Cruise ship operators reject changes

Criticisms have arisen from cruise ship tour operators two weeks out from the start of the 2014/2015 cruise ship season over the introduction of operator fees and changes to parking regulations.

Tauranga Cruise Tourism Operators Association Incorporated chairman Simon Beaton told Tauranga City Council on Monday operators were ignored in the consultation process and that Tourism Bay of Plenty is creating a monopoly.


The first cruise ship of the 2014/2015 season arrives at the Port of Tauranga on October 4.

The changes involve the creation of a designated passenger vehicle stand for tourist vehicleswithin Salisbury Wharf Car Park and some parking spaces located on The Mall and Salisbury Avenue.

The stand includes 30 car parks within Salisbury Wharf Car Park and 17 car parks in the immediate vicinity and will operate between 6am-11am on scheduled cruise ship days between September 20 and May 31.

Tourist vehicle operators will be required to have a permit to use the passenger vehicle stand during the cruise ship season and the new system will be monitored by Council's parking team.

Operators must also pay a 15 per cent commission to Tourism Bay of Plenty to pick up passengers around the port gates.

This will effectively stop operators from plugging business and receiving cash from passengers outside the port gates – an act outside bylaws controlling trading on streets.

Simon says TCC-funded Tourism BOP is creating a monopoly on passenger business and that operators are being charged for services they don't receive.

Firstly Simon says the new parking regulations are unworkable, and make no provisions for stretch limousines. They force buses to use angle parking on the south side of Salisbury Avenue, and make no provision for 49-seat buses.

He says there's nowhere for rental car shuttles to pick up passengers and no accommodation for the 10-16 passenger service vehicles which use to use the wharf to pick up passengers booking ahead via the internet.

The operators currently work mostly outside the Port of Tauranga, using the Mount Ocean Sports Club carpark and parks in Salisbury Avenue from where they pick up their passengers.

Secondly, Simon says the 15 per cent commission is TCC breaching the Local Government Act's consultation requirements and Tourism BOP breaching the Commerce Act.

'Local councils are obliged to consult widely, our belief is that the council failed to consult widely enough,” says Simon.

TCC consulted with the New Zealand Transport Agency, New Zealand Police, Tourism BOP, the MOSC and local residents, but not the association or any of its 25 members.

The association includes small and large operators, including Bayline Buses and Bethlehem Coachlines, says Simon, and they cater for an estimated 20 per cent of all cruise ship passengers arriving at the port.

They have been operating out of the Mosc carpark for three seasons.

'The consultation refers to safety management,” says Simon. 'Our organisation does more to manage safety than anybody else. Nobody asked for our ideas and concerns. Why Not?”

Simon says operators are concerned the consultation process was flawed and 'potentially illegal”. 'There are major unresolved parking issues and genuine problems created by the proposed amendments as they stand, and there are safety issues that do not seem to have been fully thought through.

'We're very concerned that Tourism BOP are going to use this legislation to impose ‘What ifs?' effectively a monopoly control of the passengers' tours and use their powers to impose a high commission in lieu of a reasonable fee.”

With more, and larger, ships coming to Tauranga this season, Simon asks how TCC intends to handle the increased car parking and inherent safety issues.

'If Tourism BOP's I-Port ceased to exist what would be the consequences? The ships would still come, the passengers would still want tours and we would provide them as we have done at least since 1999,” says Simon.

He suggests operators could pay a traffic management fee to Council on the day.

Tourism BOP chief executive Rhys Arrowsmith says the I-Port currently charges 10 per cent commission, which returns 52 per cent of its costs.

Raising the commission on sales of 15 per cent will see the I-Port recover 68 per cent of its costs.

The first cruise ship of the season arrives at the Port of Tauranga on October 4.

In response to the points Simon raised, council staff are organising a meeting with TCTOA Inc, Tourism BOP, and TCC on Thursday this week.

