Discounted NZ flights to attract tourists

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NZ is fighting a losing battle on most fronts for the simple reason that - its isolated. It is a difficult place to fly to. I dare say a lot of people wanting to come here get on various websites for the airlines and simply give up after realising how difficult it is to fly there, and the cost of direct flights. Invariably people will end up simply going to a closer location, or Australia, since they invariably have to transfer in Australia for NZ anyway. This is a shame because NZ has a lot to offer tourists. In fact, its capacity to offer a greater cultural experience is being undermined by the lack of economic activity that tourism could surely improve. Which makes one ponder the question - is there more the government and industry could be doing?

I ask whether NZ should be aiding travel to the country. Why can't it be as easy as flying to Australia? What does this require? Surely it requires:
1. More flights - more destinations, more timetable flexibility, so that people can actually get here at reasonable times.
2. Cheaper flights - using some type of coupon scheme. The tourist organisations need to find a way to make it targeted.
3. More airlines - the reverse seems to be the case. The cheapest flights to NZ were with Air Brunei (to Auckland) and Air Asia (to Christchurch). Both companies were forced to abandon these routes.

If we recognise the economic boon that tourists are for NZ; might it actually make sense for the NZ government to actually 'subsidise' tourists to stay in NZ, recognising that they are going to be contributing far more. What type of scheme is the question? There are several impediments:
1. Lack of jobs for tourists to stay longer - Clearly cheaper tickets would allow more tourists to come, allow more student tourists to work in the country, and contribute in a way the old retiree immigrant is not doing, i.e. by spending money. Already I see NZ is the first nation to allow Filipinos to work in the country...if they have $6000 to get here. Fair hurdle. But they are not going to get jobs as easily as Chinese, Japanese or Korean speakers since Filipinos English-speaking skills are not useful.
2. Lower cost education - The existing model is to ask foreigners to pay more to study in NZ (or Australia) than the local population. This can only curtail the spending that these students do when they get here. Why you might ask, in an age of discrimination-free politics, are foreign students paying more. I fully expect more Asians to go to the Philippines to learn English in future to avoid this rip-off.
3. High cost flights - It is a hard sell to offer discounted flights. It might particularly make sense for packaged tours where the value of 'domestic spending' per travel is 3x more than the nominal flight cost to offer a significant concession to these people. Old people travelling abroad are accustomed to spending large amounts for their unique experiences.

The challenge of course for the tourist industry is how to share any such burden. Perhaps the incentive might be for travellers to Australia to be offered a $300 hotel coupon to come to NZ. Perhaps not. But this is the type of scheme that might deliver greater economic spending at a time when NZ is educating kids, only to see them leave the country. Admittedly Asian kids are replacing them; but I forecast that in coming years, the flow will go the other way, as people realise that Asia is the place to be. For instance, consider the statistics:
1. Philippines - Population growth of 2% per annum; rise in incomes 8-12% per annum, rate of urbanisation 8% per annum.
2. New Zealand - Population growth - zero, rise in incomes - only among skilled workers, who invariably take more overseas holidays rather than spend it in NZ. Rate of urbanisation is also relatively high because of the lack of opportunity in rural communities...which largely reflects the fact that land is tied up in the hands of 'old money' who live on speculative gains rather than creating value. i.e. They sell their land to retired foreigners and city executives as 'premium lifestyle blocks' to finance their overseas jaunts. A false economy because they never really 'earned' the money.

Of course no one really cares about this if your economy is growing strongly. Which brings us back to the issue of why the Philippines and other emerging markets are increasingly 'relevant' and NZ strategically set adrift, as elites in power fail to see the forest through the trees.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Had a Hobbit-full of Air NZ?

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NZ is going all-out with its tourist dollar - here is another successful promotion - this time from Air NZ. This one has a 'Hobbit' scheme. At the point of writing, this video had 9.5 million hits on YouTube. Even if NZ'ers account for a third of these hits, that's still a lot of promotion abroad. Nice one! I hope however they will not fall for the mistake of giving their country a single dimension. NZ is a long way to go for a 'diamond' with just a few 'facets'.


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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Well done NZ!

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This is probably going to sound a little patronising coming from Australian. Not to worry - its fully intended. 

I meant to write this a few months ago; but I was awaiting the result of a final undertaking in NZ, the sale of my car, and I never got around to it.

