WAIKATO REGION CYCLE TRAILS NETWORK - South Waikato ...
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GROWING THE
ECONOMIC BENEFITS
OF INCRE ASED
VISITORS ACROSS
THE REGION BY
LEVERAGING NEW
AND EXISTING CYCLE
TRAILS INVESTMENT
WAIKATO
REGION
CYCLE TRAILS
NETWORK
1
WAIKATO REGION
THE STORY Key benefits of a regional CYCLE TRAILS
SO FAR
The Waikato region supports and services four Great Rides:
approach to establishing a
formal cycle trail network in the
Waikato
REGIONAL FOCUS INCREASES TRAIL DEMAND AND
AUCKLAND
Hauraki Rail Trail, Timber Trail, Waikato River Trails and the
ECONOMIC ACTIVITY IN LOCAL COMMUNITIES
Great Lakes Trail. Together with Te Awa River Ride, these
trails are the focus of this programme business case.
More international, out of region and local visitors stay longer and 1 Hauraki
Rail Trail
spend more during their visit, leading to greater regional economic Thames Thames Te Aroha
Cycle trails attract local, national and international visitors who activity. Kopu Wairongomai Valley
contribute to the regional economy through local spending. Cycle trail
GREATER VALUE FROM MONEY
2 Te Awa
River Ride
Matatoki
Hikutaia
Te Aroha West
Gordon
Okuia
development across the Waikato region has accelerated in the past Ngāruawāhia 1 Paeroa
Mackay town Matamata
five years. However, despite committed and passionate investors and ON EXISTING INVESTMENT Horotiu to River
aika Karangahake Kaiaua
partners, completion of existing trails and the development of new trails Hamilton W Waihi Miranda
Paeroa Waikino
Cycle trails and communities develop capability and capacity to Tamahere
remain incremental and are limited by funding and local capacity. Waihi Waitakaruru
offer a wider variety of attractions and services, improve the visitor Cambridge Kopu
Waihi Beach
Karāpiro
This business case considers all aspects of a cycle trail, from the physical experience and broaden the potential market. Tirohia
Mangaiti
asset, local business and community involvement, to the capability and Te Aroha
capacity needed to deliver a great customer experience and attract new FUTURE INVESTMENT INTO THE CYCLE TRAILS
and returning visitors – both cyclists and other users. OPTIMISES REGIONAL BENEFITS Waikato
Future investment is aligned to regional outcomes, enabling access 3 River Trails
Ngāruawāhia HAMILTON
Matamata-
to a broader range of funding opportunities. Decisions about trail
investment are informed by how to maximise demand across the
Arapuni
Putāruru
Whakamaru
Ātiamuri
Raglan
9 Hinuera-
Horahora link
The Waikato Regional Cycle Trails
Tirau Tokoroa
region. Pukeatua
Waotu
Whakamaru
Mangakino
2 Cambridge Matamata Hinuera
Piarere
Network (WRCTN) members A REGIONAL APPROACH WOULD
Waipapa
Mangakino
Waihaha
Tihoi 9
Horahora
Te Awamutu
a
Trail trusts Hauraki Rail Trail, Timber Trail, Waikato River Trails, Great grow create Kāwhia ROTORUA
aro
Lakes Trail, Te Awa River Ride and their key funding partners, territorial visitors by 160 new
te ar
4 The Timber W
authorities, Waikato Regional Council, Waikato Means Business, New 100,000 jobs by
aikato River
Zealand Transport Agency, Hamilton & Waikato Tourism, Destination Trail
over 10 yrs 2029 Te Kūiti Go Thermal
Coromandel and Destination Great Lake Taupō. Ōtorohanga
3
8 by Bike -
Benneydale
Tokoroa
Ongarue
Ōtorohanga Te Kūiti Te Ara Ahi
Mangakino Rotorua
Key challenges facing the Tumunui
Waimangu
Waikato River,,
region’s cycle trails Timber, and 5
Wai-o-tapu
Waikite
5 Great Lake
trails — LINKS
6
TAUPO
Waikato River
Achieving the desired levels of trail quality and
grade consistency
Mōkau
4
3 Trails - EXTENSIONS
Orakei Korako
Lake
Legend Taupō
6
Maintaining sufficient stakeholder support to
Exisiting Planned Great Lake
operate and enhance the trails
Trail
Due for completion
2018
Proposed 7 Kinloch
Turangi Taupō
Onroad Off road
Achieving a sustainable financial model
Boat transfer
Sufficient service providers and services to meet
7 Taupo-Turangi
proposed
Taupō Tauranga-Taupō
customer demand and help grow trail use Te Rangiita
Waitahanui
Hatepe Motuoapa
Motutere Tūrangi
2 6012 - (0518) 3
WHAT IS MEANT BY STA
RT CYCLE
HER TRAILS REGIONAL
A CYCLE TRAIL NETWORK E TOURISM
OFFICES
In this business case, the word “network” is used to describe how separate trails CAPACITY AND
within the Waikato region operate together for the benefit of each other and the CAPABILITY
region through physical cycle trail assets, people capacity and capability and local
community and business services.
