Open letter to the Government and Budget Review Committee from The Cook Islands Tourism Industry Council.

The Cook Islands Tourism Industry Council wish to reinforce the strong feelings of its members in regard to the amount of funding the Tourism Corporation will need this financial year.
The Budget review committee and Cabinet are about to render the most crucial decision ever in terms of allocating appropriate funding to the tourism sector. Current business indicators with adverse market forces in play are showing that overall, the tourism sector is destined for a poor trading year. Cook Islands destination marketing is already far behind our regional competitors and we have already seen a 6% fall in arrival statistics this year. The much lauded Australian direct air services are woefully under funded in terms of marketing support and we risk losing this service before it has begun. Also at risk is Governments own large financial guarantee of this service.
At this time, a significant increase to the tourism budget is the only competitive option that we retain, in all respects.
Many Cook Islanders have made a huge investment over the years in plant and equipment so that they can become part of the tourism and hospitality industries and in turn support this economy. These businesses range from small rental homes and villas through cafes, restaurants, market stalls, tour operators, boutique hotels and larger resorts.
A large number of these local medium and small investors are known to be facing very difficult times with cash flow and mortgage repayments .If our tourism destination marketing is less than adequate, then many more will lose their investments and land through forced mortgagee sales.
The tourism sector is the largest private sector employer in The Cook Islands, the entire retail, banking and agricultural sectors are heavily dependent on a buoyant tourism sector.
We remind Government with utmost sincerity and urgency that tourism underpins all sectors in the Cook Islands. This is a fact that can no longer be dismissed.
At this moment, with this incredibly important decision, the future interests of all Cook Islanders are in your hands.
Liana Scott
Secretary - Cook Islands Tourism Industry Council
27 April 2010

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