Expensive Operators seek wage subsidy in resort and ‘touristy’ offputting
QUEENSTOWN
QUEENSTOWN is the only place in New Zealand where small business job numbers remain below the preCovid rate, a report says.
Instead, many resort business owners feared the end was nigh and were intending to cut staff numbers unless the Government considered a Queenstown wage subsidy.
Accounting software company Xero’s Small Business Insight report said elsewhere, including the rest of Otago, had recorded growth in the sector since lockdown.
One struggling Queenstown business was sportswear shop Champions of the World, which has operated since 1997.
Owner Miles Wilson said his revenue had fallen by 85% and it was a matter of time till he closed up.
‘‘I’m anticipating by May or June, I may not be able to survive.’’
His business, like many others in the resort, relied on international tourism and the benefits brought by domestic visitors to the town since Covid19 had been patchy.
Small Planet Sports owner Darryl Tatom said his 40yearlong focus on the local market was paying off.
‘‘Queenstown’s spent too many years chasing that tourist dollar and maybe neglecting the New Zealand local dollar, to some degree.’’
He sympathised with those who felt put off from visiting by a perceived longterm focus on internationals.
‘‘You’re not going to go down there and support them after all those years of being moneyhungry, greedy capitalists.’’
Xero New Zealand managing director Craig Hudson said the hospitality industry was one of the industries worst affected by the pandemic.
He attributed this in part to the reduced tourism activity in Queenstown.
‘‘It remains the only region with job numbers below precrisis levels, with an 8.1% loss between March and December.’’
Nationwide statistics from the accounting software provider showed an increase in small business jobs compared with before Covid19, with areas like Wellington having a 12.3% increase and Hawke’s Bay 14.8%.
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have prompted some, like Mr Tatom, to call for a wage subsidy to support Queenstown’s teetering business community.
But, Nomad Safaris owner David GatwardFerguson feared it would result in national debt and hiked taxes.
‘‘We’ll be running at an extra $1 billion of debt every week.’’
Mr GatwardFerguson said Nomad’s, which received Strategic Asset Protection Programme (STAPP) funding, was trading at less than 10% of what it was a year ago and he said his staffing levels had fallen from 46 to 16.
He could not put a timeline on when things might come to a head, but said if nothing changed he would have to consider liquidating assets.
KJet owner Shaun Kelly said he would be very supportive of a tourism sector wage subsidy.
‘‘It’s either that or businesses closing down and the staff going on to the unemployment benefit.’’
The jetboat company also received STAPP funding, which Mr Kelly said was a ‘‘real lifesaver’’.
Income was down by twothirds and he said cuts were being made after 10 years of growth.
‘‘We’ve done very well and this is not going to last forever, we’re just battening down the hatches to ride this out.’’
GREATER focus on affordability and promoting Maori culture is needed, a Tourism New Zealand report says.
It revealed expensive activities or a reputation for being ‘‘touristy’’could put New Zealanders off visiting an area.
The report was compiled through a series of facetoface interviews and focus groups.
Tourism minister Stuart Nash said feedback suggested operators had focused too much on profits, neglected quality and not considered the impact of activities on communities.
Domestic and international tourists had differing priorities the report said, but shared a similar desire for welcoming locals, beautiful landscapes and feeling safe.
But Mr Nash said New Zealanders were more inclined to seek out local history, culture and hidden gems.
He said many were exploring their backyard for the first time and looking at places they had previously overlooked.
The report was aimed at identifying how businesses could adapt to target domestic spend, in lieu of the border remaining closed for a further year.
additional reporting New Zealand Herald