Sudden lockdown bites hospitality and tourism
Hospitality, tourism and events businesses are reeling from the sudden ramping up in Covid-19 alert levels and the economic ripples are spreading across the country.
Although Auckland will bear the brunt of its shift to alert level 3, the impact is spreading well beyond its boundaries as residents cancel travel plans.
Several conferences, including one on crisis readiness, have been postponed, as has a major trade show that was due to open in Auckland yesterday morning with about 6000 people expected to attend.
The Art Deco Festival in Napier has also cancelled its opening day events tomorrow, and Queenstown tourism operators are fielding cancellations from Aucklanders unable to travel.
Restaurant Association chief executive Marisa Bidois said the announcement of a return to levels 2 and 3 was a major blow for an industry already struggling to recover from the impact of border closures. The change in alert levels was ‘‘incredibly difficult’’ to manage.
‘‘Many businesses will have stocked up on food for the days ahead and will now incur wastage costs on top of significantly reduced revenues,’’ Bidois said.
Under level 2, event venues can have up to 100 people within any defined space as long as they can maintain physical distancing and remain 1 metre apart.
But even if venues can meet those standards, the lack of Auckland delegates is an issue.
Business Events Industry Aotearoa chief executive Lisa Hopkins said an Auckland conference for 500 people scheduled for today had been postponed, as had a smaller event in the capital city on Thursday.
No-one disputed the need for the lockdown but the fallout went far beyond conference venues to include their suppliers, transport and other hospitality outlets, she said. ‘‘It is the knock-on effect we are seeing. It is revenue for Air New Zealand; it is taxis; it goes on.’’
Paul Retimanu, the president of the Wellington branch of Hospitality New Zealand, said the impact on his venues was immediate. He is the managing director of Manaaki Management and said things had been going quite well, with several events in the city. But Sunday night’s announcement changed everything.
Retimanu said the majority of bookings were being cancelled outright or were postponed indefinitely, due to the uncertainty over what could come next, leading to significant food and beverage losses.
‘‘The taps just turned off,’’ he said, adding that hospitality businesses needed the Government to provide support. ‘‘At the moment it is retroactive – they are telling us wage subsidies will come after seven days but who is going to cover it for the next seven days?’’
Hospitality NZ chief executive Julie White said that within two hours of the prime minister’s announcement, members had reported a flood of cancellations and the impact of the current shift in alert levels was being felt nationwide. White said she understood and supported the health crisis response but felt it was disproportionate, and the needs of the hospitality industry were not being taken seriously.
‘‘The taps just turned off.’’
Paul Retimanu Hospitality New Zealand