Some of the 22,000 riders who now explore the Timber Trail each year.
Now 10 years of age, the Timber Trail is rated one of the country’s premier two-day wilderness bike rides, injecting more than $7 million a year into the regional economy.
In a paper published to mark its first decade, tourism consultant Dave Bamford said growth of the 85km trail had been exceptional.
Users of the route get to ride over old logging roads between Pureora and Ongarue, traversing both native and exotic forests, plus a series of suspension bridges.
In the latest year of operation, 2022-2023, riders exceeded 22,000, which was an increase of about 12,000 over the years 2019-20.
“What began in 2010, as John Key’s simple concept of a ‘cycle trail the length of New Zealand,’ has evolved into today’s network of trails collectively called Ngā Haerenga New Zealand Cycle Trails,” Dave said.
“The Timber Trail was one of the first trails in this network. It was developed at a cost of around $5 million, and opened in April 2013.
“It is now one of 23 trails designated as Great Rides.”
Dave is a director of Timber Trail Lodge and previously ran his own tourism consulting company.
He said at first there was little infrastructure built around the trail, yet within four years it was being ridden by more than 5000 cyclists a year. Usage then began to plateau, mainly due to the lack of infrastructure and support services such as transport and accommodation.
There was just one lodge (Black Fern), located 6km off the trail close to Piropiro, and a basic campground at Piropiro.
In 2015, Taumarunui-based Epic Cycles set up a shuttle transport and bike rental service. Economic benefits associated with the trail were estimated at less than $1 million that year.
However, major development occurred when a partnership of Waikato and Wellington businessmen raised $3.8 million, including $1.25 million from the Tourism Growth Partnership Fund, for the purpose of establishing a lodge at the midway point.
As a result, the Timber Trail Lodge opened in April 2017. The venue is now a well-established business that has expanded to provide shuttle transport, with Ongarue-based Timber Trail Shuttles and Bike Hire (starting up in 2019).
Dave said trail users could be broken down as follows:
n 19,000 plus cyclists (including more than 1000 participating in the Tour Aotearoa event).
n 3500 plus Te Araroa Trail walkers (compared with 2000 in 2019-20). This group’s average stay was four-to-five nights in Waitomo District and three-to-four nights in Ruapehu District.
n 1000 day-walkers entering from Piropiro, Ongarue and Pureora (average stay one night).
Dave said the rapid growth could be explained by the following factors:
The growing popularity of e-bikes; the development of bike tourism; Covid (and associated rise of domestic tourism); development of good services on and near the trail; word of mouth; positive media stories; ongoing trail maintenance and strong community support.
“E-bike riders now make up about a third of Timber Trail users and the demographic profile of riders is becoming more diverse.
“The average age of riders is older, and there is growth from offshore markets, led by Australians,” Dave said.
“There are now three main accommodation providers: Black Fern Lodge, Timber Trail Lodge, and Camp Epic.
“In total, these provide just over 100 beds. There are two main transport providers and several smaller operators. Up to six guiding companies run biking and hiking tours on the Timber Trail.”
Additional providers, located at Maniaiti/Benneydale, Ongarue, Taupō and Taumarunui, also support trail users with services such as transport, accommodation, and meals.
Tracking the spend
BY far the largest slice of the income the Waikato derives from the Timber Trail is from cyclists who drive in and drive out to ride the trail, as opposed to those who ply the full Tour Aotearoa route.
Tourism consultant Dave Bamford said 18,000 cyclists, who stayed on average for 1.75 nights each, spent on average $225 per day (including accommodation, meals, shuttles). This totalled $7,087,500.
In comparison, cyclists attempting the full Tour Aotearoa route were on average about 1000 in number. They stayed two nights on average, at about $75 per day (about $150,000 total).
The estimated 3500 Te Araroa walkers who did the route each year stayed on average for four nights, at $50 per night ($700,000 total), while about 1000 day-walkers on the trail spent $50 per day ($50,000 total).
As for costs, Department of Conservation track maintenance cost about $300,000 per year. DOC employed three full time equivalent (FTE) Timber Trail staff (about $100,000 total).
Ruapehu District Council and Waitomo District Council marketing spend totalled only $45,000.
In total about 25 FTE staff worked at businesses serving the Timber trail, as follows: Timber Trail Lodge 6; Black Fern 3; Epic Cycles 3; Timber Trail Shuttles 8; Te Kūiti and other areas 4.
Virtually all staff were drawn from the nearby regions and about a third of them were from local iwi.
“Thus, total revenue currently generated within the local economy by the Timber Trail is about $8.4 million per year, excluding FTE employment. This is up from $5 million in August 2020,” Dave said.
“These estimates do not include multipliers, which are an accepted methodology to understand flow benefits to the local economy.
“In New Zealand, the accepted multiplier effect for regional tourism is 1.5 to 1.75 times the direct tourism expenditure, thus indicating that economic benefits of $12-15 million are generated by the Timber Trail.
“Given the significant growth in Timber Trail use in the last few years, a continued rise of around 10% per year could be realistic for the next three to five years.”
However, Dave said a potential risk to achieving this growth could be lack of trail maintenance and lack of good governance.
“In summary, starting from the initial $5 million government investment, the Timber Trail has generated excellent economic payback to the region.”
Dave said environmental and cultural benefits of the Timber Trail had not been included in his analysis, though they were well worth mentioning.
“Pureora Forest Park has seen a considerable increase in recreational use, thus achieving health and social wellbeing benefits.
Improved roading, conservation benefits such as pest animal and pine tree control, better search and rescue services, job opportunities for the local community, and a greater awareness of the cultural and historical values of the area are all contributions created around and supported by the Timber Trail.”
Timber Trail Lodge operations manager Russell Malone said the business made every effort to buy local producers.
“Wherever we can we seek out produce and product from our own region, Russell said.
“Some examples would be as much meat as possible, locally brewed beers, honey and watercress.
“We have 20 or so employees, most of whom come from the area, along with a few internationals.”
