Big challenge for tourism sector
Tourism must follow Air New Zealand’s lead, and switch its focus to domestic visitors.
It’s decision time for our tourism operators. Covid-19 has taken away their prime source of income, international visitors, leaving many scrambling to come up with a long-term survival plan. The Government’s wage subsidy is short-term, a stay of execution, while a lack of detail in the Kelvin Davis-led $400 million Tourism Rescue Package hasn’t provided the level of direction business owners were looking for in a post-Covid world.
It promised ‘‘protection and assistance’’ to key tourism assets, but at time of writing the minister’s office had not released any details showing who would be the recipients.
New Zealand tourism’s heavy reliance on international visitors has been exposed. We have international tourist destinations such as Hobbiton in the Waikato now in hibernation mode, while a tsunami of unemployment is forecast for Queenstown’s tourism sector.
Our coastal cities are no longer ports of call for the many tourist ships and their visitors, which have been pouring millions of dollars into regional and city economies,in exchange for a slice of Kiwi life. A Government ban, in place until June 30, ended an estimated 141 ship visits and 45 voyages nationally. Wellington, for example, expected 127 cruise-ship visits this season but only received 84.
Air New Zealand’s international passenger service is a skeleton of what it was pre-lockdown. And it could be more than two years before international flights return to pre-pandemic levels. Instead, the national air carrier is pivoting towards a new plan to rebuild its domestic services, targeting Kiwi travellers.
Tourism must follow Air New Zealand’s lead, and switch its focus to domestic visitors. That will be challenging for operators who relied on revenue from premium ticket prices which international visitors were willing to pay for once-in-a-lifetime experiences.
Tourism attractions will have to think hard about a new business plan to match the expectations of the domestic visitor market. Many will have to weigh up the lower ticket price expectations of Kiwis, versus the ability to service operational costs.
Kiwis will have fewer dollars in their back pockets but, after almost two months in lockdown, people will want to reconnect with families and the places they love. They will want some reprieve from their short-term woes and experiencing some of the country’s top attractions could well offer some escape.
Accommodation providers could be earlyadopters of customised packages for New Zealanders. Luxury Lodges of New Zealand reported a number of its properties were cutting package rates by 40 per cent while others were offering three-nights-for-the-price-of-two deals.
In 1984, the New Zealand Tourist and Publicity Department launched a national campaign called ‘‘Don’t leave town till you’ve seen the country’’. It was used to inspire and encourage more Kiwis to see what’s in their own backyards before heading overseas.
The campaign’s well-known television advertisement has resurfaced on social media recently as a sign of support for regional, domestic tourism. This type of campaign, 26 years after its inception, now has a captive audience.
How can we adapt this concept to fit our current situation and help our tourism operators meet the challenges of the years ahead? That’s where we need some leadership from the Government and some of that can-do entrepreneurship from the tourism sector that Kiwis are known for around the world.