Te Uruhi – Kāpiti Gateway Centre

Kāpiti Island is an outstanding taonga and an internationally significant wildlife sanctuary. Visiting Kāpiti Island is a unique and sought-after natural experience that brings visitors to the Kāpiti region – many of whom stay overnight and contribute to our economy.

The Gateway will tell the Kāpiti Island conservation story, highlight our district’s deep cultural history, improve biosecurity procedures, and connect the mainland with the Island. It will support our tourism and associated sectors by promoting the many other attractions and activities in our district.

The site for the Gateway is itself significant. It is where iwi originally landed in our region, and it has been used as the launching point for Kāpiti Island for hundreds of years. 

There is a significant opportunity to increase the number of visits annually to Kāpiti Island without impacting its unique environment. The Department of Conservation is supportive of the proposal to improve protection for the island through improved biosecurity procedures.

The Gateway will create jobs and provide a much-needed boost to our tourism economy post COVID-19. It will deliver enhancements to the Tikotu Stream mouth and enhance public access to and from the beach. It will provide a focal point for visitors and add to the Paraparaumu Beach offering for young and old, for local residents and visitors alike.

The Gateway project aligns with and supports the aspirations of Toitū Kāpiti, our Long term plan 2018–38, and has the potential to deliver numerous social, cultural, environment and economic benefits to the Kāpiti Coast community. 

The Gateway will help foster a greater sense of identity and place for our community. It will deliver a fully accessible space for a range of social activities – recreation, arts, culture and education. 

The building, bridge and surrounding decking are designed to accommodate mobility scooters, pushchairs and wheelchairs, and will have seating areas with shade and shelter. This means less able-bodied people will no longer need to drive onto the beach to view the island or watch boats being launched and retrieved. 

The Gateway will provide a focal point for visitors to our district and promote many local attractions and activities.  This will encourage longer stays and increase the contribution to our local economy.  It will be a catalyst for economic growth in our district and will provide a much-needed boost to our tourism economy post COVID-19. 

As a destination attraction, it will add to the vibrancy of the Paraparaumu Beach offering. Via new pathways and a new, fully-accessible bridge, the public access to and from the beach and township will be greatly improved. 

It will be designed to celebrate our deep cultural history and improve the visibility of mana whenua’s history. The proposed site for the Gateway is of great historical and cultural significance, including as the arrival place of local iwi to this area, a pā and the traditional landing and taking off point, linking the island and the mainland, for hundreds of years. It was the site of a fierce battle to determine ownership of the area, and of a mainland whaling station. The Centre will tell the stories of the site, the island and our district. 

The project includes restoration of the coastal stretch (55m) of the Tikotu Stream. The work will enhance the ecology of the stream mouth (supporting the two at-risk native species that live in this stream – the long-finned eel and inunga), and will enhance the biodiversity of the area. 

Establishing a Gateway will deliver training and employment opportunities for our construction sector, rangatahi and provide meaningful volunteering opportunities.

The Gateway will strengthen the biosecurity protection of Kāpiti Island, which is the icon of our district’s identity and one of New Zealand’s most treasured nature reserves, against current and future biosecurity threats.

The Gateway aligns with and supports local, regional and national strategies and plans in economic development, tourism, conservation, biodiversity, public art, education and iwi’s aspirations to share our districts culture and heritage.

The Gateway sits within the Council’s Long Term Plan 2018–38 and supports the objectives of the Economic Development Strategy for the Kāpiti Coast District 2020–23. It is also identified in the Maclean Park Management Plan 2017 as a key development project for this destination park.

At a regional level the Gateway aligns with, and supports the objectives of, the Wellington Regional Strategy 2012, which seeks to build a resilient, diverse economy that creates jobs, supports the growth of high-value companies and improves the region’s overall economic position. WellingtonNZ, our Regional Tourism Organisation, supports the Gateway.

At a national level, the Gateway aligns with, and supports the objectives of:

• the COVID-19 Response and Recovery Fund
• the New Zealand–Aotearoa Government Tourism Strategy
• New Zealand Māori Tourism He Toa Takatini
• New Zealand Arts, Cultural and Heritage Tourism Strategy to 2015
• the Department of Conservation’s Heritage and Visitor Strategy (to be released this year)
• New Zealand Biodiversity Strategy 2000–2020
• the Kāpiti Island Strategic Advisory Committee.

