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Publication Open Access Enhancing financial and economic yield in tourism: sector performance and business benchmarks report(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, JohnEstablishing the economic contribution of visitor activities to national or local gross domestic product (GDP) has been the primary use of Tourism Satellite Accounts (TSA). Visitor consumption is distributed throughout numerous sectors of the economy where expenditure, value-added and the financial yield of constituent enterprises provides a mechanism for comparing the performance of tourism’s characteristic industries against the rest of the economy. This paper submits that measures of economic performance at sector level and financial yield at enterprise level are more reliable indicators of tourism’s sustainability within an economy than volumetric measures such as visitor consumption or income. The concept of tourism yield is revisited, defined and measured in terms of enterprise-level economic performance. Furthermore, this paper outlines a methodology based on economic value measurements for determining the relative performance of sectors contributing to a TSA.Publication Open Access Enhancing financial and economic yield in tourism: performance benchmarks for New Zealand tourism characteristic enterprises based on financial yield(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, JohnTourism Strategy 2010 identified the objective of achieving greater financial and economic sustainability from tourism businesses and observed that there were a number of mechanisms that might contribute. This paper has examined Statistics New Zealand Annual Enterprise Survey Data for the period 1999-2003 to investigate the financial performance of tourism characteristic enterprises. Whilst no single metric informs on every aspect of business performance, one that incorporates both trading and capital efficiency is appealing. This study uses 'financial yield' (FY) as a metric that provides insight into the efficiency of an enterprise and does so by examining the degree to which its assets generate cash returns to shareholders. The metric also assists with an estimation of financial and economic sustainability criteria as enterprises that consistently perform at particular levels of FY are able to be classified by the degree to which they meet these criteria. The combination of FY and readily available market benchmarks from the Reserve bank and other financial services providers enables enterprises to gauge their performance relative to their tourism peers and the broader economy. This, together with appropriate diagnostic tools, provides insight into opportunities for business improvement.Publication Open Access Enhancing financial and economic yield in tourism: performance benchmarks for New Zealand accommodation enterprises based on financial yield(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, JohnDrawing conclusions on the performance of the tourism sector requires a distinction to be made as to the type of performance being measured. New Zealand’s Tourism Strategy 2010 considered this issue and recommended that the future emphasis should be on the sustainability of the private sector evidenced by financial and economic performance that enabled innovation and competitiveness in both local and international markets. Although the private sector is tourism’s most significant economic contributor, it also enjoys economic contributions from the public sector in the form of product management, promotion and a broad range of infrastructure dimensioned beyond the reasonable needs of international visitors but rather to satisfy community demands. Such contributions should enhance the private sector’s performance if only through the mechanism of cost avoidance. This, together with the underlying nature of tourism enterprises – numerous, independent, geographically disparate and mainly small – suggests that proprietor behaviour and business performance is an important aspect of addressing the objective of financial and economic sustainability cited in the tourism strategy.Publication Open Access Enhancing financial and economic yield in tourism: division benchmarks for New Zealand tourism characteristic and tourism related industries 1999-2003(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, JohnPerformance monitoring and benchmarking are important contributors to policy and planning processes. Tourism presents particular challenges as visitor expenditure supports a broad spectrum of commercial activity throughout hundreds of the economy’s industrial divisions. It has been difficult to establish financial performance benchmarks at divisional level because enterprise performance is generally confidential (unless required to be disclosed – e.g. as part of an obligation to list on a public exchange such as NZX). More easily identified alternatives are generally activity based (e.g. revenues, customer volumes, market share) and whilst useful they offer no insight into financial or economic performance. The benchmarking metrics in this report include Financial Yield (FY) and a variety of operating ratios based on revenue. These benchmarks represent the consolidated financial performance of enterprise business units within New Zealand Tourism’s characteristic and related industries. They reflect the degree to which divisions generate wealth (Financial Yield) and report the operating parameters associated with that performance.Publication Open Access Enhancing financial and economic yield in tourism: division benchmarks for New Zealand tourism characteristic and tourism related industries 2000-2004(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, JohnPerformance monitoring and benchmarking are important contributors to policy and planning processes. Tourism presents particular challenges as visitor expenditure supports a broad spectrum of commercial activity throughout hundreds of the economy’s industrial divisions. It has been difficult to establish financial performance benchmarks at divisional level because enterprise performance is generally confidential (unless required to be disclosed – e.g. as part of an obligation to list on a public exchange such as NZX). More easily identified alternatives are generally activity based (e.g. revenues, customer volumes, market share) and whilst useful they offer no insight into financial or economic performance. The benchmarking metrics in this report include Financial Yield (FY) and a variety of operating ratios based on revenue. These benchmarks represent the consolidated financial performance of enterprise business units within New Zealand Tourism’s characteristic and related industries. They reflect the degree to which divisions generate wealth (Financial Yield) and report the operating parameters associated with that