Financial performance
This section covers revenue and expenditure for the IVL in 2022/23 and the budgeted, actual, and forecast expenditure for the IVL projects.
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IVL performance
Since the full re-opening of the New Zealand borders on 31 July 2022 following the COVID-19 pandemic, IVL revenue has significantly increased. While there has been a rapid return of international visitors, the long-term outlook is unclear. Some initial projects have been completed, others progressing and consideration has been given to new projects.
Revenue
Actual revenue collected in the fourth year of operation to 30 June 2023 was $44.9m, down on the forecast of $53.2m. This is a significant increase on 2021/22 when revenue was $3.3m. Pre-COVID revenue in 2019/20 was $57.2m.
Initially, the IVL was predicted to raise approximately $450m in its first 5 years. Due to the impact of COVID-19, the total collected since inception to 30 June 2023 is $108m. Despite this, revenue collected has ensured the first round of investments will meet commitments, with some project deliverables amended.
Expenditure
This financial year, expenditure for tourism was $6.255m across 8 projects, expenditure for conservation was $3.148m across 3 projects, and administrative expenditure was $1.760m.
Total expenditure from the IVL since its beginning in 2019 to June 2023 is $35.944m, which breaks down into: $18.244m for tourism, $17.700m for conservation, and $6.230m for administrative expenditure*.
Funding allocated to out-years
Many of the IVL projects have multi-year funding committed in principle. Administrative expenditure is also committed in advance. As at 30 June 2023, the IVL has funding allocated out to financial year 2026/27.
Total funding allocated to future years as at 30 June 2023 is $31.368m across both Tourism and Conservation.
Tourism projects have $18.211m committed over the next 4 financial years, conservation projects have $10.771m committed over the next 3 financial years. Administrative funding has been committed for the next 2 financial years, totalling $2.386m out to 2024/25.
Table 1: Summary of round 1 IVL six-year commitments ($m)
|
|
2019 to 2020 Year 1 | 2020 to 2021 Year 2 | 2021 to 2022 Year 3 | 2022 to 2023 Year 4 | Future commitments | Total |
| Revenue | 57,163 | 2,692 | 3,314 | 44,871 | 108,040 | |
| Fund management Year 1 to 6 (inc bank fees) | -2,266 | -1,187 | -1,017 | -1,760 | -2,386 | -8,616 |
| Conservation | -2,936 | -5,685 | -5,931 | -3,148 | -10,771 | -28,471 |
| Tourism | -3,170 | -6,728 | -2,091 | -6,255 | -18,211 | -36,455 |
| Total expenditure | -8,372 | -13,600 | -9,039 | -11,163 | -31,368 | -73,542 |
Uncomitted total at 30 June 2023: 34.498m
*Administrative expenditure/funding includes bank fees (2.5%-3% visa charges) and MBIE and DOC fund management costs.