$200m boost a ‘lifeline’ for tourism
The tourism industry is largely enthusiastic about the latest $200m assistance package, despite much of the money going to just five South Island regions.
Tourism Industry Aotearoa (TIA) chief executive Chris Roberts said they were past general handouts and wage subsidies, and the assistance would help struggling operators to survive.
Just over half of the money ($108.5m) has been committed to Fiordland, South Westland, Queenstown Lakes, Mackenzie District and Kaiko¯ura with funding for psychological support, reopening mothballed businesses, and diversifying economies heavily reliant on tourism.
Roberts said TIA agreed with the targeted nature of the ‘‘recovery and reset’’ plan announced on Thursday by Tourism Minister Stuart Nash because it recognised the varied impact of the border closure.
A recent TIA survey of 333 operators showed a 40 per cent drop in the workforce, with the lower South Island worst affected. Applied across the wider tourism sector, those figures equated to 90,000 job losses in the past year.
But Roberts concedes businesses in some areas may feel hard done by. ‘‘Undoubtedly there will be differing views in other parts of the country that may feel that those five regions are getting too big a share of the funding, and those regions may feel that they need even more.’’
Auckland operator Ben Thornton of Bush and Beach tours said that while the package might stem the bleeding for others, there was nothing in it for him ‘‘and my pockets are only so deep.’’ He has removed seating from his tour vehicles to do furniture removal work for a local charity assisting needy families.
Bookings from Australia were starting to trickle in from spring, but there was a long way to go before they really picked up.
‘‘I’m going to be $250,000 in the red by the end of the year.’’
The move to exempt about 1000 tourism businesses from paying Department of Conservation concession fees for a further six months was welcomed by Roberts who said it would provide immediate relief.
Nash also got a round of spontaneous applause from 700 people attending the annual TIA Trenz hui in Christchurch when he confirmed 26 Inbound Tour Operators (ITOs) offered $14m in loans last year would receive grants instead.
ITOs will provide a vital link to international markets when wider borders open up, and Tourism Export Council chief executive Lynda Keene said she was absolutely rapt Nash had listened to their plea for grants.
‘‘I think the minister has smashed it out of the park with his support for the tourism industry.’’