23% from $184,000 to $141,000) and information centres (down 8% from $213,000 to $193,000). These reductions are due to a decrease in support costs (such as training) and not at the expense of staffing levels. Other items of expenditure such as the cost of marketing contributions and information signs remain unchanged. The reduction in the two main areas of expenditure can be attributed to: a greater percentage of the marketing manager's time allocated to the management of other council activities and some reduction in marketing activity expenditure. Since the marketing unit was established the council has received $750,000 in cash contributions and sponsorships from various sources but in the last finan-

cial year only $ 1 35 ,000 was received. This represented a reduction of 26% and, according to Chris Ryan, reflects a tightening of belts by the (local) tourist industry because of the eruption-short-

ened ski seasons over the past two years. One of the major financial contributors to the council' s marketing unit has been ECNZ Central Generation who have invested $300,000 over five years

followirtg an initial threeyear contract. Mr Ryan says this support has been invaluable and of significant benefit in marketing the Ruapehu district. Negotiations between Council and ECNZ Central

Generation for continued support in 1997/98 will be finalised in June. Given a successful 1997 ski season this winter, the total income from all sources could well exceed budget, said Mr Ryan.