DOC fee waiver extension welcomed

Tourism operators who lobbied for more time without paying Department of Conservation (DOC) concession fees are welcoming the Government’s decision to extend the waiver.

The waiver for businesses operating on public conservation land, such as tramping guides and scenic flight operators, was announced in June last year as part of a $25 million tourism support package, but it was set to expire on June 30.

Acting Minister of Conservation Ayesha Verrall announced today that about 1000 concession holders will have another six months of fees waived, to help them adjust to the lack of international visitors due to Covid-19 border restrictions.

Fox Glacier Guiding chief executive Rob Jewell said the waiver extension ‘‘absolutely will make a difference’’.

Ordinarily, the company had to pay fees of $32 plus GST per person to operate in the conservation estate, and it could not absorb the cost, he said.

‘‘We would have had to put prices up waiver.’’

Mark Quickfall, director of Queenstown business Totally Tourism, said that if the DOC fees had returned in June, tourism operators had one of two choices – increase their prices, or absorb the cost.

Businesses taking tourists into conservation areas faced fees ranging from $22 to around $50 per person, Quickfall said.

‘‘So it’s quite a big part of the ticket price, and as we know, the market now is very competitive. New Zealanders are looking for a good deal when they do an if we didn’t get the activity, and most operators have responded to that.’’

The concession fee waiver, and the $1.2 billion Jobs for Nature recovery package, were helping many tourism businesses avoid either hibernation or closing down, Quickfall said.

‘‘The closing of the borders has decimated tourism, so we’ve all been holding on, waiting for things to improve.

‘‘Some operators, as we know, have done reasonably well out of the domestic market, but those that were relying on the international market, particularly some of the larger operators, this will certainly be a big step forward.’’

The cost of waiving the fees will be partly covered by $10 million from the Covid-19 Response and Recovery Fund. This will also contribute to DOC’s loss of revenue due to lower tourism activity.

It was not yet known what impact the lack of international visitors would have on DOC revenue, a spokeswoman for the minister said.

‘‘This will be clearer when the fee waiver is reviewed later in the year. Any impact on DOC’s baseline will be considered then.’’