Aussie bubble reaction
Aussies may not offset losses, say businesses
Hawke’s Bay businesses remain sceptical amidst the arrival of Australians after the opening of the transtasman bubble, with fears it may not be enough to claw back losses.
From Monday, travellers can board quarantine-free flights between New Zealand and Australia for the first time since Covid19 struck.
According to the Ministry of Business, Innovation and Employment, Australian tourists and business travellers spent $52 million in Hawke’s Bay in 2019 — a 7.6 per cent slice of the $679.6m visitor spend.
But for some Bay businesses, the bubble has sparked new concerns. Asure Colonial Lodge Motel owner Mark Johnson is apprehensive amid concerns the bubble will draw potential visitors away from the Bay.
“We’ve seen a good upturn in Kiwis travelling to the region, but now they’ve got other options now so Hawke’s Bay might drop down a couple of spots,” he said.
The Taradale motel owner said while Aussie visitors weren’t the bread and butter of the business pre-Covid, the motel had already received two bookings from across the Tasman.
“But then you can’t build a business on two bookings. During the summer, Australians made up 10 to 15 per cent of bookings, while in winter virtually none.”
Air New Zealand said it flew 31,300 passengers from Australia to and from Napier in 2019.
Air NZ chief customer and sales officer Leanne Geraghty says the opening of the bubble will be a welcome boost for Hawke’s Bay.
“We know the region has done it tough during Covid-19 and the bubble will connect the region to thousands of potential Australian tourists and business travellers,” she said.
“In the days following the bubble announcement, we saw tens of thousands of customers book flights to Aotearoa and we expect many of them to visit places like Hawke’s Bay.”
After a “grim” spell for the business in recent months, Gannet Beach Adventures co-owner Kim Lindsay said she looked forward to the bubble opening — with foreign tourists making up 40 per cent of trade.
"But then you can’t build a business on two bookings." Mark Johnson
“There’s a lot of talk about it leading to Kiwis going to make the trip instead of travelling around domestically, but we see it as a positive at this stage,” she said. “The Kiwis cannot make up the difference unfortunately.
“But with our season finishing in a couple of weeks, it’s not going to have an impact for us until October when we start up again.”
Hawke’s Bay Tourism said the Australian market was the region’s fourth largest in the 12 months to February 2020, behind Auckland, Wellington and Manawatu¯/ Whanganui.
Chief executive Hamish Saxton said the bubble would open Hawke’s Bay up to the business sector, as well as friends and family.
“Given Kiwis’ love for Hawke’s Bay, we hope to see Australian visitors who are coming home or travelling across the ditch and joining their friends and family,” he said.
“But the bubble will also allow people to travel, meet and gather for business, and I know our business events sector will be looking forward to that as well.”
Saxton said while visits from Australia might start slowly and increase incrementally, Bay visitor-focused accommodation providers would largely welcome the additional occupancy.
Geraghty said communities in the Bay were vital to Air NZ and she recognised the company played a critical role in connecting the region to loved ones, business opportunities and to regional growth and employment through tourism.
“New Zealand has one of the best domestic networks in the world, and a key benefit is connecting regions like Hawke’s Bay with transtasman routes.”