During Sept 2012 I travelled from Queenstown to Auckland in 10 days. The purpose of the trip was to move some possessions and to sell the car. During this trip, I would have to say that I met some lovely, generous people. 

Arriving in Queenstown..ok there was a little bit of suspicion when I arrived with just a small backpack. Clearly they thought I was running some drugs. Nope; just moving house. Anyway, on to Christchurch where my car was in storage. The people at A1 Storage were very generous. They helped me kickstart the car after 3 months of non-use; and they gave me flexible access until I confirmed by WOF, which had already expired. Fortunately, I only needed a new tire, and the guy who did that was wonderful as well, because he found me a prospective buyer for my car as well. No money? Fine, generous spirits all round.

I received great service from a motel in Christchurch; though fortunately I could rely on my Filipino partner in the Philippines to make the booking for me because the entire city is booked out due to the 'earthquake rebuild'. This period is a goldmine for motel owners. They were unsurprisingly generous with their service too. Perhaps that is the great news about hardships like earthquakes insofar as the turnaround is destined to be a great confidence builder...with all that spending. 

It was a rush up to Picton, and a ferry ride across to Wellington. During this part of the trip I was looking for some car repair work to cut out some rust and repaint. I found a guy in Palmerston North, and stayed in a local motel. Before I could fix the car I went to my NZ base of Wanganui. I absolutely love this town. It has a prison and some delinquent people, but there are some wonderful people there as well, and the town has a wonderful feel, and some lovely parks. Perhaps not as impressive as Taranaki, 2hours up the road, but special to me. Returning to Palmerston, these guys really worked hard to finish my car in time. It was a big ask, and I was pleased they were able to stick to their commitment. I had to board a flight on Saturday afternoon to Sydney, and I still needed to sell the car. They allowed me to drive up to Auckland to offer my car at auction. 

My original intent was to sell my car at auction with Turners. Unfortunately, I was not satisfied with the service I got from Turners in Purnell, Auckland. The service was far fairer and generous in Palmerston North, where they even drove me to the bus stop, and allowed me to set the reserve price at auction. In Auckland, I was told that there was an oversupply of cars, so they can only give me a very low price. I knew my van was worth $4500-6500 to an end-user, but clearly I was in a hurry to buy. They would not allow me to place my own price like before, so I rejected their $2500. An auto mechanic team up the road gave me $3000, and generously allowed me to sell through them. I decided to just give them any upside, since they did me a great favour, so I accepted their $3000 cash. I also just wanted to leave NZ freely; and also I worry with very generous people if its all a ploy to take advantage of your trust. I trusted him because of the positive sentiments of his staff, and because he was a business owner. It was a little hard though to trust as I felt vulnerable leaving the country. Fortunately, I was not disappointed. 

Thank you NZ. There are some tragic sentiments in the country; but I only saw the best of you on this trip. Rest assured, you will be akin to Arab oil sheikhs when the country discovers more oil & gas in coming years. Very beautiful country...lovely place to drive. 

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

NZ tourist - right strategy - but is NZ ready?

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NZ still needs to do some work if it wants to develop a sustainable tourism industry. This by necessity includes some investment, not in more welfare, but in the infrastructure which supports its export businesses, and that includes:
1. Roads - Here is a story of people dying in a road accident. In fairness to NZ, its plausible that the scenery was so compelling that these tourists took their eye away from the road. And of course there is a price to be paid for laying 3-lane highways everywhere - not just in financial terms, but in terms of the scenic experience itself. This commentary therefore has to be a warning for tourists to take it easy on the roads. i.e. You might think in 'quiet NZ' you are alone on the road, and can pull over anywhere for a photo, or that you can afford to take your focus off the road, but at an inopportune time, a car can appear from around a corner, or a car can seek to overtake you at 110kmph...ambivalent about your 'photo moment'. My greatest concern with NZ roads is that they are a poorly laid legacy of old roadworks. They have not be regraded to offer better contouring; just resurfaced. So they are not well-engineered for remote, single-carriage roads. Incidentally, tourist trails are even worse in terms of signage. NZ is already working on these issues, but it will take time. The Wanganui-National Park highway section is almost finished. Yes, it's a highway. But spare a thought for minor back roads.
2. Racism - I see that NZ Tourism is promoting NZ to Asia. This is fine. The problem is the high level of anti-Asian sentiment in NZ. This is going to be an obstacle, both because of its entrenched presence, and because of recession. Might I note that the country of the moment is Indonesia. How is NZ going to handle a lot of 'towel heads' ('Muslims') coming to NZ? Are they going to welcome them, or persecute them under some notion of payback. This is not to say all NZ'ers are like this. Its a 50/50 split. You get those who will go out of their way to be kind; and then you get the other extreme. These are the people who will undermine the tourism industry. To their credit, the tourism industry appears to have been working with the media industry to downplay this negativity. I've seen a number of examples lately of NZ portraying Asians in a positive light, i.e. A Japanese/NZ couple transforming the fashion market; a Korean NZ'ers who won the junior golf championships.