ER EXP
M ER CENTRAL
TO I
Regional governance to set
strategic direction. AND LOCAL
GOVERNMENT
S
EN
Identifying extensions and activities
CU
that will achieve the greatest
C
benefit from a regional perspective.
E
Sharing resources and best
practice to maintain and develop
the trails.
Local transfers
to and within a
community for
international
rs
visitors and those
MARKETING TRAILS
Int
ito
not driving directly
rn is AND SERVICES AS A
v
e
to a destination.
ati c
o nal a e sti LOCAL
PACKAGE DESIGNED
CYCLE SUSTAINABILITY nd dom TO MAXIMISE USE
COMMUNITY
TRAILS AND BUSINESS
SIGNAGE & Amenities at trailheads and
INTERPRETATION along trails to create a positive INFRASTRUCTURE Accommodation providers and
experience, including toilets
cafes and restaurants offer cyclist-
and water, wayfinding to trails
friendly services such as secure
from town centres, parking, trail
EVENTS TO ATTRACT bike storage, repair stands and PACKAGE
information and interpretation.
VISITORS AND GROW work areas, a place to wash bikes
OPERATORS
Trail product enhancement through and laundry facilities.
adjacent bike skills parks, facilities
ENGAGEMENT AND TOUR
Bike hire, purchase and servicing.
such as bike wash areas, air hoses, OPERATORS
secure storage and bike racks.
4 5
What is required to achieve the trails network over 30 years,
and what will investment achieve?
INTERVENTIONS BENEFITS
• Achieve desired grade consistency and quality to deliver a safe CREATING JOBS THROUGH THE DESIGN, CONSTRUCTION
TRANCHE 1:
More international, out of
and consistent experience.
region and local visitors stay AND MAINTENANCE OF THE REGION’S CYCLE TRAILS
• Agree a region-wide vision for the Waikato’s cycle trails, longer and spend more during NETWORK.
ENHANCE AND EXTEND TRAILS including physical network connections. their visit.
CREATING A HIGH-QUALITY TOURISM ASSET:
• Identify business potential in local communities.
Cycle trails and • ENHANCING NEW ZEALAND’S COMPETITIVENESS AS
TRANCHE 2:
• Promote opportunities to invest in local cycle trail services.
communities deliver A TOURISM DESTINATION
• Help service providers get established and support them to greater value for money on
deliver to an agreed customer experience. existing investment. • PROVIDING ONGOING EMPLOYMENT AND ECONOMIC
GROW SERVICE PROVIDERS • Grow local community support and engagement. DEVELOPMENT OPPORTUNITIES FOR REGIONAL
ECONOMIES.
• Deepen understanding of customer experience and forecast
market demand. Future investment into the DELIVERING OTHER BENEFITS: RECREATIONAL,
TRANCHE 3:
• Establish a region-wide approach to governance. cycle trails optimises regional
benefits.
HEALTH, CULTURAL AND ENVIRONMENTAL.
• Enable effective stakeholder relationships.
• Support quality marketing and product development.
