Rt Hon John Key

Prime Minister

10 October 2016
Cycle trail a $37 million boost for regions

More than a million people used the New Zealand Cycle Trail last year, generating around $37 million in economic benefits for local communities, according to a new report released today by Prime Minister and Minister of Tourism John Key.

The evaluation the New Zealand Cycle Trail, includes an independent cost benefit analysis showing that for every dollar attributable to construction and maintenance of the trails, approximately $3.55 of benefits was generated.

“The New Zealand Cycle Trail has been very effective in attracting high-value visitors to our regions,” says Mr Key.

“Around 1.3 million people visited the 22 Great Rides in 2015. The majority of those were Kiwis, with international visitors making up 13.5 per cent, or 114,000 users.”

Through revenue from visitor spending, the cycle trail is estimated to have produced $37.4 million in economic benefits last year.

“Part of the Government’s tourism strategy is to ensure all regions benefit from the exceptional growth occurring in the tourism sector, and the New Zealand Cycle Trail is clearly a major contributor to meeting that goal,” says Mr Key.

“Nearly 1,300 people have been directly employed across the country. Anecdotal evidence suggests that at least 60 new businesses have been established and over 40 existing businesses have expanded their operations to service demand created by the cycle trail project

“The rides also help keep people healthy, keep bike commuters safer and in some places they have increased the sense of community identity. The report estimates the value of these social benefits to be an additional $12 million in 2015.”

The report is available here: http://www.mbie.govt.nz/info-services/sectors-industries/tourism/nga-haerenga-new-zealand-cycle-trail/evaluation

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