Tourism pleas for more wages help
Almost three-quarters of tourism businesses want further Government help with wages and a third are warning of more lay-offs it they don’t get it.
Tourism Industry Aotearoa surveyed 408 business in the second week of July and chief executive Chris Roberts said more than 40 per cent had already ‘‘sharply downsized’’.
Many had gone into hibernation or closed since a previous survey in April and the latest results reflected the challenges for those still operating.
‘‘Without further support, we will see thousands more job losses and hundreds of business closures.’’
Close to 40 per cent wanted help for fixed costs such as rents and leases.
Some had rehired staff as domestic travel increased, but there was widespread concern that ‘‘lumpy’’ demand concentrated at weekends and holidays would not sustain the industry at current levels.
‘‘More than a third of tourism businesses say they are also facing difficulty in developing the right product at the right price for the domestic market.’’
There were complaints about competition from freedom camping sites filled with cheap campervan rentals, and difficulty getting tour group accommodation in key cities because hotels were being ‘‘swallowed up’’ for use as isolation facilities.
Lack of certainty about what lay ahead was a big issue, Roberts said.
‘‘[Businesses] want to understand the criteria that will enable our borders to open, so they can make plans to be ready when demand returns.’’
With borders closed for the foreseeable future, tourism operators are facing a flood of overseas cancellations for the coming season.
Thousands of booking will be affected by a bulk cancellation just announced by major inbound tour operator Helloworld which recently emailed operators to say it was about to cancel all international bookings for travel dates up until just before Christmas.
The news was greeted with relief in some quarters because it will free up beds for Kiwi travellers.
Clare de Carteret-Bisson of The Resurgence lodge in the Riwaka Valley said Helloworld’s move was welcomed.
Operators were in a difficult position if they went ahead and cancelled without any official guidance on how long borders might remain closed.
‘‘If we cancel bookings we’re seen as the bad guys, and if we don’t, we won’t have that room to sell to a domestic person.’’
About half her overseas guests booked for the coming season had postponed until next year.
‘‘As soon as the borders reopen, the luxury end of travel will be flooded, the people who have got money will still have money, and they will want to come to clean, green New Zealand that squashed Covid.’’
Owner of Turangi’s River Birches luxury lodge Jason Bleibtreu said the bulk cancellations were not unexpected, but would still hurt.
‘‘More than 95 per cent of our bookings were international, and they’ve been wiped off the board.
‘‘On the bright side now we can clear those dates and make the rooms available for domestic travel.’’
Bleibtreu said he was pleasantly surprised by the number of Kiwis prepared to spend up to $3000 for a special weekend away, but he was unsure how many New Zealanders were able to afford the luxury end of the market.
‘‘I’m concerned there is a limited supply of these individuals or that they will have done their special weekend away and won’t do any more of them.’’