DEVELOP CAPABILITY AND
CAPACITY • Leverage opportunities to achieve sustainable funding.
• Leverage opportunities to achieve sustainable trail governance
and operations.
6 7
SCENARIOS
VISITORS
72%
$14.0
ASSESSMENT
$12.0
$10.0
Millions
$8.0
SELECTING THE PREFERRED PROGRAMME $6.0
$4.0
14% 14%
Scenarios were developed in close consultation with WRCTN using
an iterative process of scenario assessment and cost benefit analysis. TRANSFORMATIONAL IMPACT OF BENEFITS UNDER $2.0
SCENARIO: THE TRANSFORMATIONAL
Analysis is over a 10-year time frame and is conservative. $0.0
Visitor impact Health Consumer surplus
The WRCTN members have determined the practical implications of
each scenario below for visitors riding cycle trails and the community, PREFERRED PROGRAMME SCENARIO
and to analyse how the network would benefit local communities and
the Waikato region.
Value for money of existing and future investment is optimised through Cycle trails increase economic activity in local communities
BREAKDOWN OF QUANTIFIED
WRCTN will work closely with trail trusts, councils, regional tourism
developing capability and capacity – meaning resources and expertise
offices (RTOs) and Waikato Regional Economic Development Agency BENEFITS (OVER 10 YEARS)
Business as usual (BAU) are freed up to focus on delivering a great cycle trail experience and
(REDA) to promote business opportunities in local communities and 120 100
Additional visitors to network (thousands)
Represents the status quo option – WRCTN now. Fewer opportunities growing economic activity in local communities.
support the long term sustainability of new businesses. There is a drive 90
Additional visitors per day per trail
will be taken, and at a slower pace. Cycle trails continue to operate
This scenario costs more, but is fully fundable and achieves the highest to attract big ticket investment into the smaller towns (such as new 100
80
relatively independently of each other, with unrealised regional visitor
benefit cost ratio (BCR), 1.5. The transformational scenario returns the accommodation) to achieve higher visitor spend and attract more non- 70
growth and economic activity. 80
largest net present value (NPV) ($6.8 million) with the earliest break cycling visitors. 60
Incremental even (2026). 60 50
Falls between the BAU and transformational scenarios. Proactive focus on schools and communities to leverage the cycle trails
40
$7.0 for education purposes and establish community events, which in turn 40
Transformational BCR: 1.5 30
attracts visitors and increases demand.
Delivers greater benefits, with more emphasis on engaging with and $5.0 20
20
influencing stakeholders. Activities across the three tranches are more The physical network is expanded to maximise regional economic 10
complex. $3.0 development, particularly in smaller communities where the cycle trails 0 0
will have a significant impact on economic activity.
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
BCR: 1.2
Millions
$1.0
BCR: 1.1 Cycle trails are good for our people and our environment
-$1.0 More local visitors to trails and greater focus on trails sharing best International Out of region
practice around biodiversity and sustainability achieve better outcomes
TRANSFOR- Local Average additional daily visitor per trail
BAU INCREMENTAL -$3.0 for the environment. Visitors are able to learn about the Waikato’s
MATIONAL
SCENARIO SCENARIO
SCENARIO history, and experience its natural beauty and cultural heritage.
-$5.0
2020
2021
2022
2023
2024
2025
2026
2027
2028
Ability to deliver 2029
a comparative ADDITIONAL JOBS
Low Low-moderate Moderate-high
advantage for
Waikato 160 IN THE REGION
BAU Incremental Transformational
140
Increased
visitors, length 120
of stay and Low Moderate High Cumulative NPV and BCR for each scenario
FTEs (annual)
average daily 100
spend 80
Regional Compared to all other scenarios: 60
economic
Low Low-moderate High • More international and out of region visitors staying longer and 40
development
benefits spending more. 20
• Greatest amount of sustainable economic activity and job creation 0
Financial cost of
Low Low-moderate Moderate
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
scenario in local communities.
• Some large investment in local communities, including new
Scenario
accommodation and upgrades to key community infrastructure, Construction jobs Tourism jobs (ongoing)
constraints
(local funding and a significant increase in average daily spend.