NZ has a lot to offer...it would be a shame to cause Asians to spurn it as a tourist or immigration destination. The government does seem to have moved in the right direction. The tourist agency has a good strategy. The question is whether NZ is 'with them'. Do NZ'ers appreciate its tourist industries? These are not the easiest times to attract tourists. Most Asians are staying and travelling within Asia. Its a recession and the Australian and NZ currencies are high.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Tourist safety a concern in New Zealand

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Most people would expect NZ to be a safe country. We come to expect small, rural based economies to be safe. But consider the statistics and you might think otherwise. Living in NZ I have as a matter of routine come to hear about injury to tourists, whether its sexual assault, murder or a bashing. The performance of tourist operator organisations strikes me as just as pitiful. There seems to be a litany of stories about:

1. Kayakers drowning

2. Planes crashing

3. Bungy jumpers dying

It made me reflect on this recent statistic. The story is that there are currently 15,000 arrest warrants outstanding in NZ. That struck me as a very high number. So high in fact that I wondered what was typical. I could not find statistics for Australia, but I did for Britain. In Britain, a country with 12x more people, there are just 30,000 outstanding arrest warrants. So the fact that NZ has 15,000 arrest warrants is a little concerning. 

The reason this is concerning is because it suggests that 0.36% of the population is 'at large' in NZ compared with just 0.06% in Britain. The implication is that there are more threatening people around you, who are:

1. More likely to be anxious

2. More likely to be hostile

3. More likely to seize your motor vehicle & and possibly apprehend you

4. More likely to  raise the stakes and threaten your physical well-being, as well as your psychological comfort, by escaping from capture.

In a nation, where tourist campervans predominate, one might expect these people to be particularly at threat. Tourists are also appealing targets for theft and crimes against person. Asian tourists who are often perceived as submissive, are an even greater target for such people. The flipside is that tourists will stay in certain 'safe' places, whilst others will expose themselves unknowingly. It is not reason not to go to NZ; but it is a reason for risk management. Moreover its a reason for the NZ government to do more to lower this statistic. Of course there are both short term and long term threats:

1. Short term - they need to start taking more proactive steps to apprehend these people

2. Long term - They need to increase the fairness of the justice system; our legislative framework, and they need to address the grievances of those people, so they are less likely to escalate grievances to crime.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

New Zealand: Where the hell are you?

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NZ is in the midst of a tourist 'recession' like a great many other places in the world. Going against the trend is a difficult task when:

1. Your dollar is relatively strong because of high commodity prices

2. Your country is relatively isolated

3. Your economy is so small; that no one knows you

Basically, if you ask an Asian who hasn't had some reason for going to NZ, what and where is NZ, they will not know little about the country. There is just nothing to get NZ press coverage. Asia is US-centric, if not partially British-EU interested, its hard to get on the radar. Even Australia struggles in this respect, but Australia has a bigger immigration program with Asia, and its prosperity is well-understood. 

So back to NZ. Given the context, Air Zealand is focusing its attention on the Australian market. Good strategy. First off the bat, I must say that Air NZ is an excellent airline. I don't bother flying them for trans-Pacific flights because of their higher price, but I might fly with them if I was taking a long-haul flight. There is a big difference in service between them and the discount Australian/Singaporean/Malaysian airlines. i.e. Jetstar, Pacific Blue, Tiger Airways. Having said that, Scoot is impressive at its current entry prices...though its at a marketing stage, so get those discount prices whilst they last, as they will double eventually. 

NZ is currently attacking criticism of NZ head-on with its current campaign 'Kiwi Sceptics'. You have to question such a campaign because it actually gives credence to the view that NZ is a boring uncultured place to holiday. They actually make the point themselves - as a criticism they are intent on changing. The question is: Is this the way to turn around such an argument? 