Increasing tourism to the region will help to support local jobs.  While the Centre will promote the districts many activities, attraction and events, we lack data to calculate economic benefits of the full uplift that it will generate.  Using only visitor numbers for Kāpiti Island (for which DoC collects data), the additional economic impact of the Gateway and Kāpiti Island tourism in 2023 is estimated to be $0.62 million Gross Regional Product (GRP) and eight extra jobs will be created. By 2030, it will generate an additional* $2.07 million (per annum) and 25 extra jobs. It will also generate 16 local employment opportunities during the construction period, and provide much-needed economic stimulus to businesses in the surrounding area.

* This is in addition to the economic benefits that visits to Kāpiti Island currently generate.

During construction an estimated 16 jobs would be created, plus professional services providers and suppliers. Once the Gateway is completed it’s estimated that in 2023 (the first full year of operating) a further eight jobs would be created in the tourism and supporting sectors. This number is expected to increase to 25 additional jobs by 2030.

Through the Government’s Provincial Growth Fund (PGF), we were presented with an opportunity to secure up to 50% of the project costs associated with building a Gateway Centre.

The PGF process required us to move at pace, and we were able to do this because of the work already done, including extensive consultation through the Maclean Park Management planning process in 2016-17 (with three rounds of public consultation) and the Gateway Feasibility Study in 2019-20 (with key stakeholders). Council submitted its application in June 2020.

For our PGF application to be considered, Council needed to demonstrate that this project would create jobs (both in the construction phase and long term), the Centre would be viable over the long term, and that the project is able to start within 12 months of funding being confirmed. We also needed to demonstrate that a resource consent application is in progress.

Since the Indicative Business Case was submitted to the Provincial Growth Fund, staff working with a small group of councillors have made significant changes to the proposed operating model, reflecting the impact of COVID-19 on tourism and feedback from stakeholders and the community. 

Key changes include:

• revising the visitor growth forecasts, taking into account the impacts of COVID-19 and border closures. This now shows a decline in visitor numbers in forecast numbers for 2020 and 2021 before a lower rate of growth resumes.
• biosecurity fee has been reduced from $10 for adults and $5 for children to $4 for adults and $0 for children, increasing by $2 every second year until it reaches $10 & $5 in 2028 – subject to visitor growth
• including a gift shop/gallery added, focussing on locally-made, artisan, high quality crafts
• sponsorship and grant revenue more conservative
• alternative sources of capital funding to be explored
• long-term borrowing rate has reduced
• depreciation is now only on the building, bridge, decks and pou.

On 28 May 2020, Council granted approval for an application to be made to the Provincial Growth Fund (PGF) for up to 50% of the Gateway project costs. At this meeting, Council also made it clear that the decision to proceed to the detailed design phase would be subject to receiving a robust business case.

Following confirmation on 6 August that funding to progress the project would be allocated from the Government’s COVID-19 Response and Recovery Fund, councillors were briefed on 11 August and agreed that staff would undertake further work to test the assumptions, and further refine the Indicative Business Case. This included looking at a range of scenarios for how the ongoing operational costs of a Gateway centre might be met.

The Kāpiti Island Conservation Management Strategy sets out the total number of people who can visit Kāpiti Island each year. The average number of sailing days to the island per year is 233 (source: Kāpiti Island Nature Tours) with the daily limit set at a maximum of 160 people per day, which equates to a maximum of around 37,000 visitors per year. In the future, there may be ways that the daily limits can be adjusted to better meet demand.

Currently, annual visitation to Kāpiti Island is well below the capacity (at around 15,000 visitors per annum) There is significant opportunity to grow this without impacting the island’s unique environment, whilst not asking tour operators to operate each day of the year The potential for future growth in visitor numbers has been factored into the proposed concept design for the Gateway and is below the capacity stated above. Both the Department of Conservation and iwi are supportive of managed growth in visits to the island.

