KUPE WAKA CENTRE

An invitation to supporta culturally-basedinitiative for economicand social development

Contents

Eke (Board) te waka! ............................................................................................................................ 1Spreading the benefits .......................................................................................................................... 2Hekenukumai ....................................................................................................................................... 3Aurere, a special place .......................................................................................................................... 4The visitor experience ............................................................................................................................ 5Reception and Whare Wananga ............................................................................................................ 6Waka building complex ......................................................................................................................... 7Whare Taipu - main complex ................................................................................................................ 8Sustainability ........................................................................................................................................ 9Revenue projections ............................................................................................................................ 10Financial analysis ............................................................................................................................... 11Risk management ............................................................................................................................... 12Timetable ............................................................................................................................................ 13Arawai ................................................................................................................................................ 14

Document Reference: 2200/1 Rev.2, Aug 2005Authors: Dr Peter Phillips, John PanohoMahi Taapoi LtdPrivate Bag 1 Helensville,Ph: +64 (9) 478 4046e-mail: peter@mahitaapoi.co.nz

Acknowledgements

Arawai Ltd. would like to acknowledge the significant contribution of the architect Adrian Rob-inson of Auckland to the development of the concept for the Kupe Waka Centre. Workingtogether with John Panoho, the building designs embody the cultural aesthetic desired for theCentre in a practical manner which respects the local environment.

He panehe toki, ka tu te tangitangi kai

This whakatauki, which translates as A little stone adze will fell large trees, evokes the food thatwill be produced when land is cleared. In this case, the trees can be thought of as the hulls ofthe sailing waka Te Aurere , the land to be cleared as the site of the Kupe Waka Centre at Aurere,and the food as the local and regional social and economic development, and the culturalrevival that the Centre will help promote.

Eke (Board) te waka!

On 8th December 1985 the Hokule’a, a rep-lica of an ancient Hawai’ian double-hulled ca-noe, arrived at Waitangi in the Bay of Islandsafter a 16 day journey from Rarotonga. For Hek-enukumai Ngaiwi Puhipi Busby, his wifeNgahiraka (Hilda) Rangi Busby, and a smallgroup around them this was the start of an-other journey....

...and the rest, so they say, is history. Except, itis a history that is probably better known in far-flung islands around the Pacific than here inAotearoa-New Zealand. It is the history of thebuilding of the waka hourua Te Aurere, the voy-age of reconnection to Rarotonga in 1992, andof 30,000 nautical miles of blue water sailingto Hawai’i, the Marquesas, New Caledonia, andNorfolk Island, as well as circumnavigations ofTe Ika a Maui (North Island).

In 1984 Hekenukumai told Nainoa Thompson,the navigator for Hokule’a when he wasplanning the voyage to Aotearoa-New Zealand

"In this land, we still have our canoe bur-ied. In this land, we still have our languageand we trace our genealogies back to thecanoes our ancestors arrived on. But wehave lost our pride and the dignity of ourtraditions. If you are going to bringHokule'a here, that will help bring it back."

Now another step to help bring it back is un-derway which will both celebrate the revival ofthe traditional waka hourua and wayfindingand provide a much needed regional economicdevelopment initiative in the Far North.

The Kupe Waka Centre at Aurere in DoubtlessBay will be an education and tourism attrac-tion of international significance as well as asite for waka construction, and for training inwaka sailing and celestial navigation. Theproject is being undertaken by Arawai Ltd, alimited liability company with charitable truststatus. Arawai Ltd is wholly owned by twoTrusts: Te Tai Tokerau Tarai Waka Inc. and the

Hekenukumai Ngaiwi Waka Trust. It was setup to provide a sustainable business base tosupport kaupapa waka.

Planning for the Kupe Waka Centre is now welladvanced. Detailed financial analyses showthat the Centre will be profitable - the key ques-tion is when it can start supporting the work ofthe trusts. Arawai Ltd is now seeking to mini-mise or eliminate borrowings to meet the capi-tal cost of $5 million. This would enable thecompany to begin distributing surpluses to thetrusts in 2008/9 with significant payments (over$500,000) beginning in 2009/10. If the moneyis borrowed at 10% interest, dividends onlyreach $350,000 by 2015/16.