Because Air NZ is positing that a 'thumbs up' for NZ from five recognised Australians is going to countenance the generalised view of thousands that NZ is the 'arse end of the world'; that it lacks culture. If you were going to change perceptions, would you launch that type of campaign? I wouldn't. First thing I would do is actually make a substantive change. NZ (or Air NZ) has not done that, so what is going to make a difference. Oh, the change is to blame the customer. That's right Australia. You're not going to NZ because you are ignorant hicks. That's the way to sell tourism in NZ. It is no secret that NZ Tourism has come under a lot of criticism. These government agencies are often criticised for their advertising campaigns; sometimes which fall flat on their feet, i.e. NZ Pure is a celebrated example; Australia's 'Where the Hell Are You' was a brush fire that ran out of control. 

The problem as I see it is that NZ is a great place to visit for a holiday; the problem is that its problematic when you attempt to live there. Why? Well, unless you live on the cold South Island or Millionairesville in Auckland, then you are going to experience crime or a lack of culture, if not both. This does not stop Air NZ from flying high-profile people over to NZ and cherry-picking the best spots. Yes, if you have thousands of dollars for a tour package or a great deal of NZ knowledge, then you can have a great holiday experience. But the negativity arising from NZ I suggest comes from the people who are living there; not the high-end tourists who stay for a week, who don't see any lack of depth to the market, because they don't spend enough time there. NZ seriously lacks demand, it has huge social problems, and a government lacking skills to deal with them. i.e. economic rationalists or repressed Conservatives. 

NZ has culture; it just does not have the depth of culture and population to make the place a dynamic cultural market. Its akin to looking for needles in a haystack. Yep, you get excited when you find the diamond, but you lament the futile search in between.



My solution is to change the government; for government to change, then placing a sign at Auckland and Christchurch saying "Under new management". Other than that, maybe you just accept you only had a 1-2 week fly-n-drive in you....and move to Australia yourself. No shame in that! All it takes in an apology.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

NZ has no problem - its the tourists fault

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A report into the state of the NZ tourist market has emphasised the 'irrelevance' of NZ as a tourist market. Understandably so when you consider:

1. NZ just suffered an earthquake which destroyed most of the iconic infrastructure in the city. The implication being that it will be a construction zone for the next 4 years at least, and with a lack of basic services and attractions.

2. NZD is fairly high against most currencies because of strong commodity prices.

3. NZ is getting some bad press over issues like racism, high crime, death of tourists because of crimes against person, or negligent tourist operators.

4. NZ service is not the best in the world - far from it

5. The global consumer confidence is not very strong at the moment. Give tourists another 5 months and their sentiments will change, starting with Australians. Theie economy grew 4% last quarter. 

It is not all bad news however. Perhaps the strongest aspect of local tourist trade is the local tourist tourist organisers who see the opportunity and are working to resolve issues. This is a source of hope. The other two favourable developments is the litany of MTB and walking trails under development in NZ. Finally, the last positive aspect is the potential to boost economic development in future by spending on earthquake restoration and the hope for a big oil strike to help fund future development.

Well, I'm hoping anyway. There are too many people suffering in NZ. The country needs a big oil strike to restore confidence and prosperity, and to stop the exodus of people. Until they have that strike, and NZ'ers become sheikhs; then people will be flowing the wrong way at Auckland airport. 

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

NZ considering fees on national park entry

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It appears NZ is going the path of Australia and introducing fees upon entry to national parks. There are a number of issues:

1. Fees for what? The problem with such fees is that there should be some service attached to the fee. They should not be for general revenue raising; not to fund wildlife studies, but for the improvement in services that park users want, i.e. Toilets, information centres, walking trails. I frankly think NZ has under-invested in walking trails. I have driven around NZ several times, and you seldom find a walking trail, they are always poorly marked, so you inevitably get lost, wondering whether the trail is the 4WD track. I got lost in Mt Cook glacial walk because what I thought was a side-track to a pond never actually rejoined the trail. Not lost in the sense of dangerously disorientated; but mislead. It should not have happened.

2. Fees for whom? The idea of only charging foreigners is ridiculous. NZ'ers use these facilities as well; charge NZ'ers and keep the fees lower.

