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The New Zealand Cycle Trail

NZ Cycling Conference

12 November 2009

The New Zealand Cycle Trail

The Past Where the idea came from

Evolution of the idea

Action to date

Present Quick starts

Branding

Future Phase 2

The end goal

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The Idea

27 February 2009

One of many ideas

Job creation was

the emphasis

The Proposal

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The proposal

And more:

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And more:

The Proposal

Who should front it ? - The Prime Minister

How to get it built quickly ?

What will it cost ?

What will kill it ?

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Commitment to the concept

April 2009 Governmentagreed to the

recommendations todevelop the NZ Cycle Trailproject

May 2009 Governmentagrees o un e proposawith a budget of $50m overthree years

Green Party support Part of the memorandum of

understanding between theGreen Party and the

National party

New Zealand Cycleway Vision

To generate lasting economic, social, andenvironmental benefits for our communities through

- .

Objectives are to:

Create jobs

Create high quality tourism asset

Maximise a range of complementary benefits (eg health)

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Launch of the NZ Cycle Trail

Tuesday 10 November

Launched at Karapiro Part of the Waikato River

Trail

Will make a 100Km ride

$3M to fund the next 41Km

Will complete from Atiamurito Karapiro by end 2010

Possible extension toNgaruawhahia

Market Research Report

Commissioned to gain a betterunderstanding of the scope, size andcharacteristics of cycling market segments(domestic and international)

Learnings from international examples

The market for cycleway experiences canbe divided into:

Cycle tourism, which includes:Cycle touringCycling holidaysLocation-based cyclists

Recreational cycling

Report released in September

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Market Segments

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Entire visitor experience important Sustainable business models that fund maintenance and upgrade ofinfrastructure important

Safe traffic free experiences highly desiredWide easy trails have broad appeal but progression and challengeimportant for small market segmentsNeed a driving force for the trail

Target Market: Demographics

Age Distribution of International Visitors

10

12

14%

0

2

4

6

8

U5 5-9 10-

14

15-

19

20-

24

25-

29

30-

34

35-

39

40-

44

45-

49

50-

54

55-

59

60-

64

65-

69

70-

74

75+

1983 1988 1993 1998 2003

1983

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Target Market: Demographics

Age Distribution - Australian Visitors

12

14

16

0

2

4

6

8

U5 5-9 10-

14

15-

19

20-

24

25-

29

30-

34

35-

39

40-

44

45-

49

50-

54

55-

59

60-

64

65-

69

70-

74

75+

1983 1988 1993 1998 2003

1983

2003

Conclusions

International cycle touristsrequire:

Easy multi-day trips with goodsupporting services or events

The opportunity to explore a uniqueplace or must-see destination

culture and learn about other cultures

Domestic cycle tourists are: Not primarily focused on cycling but on

the broader experience

Likely to be older or consist of familiesrather than single visitors or couples

Potential to double cycletourism income to $640m

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Phase 1

Quick Start Projects: History

In April and early May a large number of regionswere visited and meetings were held with Mayors,

CEOs, economic development agencies, tourismorganisations, community groups etc

In May 2009, formation of two large clusters ofCouncils, each of which included a number of cycletrail opportunities

Recommendations were made and we agreed tofirstly fund feasibility studies

The Department of Conservation were included inthis process

27 July 2009 seven quickstart projects announced

Proposed from theopportunities identifiedby councils and DOC as

developed and able tobe started

Timing meant that therapid development ofthese proposalsunbudgeted for byorganisations

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The Brand

Nga Haerenga The New ZealandCycle Trail

Nga Haerenga translates into TheJourneys

distinctive brand to sit alongside ite.g. The Waikato River Trail

Will be used to promote the CycleTrail

url: www.nzcycletrail.com

Branding and Marketing

Have completed the initialbranding work

Yet to determine how this willbe deployed over the longerterm

Possibilities are: Coordinated marketing

Coordinated booking

International promotion throughTourism New Zealand

Events

Others..

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The Future:

Phase Two - A Three-Stage Process

The process will occur in three stages: Stage 1: Submission of a Concept Proposal

Stage 2: Completion of a Feasibility Study

Stage 3: Submission of a Business Case

Concepts will be evaluated at each stage,and must be a roved to move onto thenext.

TAG will give advice to FundingCommittee. Funding Committee makedecisions at all stages.

Minister of Tourism will confirm (orotherwise) decisions at Stage 3.

Who can submit a proposal?

Expect that most will be local authoritiese.g. Land Information NZ will only vest land in local authorities

Others can submit a proposal if it can be demonstrated that they meetcertain criteria (refer page 15 of the Guide)

legal entity robust governance structure capabil ity to attract or provide

co-funding -

of land owners

A single legal entityis preferable. However,the TAG and Funding Committeewill consider an applicant thathas more than one party(e.g. joint venture)

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Stage One: Concept Proposal

Purpose: to satisfy the FundingCommittee that the proposal issufficiently aligned with the objectives to

move to Stage Two (feasibility)

No funding available for completingConcept Proposals

Must be submitted by 18 December2009

Successful applicants notified in

February 2010

Stage Two: Feasibility Study

Purpose: to investigate whether theproject is physically, financially andsocially feasible e.g.

Engineering methodology,market assessment, designan cons ruc on cos es ma es

Detailed guidance notesavailable

Financial support available(typically up to half the cost)

Feasibility Studies to becompleted by 31 May 2010

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Stage Three: Business Case

Final Business Case and request forfunding

Economic benefits identified at feasibilitystage an important focus

Also:- total ro ected costs of desi n and

construction (firm up previous estimates)

- amount sought from central government

- level of co-funding the applicant will/hassecured

Detailed requirements set out inGuidance Notes and in the Guide

No funding available to developBusiness Case, except in exceptional

circumstances To be completed by 30 September 2010

Summary of Timeframes

18 December 2009: Closing date for applicants tosubmit concept proposals to the Ministry ofTourism

1 February 2010: Applicants notified of whetherapproved to progress to Stage Two

31 May 2010: Feasibility Studies completed

30 June 2010: Proposals to proceed to Stage Threenotified

30 September 2010: Business Cases completed

October 2010: Approved cycle trails approved fordetailed design and construction funding(subject to any conditions)

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The Future

Short term goal to develop a series of GreatRides to complement our 100% Pure NZ Brand

Long term goal Progressively link the Great Rideswith other cycling routes to form the New ZealandCycle Trail

Communities, Connections and the

Economy

The New Zealand Cycle Trail seeks to achieveconvergence of all three elements:

Communities the advocates stewards and

ultimate owners of the NZ Cycle Trail Connections - the long term goal is to connect up

all the elements into a network

Economy to generate long term employment andprosperity for communities

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Assessing Proposals

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Questions?