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29 comments

Typical

Posted on 23-09-2014 08:13 | By penguin

...of the BIG BOYS using bully-boy tactics. An obvious reason for not consulting with those at the 'informed and knowledgeable ' end, likely centres on the fear that there would have been resistance to the Tourism/TCC proposal which would have required open and fair discussion. The action of TCC-funded Tourism BOP is nothing short of the arrogance we are seeing emerging over a number of issues relating to TCC.


tourism

Posted on 23-09-2014 08:29 | By don archer

whatever you do, don't upset the tourists. Otherwise they will stop coming.


Ho hum!!!

Posted on 23-09-2014 08:55 | By Sambo Returns

what do you expect, Council entities can now employ more staff, regulations are one thing, but keeping the operators out of the consultation process stinks..... but what can you expect from a top heavy organization,maybe its time to dig a canal direct to "rotovegas", Taurangas vision to attract tourists is so one dimensional it is laughable.


Tourism businesses pay commissions don't they?

Posted on 23-09-2014 09:49 | By Annalist

I understood that tourism companies both pay and get commissions. Don't some get commissions from shops they take tourists to? Don't some shops put on transport to take tourists to their shops, nudge nudge wink wink? But when it comes to the poor old ratepayer that hugely funds Tourism BOP, commission becomes a dirty word. Maybe it's time tourism businesses actually coughed up for the total cost of tourism promotion and things like Tourism BOP, not the ratepayer?


Better ways to do it!

Posted on 23-09-2014 09:57 | By Ian Holroyd

The ongoing fiasco that is the interaction with cruise passengers and the local tour companies here in Tauranga, can easily be resolved by adopting a similar process as used in Napier, where the i-site [without any significant additional costs] allows the Tour operator a "table top sales" opportunity to interact directly with the passengers, the i-site charge just 10% commission and without the high cost of the i-port and its 20+ staff we have here in Tauranga, makes a profit on cruise passenger sales. Though even this is now being threatened by pressure from the cruise ships, trying to close out the opposition.


Click the ticket

Posted on 23-09-2014 10:15 | By YOGI BEAR

That is all that Tourism BOP is doing and will ever do


Typical TCC

Posted on 23-09-2014 10:26 | By The Caveman

So the council is trying a last minute attempt to 'fix” a problem and muscle in on what is a commercial operation (and has been for many years) - TWO weeks before the event starts. The TCC can put up all the reasons they like, but the bottom line is; did the supposed problem pop put overnight - I think not ! And thus why was the so called problem not identified LAST summer and a fix decided long before now. Answer - lack of foresight and planning on the part of the council - again. While there may be a bit of a problem with parking etc, trying to fix it TWO weeks before the event starts is NOT the answer, especially in the manner proposed.


wow wow

Posted on 23-09-2014 11:07 | By firemansam01

Yes the Council trying to get in on the money at the last minute, but then when does the council ever think first before doing anything all the want is make as many car parks as possible for revenue, dont think about what vehicles are really going to fit in to meet the demand of that type of business. Again spending thousands of dollars for something that doesn't work. Shame on the Tauranga Council.


Tourism BOP

Posted on 23-09-2014 11:23 | By FunandGames

Well not involved in the industry I have worked around the edges. without a doubt Tourism BOP has been busy creating a monopoly for themselves. by closing the MT info center they can now justify opening a new one on the wharf where they get to talk to the passengers first. I think every councilor needs to be hounded about this rort.


Simon Beaton

Posted on 23-09-2014 12:07 | By simon_beaton

Just to set the record straight. Tourism BOP was charging operators 15% last year, up from 10% the year before, in order to cover the costs of ticketing! For 3 seasons the operators have traded outside of the port with the full knowledge and support of TCC and TBoP, they even provided somebody to control the traffic. This year, TBoP propose to charge commission for sales anywhere outside of the gate that TCC gives them control over. Do restaurants and shops in the Mount have to hand money over to TBoP if a cruise ship passengers spends money there too? No of course not. Our organisation is perfectly happy to pay a fee to trade in that area and have made that clear to TBoP for many months.