3. Fees for extortion: I personally think NZ is already charging excessive fees in some areas, i.e. the fee charged at Rotorua's hot springs is unreasonably high; and I'm inclined to believe its extortion by the local Maori communities who tap into this revenue stream, and probably do no work to maintain it. i.e. Just relying on Pakehe contractors to do everything...and live it up on the cashflow. I have no idea; just suspicious, as this type of jibe is not new to the world. Its the same with Uluru in central Australia. They apparently 'own' Ayers Rock because they saw it first, turned in into a mystical symbol. We really have to stop granting property rights to people who see things first.

Clearly some national parks justify fees; others don't. The greater the attraction; the greater the prospect of having visitors and them being prepared to pay fees....but please, do anyway with the idea of extorting wealth from people; it just stops people from doing anything. I've still not been to Rotorua. I refuse to pay $130 for a family to see a natural phenomenon; knowing that there are bus loads of tourists. They are not spending millions on maintenance and salaries each week...they are doing it because they can.

You can argue that its Maori property (or public Crown land), but I would argue they did not see the value; they had no notion of property rights, and they certainly did not 'earn it', and don't deserve it merely by being empowered by liberals to extort wealth. They can't even find good use for the money.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Are the Filipinos the cause of Bay of Plenty environmental damage

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Once again Filipinos are under the microscope. Filipinos do not have the best reputation. When I started writing this article I was focused upon the Filipinos because that was the culture foremost in my mind. Living in NZ with my Filipino partner I long observed that NZ'ers do not share the world's negative perception of Filipinos. I assume it was because there were no young brides walking around with Western men 40 years their senior. Indeed this is the case. Most Filipinos in NZ are actually hardworking couples with children, who have no 'yen' for the old man with cash security. This type of lifestyle decision is more of an Australian, European and American activity, and of course the Filipinos do not have a monopoly on the practice.

The reputation of the Philippines is under challenge because of a number of incidents around the world. Consider these:

1. In 2010, President Aquino's soldiers conduct resulted in a bus load of Chinese tourists being assasinated by a soldier with a complaint. His indifference to the HK Chinese people caused the country to snub the Philippines.

2. In the last 10 years Filipino communities have taken advantage of mining investors in the Philippines by opposing such activity. i.e. All manner of extortion.

3. In the 1980s there was the Filipino nurse who charmed an Australian billionaire iron ore magnate, which caused a bitter feud with the daughter, the heir to the estate. The flamboyant Filipino was on TV showing Australians her wares.

4. In the 1980s there was incident with Imelda Marcos, the equally flamboyant first lady to Ferdinand Marcos, the corrupt president who stands accused of siphoning off billions from the Filipino taxpayer. She distinguished herself by claiming to have 3000 pairs of shoes; back in a time when materialism was unacceptable. i.e. When you citizens are starving, and the country languished in a power crisis.

5. About a decade ago there was the famous Bre-Ex scandal, in which a Canadian mineral explorer had claimed to have discovered an immense mineral deposit in Borneo worth many billions. The stock price of this company soared to exorbitant levels before crashing when it proved to be a fraud. The Filipino site geologist committed suicide by jumping from a helicopter into the Borneo jumgle. My guess is that he wanted God to decide his fate. Who knows how far the plane was off the ground. I suspect he was reaching for a tree.

6. Having lived in the Philippines, I can tell you that Filipinos are not the most honest, hardworking people in the world. The reality is that they tend to meet the best of them in the West because they are the aspirational ones who want to get out, and are prepared to work hard for it. In Australia, there is the 40-year age gap for some wives, but even still, many of these partners are dedicated to their husbands. Are they sham marriages? Hmm...only to the extent that they are defined by superficial or concrete values like money or security. Its actually not so different for many Westerners. i.e. Westerners place a high value on their partner's wealth.

Those seamen on the Ship 'Rena' were mostly Filipinos, and its probable that when the captain was having a birthday, they were, as utter 'collectivists' celebrating with him, with little thought to the impact of their neglect. This is what many uneducated Filipinos (employed as cheap seamen) are like in life; which is why as a matter of cultural prejudice, I would not leave a Filipino in charge of an important vessel. They are too readily influenced by their peers, as they are a friendly, affable people. They have an utter disdain for responsibility, and given the corruption in the Philippines, you can readily correlate such actions with their religious disdain for humanity (i.e. Original Sin) and thus their lack of responsibility.

