005 NZ Cycle Trail

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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?