Ian's idea looks good

Posted on 23-09-2014 12:23 | By Annalist

The things you learn on Sunlive when you read the more sensible comments. It looks fair enough to pay about 10% to cover the costs. If the iport is too expensive to operate then forget it. But what's really interesting is the possible attitude of the cruise ship companies alluded to. I guess the cruise ships prefer passengers to take their own organised tours because they probably get a good cut on the action?? The Council surely must regret ever trying to do anything for tourism here because all they seem to get is criticised. Maybe best to leave the ships, the tour people and the shops to scrap it out among themselves with no rates funding for anything and no commissions either?


Nudge nudge wink wink

Posted on 23-09-2014 13:29 | By YOGI BEAR

This is not something that Councils should be involved in at all, in fact less involvement is a lot better just look at the CBD that is shutting down


Tourism BOP ???

Posted on 23-09-2014 13:37 | By Jitter

All this quasi TCC organisation does is cost the Tauranga ratepayers money and make it as difficult as possible for local tourist operators to run their businesses. They do very little to encourage tourist operators or tourists to visit Tauranga. They are an organisation that should be shut down as a parasite on TCC funds. They are going the right way to kill the tourist industry in the BOP and drive cruise ships away.


Shameful

Posted on 23-09-2014 13:46 | By The Tomahawk Kid

Just another example of council doing stuff that is NOT council business. Attempting to make money from other peoples productivity. Council are the parasites on the backs of the productive, sucking their lifeblood. Another example of why council need to be given boundaries of what they can and cannot be involved in. Truly shameful.


Be up front with your views

Posted on 23-09-2014 14:11 | By Ian Holroyd

While we all have our opinions i do think it spineless to make comments on these public forums when you don't have the guts to say who you are. While i disagree in the details of what the TBOP team are trying to do, we MUST have some sort of control of the tourist operation and this has to be TBOP. But for TBOP to just increase the commission rates from 10 to 15% and demand that 100% of "on the day sales" go though them, the aim to reduce their losses, is just ludicrous. a business as ours] has an non-profitable activity, you first look at the "costs" before any attempt to increase prices to cover those costs. The solution is there to see, use the operators own staff to do the selling, let TBOP just manage the process, everyone wins.


@Penguin

Posted on 23-09-2014 14:40 | By morepork

I agree 100%. There is an arrogance in only consulting the people who will agree, and avoiding the people at the coalface as either unimportant or problematic.. It is time it was stopped. The same thing with the Mr. Whippy man. There is enough to go round as long as GREED is controlled. TCC need to ensure that this is managed properly with fairness to all, and the operators, in particular, must be consulted. Tourism is too important to us as a community to let it be destroyed by arrogance and mismanagement.


Analist

Posted on 23-09-2014 15:01 | By Accountable

Your memory is failing badly or you are still choosing to ignore the truth.Fancy That ran a free shopping shuttle to the CBD for many seasons until the Mayor decided there was no money in it for Tourism Bay of Plenty and denied us access to the passengers. This shuttle involved selling very competitive tours to Rotorua as a way of helping pay for the $750.00 a day cost to hire a bus.There was no back handers or winking as you call it and we ran it at absolutely no cost to the ratepayers. The whole CBD benefited from this service and it was sorely missed by the retailers when the service had to be abandoned.Fancy That transported about 60,000 passengers to the CBD when allowed to run it's service and last year Council supported a Mainstreet service that only ferried 7000 passengers out of a possible 218000.


Taxi operators

Posted on 23-09-2014 17:02 | By Murray.Guy

Do Taxi operators have a licence off the City Council, do they have to pay a commission? This is sooooooooooo wrong on the part of TBOP and the City Council, but do they give a damn, not on your Nellie!


What happened to our council?

Posted on 23-09-2014 17:23 | By jed

I've been here 10 years and each year they just get worse. No matter whom you vote.


What is really wrong?