In an industry with a lot of Filipino seamen...the solution is surely just to ensure that the Captain and his immediate subordinate are not from the Philippines for any ship over 10tonnes in weight. That is the cultural context in which they are raised, and their education system is not so great that we might expect otherwise from them. This job appeals to the uneducated.

I love Filipinos; my partner is one; I very much care for her family, but I have so much life experience to tell me that I would not make one the executive of a ship. This does not preclude Filipinos proving me wrong in some other area, but this is a level of safety I'd prefer so that I can preserve my love of the Filipino. You would not want an Indian attending to your needs as a call centre agent; you do not want a Filipino running a ship. Its as simple as cause and effect. Understand this, and they will realise that Filipinos ought to stay below the bridge; at least until the Philippines changes its cultural or educational context.

Reflecting further I have come to think that perhaps more problematic is the failings of the execute team in the Greek company, and its culture, which we might probably blame for the currency and economic crisis hindering those southern European countries. Indulgent Greek executives managing indulgent middle-managers. Surely a recipe for disaster.

Then we get to NZ, and we have the NZ authorities fumbling around for 4 days because there was inadequate preparations for this type of event. NZ is by no means a high-traffic maritime trade market, but basic equipment for transferring fuel did not work. Another issue is whether the Minister for Maritime Services asked the right questions or was mislead about the state of preparedness at Maritime NZ. These questions have still to be answered. Seldom does an accident arise because of the failings of one person. There is usually a number of persons who can raise questions but don't. Often this causes a 'gap in responsibility'. Sadly, the persons getting the blame seem to be the one's least able to answer back.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

New discount airline entrant to NZ - AirAsia X

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Good news for New Zealanders! AirAsia X, a Malaysian-based discount airline is flighting from Kuala Lumpur to Christchurch. The airline will start taking bookings from the 3rd Dec 2010 for flights from 1st March 2011. The promotion is offering flights for $99 plus taxes, which I guess will be around $150, so $250 each way. The problem is that AirAsia X and its competitor, Tiger Airlines, which only flies to Melbourne and Perth often offer a very cheap single route, so you pay full price for the return. This is a problem if immigration at your destination country requires an outward-bound ticket. Its fine if you are leap-frogging because you need only have '1 leap' booked ahead, but that's lost flexibility.

I have yet to fly AirAsia X, but like a lot of discount airlines, expect to pay extra for food, beverages, checked baggage, excess baggage and ticket changes. These airlines offer a lot of discounts, so its worth waiting for a good deal. Consider the options:

1. Jetstar - flights from Auckland or Christchurch to Melbourne, Sydney, Gold Coast, link to Jetstar or AirAsia X in Gold Coast or Melbourne for flights to Asia.

2. Jetstar - from Auckland direct to Japan (Osaka or Tokyo-Narita). Some discount airlines fly to/from Japan. i.e. Cebu Pacific, and Chinese airlines from Haneda Airport (Tokyo).

3. Air NZ - they offer cheap Asia flights for two in twin-ticket sales through the TradeMe website.

4. AirAsia X - they fly Christchurch to KL (Malaysia), with links to Japan, China, Thailand, the Philippines, Indonesia, etc.

5. Pacific Blue - their prices are generally not as competitive as Jetstar, but they do have sales, so worth a look. They are appealing for flights from Wellington to the East Coast of Australia.

More discount airlines for NZ is great news because it has been difficult for travellers to fly to NZ from Asia. Air NZ offers great service, but you pay for it. Jetstar and Pacific Blue also offer comparable service cheaply, but they have limited offerings. Wellington only offers a limited number of destinations because of its smaller airstrip. i.e. Confined to smaller planes. When booking flights from Wellington, unlike the other airports, they do not add their airport tax to the ticket price. This is wrong to me because passengers should be treated the same.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

NZ taxing tourism might cause problems

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Is the NZ government pricing NZ out of the market? The NZ government has recently increases the GST tax rate t0 15%. Clearly the NZ government recognises that NZ is not earning enough, so is not therefore in a position to pay for services. Consumption taxes are one way to go to rein in budget deficits....but are they the best way to go. There are reasons to wonder.

1. Tax on spending: We might argue that NZ'ers spend too much....but really the greater issue is that they earn to little, that they cannot sustain those expenses.

