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
The Idea

27 February 2009

One of many ideas

Job creation was
the emphasis

The Proposal
The proposal

And more:
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 ?
Commitment to the concept

April 2009 Government

agreed to the
recommendations to
develop the NZ Cycle Trail
project

May 2009 Government
agrees to fund the proposal
with a budget of $50m over
three years

Green Party support

Part of the memorandum of
understanding between the
Green Party and the
National party

New Zealand Cycleway Vision

“To generate lasting economic, social, and

environmental benefits for our communities through
a network of ‘world-class cycling experiences.”

Objectives are to:

• Create jobs
• Create high quality tourism asset
• Maximise a range of complementary benefits (eg health)
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 Atiamuri
to Karapiro by end 2010

Possible extension to
Ngaruawhahia

Market Research Report

• Commissioned to gain a better

understanding of the scope, size and
characteristics of cycling market segments
(domestic and international)

•Learnings from international examples

•The market for cycleway experiences can

be divided into:
Cycle tourism, which includes:
Cycle touring
Cycling holidays
Location-based cyclists
Recreational cycling

•Report released in September

Market Segments
 • Entire visitor experience important
• Sustainable business models that fund maintenance and upgrade of
infrastructure important
•Safe traffic free experiences highly desired
•Wide easy trails have broad appeal but progression and challenge
important for small market segments
•Need a driving force for the trail

Target Market: Demographics

Age Distribution of International Visitors

%
14

12

10
2003
8
1983
6

2
1983 1988 1993 1998 2003
0
U5 5-9 10- 15- 20- 25- 30- 35- 40- 45- 50- 55- 60- 65- 70- 75+
14 19 24 29 34 39 44 49 54 59 64 69 74
Target Market: Demographics

% Age Distribution - Australian Visitors

16
14
12
10
2003
8
1983
6
4
2
1983 1988 1993 1998 2003
0
U5 5-9 10- 15- 20- 25- 30- 35- 40- 45- 50- 55- 60- 65- 70- 75+
14 19 24 29 34 39 44 49 54 59 64 69 74

Conclusions

International cycle tourists

require:
• Easy multi-day trips with good
supporting services or events
• The opportunity to explore a unique
place or must-see destination
• The opportunity to experience local
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 families
rather than single visitors or couples

Potential to double cycle
tourism income to $640m
Phase 1
Quick Start Projects: History

In April and early May a large number of regions

were visited and meetings were held with Mayors,
CEO’s, economic development agencies, tourism
organisations, community groups etc

In May 2009, formation of two large clusters of
Councils, each of which included a number of cycle
trail opportunities

Recommendations were made and we agreed to
firstly fund feasibility studies

The Department of Conservation were included in
this process

27 July 2009 seven quick

start projects announced

Proposed from the
opportunities identified
by councils and DOC as
those most well
developed and able to
be started

Timing meant that the
rapid development of
these proposals
unbudgeted for by
organisations
 The Brand

Nga Haerenga – The New Zealand

Cycle Trail

Nga Haerenga translates into “The

Journeys”

Regions will have their own

distinctive brand to sit alongside it
e.g. The Waikato River Trail

Will be used to promote the Cycle

Trail

url: www.nzcycletrail.com

Branding and Marketing

Have completed the initial

branding work

Yet to determine how this will
be deployed over the longer
term

Possibilities are:
– Coordinated marketing
– Coordinated booking
– International promotion through
Tourism New Zealand
– Events
– Others..
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 approved to move onto the
next.

TAG will give advice to Funding

Committee. Funding Committee make
decisions at all stages.

Minister of Tourism will confirm (or

otherwise) decisions at Stage 3.

Who can submit a proposal?

Expect that most will be local authorities

e.g. Land Information NZ will only vest land in local authorities

Others can submit a proposal if it can be demonstrated that they meet

certain criteria (refer page 15 of the Guide)
• legal entity
• robust governance structure
• capability to attract or provide
co-funding
• able to co-ordinate the interests
of land owners

A single legal entity

is preferable. However,
the TAG and Funding Committee
will consider an applicant that
has more than one party
(e.g. joint venture)
Stage One: Concept Proposal

Purpose: to satisfy the Funding

Committee that the proposal is
sufficiently aligned with the objectives to
move to Stage Two (feasibility)

No funding available for completing

Concept Proposals

Must be submitted by 18 December

2009

Successful applicants notified in

February 2010

Stage Two: Feasibility Study

Purpose: to investigate whether the

project is physically, financially and
socially feasible e.g.

Engineering methodology,
market assessment, design
and construction cost estimates

Detailed guidance notes
available

Financial support available
(typically up to half the cost)

Feasibility Studies to be
completed by 31 May 2010
Stage Three: Business Case

Final Business Case and request for

funding

Economic benefits identified at feasibility
stage an important focus

Also:
- total projected costs of design and
construction (“firm up” previous estimates)
- amount sought from central government
- level of co-funding the applicant will/has
secured

Detailed requirements set out in
Guidance Notes and in the Guide

No funding available to develop
Business Case, except in exceptional
circumstances

To be completed by 30 September 2010

Summary of Timeframes

18 December 2009: Closing date for applicants to

submit concept proposals to the Ministry of
Tourism

1 February 2010: Applicants notified of whether

approved to progress to Stage Two

31 May 2010: Feasibility Studies completed

30 June 2010: Proposals to proceed to Stage Three

notified

30 September 2010: Business Cases completed

October 2010: Approved cycle trails approved for

detailed design and construction funding
(subject to any conditions)
The Future

Short term goal – to develop a series of “Great

Rides” to complement our 100% Pure NZ Brand

Long term goal – Progressively link the Great Rides

with other cycling routes to form the New Zealand
Cycle Trail

Communities, Connections and the

Economy

The New Zealand Cycle Trail seeks to achieve

convergence 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 and
prosperity for communities
Assessing Proposals
Questions?