Exploring the impact of public sector investments in visitor attraction on local and regional economic development

Abstract

Recently, tourism sector has experienced unprecedented growth becoming New Zealand’s largest export earner. The landmark growth in the tourism sector can be attributed to a range of interlocking factors including the warm welcome, unique culture, stunning and diverse landscapes, coupled with a long history of the New Zealand Government support for and investments in tourism infrastructure and attractions. With current and projected growth in visitor numbers, promoting investments in tourist attractions and infrastructure remains a key priority. The underlying problem is that many of the goods and services used by visitors in New Zealand are not provided by the market, largely because they are public goods hence private providers are unable to charge for them. Accordingly, the tourism sector is reliant on publicly provided infrastructure and other forms of support. However, the evidential basis on the extent to which public sector support for and investment in tourist attractions influence tourist and expenditure flows to local economies and their impact on local or regional economic development is limited. These issues are explored in this research.