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The decision follows lobbying by a group of operators who had missed out last year on receiving part of the $290m distributed to tourism businesses, RTOs and inbounders in grants and loans from the STAPP.

The operators threatened legal action and approached the Auditor-General to open an inquiry into the allocation of funds from the programme, which was managed by the Ministry of Business, Innovation and Employment.

John Ryan

“Tourism businesses have questioned the clarity and transparency of the programme’s criteria and whether they were applied consistently,” said a statement from the Auditor-General this morning.

“Because of the concerns we have heard, the amount of public funding involved, and the importance of robust processes to ensure public trust and confidence is not eroded, we have decided to carry out an inquiry.

“We will examine how applications from tourism businesses have been assessed against the programme’s criteria.”

The Auditor-General would look at:

• the information available to potential applicants about the programme’s eligibility criteria and assessment process;
• how applications from tourism businesses have been assessed, including the three businesses [Discover Waitomo, AJ Hackett Bungy NZ and Whale Watch Kaikoura] that received funding approval before the formal application round began;
• whether there is any evidence that applications have been assessed inconsistently; and
• any other related matter considered desirable to report on.

“In keeping with the Auditor-General’s role, our inquiry will focus on the actions and processes underpinning the initial eligibility assessments and subsequent assessment of eligible proposals.

“We may choose to use sampling methodology in our work. We will not be examining the merits of individual applications or particular funding decisions.”

No public comment would be made while the work was under way, and a report would be published once the inquiry was complete. A date for completion was not set.

The inquiry was being carried out under section 18 of the Public Audit Act 2001.

Read the full statement from the Auditor-General here.

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The Government has approved 126 tourism businesses for support from its Strategic Tourism Assets Protection Programme.

The businesses will receive a total of $246m in support comprised of a mix of grants up to $500,000 and loans.

So, which operations made the list?

While it did not reveal all 126 businesses today, the Government provided a list of 48 “successful recipients for STAPP funding who are happy to be acknowledged or contacted by media”.

That list did not include many of the country’s large operators or their subsidiaries, such as Hobbiton Movie Set at Matamata, or the Queenstown-headquartered groups such as Skyline Enterprises and Wayfare – operators all expected to be supported in some form by the programme.

A spokesman for tourism minister Kelvin Davis told the Ticker that some of the larger operators receiving STAPP support were still in the process of getting board approvals so could not be announced today.

Many others were yet to agree to the funding amounts granted, which in some cases was considerably less than what was applied for.

However, all recipients of STAPP funding would be publicly named as a condition of the funding.

AJ Hackett Bungy NZ, Discover Waitomo and Whale Watch Kaikōura were the first operators to receive support from the programme with access to $10.2m, $4m and $1.5m respectively.

The other 48 tourism businesses revealed today as receiving STAPP support are:

Mitai Māori Village – Rotorua
Tekapo Springs Limited – Tekapo
The Duke of Marlborough Hotel – Russell
Polynesian Spa – Rotorua
Royal Albatross Centre – Dunedin
Larnach Castle Limited – Dunedin
Wellington Zoo – Wellington
Dark Sky Project – Tekapo
Ngati Awa Tourism Limited & Te Manuka Tutahi Marae – Whakatāne
Dolphin and Albatross Encounter – Kaikoura
Highlands Motorsport Park – Cromwell
Franz Josef Glacier Guides and Glacier Hot Pools – West Coast
National Aquarium of New Zealand – Napier
Kapiti Island Nature Tours – Kapiti
Waitomo Adventures – Waitomo
Fullers Great Sights – Auckland
Shantytown Heritage Park – Greymouth
Fox Glacier Guiding – West Coast
Lakeland Queen – Rotorua
Dive! Tutukaka – Tutukaka
West Coast Wildlife Centre – Franz Josef Glacier
National Kiwi Hatchery – Rotorua
Velocity Valley – Rotorua
Volcanic Air – Rotorua
Otago Museum – Dunedin
Otorohanga Kiwi House – Waikato
Ko Tāne – Christchurch
Zealandia – Wellington
Kiwi North – Whangarei
The Kauri Museum – Matakohe, Northland
Auckland Seaplanes – Auckland
Omaka Aviation Heritage Centre – Blenheim
Art Deco Trust – Napier
Monarch Wildlife Cruises and Tours – Dunedin
Whakarewarewa – The Living Maori Village – Rotorua
Alpine Guides Aoraki – Mt Cook
Oamaru Penguin Colony – Oamaru
Spellbound Glowworm and Cave Tour – Waitomo
Westcoast Treetop Walk and Café – Hokitika
Caveworld – Waitomo
Kiwi Journeys – Nelson
Howick Historical Village – Auckland
Glenbrook Vintage Railway – Waiuku, Auckland
Natures Wonders – Dunedin
Waewae Pounamu – Hokitika
Outback New Zealand (Nomad Safaris / Info & Track / Info & Snow) – Queenstown
Sea Life Kelly Tarlton’s Aquarium – Auckland
Buried Village of Te Wairoa Bay of Plenty Rotorua

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The operator is the latest tourism business to receive support from the programme, which is part of the $400m Tourism Sector Recovery Plan.

Prime minister Jacinda Ardern and tourism minister Kelvin Davis made the announcement at Kaikōura on Wednesday.

“Whale Watch Kaikōura is one of New Zealand’s best-known, iconic tourism businesses, providing millions of people up-close whale encounters for more than 30 years – supporting hundreds of jobs and other sectors,” Davis said.

“By safeguarding this key destination tourism asset, we are also providing vital support to the Kaikōura community itself. Whale Watch is a major drawcard for the area, with their visitors supporting the local economy through accommodation, hospitality, retail and other activities.”

The money follows the $4m announced for Tourism Holdings’ Discover Waitomo last week, half of which is a loan.

“When forming our recovery package, we carefully considered input from the industry. There were strong calls for tailored support for key attractions, services, businesses and facilities,” Davis said.

“While our borders remain closed as our first line of defence against Covid-19, there are strategic tourism assets across the country we can’t afford to lose. We will continue to work with tourism operators to protect those assets that are vital to our sector’s recovery and our economic rebuild.”

The Government is also providing $20.2m for the country’s 31 regional tourism organisations from the Strategic Tourism Assets Protection Programme.

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