While the immediate focus of the Kupe WakaCentre is on supporting kaupapa waka, theeconomic, social and cultural benefits will flowlocally, regionally, and nationally . In particu-lar, the building of an international tourism iconin the Far North will provide jobs and a majorstimulus to increasing visitor numbers to theFar North, an area of major social deprivation.

1

The development of the Kupe Waka Centre andthe planned activities which will establish theeconomic base for the two waka trusts also pro-vide the platform for economic developmentin Northland.

The Far North has been identified as an area ofacute needs. The extent of the problem is am-ply shown by an analysis of deprivation basedon the 1996 Census. Red areas on the mapare in the 10% that are most severely deprivedin the country in socio-economic terms.

The Kupe Waka Centre presents an opportu-nity for Mäori and the local community to ad-dress these needs using the knowledge andskills of waka building and celestial naviga-tion in education and tourism.

Tourism already contributes $230-500 milliona year to the Northland economy . As a majortourism attraction (located on the Twin CoastDiscovery Highway - the regional touringroute), the Kupe Waka Centre will make a sig-nificant contribution to the local and regionaleconomy through employ-ment at the Centre andamongst suppliers of crafts,catering, and other services.

Cultural tourism, most main-stream tourism operators inTai Tokerau and a wide rangeof other businesses will alsobenefit from the flow-on ef-fect of more visitors to theNorth. This will support oneof the main themes of theNorthland Regional Eco-nomic Development Strategywhich sees the vision and pas-sion of many small busi-nesses and organisations asa force that can revitalizeother facets of economic de-velopment in Tai Tokerau.

International tourism promotion will be en-hanced by a new attraction of international stat-ure, as Maori product represents a key wayAotearoa-New Zealand differentiates itself over-seas.

The benefits for Mäori include:· a much needed employment and income

stream for Mäori in the Far North resultingin reduced dependency;

· an education and tourism icon that will bea source of pride for all Mäori;

· a platform for acquiring skills in waka con-struction and associated crafts, celestialnavigation, and business operation;

· education and training programmes forschools, tertiary students, and waka sail-ors and navigators that will contribute tothe protection and enhancement of tikangaMäori. Programmes will also continue TaraiWaka’s work with at-risk youth, and its in-ternational outreach to indigenous peoplesthroughout the Pacific as part of the PacificNavigators Network.

Spreading the benefits2

Hekenukumai Ngaiwi Puhipi Busby was bornat home at Pukepoto some 40 km from Aurereon the first of August 1932. He went to schoolat the local Native School where one of thehighlights was visits to Waitangi. There hewould sit and commune with the waka tauaNgatokimatawhaorua and wonder if he wouldever see a waka like that in the water.

Hekenukumai left school at 15 years old toenter the workforce. His first job was in a bak-ery and he tried his hand at a number of things(including the gum fields) before starting a 40year career in bridge building in 1951.

The first major Involvement with waka for Hek-enukumai came in 1973 when, in response toan initiative of Prime Minister Norman Kirk whowanted to change Waitangi Day to New Zea-land Day, it was decided to launch Ngatoki-matawhaorua for the 1974 celebrations.

Hekenukumai learnt a great deal about wakabuilding at that time from Taupuhi Eruera. Thisincluded how to select trees and how to deter-mine the “heavy” side that had been exposedto the weather (and is used at the bottom of awaka) even in trees that had been previouslyfelled. It was also Eruera who told Hekenuku-mai that if there were any canoes to be built inthe north, Hekenukumai would be the one tobuild them.

Two other people profoundly influenced Hek-enukumai to work on waka hourua. The firstwas John Rangihau who, among many otherthings, introduced Hekenukumai to NainoaThomson of the Polynesian Voyaging Society.

