Cruise ship boost
No respite is in sight for tourism as the border closure for China remains, and the Government considers extending it to other countries.
With cases of Covid-19 appearing in Italy, South Korea and Iran, the Ministry of Health’s technical advisory group is looking at whether a wider a travel ban may be needed.
Spread of the virus around Asia has prompted cruise companies to relocate their ships and as a result Auckland will get two extra late season visits, but that is cold comfort for many businesses missing Chinese visitors.
The tourism industry has accepted that public health has to take priority, but as more pockets of the virus appear outside China, there are concerns that may reduce enthusiasm for long-haul travel.
Tourism Export Council chief executive Lynda Keene said inbound agents and tourism operators were keeping a careful watch on what was happening in other markets.
‘‘I support extending [the border closure] for another week until we have a few more facts. We’d like to move back to some normal trading, but health and safety must take priority.’’
Keene said some travel itineraries were being adjusted to avoid Asian hubs in favour of Dubai and the United Arab Emirates. ‘‘Singapore is still OK at this point in time.’’
Operators affected by the sharp drop in Chinese visitors were trying to retain staff ‘‘because in two or three weeks’ time it could be really different’’.
Some businesses heavily exposed to the Chinese visitor market are already struggling financially and business adviser with Bakertilly Staples Rodway, Tony Maginness, said that he had clients considering going into voluntary administration.
‘‘They know that if this carries on they will be completely out of cash, so they have to think about what they can do.’’
For the year to December, Statistics NZ data shows New Zealand residents made more than 3 million overseas trips.
House of Travel commercial director Brent Thomas said very few Kiwi customers had cancelled travel bookings out of concerns about the virus – ‘‘it’s single
figures, below 10 per cent’’.
Access to insurance cover had improved and Thomas said his company was able to offer policies that would cover medical costs for treatment of coronavirus, but not other associated costs, such as rearranging travel.
‘‘If you go to Europe and end up in a French hospital and run up a $50,000 bill, it will cover that, even if it’s coronavirus, but it won’t cover changes to your flights home.’’
New bookings had slowed, and the greatest reduction had been in cruise bookings.
Some businesses heavily exposed to the Chinese visitor market are already struggling financially and some clients were considering going into voluntary administration.
Tony Maginness
Bakertilly Staples Rodway business adviser