Applicant
Tourism Holdings Limited
Case number(s)
200810058
Decision date
Type
Decision
Decision number200810058
Application number200720151
Date12 June 2008
Offeror/applicantTourism Holdings Limited
Ultimate applicant beneficial57.87 percent - New Zealand, New Zealand Public
Ownership 22.19 percent - United States of America, United States Public
14.67 percent - Australia, Australian Public
3.37 percent - Hong Kong, Hong Kong Public
1.9 percent - Various, Various overseas persons
Beneficial overseas ownership 
- Asset current0 percent
- Asset proposed42.13 percent
- Share currentN/A
- Share proposedN/A
Offeree(s)/seller(s)New Zealand Public of New Zealand
Business activitiesCultural & Recreational Services - Amusement/Entertainment
Details of land involved2.76 hectares of leasehold situated at 39 Waitomo Caves Road, Waitomo Caves being CT 329275 (South Auckland Registry).
Regions involvedKing Country
Total considerationTo be advised
Consent soughtTo acquire an interest in land which, either alone or together with any associated land, exceeds 0.4 hectares and adjoins land held for conservation purposes under the Conservation Act 1987 (if that conservation land exceeds 0.4 hectares in area).
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment.

The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

Background to the Investment:
Waitomo Caves Limited (WCL) is wholly owned and controlled by the Applicant. WCL is the lessee under a proposed lease of the Land which comprises the Waitomo Caves (Caves) and certain land surrounding the Caves.

The Applicant's business, currently operated under a Licence, comprises Cave tours, a café, and a gift shop. In addition to the Licence, the Applicant operates under an Operational Plan agreed with the trustees of the Ruapuha Uekaha Hapu Trust and the Department of Conservation (the owners) covering various matters including the Applicant's obligations in respect of the environmental management of the Caves (Operational Plan).

Outline of the Investment:
The Applicant proposes to enter a lease over the Land. The Overseas Investment Office's consent is required as the proposed lease is for a 21 year term. The Applicant will also enter a Management Plan with the owners in order to ensure that the natural splendour of the Land is maintained. Under the proposed lease, consideration payable by the Applicant to the owners is calculated as a percentage of takings from retail activity at the visitor's centre and entry fees to the Caves.

Rationale for the Investment:
The Applicant wishes to continue to provide its tourism operations on the Land. The proposed lease assists the Applicant achieve this as it gives the Applicant exclusive possession over the Land.

The proposed investment will or is likely to benefit New Zealand (or any part of it or group of New Zealanders) having regard to the following factors:

Overseas Investment Act 2005:
s17(2)(b) - Significant habitats of New Zealand fauna.
s17(2)(a)(v) - Public walking access.

Overseas Investment Regulations 2005:
r28(c) - Adversely affect New Zealand's image overseas.
r28(e) - Previous investments.

ContactJonathan Mitchell
Russell McVeagh
P O Box 8
AUCKLAND