The second was Sir James Henare who, at thepowhiri for the crew of the Hawai’ian canoeHokule’a, held at Waitangi marae in Decem-ber 1985, said that he had hoped that one dayin the near future a waka would be built in TaiTokerau that would go back to where Maoricame from.

That waka was Te Aurere, which was built in1991-2 from local Kauri. The waka is 17me-tres long with carved prow and stern. It hastwo masts and can also rig a jib. The waka isessentially lashed together in the age-old way,but using modern ropes and cords. Capableof making ten knots in a good wind, the chal-lenge for Te Aurere (like other waka hourua)comes when you want to head upwind - muchtacking is required!

Hekenukumai3

Aurere, a special place

The Kupe Waka Centre will be built at Aurereat the southern end of Doubtless Bay in theFar North District. A portion of the 120 ha prop-erty owned by Hekenukumai Ngaiwi PuhipiBusby has been dedicated to the Centre andthe Busby whanau have agreed to a long termlease.

The land at Aurere has been an integral part ofthe revival of waka hourua in Aotearoa-NewZealand as the site of the construction of TeAurere. The sailors of Tarai Waka learnt to sailthe waka in extensive sea trials in the Bay be-fore making their first ocean voyage of almost2000 nautical miles to Rarotonga in 1992. Thestar compass on the top of the main dune atAurere has been used in studying traditionalcelestial navigation and planning voyages forthe past ten years as well as in numerous train-ing wananga.

Named by Cook as “doubtless a bay” as hetacked northwards along the coast in earlyDecember 1769, one of the more unusual as-pects of Doubtless Bay is the carved waka prowwhich was found buried in the sand. This hasbeen dated to pre-Maori times. It is now heldat the Auckland War Memorial Museum. Theprows of Te Aurere were modelled on this an-cient carving.

State Highway 10

Doubtless BayDoubtless BayDoubtless BayDoubtless BayDoubtless Bay

Kupe WakaKupe WakaKupe WakaKupe WakaKupe WakaCentre siteCentre siteCentre siteCentre siteCentre site

PPPPPrivrivrivrivrivate Roadate Roadate Roadate Roadate Road

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The visitor experience

The design of the Kupe Waka Centre providesthe opportunity for a balanced tourism experi-ence which has elements of education, enter-tainment, involvement, and aesthetic apprecia-tion (i.e. in the “sweet spot” in the middle ofthe chart). Careful programming will make thispossible even within the constraints of a visitby a tour group which might last only an hour.

From the Reception, visitors cross a wetlandon a boardwalk to their first stop at a recreatedPacific Island marae. From there they make avoyage to Aotearoa-New Zealand involving:• learning to paddle in a waka tangata;• viewing the waka building complex;• viewing a waka hourua at the jetty;• an introduction to traditional wayfinding

(including celestial navigation) at the starcompass

• a virtual sail from Rarotonga to Aurere inthe planetarium

• viewing the exhibition• an opportunity to purchase memorabilia

and food and beverages.

Visitors who can stay longer will be able tospend more time on learning about waka andwayfinding, and on activities. They might takepart in workshops on celestial navigation con-ducted on the star compass and in the plan-etarium, or have a go at waka paddling andsailing in the river and out on Doubtless Bay.

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Reception & Whare Wananga

The Reception building is designed to instantlyengage the visitor into a modern, Pacific, mari-time experience. The floor plan is evocative ofa hull, while the roof line derives from thelanteen sail familiar on many traditional sail-ing waka across the Pacific.

In functional terms, the building provides con-trolled access to the site for both independenttravellers and groups. It also provides a smallexhibition space to start to introduce peopleto the Centre. Visitors pass only one waythrough the building as there is a separate exitfrom the site slightly to the north.

An important feature of the Reception is thelarge covered deck to the rear of the building.This provides an all-weather assembly area fortour groups after they have passed through thebuilding.

The Reception also provides the administra-tive hub of the Centre from offices at the north-ern end of the building.

