4 Dec 2009

Treasury advised against more spending on tourism

7:38 am on 4 December 2009

Official papers reveal the Treasury advised the Government against spending more money on promoting New Zealand as a tourist destination until a full review of tourism marketing was completed.

But the Government announced last month it would spend an extra $20 million on tourism this financial year.

The papers, obtained by Radio New Zealand under the Official Information Act, also reveal the announced spending increase is substantially lower than the $30 million by Cabinet.

It's not clear from the papers why the Government decided to spend less.

In the papers, Prime Minister and Tourism Minister John Key argued that without extra spending tourist numbers would drop and that would push up unemployment.