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Phase 1 - Feasibility Study

We undertook a feasibility study (Phase 1) to gain an understanding whether a tourism hub will support local and regional economic development by creating sustainable jobs and increasing the number of businesses in the hospitality and tourism sectors in Te Aroha.

What was in the scope of the feasibility study?

The project scope included the development of the mineral springs, associated accommodation and visitor experiences to create a new offering for short breaks for visitors.  The anchor project and catalyst for driving the concept is the development of the Te Aroha Domain (and surrounding amenities) into a boutique spa resort. 

The proposed boutique spa and wellness resort would dovetail existing tourist offerings including the Kaimai Mamaku Forest Park, The Hauraki Rail Trail (part of the Nga Haerenga Great Rides network), a number day walking tracks, and the Hobbiton Movie SetTM

What wasn’t in the scope of the feasibility study?

The funding is to investigate a Te Aroha tourism precinct, so we were not able to look into issues unrelated to this. For example, it didn’t include services and facilities that are part of normal Council business such as playgrounds, refuse collection, or the existing Te Aroha Mineral Spa or Swim Zone operations. Likewise, the process can not address all of the issues or opportunities Te Aroha may have.

Also the following are not eligible for the PGF as they are funded by other means:

  • Housing (unless it is a core part of a broader project and would not otherwise be required)
  • Water and large-scale irrigation
  • Social infrastructure (such as hospitals and school

Who completed the feasibility study?

The feasibility study was written by a contractor, on behalf of Council and reported to the governance group.

Visitor Solutions were awarded the contract to undertake the work after a formal tender process

What were the steps in this feasibility study?

The consultant provided a work plan showing how they would carry out the feasibility study. This included developing options for a tourism precinct, option assessment and an indicative commercial assessment of a preferred option.

The consultant developed a broad understanding of the following in Te Aroha:

  • The existing market for tourism;
  • Possible options for enhancing the tourism offerings in Te Aroha, and develop from these a long list of possible investment options centered on the redevelopment of the Spa and Domain assets. For example, this may include consideration of the Waihou River, the Te Aroha Mountain, walking and cycle trails, accommodation offerings.
  • Current and future potential tourism investors and their businesses;
  • Tourism needs and constraints;

The Consultant (Visitor Solutions) then engaged and consulted with investors and stakeholders (including Iwi and community groups) to develop a long list of options for a tourism precinct and ranked these options to identify a preferred option.

Read the full feasibility study here