Operators mull price cut for domestic market
Tourism operators in Waikato and the central North Island are elated to get back to business.
Tomorrow, under the alert level 2 restrictions, tourism operators will be able to reopen and domestic travel will be allowed.
Rotorua mayor Steve Chadwick said tourism’s ‘‘tap was virtually turned off for eight weeks’’, but businesses were eager to open up shop and get the economy going.
Tourism Hub Rotorua is facing a catastrophic drop in revenue. More than $800 million a year would normally pour into the township from tourism alone – more than half of which comes from international visitors.
Chadwick said: ‘‘Businesses are moving very quickly to adapt to different criteria and looking at their options . . . because without the international market, domestic is only about half our tourism.’’
She said with the establishment of a sector group, led by an economic development agency, the majority of tourism, hospitality and accommodation operators had adapted quickly to the changes.
For some operators that included lowering prices for domestic visitors, Chadwick said.
‘‘We are very aware that there is a lot of people who won’t have much cash.’’
Matamata’s Hobbiton, in the home of Waikato’s largest number of Covid19 cases, is taking the cautious approach by not opening until May 30.
The company will keep the Hobbiton experience much the same, saying its tours still ‘‘resonate with Kiwis’’.
‘‘We’ve been working on the reopening of May 30 with a reduced tour offering. To begin it will be three tours a day,’’ sales and marketing general manager Shayne Forrest said.
‘‘The tourism landscape is going to be quite different from what it was. We were quite heavily an international tourism attraction, but we’ve always had a lot of Kiwis come through.’’
When asked if Hobbiton was considering lower prices for domestic visitors, Forrest said it was too early to say. Hobbiton would allow children in for free. ‘‘We are reviewing and seeing if there is any scope there to diversify the product offering. But for now hopefully New Zealanders will just come out and support us.’’
For some tourism operators there are more grey areas the Government needs to iron out. Ski field openings are still seven to eight weeks away while more guidelines and preparations are put in place.
Ruapehu Alpine Lifts chief executive Jono Dean said the move to level 2 was promising for the ski industry and this year’s winter season ahead.
However, more clarity was required regarding the conditions ski areas are able to operate under.
‘‘The ski fields in the Ruapehu region not only contribute hugely to the local tourism spend but also employ a significant portion of staff who live locally within the region,’’ Dean said.
‘‘We’re hopeful for our winter season, and projects are under way at both Whakapapa and Turoa ski areas in spite of the uncertainty.’’
In the meantime, the current season pass price has been extended to May 31.