2. Tax on tourism: One of the growth markets for NZ has been its tourism industry. Is that inclined to stay true if the government takes the easy steps of hiking consumption taxes, and then offsetting them with tax breaks for the lower income earners.

The problem is that in the context of a stronger NZD, tourists might reflect on NZ beyond the 'pretty pictures' and see that the country offers no job prospects, higher costs of living (because tourists are unfairly burdened relatively) and decide to go elsewhere. It is not even that NZ is 'so expensive', it is that its pretty expensive already to get here, and its at the 'arse end of the world'. We might ask where the government is positioning itself. The NZ is too small to interest most business people. It is increasingly expensive for students any young adults. Its so far away for busy travellers and the NZD is higher than average. So we might ask... Is NZ pricing itself out of the market?

Shouldn't the government be trying to raise the earnings potential of NZ jobs? There are signs that they are doing this. I can see that they are getting rid of disability pensions, and requiring people to show proof of working, or trying to find work. This government is the best government NZ has had in a while...but is it acting quick enough? Is its reforms as comprehensive enough? On some levels they are very good, but on some issues they make a poor case.

1. Binge drinking - too pissed

2. Speed limits - too cautious and non-intellectual

3. Consumption tax - reactionary

4. Regulation- very poor

5. Infrastructure - its building roads when it should be building fibre networks. The population is hardly growing...why build roads? This creates jobs in the wrong areas.

The trend is good...its just the rest of the world is moving as well, and NZ is at the 'arse end' of it. It needs to do it better. We need to recognise that costs are going up everywhere, and there are many ways to travel around a country. The best way to travel around NZ is to go to a car auction and buy a van...sleep in the back of it. Sadly, that route might become illegal given the complaints over 'stranded turds' in picnic and car parking areas around NZ. Not pretty. I guess one of those 'negative externalities' arising from tax or cost changes and new technology.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Excessive taxes on alcohol - backpacker beware

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If you value drinking alcohol, you might want to consider not coming to NZ for a holiday. NZ is already charging a tax of $2.47 per litre on alcohol between 2.5-14% concentration, whether beer or wine. The government is also taking measures, probably punitive, to regulate the campervan trade in NZ.

These are big disincentives for foreigners to travel to NZ, and yet the government is considering another increase in alcohol tax to 'reduce binge drinking among the young'. This is the most insane policy you could imagine. First of all, the tax has already been increased for the same reasons before, to no avail. Is this not simply about using 'punitive taxes' to resolve holes in the national budget. Business will of course need to pass on the costs, which will see a bottle of beer priced between $7-8, and a glass of wine between $16-18. I suggest the increases might even be greater if businesses experience a fall in patronage.

My guess is that the policy would result in several negative effects:

1. Increases organised crime activity in the realm of boot-legging. Maybe the sellers will give you a rebate if you bring your own potatoes.

2. Closure of businesses - restaurants and bars are big employers in NZ, so more taxes is simply going to stop people going out. Expect rural town employers to be particularly hard hit, which will mean population declines in rural areas as rural people are forced to move to the city. I suspect they will move to Australia instead.

3. Less tourism - The backpacker trade will die off because alcohol would be a major expense for this group. They might not spend as much as the premium traveller, but they spend 1-6 months in the country (compared to a few days for business travellers and 1-2 weeks for wealthy retirees), with all funds being recycled through the economy, as well as spreading to the rural areas through the backpacker network. Expect more tourists to head to Australia. OK, Australia does not have the mountain vistas of NZ, but USA, Canada, Europe does, so travellers from those countries will not miss them. Australia will be a more holiday friendly place.

4. Greater use of alcohol substitutes - You can't use punitive measures to correct some action you consider inappropriate. There is a need for education - but not the idiotic messages we are accustomed to on TV. The problem is more fundamental. The problem is that academics do not understand the alcoholism issue. What they don't realise is that kids are going to explore other options like 'glue sniffing', meth, etc. The implication is that the government is driving people into more illicit activities as well as more dangerous activities. Having researched this issue I can tell you that the behaviourist school of stupidity is driving public policy on such issues. Governments are therefore labouring under the misconception that humans are animalistic. The reality is they totally lack any theory of values.

I will be among the first to suggest that alcoholism consumption is a problem, but the solution is never greater taxation. Taxation is slavery - not education! It might change behaviour at the margin, or in the short term, but the 'externalities' of such policies are far greater than any benefit. The implication is greater use of meth, greater use of methylated spirits (i.e. cheaper), greater illicit activity.