Council engaged PwC to ensure they followed due diligence and sought an independent, thorough, best-practice and robust analysis of the proposed Kāpiti Gateway’s operating model. PwC also made recommendations about the most effective operating model that would meet Council’s objectives and reviewed possible alternatives and looked for gaps and opportunities in the proposal. They were also asked to assess if any additional options were available to meet Council’s objectives.

The scope of PwC’s investigation was to:

1. review the project, including available documentation, design and analysis
2. identify potential uses of the space and key operating model options
3. assess the identified options to create a shortlist of preferred options
4. test the assessment and preferred options with Council staff, and
5. to the extent possible, benchmark the options against other comparable tourism ventures.

The PwC report summarises that: a gateway facility would promote and enhance Kāpiti Island as a tourist activity, provide a focus for Kāpiti as a tourist destination, and promote other attractions and activities in the region.

They concluded that the core functions for the Gateway were:

• Biosecurity inspection area for visitors to Kāpiti Island
• Visitor and discovery centre for island and district

Other possible uses include:

• A display and exhibition space for local artists
• A small gift shop selling high quality local art and crafts
• Office space for boat operators
• A daytime café and a night time café & bar.

PwC considered 11 options made up of different mixes of use. They assessed each option against the project’s six objectives plus six other criteria; financial feasibility, risk management, Te Ao Māori connection, promotion of ecology and the environment, meeting tourist demand and visitor cross-patronage. 

Option K (includes incorporating a Biosecurity Visitor / Discovery Centre, Office, Gift shop and a Café and bar/brasserie and Option J (Biosecurity Visitor / Discovery Centre, Gift shop and Café and bar/brasserie) are equally slightly stronger than Option F (Biosecurity, Visitor / Discovery Centre, Office, Gift shop).

PwC also carried out a thorough risk analysis. They considered 17 different types of risks for each option. Risks covered financial, contractual, demand, delivery, scope creep and so on.

After assessing the 11 options, PwC concluded there are three viable options. Each option has a similar period (5 to 6 years) before breaking-even and not requiring a ratepayer subsidy in the long term. Some options carry slightly more risk but are also viable. The maximum projected shortfall to Council over the period prior to break even (5-6 years) is $349,000 (or around $58,000 per year).

PwC also investigated other similar ventures across the country and the report includes lessons learnt and recommendations from those.  The main lessons learnt from those ventures was that:

• well-managed, outsourced cafes are a good idea
• gift shops selling high-quality local artisan products are profitable.

Key recommendations are:

• Establish the option Council will support and agree in-principle to fund and build the facility
• Establish a project team and plan, and begin the developed design phase for the option that is supported in-principle
• Conduct due diligence in the next project phase on the space use options that are supported in-principle Including layout and configuration, sponsorships and advertising, and any gift shop and/or food & beverage offering.

The current biosecurity arrangements mean biosecurity checks are conducted in a local shop or on a table in the Paraparaumu Boating Club car park. Neither of these locations provide for optimal biosecurity to ensure Kāpiti Island remains free of plant, pathogen and animal pests, due to the potential for contamination when travelling from the biosecurity check location to the boat departing for Kāpiti Island.

The proposed Gateway will include a dedicated baggage self-check room and processes, which will play a vital role in strengthening biosecurity measures and protecting the island from animal, pathogen and plant threats such as Kauri dieback, myrtle rust and Argentinian ants, both now and in the future. The Department of Conservation is supportive of the Gateway project.

The proposal includes a dedicated, best-practice biosecurity self-check facility for all visitors to Kāpiti Island.  A user fee (i.e. added to the ticket price) of $10 per adult passenger and $5 for children was proposed in the Indicative Business Case, however feedback was received from operators that they felt the price increase may stifle demand. 

In response to concerns raised, it is now proposed that the user charge will be $4 for adults (5% of the basic ticket price) and free for children, increasing by $2 every second year until $10 for adults and $5 for children is reached in 2028. It is recommended that price increases would be subject to review prior to implementation to ensure that they were not affecting demand.

Kāpiti Island is an outstanding taonga and an internationally significant wildlife sanctuary. Visiting Kāpiti Island is a unique and sought-after natural experience, which brings visitors to the Kāpiti region, many of whom stay overnight and contribute to our economy.

