From the CEO: Boosting Wine Tourism

With steady increases in tourism, the number of overseas visitors to cellar doors rose, year on year. The benefits to regions and the country as a whole were significant, with the data showing wine tourists stayed longer in the country, visited more regions, and spent more money than the ‘average’ overseas visitors. But Covid and closed borders changed all that. Visitor numbers slumped, as did sales through cellar doors, with some closing down, and many opening for reduced hours.

How things have now changed. Although tourism numbers are not back to where they were, they are rising strongly, as the latest data from Statistics New Zealand demonstrates. Nevertheless, the current operating environment remains challenging. Credit card transactions were down 2.2% for the June 2024 quarter in the hospitality sector, not forgetting that inflation was around 3% at the same time.

In this environment, cellar doors need as much help as possible. That is where MP Stuart Smith’s Winery Cellar Door Tasting Bill, which is nearing the end of its Parliamentary journey, comes into play. The Bill, which we are hopeful will be passed very shortly (after it received strong cross-party support in the committee stages in Parliament), will enable winery cellar doors to charge for tastings. This is a simple change, but it will make a difference as it will enable wineries to both generate more revenue and to save money. The saving money part of the equation is because wineries will no longer need to go through the costly and time-consuming process of applying for an on-licence to charge for tastings. The Bill will also tidy up some other technicalities in the legislation which will make life simpler and easier for winery cellar door operators, including for those needing to hold both an on-licence and an off-licence.

The process getting these legislative changes in place has been a long one. It was well over five years ago that we started talking with officials and MPs about the challenges for cellar doors with the current legislation. Having to give wine away when customers were happy to pay for a tasting was top of the list, but there were other concerns as well, some of them simply reflecting different interpretations around the country.

Fortunately, Stuart, who is a former Chair of New Zealand Winegrowers (NZW) and the MP for Kaikoura (which of course includes Marlborough), was listening. He developed a Private Members’ Bill which is the one currently before the House. To date the Bill has garnered strong support from across Parliament, and we are hopeful it will be in force prior to the coming busy summer tourism season.

Ultimately the outcome everyone wants to see when the Bill comes into force is a higher quality wine tourism experience at cellar doors. Travellers from afar want the best experience possible and the Winery Cellar Door Bill is going to help make that a reality. Well done Stuart for being such a strong supporter for the Bill as it has wound its way through the parliamentary process.

NZW’s Advocacy team will be keeping members updated as the law progresses and will be providing guidance on what the changes will mean for your businesses – watch this space. A quality experience is also the focus of the Qualmark New Zealand Wine Tourism Award recently announced by NZW. Acknowledging the important role that wine tourism plays in New Zealand’s visitor economy, this new award will recognise excellence in the visitor experience at the vineyard, from the cellar door to the quality of the hosting. Emphasis will be placed on providing sustainable tourism experiences across environment, people, and culture. The award is free to enter and is open to all NZW members, regardless of whether they are Qualmark-accredited. The winner of the Qualmark New Zealand Wine Tourism Award will be announced at the Altogether Unique industry celebration in Wellington on Thursday 29 August, alongside the induction of the new NZW Fellows, and the winners of the Young Viticulturist and Tonnellerie de Mercurey Young Winemaker of the Year Awards.

Philip Gregan is Chief Executive of NZW.