NZ agents return over $350m

THE New Zealand Government’s Consumer Travel Reimbursement Scheme (TD 08 Sep 2020) has so far assisted with the repatriation of more than NZ$352 million in refunds and credits to Kiwis whose overseas travel was cancelled due to COVID-19.

The program, which provided NZ$47.2 million in funding to assist advisors to manage cancelled travel, saw agencies paid 7.5% of the value of any cash refunds they secured on behalf of their customers, or 5% of the value of travel credits.

NZ Consumer Affairs Minister David Clark said in “working with the travel sector, we are helping New Zealanders retrieve the money owed to them by overseas travel suppliers.

“The scheme has seen millions of dollars locked up offshore returned to everyday New Zealanders, who were at risk of never seeing a cent,” he said.

Clark said the initiative meant more money was coming back into local economies, “as Kiwis now look to holiday domestically”.

He said it was an “excellent example of Government and industry working together for the benefit of New Zealanders...the expertise of the domestic travel sector continues to be crucial in helping get back money tied up in complex stranded bookings”.

The amount retrieved so far is about half the estimated $690 million in NZ overseas travel bookings hit by COVID-19, with officials working with the Travel Agents Association of NZ, First Travel, Flight Centre, House of Travel and Helloworld to facilitate the payments.

As at 31 Jan NZ$21.3 million had been paid to agents through the scheme, which does not cover any refunds, credits or rebookings returned to NZ consumers prior to 14 Aug 2020.

A full list of agent recipients of funding is at mbie.govt.nz.