High Moderate Low
share and • Significant development results in largest cycle trail network, with
capacity and Assumption: by year 10
capability) assets maintained to a higher standard.
• average daily spend increases from $215 to $330
• approximately 50 per cent of multiday visitors stay for one night,
35 per cent for two nights and the remaining proportion (15 per
cent) stay for three nights.
8 9IMPLEMENTATION
AND NEXT STEPS
POTENTIAL FUNDING ARRANGEMENTS TRANSITION ARRANGEMENTS
Alongside the Ngā Haerenga Enhancement and Extension and Managing The business case proposes a small transition team to undertake the
Great Rides funds, possible funding options for WRCTN include, but are bulk of the work necessary to establish the cycle trail network, with
not limited to: oversight provided by a transition board. The transition arrangements
INDICATIVE WORK PROGRAMME would be in place until WRCTN is operational (approximately six to eight
KEY • funds administered by central government (e.g. the Provincial
months)
High level Growth Fund)
of effort On going activity
• funds administered by regional/local government (e.g. Waikato
Regional Council’s Regional Development Fund)
ACTIVITIES AND LEVEL OF EFFORT
• funding contributions from WRCTN members and regional
stakeholders, either as in-kind support or a cash contribution
YEARS YEARS YEARS YEARS YEARS YEARS
1-5 6-10 11-15 16-20 21-25 26-30 • other donations and grants.
TRANCHE 1: ENHANCE AND EXTEND CYCLE TRAILS
Further consultation required to agree funding arrangements
Achieve desired grade consistency and quality to deliver a safe and consistent experience
If WRCTN members support the business case, an early action will be
Agree a region-wide vision for the Waikato’s cycle trails, including physical network connections
to agree on funding arrangements. In the long term, WRCTN members
will probably need to contribute at least a portion of the investment
TRANCHE 2: GROW SERVICE PROVIDERS
cost. In the short term, there is a potential issue with timing. Councils
Identify business potential in local communities have adopted their 2018–2028 LTPs and may have limited ability to
contribute funding WRCTN over the next three years.
Promote opportunities to invest in local cycle trail services
Help service providers get established and support them to deliver to an agreed customer experience
The proposed approach is to apply to the Provincial Growth Fund and
regional funders for a significant proportion of the funding requirements
Grow local community support and engagement
through to 2020/2021 (approximately $0.737 million in total). If
successful, this will provide short term funding and also an opportunity
TRANCHE 3: ENHANCE CAPABILITY AND CAPACITY
to engage with stakeholders about longer term funding opportunities.
Deepen understanding of customer experience and forecast market demand
Establish a region-wide approach to governance
Enable effective stakeholder relationships
Support quality marketing and product development
Leverage opportunities to achieve sustainable funding
Leverage opportunities to achieve sustainable trail governance and operations
PEOPLE RESOURCES –
CAPACITY AND CAPABILITY INDICATIVE COST OF PREFERRED OPTION
The success of WRCTN will depend on the capability and capacity of
500,000
its personnel. Two distinct roles are required: a programme lead and a
$430,000
senior advisor. They will need to deliver a large programme, working
400,000
hand in glove with a diverse range of stakeholders – including, but not
Annual operating cost
limited to, trail managers, iwi, Regional Economic Development Agency,
300,000
council staff, regional tourism offices and central government. WRCTN
members will have an important role in the success of the network.
Trail managers, council and regional tourism offices staff will need to be 200,000
actively involved in implementing the work programme.
100,000
0
Year 1 Year 2 Year 3 Year 4 Year 5
2019/20 2020/21 2021/22 2022/23 2023/24
Transition Steady state
10 11H E TA I AO MAU R I O R A H E A LT H Y E N V I RO N M E N T
H E Ō H A N G A PA K A R I S T RO N G E CO N OMY
HE HAPORI HIHIRI V I B R A N T COMMU N I T I E S
Printed August 2018
#6164
Private Bag 3038
Waikato Mail Centre
Hamilton 3240
New Zealand
Freephone 0800 800 401
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