The Whare Wananga will be one of the primaryteaching spaces on the site and will be a venuefor conferences. It is designed to provide sleep-ing accommodation, marae-style for attendeesof wananga and conferences. Consistent withmarae protocol, no food or beverages will beconsumed in the building.

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Waka building complex

The waka building complex has been designedto both respect the traditions of waka buildingand yet meet the visitors’ expectations to getas close possible to the waka and the carvers.

The complex has two buildings. One is tapuwith glass walls so that visitors can look in atthe waka building in progress. In Maori cus-tom access to waka under construction is lim-ited. The layout of the building will respectthis custom, and health and safety require-ments, while ensuring that visitors can enjoyexcellent views of waka being carved

The other is noa through which the visitors canwalk and look at carving close-up. A range ofcarving projects will be undertaken in this build-ing which do not have the same cultural sensi-tivity as the waka.

Between the two buildings there will be aroofed over area where the major work of hullcarving can be done and the waka hourua canbe assembled and repaired.

The logs are already on hand to build a sec-ond waka hourua. This will embody lessons inhull shape and other elements of waka designlearned from ten years of sailing Te Aurere over30,000 nautical miles.

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Whare Taipu - main complex

The design of the main complex is an innova-tive response to the only major planning issueposed by the site - the need to protect the land-scape values of the coast of Doubtless Bay. Anyconstruction on the dune would mar the viewso the main complex will be built below thelevel of the main dune, maintaining the integ-rity of the top of the dune.

The main complex comprises three linked cellswith domed roofs covered by sand thengrassed over to reinstate the existing condi-tions (Whare Taipu means House under thesand). The complex will be almost invisible tothe casual observer out to sea and out of sightfrom the beach, hidden by the foredune.

The building houses three main features:(1) the planetarium;(2) the exhibition hall and retail area; and(3) the cafe.

The planetarium will be used in conjunctionwith the star compass for instruction in celes-tial navigation. A presentation for visitors willexplain the migrations and show them thechanging skies as a waka is navigated fromRarotonga to Aotearoa-New Zealand.

The exhibition/retail area will include a rangeof exhibits related to waka sailing in the Pacific.Various waka, including a 1/3rd scale versionof Te Aurere (like the one at the Museum of NewZealand, Te Papa Tongarewa) will be displayed.Visitors will also be able to buy a selected rangeof memorabilia. As much as possible of themerchandise will be crafted locally.

The cafe (like the retail operation) will providea revenue stream for the Centre. It will servefood and beverages to the day visitors and toattendees of functions, conferences and wa-nanga held at the Centre.

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The Kupe Waka Centre will be an essential des-tination for tourists to Northland and one of veryfew Mäori tourism ventures in the country ofinternational significance. In parallel there willbe educational programmes for a wide and var-ied audience operating out of the Kupe WakaCentre using the facilities, resources and intel-lectual property of the Centre and the two ben-eficiary trusts.

The Directors have developed a strategic planfor Arawai Limited. All planning is based onthe central concepts of commercial viability andlong-term sustainability. None of the activitiesof Arawai Limited will be reliant on future Gov-ernment funding. On this basis, the Kupe WakaCentre will be both self-sustaining and make auseful contribution to the sustainable economicdevelopment of Northland.

The sustainability of the development of theproject in cultural terms and the expertise inwaka construction, sailing and celestial navi-gation is assured through the work of Tarai

Sustainability

Waka and the Hekenukumai Ngaiwi WakaTrust. While the fundamental contribution ofHekenukumai Ngaiwi Puhipi Busby is acknowl-edged, skilled navigators, sailors and carvershave now been trained and there are on-goingtraining programmes.

in 2002, 25 people started training for the nextmajor voyage, to Rapanui. They are seen be-low with a kauri log extracted from the HerekinoForest which has formed one of the hulls of anew waka hourua being built at Aurere.

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0

10000

20000

30000

40000

50000

60000

70000

80000

90000

100000

2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Visi

tors

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WholesaleRetail

Revenue projections

The Kupe Waka Centre will earn its revenuefrom eight main sources. In the tourismoperation there will be:· entrance charges for the coach market;· entrance charges for independent travellers;· food and beverage sales;· merchandise sales; and· activities sales.

