Higher costs, staff shortages hit hard
Customers ‘will pay’ for hospitality and tourism staff shortages
Increasing costs and staff shortages are hitting the pockets of both tourism and hospitality businesses and their customers. As inflation, staff wages and cost of goods increase, Rotorua businesses contend with making ends meet amid a staff shortage.
Restaurant Association of New Zealand Rotorua president Sharon Wallace said she was aware of businesses in the city struggling to keep staff numbers up.
Businesses were advertising for staff on a “daily basis” and the impact of it meant service delivery was not up to speed and there was an increased pressure.
She said more training, and an understanding “it is an employee’s market and times have changed” were needed to resolve the issue.
“Employees want to do a good job and want to be treated well and paid accordingly.”
It was inevitable costs would rise and customers would end up paying, she said.
This meant adjustments and adaptability were needed.
“I think we have been expecting this anyway.”
There were many options available to businesses, such as the wage subsidy for Kiwi staff, “which is a huge help” but it would be a “wait and see game” with Queenstown needing staff too.
As a hospitality trainer, she was asked for staff on a weekly basis, including requests from out-oftown tourist resorts.
“I don’t have enough to keep meeting the demand.”
She was optimistic about visitor numbers returning, however.
“The border’s opening, we will get the numbers as people have been waiting to holiday here in Rotorua for two years.”
The Government last week announced a number of changes to New Zealand’s border, immigration and visa settings.
This included fully reopening the border in July instead of October, including to cruise ships. There were also new sectorspecific agreements – including for the seasonal snow and adventure tourism sector – aimed to help industries transition from a reliance on low-wage, low-skill migrant labour.
All work visa categories, including the new Accredited Employer Work Visa, will be open for applications by July 4 and applications for student and visitor visas will reopen on July 31.
Velocity Valley general manager Debbie Guptill said the industry was struggling to find staff.
“We are finding it harder than normal . . . uptake has been very slow.”
She said Kiwis did not apply for the jobs and it had been difficult without working holiday visa holders.
For the first time in four years, Velocity Valley had “minimally” increased its prices as it worked a “cautious balance” of absorbing increased costs and passing some on to the customer.
It was about working out the business’ offering and value for money, she said.