Hundreds of tourism firms seek funding

More than 300 businesses have applied for money from a special fund to protect key tourism attractions.

Most of the Government’s $400m tourism rescue package will be devoted to the strategic assets protection programme, and there will be stiff competition for the money.

The Ministry of Business Innovation and Employment (MBIE) website said about 50 operators would get support, but Tourism Minister Kelvin Davis recently said the final number would depend on how many applied and what help they needed.

Businesses had just two weeks notice to prepare their applications and a fast turn around time has been promised with decisions made by mid-July.

There was an uproar when the wage subsidy initially failed to cover larger businesses, and although that decision that was quickly reversed, the Government undertook to provide ‘‘tailored’’ assistance to bigger tourism operators

To be classed as strategically important, businesses must be key national or regional attractions, draw large numbers of visitors, be culturally and historically important, and have significant spill-over benefits for their region.

MBIE confirmed that overseas ownership had no impact on the eligibility of a business.

Based on recommendations from MBIE officials, the tourism recovery ministers group, set up to oversee the industry’s recovery from the coronavirus pandemic, will decide who gets support and how much

Businesses can seek funding for up to two years, but they must have exhausted all other avenues of government and private support.

Applicants were asked how much of their income was from overseas visitors, whether they were under severe financial stress, and if they were unable to meet minimum costs needed to survive or ‘‘hibernate’’ the business until demand recovered, or they switched to targeting the domestic market.

Some funding may be in the form of loans, as has already occurred with a loan accounting for half of $4 million awarded to

THL to keep its Waitomo Caves attraction open. The strategic assets programme has also given up to $1.5m to Whale Watch Kaikoura.

The outcome of the funding process will be eagerly awaited by tourism operators, particularly those heavily dependent on overseas visitors.

There is some concern about the potential financial fall out if one operator is successful and others in the same line of business are not.

Tourism West Coast supported seven applications, and at least 20 applied from Rotorua.

In Canterbury, Christchurch Attractions, which runs several city tourism ventures including the trams, has sought funding.

Queenstown-based Totally Tourism, which runs a range of businesses, including scenic flights and Milford Sound cruises, has also put its hand up.

Totally Tourism director Mark Quickfall said the application process was straightforward

‘‘It will be interesting to see who is successful and who misses out. More importantly will be why.’’