The Kupe Waka Centre will have at least fourprogrammes in education and trainingcovering:· Tarai Waka’s training of waka sailors and

navigators;· learning experiences outside the classroom

for school children;· tertiary training through an accredited pri-

vate training provider;· domestic and international visitors.

The Centre will also generate income from arange of other sources including acting as avenue for conferences and other functions.

Financial planning for the Centre is based onvisitor numbers which ramp up from a modeststart to reach 96,000 by 2015/16. This maybe unduly conservative given that the WaitangiNational Trust attracts over 130,000 visitors ayear.

The base income will come from the entrancefees which makes up two-thirds of revenue inthe first year. This falls to 40% by Year 3 asother income sources build up. Among theseare a range of activities for the independent trav-ellers who can spend more time on the site thanis allowed for those travelling by coach. Theseactivities will include paddling a waka tangataand sailing a small outrigger canoe.

Planning is also underway for a range of longervoyages including one and two night coastalsailing for celestial navigation. These have notbeen finalised and are not included in the fi-nancial plans but will eventually add to the cen-tre’s income.

10

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

Rev

enue

OtherEducationActivitiesMerchandiseF&BEntrance

Financial analysis

The Kupe Waka Centre is a substantial projectbefitting its role and its cultural and economicsignificance. Preliminary costings indicate thatthe Centre will require an initial capital invest-ment of $5 million to complete the develop-ment - as a tourism site it would not be appro-priate to stage construction as this would dis-rupt the visitors’ experience.

The financial analysis shows that the projectwill make a net profit after tax (NOPAT) in itssecond year of operation and it will make posi-tive economic earnings in its fifth year.

The difference between the two measures isthat the economic earnings shows when theproject could start paying dividends to the twotrusts if it had to borrow the money at 10% in-terest. In contrast, the NOPAT shows whatwould happen if the money could be raisedfrom philanthropic organisations.

If the capital charges can be minimised, or bet-ter still, be eliminated then the two trusts willget much-needed funding starting in 2009/10when over $500,000 is available for distribu-tion. This rises to over $1 million in 2014/15.This contrasts markedly with the situation if themoney is borrowed, as only $350,000 wouldbe available for the trusts in 2015/16.

In short, what the analysis shows is that it isnot a matter of if the project is economicallyviable (as quite apparent in the graph of thereturn on investment) but when funds will beavailable to fund the work of the trusts in sup-porting kaupapa waka, and generating the eco-nomic, social and cultural benefits that will flowlocally, regionally, and nationally.

11

-$1,500,000

-$1,000,000

-$500,000

$0

$500,000

$1,000,000

$1,500,000

2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

NOPATEconomic earningsSimple ROI

At the outset of the project a number of keyassumptions were made. These included:(1) the project would be endorsed by Hekenu-

kumai Ngaiwi Puhipi Busby and the othermain figures in Tarai Waka;

(2) agreement would be obtained fromHekenukumai and his whanau for the longterm lease of a parcel of land on which tobuild the Centre;

(3) there is a significant market potential forMäori tourism initiative based on waka inthe Far North

(4) the project could be designed in a way toconform with the District Plan and all otherlegal requirements; and

(5) there is a market for the educational pro-grammes the Centre would offer.

All these assumptions (which could have beenseen as possible risks at the outset of theproject) have now been validated:· the key players have enthusiastically en-

dorsed the proposal;· agreement has been obtained for the long

term lease of a parcel of land;· local and international research has dem-

onstrated the importance of Mäori tourismproduct in key overseas markets;

· initial discussions with the Far North Dis-trict Council identified only one major is-sue which the design needed to address.A programme has been prepared to obtainthe resources consents;

· besides the specialist training that has beenprovided for ten years by Tarai Waka, a sig-nificant demand for waka-based tertiarytraining in the North has been identified.