Kāpiti Island is the primary icon for the Kāpiti Coast. It’s part of our district’s identity and our turangawaewae (our sense of place). Biosecurity to protect the taonga that is Kāpiti Island is a shared responsibility.

It is common for councils to partner with DoC and community groups to facilitate and manage biosecurity in order to protect their taonga for their communities, both now and in the future.  DoC has for many years, and continues to invest significantly in Kāpiti Island, with a substantial annual operating budget. The Kāpiti Coast District receives the economic benefits of visitation to Kāpiti Island.

Central government, of which DoC is a part, has indicated its support for the Kāpiti Gateway by announcing in-principle funding for close to 50% of the cost of building the facility.

The operating model for the Gateway formed part of the PwC review. They considered all options, from Council owning and operating the Centre to Council outsourcing the ownership and all operations.  Their recommendation was for Council to own and operate all aspects, apart from food and beverage (should that option be chosen).  PwC recommended that Council out-source this, and if that option is chosen then it is likely that Council would hold an open tender for the operator.

There is provision for retail activity in the Gateway centre.  It is envisaged that people will be able to purchase tickets for Kāpiti Island tours.  A gift shop, focussing on locally-sourced, high-quality artisan style products, would also form part of the operation. In the future, additional complementary tourism businesses such as bike or waka hire might also operate from the site. This would also be classed as retail activity.

This project aims to enhance and grow the retail offering that already exists in the area, by creating a stronger connection between the beach and the shops to better facilitate the movement of people through the area.

Price Waterhouse Coopers (PwC) independently reviewed the operating model and recommended three “viable” options for Council to consider.  Incorporating all costs, their assessment was that the three options would break-even within five to six years, with a total deficit (cost to ratepayers) over the five to six years of between $302,000 and $349,000. 

The Gateway design will tell the stories of our deep cultural heritage both on the proposed site and for Kāpiti Island. The conservation story for the Island is also significant. It will use digital technology to showcase the many activities and places you can visit in our district.

The Gateway visitor centre will improve access to information about things to do in our district, but it will not operate as an i-SITE. You will not be able to make bookings for accommodation, travel or activities at the Gateway visitor centre, with the exception of booking a trip to Kāpiti Island.

Council staff are exploring a range of additional funding opportunities for the proposed Gateway project to help to reduce the potential cost to Kāpiti ratepayers. This includes additional sources of capital funds and ongoing sponsorship to help offset operating costs.

Electra have confirmed sponsorship of solar panels for the building, up to the value of $20,000.

We live in an ever-changing coastal environment, and the preferred location for the Gateway building is not immune to future changes. Because of this, we have made a pragmatic decision to ensure the building can be relocated should the environment change or we need to respond to future growth.

The large expansive decked areas with seating, shade and shelter will provide spaces for the community to use and enjoy. The allocation and design of the interior space within the 235 m² will be determined through the detailed design phase but it is envisaged that approximately 85m² will be needed for biosecurity checks and 75m² will be used for the visitor centre. Space will also be allocated for bathroom facilities and stores.

If a food and beverage option is chosen, it is possible that the central atrium would be enclosed (possibly with glass) to provide space for seating.

The proposed structure is a single-storey building with two pods under a single roof. One pod will house the biosecurity checking room, bathroom facilities and store room, while the other will house the visitor centre. The buildings will be connected by a low-profile roof, landscaping and decking.  The high point of the building is under six metres from the current ground level, which is lower than the current trees on the site.

Yes. Improving the Kāpiti Island departure point and providing an iconic visitor experience has been a discussion point for our community for many years. Council undertook significant consultation as part of the Maclean Park Te Ūruhi Refresh 2016-17 which included making future provision for a Kapiti Island visitor centre at the Park. This consultation was wide-ranging and included three rounds of public consultation, and as a result the draft plan was changed to allow more space for a Gateway in future. The Gateway project was signalled in our Long Term Plan 2018–38 and funding was included in our Annual Plan to progress this project.

In addition, mana whenua, Department of Conservation, the Kāpiti Boating Club, Underwater Club Kapiti, Coastguard Kapiti, Kāpiti Island concessionaires, the Paraparaumu Beach business community and other key stakeholders were invited to contribute to the TRC feasibility study in 2019. The design requirements were drawn from both these sources.