performance.Publication Open Access Enhancing financial and economic yield in tourism: division benchmarks for New Zealand tourism characteristic and tourism related industries 2001-2005(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, JohnPerformance monitoring and benchmarking are important contributors to policy and planning processes. Tourism presents particular challenges as visitor expenditure supports a broad spectrum of commercial activity throughout hundreds of the economy’s industrial divisions. It has been difficult to establish financial performance benchmarks at divisional level because enterprise performance is generally confidential (unless required to be disclosed – e.g. as part of an obligation to list on a public exchange such as NZX). More easily identified alternatives are generally activity based (e.g. revenues, customer volumes, market share) and whilst useful they offer no insight into financial or economic performance. The benchmarking metrics in this report include Financial Yield (FY) and a variety of operating ratios based on revenue. These benchmarks represent the consolidated financial performance of enterprise business units within New Zealand Tourism’s characteristic and related industries. They reflect the degree to which divisions generate wealth (Financial Yield) and report the operating parameters associated with that performance.Publication Open Access Enhancing financial and economic yield in tourism: small tourism business survey report(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Wason, Karen M.; Sleeman, R.; Simmons, David G.This study reports on a survey of small tourism businesses in New Zealand. In particular it focusses on the smallest of tourism's businesses – those comprising five or fewer full-time employees (FTEs). As such it provides one of a number of viewpoints on the functioning of the tourism sector in the New Zealand economy. This small business survey forms part of a wider study funded by the Ministry of Tourism and New Zealand Tourism Industry Association (TIANZ) to examine and develop tools to enhance the financial and economic yield of tourism in New Zealand. Alongside this study is an analysis of data gathered from the Tourism Satellite Account which provides a 'top down' analysis of financial and economic data recorded by Statistics New Zealand, and an analysis of tourism enterprises employing greater than six FTEs which will be available from the Ministry of Economic Development's Business Operations Survey due for completion in April 2006.Publication Open Access Enhancing financial and economic yield in tourism: business interviews report(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Wason, Karen M.; Sleeman, R.; Moriarty, J.; Simmons, David G.This report is part of the Research Programme ‘Enhancing Financial and Economic Yield in Tourism’. The Research Programme is a collaborative venture with funding from the Ministry of Tourism and the Tourism Industry Association of New Zealand (TIANZ), with the research being undertaken by The Tourism Recreation Research and Education Centre (TRREC) at Lincoln University. The Report presents the findings of in-depth interviews with small and medium tourism businesses carried out in Rotorua and Christchurch during mid 2006. For the purposes of this project, businesses with up to 50 staff were targeted. The objectives of this project were: 1. To better understand the business practices of small and medium tourism enterprises (SMTEs) in New Zealand, 2. To explore whether linkages can be made between business practices and financial yield, 3. To identify the business support needs and wants of SMTEs. The findings from this research now need to be integrated with all other private sector projects in this research programme, and considered alongside other recent business, government and academic literature, to ensure the scope of business practices is sufficiently focused, and to take account of any new knowledge from recent research. Industry and stakeholder input into the tool development process is paramount. These processes will determine and prioritise the business areas where business support tools are developed. Importantly, decisions that will be made post this research programme about who develops the tools, who implements and manages their delivery, how the tools will be monitored and reviewed to ensure effectiveness in the long term also need to be considered in the next phase.Publication Open Access Enhancing financial and economic yield in tourism: business interviews: financial yield benchmarks(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Moriarty, J.; Simmons, David G.The purpose of this brief technical report is to calculate and examine financial yield from results provided by the 65 businesses within the SME business interviews. These results are then examined alongside sector profiles for corresponding business sectors as generated from a comprehensive analysis of the NZ Tourism. They provide an important test for the development of financial yield calculations while serving to demonstrate the reliability of the interview sample.Publication Open Access Enhancing financial and economic yield in tourism: business support programme for small and medium enterprises: existing initiatives and delivery mechanisms(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Wason, Karen M.; Sleeman, R.; Simmons, David G.This report has been prepared as part of the ‘Enhancing Financial and Economic Yield in Tourism’ programme of research funded by The Ministry of Tourism and the Tourism Industry Association. It brings together what we have learned about the needs of small and medium tourism enterprises (SMTEs), with the knowledge of current business support programmes. The survey and interview research projects carried out in 2005 and 2006 respectively, sought to achieve an enhanced understanding about SMTEs in New Zealand. The literature and website reviews of business support initiatives were more narrowly focused and served to provide a succinct overview of the main business support initiatives currently available in New Zealand.Publication Open Access Enhancing financial and economic yield in tourism: public sector: central government benefits and costs of tourism(Lincoln University. Tourism Recreation Research and Education Centre, 2007-11) Cullen, Ross; Becken, Susanne; Butcher, G.; Lennox, J.; Simmons, David G.; Taylor, N.This report describes the national public sector direct inputs, and outline society’s indirect inputs, into tourism production and consumption. The public sector and societal benefits that accrue from tourism will also be assessed. A subsequent report (Yield report 11) examines local government costs and benefits alongside the regional yield (value added) generated from tourism. This report is one of a series of reports within the government funded research programme “Enhancing the financial and economic yield for tourism”. The research follows two streams: an analysis of private sector investment and management and a parallel analysis of public sector benefit and costs arising from the operation of the tourism sector in New Zealand. It is towards this latter objective that the current report is directed. It aims to quantify the level of the public sector (local, regional, and national) direct inputs, and outline society’s direct and indirect inputs, into tourism production and consumption. The public sector and societal benefits that accrue from tourism are also assessed.Publication Open Access Enhancing financial and economic yield in tourism: public sector: local government and regional yield report(Lincoln University. Tourism Recreation Research and Education Centre, 2007-11) Butcher, G.; Lennox, J.; Becken, Susanne; Simmons, David G.The programme “Enhancing Financial and Economic Yield in Tourism” has included a range of investigations into various dimensions of private sector yield of tourism businesses, as well as public sector yield of tourism at local and national levels. In this report the focus is on yield from a regional perspective. Yield in this report is understood as net financial or economic benefit. For the private sector, the measure of yield used is Economic Value Added, while for local government the measure of yield is the difference between costs and revenue. Local government yield related to tourism can best be interpreted within the context of regional total value added from tourism. While local government may have a negative yield for its own tourism-related business, it judges this to be worthwhile from the community perspective because of the commercial benefits to the community as evidenced by total value added and employment In this report the focus is on regional yield in Christchurch City, and Rotorua District, from the perspective of both the private sector and local government. We show private sector yield as Economic Value Added (EVA), which is the relevant measure for private investors, as well as the more common national accounting measure of total value added and total employment. We have estimated the private sector commercial yield on the basis of surveys of visitor expenditure and analysis of private sector financial yield ratios by sector, and the net costs and benefits to the local government sector on the basis of an analysis of local government revenue and spending.Publication Open Access Enhancing financial and economic yield in tourism: yield associated with different tourist types(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Becken, Susanne; Lennox, J.; Fitt, Helen M.; Butcher, G.The programme “Enhancing Financial and Economic Yield in Tourism” has completed a range of investigations into various dimensions of private sector yield of tourism businesses, as well as public sector yield of tourism at local and national levels. Results from the earlier studies raised the question whether different types of tourists would differ with respect to their yield generated in the private sector and their costs posed to the public sector. Yield in this report is understood as net benefit – financial, economic, environmental or social. For the private sector yield, the measures of Value Added, Free Financial Cash Flow and Economic Value Added will be used, and for public sector yield the ratios between costs and revenue will be derived as a yield measure. The research objectives were to: 1. Understand tourist activity patterns in relation to impacts on the private and public sectors; 2. Derive yields for different types of visitors; and 3. Assess visitor satisfaction as one aspect of (social) yield.Publication Open Access Enhancing financial and economic yield in tourism: summary report of the Yield Research Programme(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Research, LUTR; Tourism, NZMO; Zealand, TIAN; Zealand, TNIn recent years, ‘yield’ has become a central issue in tourism development with many operators and policy analysts now seeking ‘high yield’ tourism. Attempts to maximise yield have sometimes focussed on maximising volume (i.e. visitor numbers or revenue). But over time an increasing number of sector participants have come to appreciate that maximising volume is not necessarily maximising value – and nor does it necessarily lead to sustainable businesses. For that reason, discussions about yield are now encompassing the concepts of value-added, net benefit and measures of sustainability. This paper provides a high level summary of the key findings of the Yield Research Programme, with the full suite of research findings being available on the Ministry of Tourism and Lincoln University websites: www.tourismresearch.govt.nz and www.lincoln.ac.nz.Publication Open Access Enhancing financial and economic yield in tourism: dimensions and measurements of tourism yield(Lincoln University. Tourism Recreation Research and Education Centre., 2007-11) Becken, Susanne; Butcher, G.; Cullen, Ross; Moriarty, John P.; Radford, Joseph J.; Simmons, David G.; Tan, J.This discussion paper Dimensions of Tourism Yield represents the first in a series of papers that describe and refine various aspects of ‘tourism yield’ as currently manifesting in New Zealand. By way of background the research programme’s overall goals and structure are first introduced. The primary focus of this paper – dimensions of tourism yield – are then introduced and discussed. The paper sets out the basic definitions and indicators of three dimensions of tourism yield: financial, economic and sustainable; which will act as core definitions throughout the study. It also seeks to establish common formulae and metrics for their measurement, as well as establish the accounting iterations (direct and indirect) that can be accommodated within the study. While we are taking a broad definition of tourism yield, yield management is often simply associated with pricing structures and practices and, to this extent, key dimensions of pricing for the tourism sector and associated ‘rules of competition’ are also discussed. Finally, to understand the broad operating environment for tourism it is necessary to understand tourism businesses within their regional and national contexts. In such a framework tourism production and consumption is a mixture of private and public sector production functions and a robust examination of tourism yield must take into account public sector and environmental and social resource inputs. In this study this is be achieved through the examination of tourism within two regional case studies. The desirability of being able to generalise from these detailed projects to the nation as a whole has required a broad consideration of the location of the case study regions, which is included as a final chapter in this initial discussion paper.