Posted on 24-09-2014 10:31 | By Annalist

What I think's really wrong is that ratepayers subsidise Tourism BOP, the organisation that promotes tourism. From the arguments presented it seems that tourism businesses don't want to pay a commission towards the costs, so why should other ratepayers? Maybe Council should just allow a free for all and see how many passengers are whisked off to Rotorua, perhaps even by out of town operators? As for retailers running free buses into the CBD, go for it. Maybe they could get a word or two in about their shop or shops? No nudge nudge of course.


The reality of Cruise

Posted on 24-09-2014 12:05 | By Ian Holroyd

Having operated our tour company since 2002, we have seen big changes in the Industry. The headlines we see splashed across national and local press about the "boom" of more ships and more passengers is misleading and attracts ever more "operators" into the business with the hope of making a buck. We have a significant over supply chasing a market now dominated [85%] by budget conscious Australians, who see the cheap cruise deals offered [to fill the ships] as a great way to visit NZ to see friends/family. Real revenue is down 50% from the good days pre 2008, but still more enter the market. This leads to conflict across the board as not only do we fight amongst ourselves for business, but the cruise lines fight us, demanding changes by the PORT/TBOP to make life hard for us, so TBOP are stuck in the middle doing their best.


Ian Holroyd

Posted on 24-09-2014 18:34 | By Accountable

You should take your boots off before you disappear completely.You haven't changed much.


Ian vs Devon?

Posted on 25-09-2014 12:24 | By Annalist

Interesting to read Ian's very sensible and reasoned comments and compare them with Devon's. If the alleged fighting and bitching between TBOP and operators and cruise lines continues Council should just end all rates funded involvement and walk. Maybe we would get the tuk tuk system where tourists are delivered directly to a variety of tourist trap sales shops. Then there would be something to moan about.


Annalist

Posted on 25-09-2014 14:25 | By YOGI BEAR

Agree on removing the funding from TCC, this is just clipping the ticket stuff. The bookings have gone on for many decades all over the world for Cruise ships without a problem. The problem here is that the officials funded by TCC ratepayers are muscling in as the middle man and "creating a job" for themselves at a cost to everyone else. Reality check here, the tour operators were here before TBOP, this is just a self created monster (like big brother TCC) that gobbles up everything good and changes it to something else, not so good, it is what they do, it is all that they do.


@ Ian Holroyd

Posted on 25-09-2014 16:30 | By YOGI BEAR

TBOP are not "doing there best" they are just messing up a good thing by a bunch of overpaid unnecessary officials getting in the way of a perfectly good thing. That says it a bit better than your words.


Reality, the real world

Posted on 26-09-2014 09:51 | By Ian Holroyd

If you work in tourism, then you would realise that commissions are part of the business. If something is done to assist you in making money, then you must expect to pay commissions, so don't bitch about it. Its like tax, I love to pay tax because it means I am making money [unless you are a fat cat with clever lawyers where you don't pay tax but still earn heaps!] So paying commission [5 10 or 15%] means the rest is coming to me. Control is needed in any market, without some rules then it would be chaos, we just need to have the right rules. Tourism is NZ's 2nd most important industry after farming [who also have rules and commissions [Fonterra]and TBOP is the agency given the remit by our council to manage this. The real issue at the port is the unregulated growth of operators.


@ Ian H

Posted on 29-09-2014 12:30 | By YOGI BEAR

Perhaps commissions are part of the Tourism business, however TBOP is taking on a monopoly role and that puts TBOP in the "skimming" category. There are other words that describe this but in end result the bureaucratic jungle gets bigger and everyone else pays for it without any obvious benefits in fact the opposite.


HOW

Posted on 01-10-2014 18:55 | By FunandGames

How does TBOP decide which operator receives the bookings that the I SITE has monopolised. .? I note one operator appears to be happy with the arrangement, or perhaps this is a coincidence. I don't know what the story is but I can sure smell something rotten.


Cruise ships

Posted on 22-10-2014 13:58 | By Fonzie

Are a Port operation Loading and unloading ships is a Port operation How did a quango owned by ratepayers but not answerable to them get involved with this?


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