Companies struggle in Kaikoura
Disappearing tourist dollars puts more stress on quakeravaged town
Whale Watch Kaikoura would usually be taking 760 people a day to see the giants of the South Pacific, but three weeks after the Kaikoura Earthquake, that number is still zero.
Tourism is just one of the sectors hit hard by the road closures and infrastructure damage that have cut Kaikoura off from the rest of the country.
Hospitality, retail and accommodation businesses are also running huge losses, despite the Government’s $7.5 million relief package.
The main problem is access. People wishing to enter Kaikoura must register with the New Zealand Transport Agency (NZTA) in order to join a once-daily convoy on the inland Mt Lyford Rd (Route 70).
NZTA said just 150 or so vehicles were travelling into the town each day, and another 150 were leaving.
“It’s really a whole new chapter in earthquake recovery, this isolation,” said Kaikoura recovery manager Danny Smith. “There are export companies struggling to get their goods out and other companies struggling to get their goods in. Some courier companies are reluctant to come through the road on the convoys, hence things like mechanics can’t get parts in.”
About 75 per cent of businesses were up and running, albeit at reduced hours, with many having to improvise to get back on their feet, Smith said.
Whale Watch general manager Kauahi Ngapora said the company was unable to launch its boats due to extensive damage to the marina. Even if it could, there were no tourists around to take out.
“The whole coastline lifted so the marina and the whole channel needs to be dredged before we can get out,” he said. “At this time of year we’d be taking out probably 760 people a day. During December we do up to 16 tours a day, so we’re definitely haemorrhaging.”
The company was trying to keep business ticking over through its cafe, retail shop and online store, shop.whalewatch.co.nz.
“If anyone’s looking for a fluffy whale for Christmas that’s the place to go,” Ngapora said.
Perhaps the greatest cause for optimism, the whales and dolphins are back off the Kaikoura coast.
Encounter Kaikoura (Dolphin Encounter) general manager Dennis Buurman said a vast pod of 300 or more had recently been spotted.
The company was able to get one of its boats out of the marina, but with no tourists in town it hadn’t taken a group out since November 13.
It had opened the cafe to keep staff busy, but that only accounted for a small fraction of overall business.
Despite business being down at least 75 per cent on this time last year, Jason Hill of fish and chip shop Coopers Catch said believed it was doing “better than most”.
“Usually by about 2pm we’d have done over 100 orders whereas at the moment we’ll be doing 12, and the spend is a lot less.
“We are finding it very hard to get motivated. It is very hard on you mentally.” One positive could be that the earthquake had put Kaikoura on the map, which he speculated might lead to a bumper 2017.
“The region’s literally got a new landscape on the ocean and without a doubt that’s a very, very good reason to come and have a look,” Hill said. “We’re open for business, the only issue is we’re a bit cut off.”
Dolphin Lodge Backpackers owner Helen Blanchard said the only customers in her 23-bed facility were a couple of displaced locals.
“I don’t have a business at the moment. Probably 99.9 per cent of our clients are tourists and if they’re not coming, yeah, no business.”
She said things may pick up once construction workers arrived to work on the rebuild, hopefully by Christmas. The business was able to claim $500 a week from the Government, which helped but was nowhere near enough to cover her losses, Blanchard said.
“This is the time of year that you make your money to get through the quieter months. If you don’t have that it’s a bit worrying to think about how you’re going to survive the rest of the year.”
According to the Ministry of Social Development, 596 businesses had applied for quake-related assistance and 378 had been paid as of December 5. Most claims, 521, were from the South Island.
Kaikoura District Council will be requesting that the Government extend its relief package, which will only be offered until early January.
“At this time of year we’d be taking out probably 760 people a day. During December we do up to 16 tours a day, so we’re definitely haemorrhaging.”g — Kauahi Ngapora, Whale Watch general manager
“We are finding it very hard to get motivated — it is very hard on you mentally.” — Jason Hill, Coopers Catch