Setting up Arawai Ltd. with a board of skilleddirectors was seen as a way of minimising thebusiness risks associated with the developmentby adding to the resources of the two trusts.The company has worked hard to establish asound grounding of policy and procedures andthis has now been achieved.

The main outstanding risk to the project is thatof obtaining the required capital funding. Thisrelates not to the viability of the project but moreto the timing of the dividends which can be paidback to the two trusts.

Minimising or eliminating borrowings wouldenable the Kupe Waka Centre to begin distrib-uting surpluses to the trusts in 2008/9 with sig-nificant disbursements (over $500,000) begin-ning in 20010/11. Financial modelling showsthat with a 10% capital charge, dividends onlyreach $350,000 by 2015/16.

Risk management12

Timetable

The target date for the opening of the KupeWaka Centre is 1st November 2007. This willenable the systems to be properly bedded inbefore the peak of the season in Northland inDecember to April.

The project has now reached the critical stageof raising development capital. This will beundertaken in parallel with detailed business

and design planning and the gaining of re-source consents for the site development.

It is anticipated that the main constructionphase will take eight months. Some of the ini-tial landscaping, including the formation of thenew ponds, will be able to proceed as soon asthe resource consents are granted, while someof the planting can go ahead immediately.

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Task Activity

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8

1 Concept design

2 Preliminary costing

3 Client approval

4 Source capital funding

5 Detailed business planning

6 Detailed design

7 Costing

8 Client approval

9 Working drawings

10 Structural design and specifications

11 Resource consent

12 Building consent

13 Final costing

14 Client approval

15 Tender

16 Tender evaluation and approval

17 Construction

18 Defects liability (+12 weeks)

Year 2Year 1

Arawai Limited (ara meaning path and waimeaning water) was formed in 2001 with aboard of directors. The directors have back-grounds in tourism development, land devel-opment, industry training and development, fi-nancial management, and kaupapa waka.Johnny Edmonds is the Managing DirectorIrimana Enterprises. During the last 15 yearsJohnny has held executive positions in Governmentand Crown Enterprises and most recently as theChief Executive of the Waitangi National Trust.Johnny is currently the chief executive of the NewZealand Maori Tourism Council.

Johnny’s wide-ranging experience of relevance tothe project includes his appointment in 1996 asKaitakawaenga in Te Papa, Wellington, where hewas responsible for co-ordinating and managingthe Maori Strategic Directorate. The Directorate hada primary focus on the strategic development of TePapa as a bicultural organisation and the co-ordi-nation of Maori involvement in events/projects nec-essary for the establishment of Te Papa.

Stanley Conrad is the skipper of Te Aurere. Stanhas extensive sailing experience and a backgroundin the fishing industry. Stan’s introduction to wakahourua was to sail on the leg of the Voyage of Re-discovery of the Hawai’ian canoe Hokule’a in 1985.He has gone on the be the most experience captainof double-hull waka in Aotearoa -New Zealand.Stan works at Northcote College in Auckland wherehe runs special programmes for Maori and pacificIsland students.

Peter Phillips is the Managing Director of DialogueConsultants Ltd. and Mahi Taapoi Ltd., and a Trus-tee of Auckland New Ventures Inc, an economicdevelopment agency and training provider in Auck-land City. Peter has a background in strategic plan-ning, business development, and consultation. Histourism experience includes managing the NewZealand Official Development Assistance Pro-gramme for tourism in the Cook Islands between1993 and 1998. He has recently prepared a newtourism strategy for the Cook Islands based ongeotourism principles.

Mahi Taapoi is a specialist consultancy focused onsustainable tourism development for individual busi-

Arawai14

nesses and clusters. The latter has included as-sistance with the formation and development of tour-ism clusters in Tai Tokerau and the Central NorthIsland. Peter is currently an assessor for the MaoriTourism Facilitation Service

Hekenukumai is currently the fourth member ofthe Arawai Board.

Eke te waka!

Arawai Limited, PO 51 Mangonui, Northland, Aotearoa-New Zealand