$400 million tourism recovery fund

The Government’s tourism funding package has fallen short of the wishlist from the tourism industry, which has borne much of the brunt of the coronavirus pandemic.

Tourism, which directly employed over 229,000 people, first saw demand fall in January when Chinese travellers stopped arriving, with border closures compounding the pain.

The Government has announced a $400 million targeted tourism recovery fund and a domestic tourism campaign, alongside an extension of the wage subsidy scheme.

Tourism Minister Kelvin Davis said there would be funding to identify and help protect key tourism attractions and amenities.

A tourism transitions programme would advise and support businesses turning to the domestic and Australian market, hibernating, or considering other options. A tourism recovery ministers group would be set up and a public-private taskforce would help shape the future of tourism in New Zealand.

The extension of the 12-week wage subsidy scheme would help businesses cover staffing costs and protect jobs while the domestic tourism campaign was being rolled out, he said.

Tourism operators had called for an extension of up to six months to help them survive until the peak summer season, and an increase in the amount offered from $585.80 a week for full-time employees, up to $1000 a week.

However, the extension announced yesterday amounted to an eight-week lump sum to employers at the same weekly rates as the current scheme. From June 10, businesses that suffered or expected to suffer revenue loss of at least 50 per cent for a 30-day period would be eligible.

There had also been calls from the tourist industry for help with fixed costs such as rent and rates.