NZ might just learn that one of the appeals of travelling to NZ is the low cost of living. After all it is so far away, and does not have a lot of culture to offer. Basically its an 'outdoors experience'. My advice is - ditch the taxes, as well as the bureaucrat/academic reports which suggest punitive measures are the best way of avoiding youth binge drinking.

Send a message to the NZ government that taxation is NOT the solution! Take a holiday in Australia if you are in this part of the world. Better still punish the Australian government (who do the same thing) and tax a holiday in the Philippines or Vietnam. Alcohol there is just $1/beer. With the savings you will be able to buy an apartment for $50K. :)

Another paradox of these silly policies is that youth unemployment is pretty bad in NZ, and kids wanting a sense of efficacy are turning to alcohol or drugs to medicate their low self esteem. The government I believe is quickly taking this country into an escalating crime regime. You guessed it! That means more taxation to regulate behaviour because we didn't learn in the N^{th round of tax increases. We need a change in government administration so we can avoid the spiraling crime and incompetence as practiced by Western governments around the world. They are truly the pits. There is simply a complete lack of good sense and reason needs to be the standard of value. What qualifications do these people have? What life experience? The problem is they are not analytical thinkers. They are lawyers with 'good memories'. Precisely not the type of people you want drafting law.}

^{Details on NZ tax - see Wikipedia.}

96% anti-mining, but not 100% pure NZ

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A Wanaka geologist has come out arguing that the government's numbers are overstated as to the mineral potential of NZ, or at least the potential of Stewart Island. This does not surprise me at all. The reason I think the government is pushing for mining has less to do with the desire to see mining in these areas, and more to do with the desire to encourage exploration so that the government actually knows if there are minerals in the country.
Most particularly, the government needs to encourage more energy exploration. What happens on land is actually less important than at sea. NZ needs energy - particularly gas, and it needs to substitute imports with local product. I think the government purely wants to convey that it is pro-mining, after all who wants to explore in a country which is so anti-mining.

The idea that 100% NZ was always a brand which was intended to attract tourists. The reality is that whilst NZ has some terrific landscapes, the urban areas of NZ are very untidy. There is lot of rubbish in NZ. People discard there rubbish indulgently. I often see people throwing rubbish from cars, kids coming home from the pub or friends leave bottles in the street, or worse break them on the pathways. There is a lot of this, though of course some areas are worse than others.
I don't see this in Australia, which I truly think is 96% pure.....if you excuse the mass clearing of trees on the tablelands 100 years ago.
But consider this about Australia:
1. Half of Tasmania is a national park or wilderness
2. Half the coast of NSW is national park
3. Most of the ACT is national park
4. The bulk of the Snowy Mountains is national park
5. The Great Barrier Reef is national park
6. Sydney Harbour is a national park - you can readily eat the fish caught in it
7. Sydney is surrounded by national park - almost completely surrounding it. You can view for 30-40km in some directions its so big
8. Cape York - 'the dog ears' of Australia is national park

In NZ, they have dairy effluent going into the rivers. The forest is really only confined to the ranges whilst all the flats are farming land. The only place where there is really unmodified land use is the West Coast, Alpine areas, Fiordland, and some of the Taupo Volcanic Zone. It is a smaller country, but is the "100% pure NZ" reputation justified based on the facts. Of course it makes clever marketing.

In fairness NZ is a very beautiful country...perhaps the country can do with fewer puritans. I prefer Australian nature in many respects because the walking trails are actually shorter and better suited for tourists. In NZ it is all a bit undeveloped and walking trails tend to be for the overnight hikers. I'd like to see more of NZ opened up for the tourist to actually enjoy it rather than simply drive by. Of course if tourists are so utterly inconsiderate of other tourists, maybe such plans need to await a better quality of human being.

The paradox is that Australia produces so much mineral wealth from mining, but it utilises less than 3% of its area for mining, and thats just based on mining title, not actual mining area. Despite that it has such large tracts of wilderness. The country is so large you would likely never see a mine site. The bad news is that its all so spread out. NZ, you can drive around and see it all in two weeks. You'd never see a mine there either. Why the worry? Well its mostly government hype because they want to encoureage exploration. It was probably an electoral promise. Now they can take the campaign contributions with a clear conscience.