Barriers & Opportunities for Rural Māori tourism in the traditional distribution chain
This article looks at how rural Māori tourism businesses can break into the traditional tourism distribution chain, and the potential that exists, particularly for rural Māori tourism products, to be marketed and sold internationally via inbound tour operators (IBOs).
The findings are based on in-depth face-to-face and telephone interviews conducted with New Zealand IBOs in 2006, using Te Urewera, in the Eastern Bay of Plenty, as our case study area. Click here for a more in-depth report.
What are IBOs?
When tourism operators in New Zealand deal with IBOs they are participating in what we generally think of as the traditional tourism distribution chain, using a series of two or three intermediaries.
The operator in New Zealand provides information and rates for their product to IBOs in New Zealand. The IBOs work with tour wholesalers in overseas markets, who in turn package the holidays together and produce brochures. The wholesalers then sell these holiday packages through retail travel agencies, their own travel agency chains, or more recently on their own or travel agency websites.
Figure 1: the traditional distribution chain
What role do IBOs play?
IBOs are a vital link in the traditional tourism distribution chain. They currently handle about 600,000 visitors each year, half of all holiday arrivals to New Zealand, or a quarter of all inbound visitors to New Zealand. It is therefore important to understand the barriers and opportunities to working with IBOs, particularly for businesses wanting to promote their tourism products to international visitors via the enormous network of travel agents and tourism websites around the world.
What types of visitors are there?
Group tour visitors travel in groups of ten or more, all on the same itinerary with the accommodation, transport and many activities pre-purchased as part of a package.
Four different types of visitor emerged from the interview process – visitors on group tours, free independent travellers (FIT), travellers with special interests and cruise ship passengers. Each style of travel has a different set of characteristics, needs and preferences with regards to rural Māori tourism products.
FITs are visitors travelling with up to ten people. They can be fully independent with very little pre-booked, or can include visitors pre-booking all aspects of their trip including accommodation, transport and all activities.
Special interest visitors have packages tailored specifically to fit their particular interests, for example garden tours or fishing tours. These tours can be designed for one or two visitors as well as large groups.
Cruise ship passengers travel between New Zealand destinations via cruise ships and their experiences of New Zealand are generally limited to destinations within a short drive from the port. Daily activities are optional and are packaged into half-day and one-day tours from each port.
The FIT and special interest sectors provide most potential for rural Māori tourism in our case study region of Te Urewera. Cruise ship visitors could offer potential for businesses operating close to New Zealand ports. The group tour market provides only limited opportunities for out-of-the-way regions, particularly for shorter tours of less than two weeks. There is some potential for longer tours but operators in the region must be able to host large groups, and coach access could be a problem in rural areas.
What criteria do new products need to fulfil?
The TRENZ team
IBOs have very clear requirements for new products. Key criteria included:
- Providing a consistently good product/experience.
- Knowing that a business can operate reliably every day of the season (operators need to plan for how their business will run even if they are ill or needed at a tangi, for example).
- Having an effective support structure in place (particularly for small operators) for bookings and financial systems.
- Being reliable, consistent, and able to reply to phone and email queries within 24hrs.
- Having a visible presence in the industry.
- Having a pricing structure that includes commission. IBOs generally expect to receive commission of 20% to 30% and their clients should never pay any more than someone who walks in off the street. That means the normal retail price needs to allow for this.
Having a strong relationship with a supplier. This was extremely important, and in some cases was the key driver for IBOs to include a new product. IBOs also stressed the importance of knowing about new operators and new products.
Key barriers hindering rural Māori tourism growth
Roads and accommodation infrastructure were cited as the two main barriers for growing rural tourism in our case study region of Te Urewera. In the long-term, developing accommodation, sealing the road, and providing other services like cafes and shops are essential to fulfil the tourism potential of Te Urewera, and attract a broader range of visitors to stay in the region overnight.
A number of IBOs said that, it is particularly important for a developing region that all the suppliers deliver consistently to the required standards. Non-tourism related incidents can also have a negative effect on tourism development in the region. One bad experience could result in the whole region being dropped from an itinerary.
Time is a key barrier to including a peripheral region like Te Urewera in IBO tour itineraries. Particularly for the shorter tours, adding Te Urewera into an itinerary means finding the time from elsewhere in the tour. If a tour is working well, IBOs are reluctant to risk changing it.
Opportunities for rural Māori tourism
The FIT and special interest markets present numerous opportunities for Māori tourism products in rural regions. They have flexible and varied itineraries, and are interested in a wide variety of products. The smaller, more personal nature of experiences in regions like Te Urewera may also be an advantage for IBOs that are trying to attract visitors looking for a special or more intimate Māori experience.
To overcome barriers like the poor road and lack of accommodation in Te Urewera, developing day trips from Rotorua and/or Taupo will mean visitors don't need to stay overnight, and products which provide return shuttle transport or use helicopters reduce the issue of poor road access.
How to make a new product appealing
For a new Māori product to interesting to IBOs, it should be unique, involve interaction with people, truly represent the culture, activities and stories of your place, and mix culture and experience. IBOs also suggested that operators adjust the level of the culture component according to the needs of the particular audience, so it appeals to a wider variety of people.
The importance of relationships
Having a long-term business relationship was a significant driver for working with many IBOs. Visiting IBOs and attending industry forums and events were mentioned as key opportunities to develop these relationships.
Key recommendations to help IBOs include your area or business in their tours:
- Get four or five operators working together to market the region
- Develop a product manual for the region
- Attend Tourism Rendezvous New Zealand (TRENZ)
- Work closely with your regional tourism organisations (RTOs) and Māori regional tourism organisations (MRTOs)
- Promote products in regional visitor guides
- Have a tourism coordinator for the region
This information comes from the Te Tapoitanga Māori – Growing Regional Māori Tourism project funded by the Foundation for Research, Science and Technology, New Zealand.
Joanna Doherty, August 2008
Comments and feedback on this Growing Regional Māori Tourism site are welcomed and should be directed to Helen Fitt
(Email 
).