Sightseeing may become cheaper as Kiwis are urged to holiday at home
While some tourism companies are planning to close for at least two years, others are hoping to keep going with the help of Kiwis.
Nga¯ i Tahu has announced its intention to mothball its tourism businesses, which employ about 300 people – including 70 in the West Coast glacier towns.
Scenic Circle is mothballing two of its hotels in Dunedin and Franz Josef for 18 months.
Totally Tourism’s Mark Quickfall said he hoped the Government would help tourism businesses by lowering Conservation Department (DOC) concession fees. He said the company, which owns adventure and sightseeing businesses in the lower South Island, could pass that saving onto customers to attract more Kiwis.
Quickfall said pre-coronavirus, the domestic market was only 10 per cent of business but he expected that could grow once Kiwis were allowed to travel domestically.
‘‘Last year, New Zealanders spent $6.56 million on overseas travel – now that they are unable to go some of that might find its way around the country. We are looking at ... offering attractive options to make it more affordable.’’
The company’s operations include Milford Sound cruises, scenic helicopter flights, glacier landings and heli-skiing trips. Helicopters were expensive to operate, he said.
‘‘We have always had high costs to cover . . . airport charges, DOC charges, we have to process a lot of levies. People don’t realise, particularly for heli-skiing. I would hope for some government relief in these areas.
‘‘For scenic flights on DOC land, we have to pay $25 a person, which goes up to $50 for heliskiing. We are keen to get some relief from the Government to offer
more competitive prices.’’
The company has 21 helicopters, seven fixed-wing aircraft and two boats for Milford Sound cruises. Its Helicopter Line business has retained 160 staff, so far.
‘‘What we are doing is waiting to see how things play out but the wage subsidies only last for 12 weeks. When the subsidies stop, we will have some redundancies.’’
Quickfall hoped New Zealand could open its borders to Australia in the medium term.
Glacier Guides chief executive Rob Jewell said many Kiwis had never seen the glaciers and he hoped more would explore their own backyard. ‘‘People have come from the four corners of the world to see the natural attractions we have in New Zealand. Our glaciers are the most easily accessible in the world, terminating in a temperate rainforest nearly at sea level and close to a main highway.
‘‘And if you believe the scientists about climate change, they won’t be around forever so people should take the opportunity now to see them, experience them up close, and learn about them.’’
The glaciers were always free to view from the viewpoints on walkways but getting onto the ice was only possible with a helicopter.
Jewell did not know if scenic flights and heli-hikes would be cheaper for Kiwis after lockdown.
Glacier Guides would be talking about costs to contractors who flew them onto the ice to try to ‘‘make it more attractive to the domestic market’’.
‘‘It’s not an easy equation because the aviation industry has taken a significant hit and we don’t know what it’s going to look like. It’s about how we market to New Zealanders,’’ Jewell said.
The company employed 65 staff at peak season.
‘‘We won’t be able to get going again until level one. We were the first to stop and are probably going to be the last to get going again. It’s going to be tough.’’
DOC director of planning permissions and land Natasha Hayward
said that Covid-19 had increased pressure on many organisations.
‘‘We understand this is a difficult time for many businesses and we have been carefully considering what support they might need.
‘‘We will be in touch with concessionaires at the start of May to provide clarity on how we will work with them beyond May 2020,’’ Hayward said.
The department would review its fees and advise concessionaires of any changes.
Businesses could seek assistance through the Ministry of Business, Innovation and Employment’s business support packages, she said.