Queens Wharf – Enough Talk

How many iterations and how much analysis do we need?

At least four consultants reports in the last twelve months and a continuing process of in-depth analysis for the last twelve years, and still we fumble for the ‘right’ decision. What would clearly help with the decision making is for Government to confirm its financial support so that ratepayer impact can be better managed and communicated.

The work has been done.

The master plan is in place. http://www.aucklandcity.govt.nz/council/documents/cbdwaterfront/masterplan.asp On page four of this master plan document the key features of the waterfront master plan are highlighted as "public open space, attractions and a major cruise ship terminal on Queens Wharf."

Reports by COVEC (for Auckland Regional Holdings and for GUEDO) and PWC (for ATA) also support our view that we need to get on and spend $97m building the proposed cruise ship terminal on Queens Wharf and get on with it now.

Democracy.

Democracy is all about ‘socialising ideas’ to achieve maximum popular vote. The risk is that this is a torturous, exhaustive and grinding process which means that bold and step-change thinking either evaporates or the opportunity is lost in process. Local government is by definition all about caution and small steps. Right now we have a need to deliver bold decisions and generate ‘go forward’ movement - and time is against us.

Going forward we need to find new revenue streams.

It must be acknowledged that Local Government in Auckland has a big portfolio to cover with its meagre resources. Is it not logical then to suggest that a medium term focus on working up new and additional revenue streams be undertaken in order to avoid further burdening the ratepayer beyond ‘acceptable’ levels?

Tourism is big business.

Ten percent of the New Zealand economy, 10% of national employment, New Zealand’s top earner of foreign exchange - earning $1.6bn of GST per annum (the only exporter to pay GST). It is also a highly competitive business globally and even small gains by our offshore competitors put our 0.5% of global arrivals at risk. We need to be on top of our game with our visitor infrastructure, with delivering a top class visitor experience, and by communicating our superior visitor proposition to the world.

Auckland is a key driver of New Zealand’s visitor economy.

Of all New Zealand visitor nights 34.9% are in Auckland, 57% of all overseas students are located in Auckland and surprising to some, 57% of film sector GDP is in Auckland. Under performance by Auckland places downstream risk on the New Zealand visitor sector.

Auckland connects New Zealand to the world.

83% of all arriving and departing visitors pass through Auckland Airport.

For 70% of international arrivals to New Zealand, their first impressions of New Zealand are based on Auckland. Of this number 20% visit Auckland only, meaning that 80% of arrivals to Auckland visit elsewhere in New Zealand.

The Rugby World Cup 2011 (RWC 2011).

The Rugby World Cup is big for New Zealand and big for Auckland. As many as 80,000 international visitors are expected in New Zealand for the event, with Auckland hosting more than 35,000 of these at any one time. Clearly New Zealand (and Auckland) doesn’t have the hotel rooms for this influx, meaning that motor homes and cruise ships will be used to boost room supply.

RWC 2011 - Why Queens Wharf?

During semi final and finals time in Auckland, it is anticipated that two cruise ships will be needed to accommodate fans. These cruise ships need to be located close to the CBD in order to facilitate visitor flows and to optimise visitor spend. Being accommodated on these ships will not be cheap, so just how compelling a visitor proposition is it for them to be tied up alongside a grotty wharf with a couple of old sheds that better suit a holding pen for used cars? The option of waiting another ten years for Bledisloe Wharf to become available has zero merit.

The volume of traffic flows around the event also requires proximity to Britomart and the CBD hotels; clearly Queens Wharf is optimally located to deliver on these outcomes.

The eyes of the world will be on Auckland on opening night like never before. Shots over Queens Wharf (with a stylish Option 4 development) to the city will be the best available shop window to present to the world.

A big part of the RWC 2011 opportunity is around destination marketing and a redeveloped Queens Wharf will give Auckland the best chance of maximising this.

The Cruise Sector.

While ‘party central’ has been mentioned as part of the case for developing Queen’s Wharf, it is only part of the picture.

The true legacy benefit of this investment will be delivered by the cruise ship sector.

Notably, more international visitors arrive on cruise ships than fly directly into Queenstown.

The cruise ship market is important to Auckland and New Zealand. 58% of total cruise sector GDP ($94.6m) is generated in Auckland.

The cruise market is one of the key drivers of United States visitors to New Zealand. The United States is our fourth largest source of international visitors, and importantly this is a discerning and high yield market.

From a cruise ship perspective it is vital that Auckland represents a better hub-port opportunity than Sydney. Auckland is the New Zealand port of choice for cruise ships to off load passengers at the end of their cruise and therefore to take on new passengers.  Clearly it is better for New Zealand if it is Auckland serving this need than Sydney. This inflow / outflow of cruise passengers provides Auckland with a unique opportunity as host city, and with a duty of care for the rest of New Zealand. Auckland’s functionality as a cruise ship port has a downstream impact on the cruise opportunities presented to the rest of New Zealand.

We need to accord a greater priority to providing our cruise ships and their passengers with a world class service, a profound sense of arrival, a facility that offers the prospect of an integrated transit process (to include baggage and airline check-in). Right now we don’t. The treatment currently accorded to cruise ship passengers, especially those leaving the ship in Auckland is sub standard.

In recognition of the important role that Queens Wharf can make to RWC 2011 and the national pay back from the cruise ship sector that will endure way past RWC 2011, it is appropriate that the nation’s benefit should be reflected by a central government contribution to this project.

Option 4 provides benefits to Auckland well beyond 2011. It is not a $97 million spend on RWC 2011. It is an investment in the city's future that will reap broad returns for its ratepayers:

• Access to waterfront and facilities for public use.
• Cruise ship terminal securing the significant economic benefits this brings.
• Premier space for other major events.

Cruise passengers tend to belong to an older demographic; this is how we look after them in Auckland.

This is how we handle their baggage.

This how we process them.

Is this really our best effort? Does this really look like fun? Will these people remember their Auckland experience fondly and recommend us to others?

Let’s seize the moment and move forward.

Image supplied courtesy of www.queenswharfnz.com

Show your support.

Show your support for Tourism Auckland’s view - email the Auckland region’s leaders  stating your clear support for the $97m Option 4 development of Queens Wharf.

Auckland City Council - John Banks - john.banks@aucklandcity.govt.nz

Auckland Regional Council - Mike Lee - mike.lee@arc.govt.nz

Franklin District Council- Mark Ball - mark_ball@franklin.govt.nz

Manukau City Council - Len Brown – mayor@manukau.govt.nz

North Shore City Council- Andrew Williams - mayor@northshorecity.govt.nz

Rodney District Council - Penny Webster - penny.webster@rodney.govt.nz

Waitakere City Council - Bob Harvey – bob.harvey@waitakere.govt.nz

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