29th April 2020 By Staff Reporter | news@tourismticker.com | @tourismticker
Prime minister Jacinda Ardern has given her strongest hint yet of sector-specific support for tourism, highlighting the impact the Covid-19 crisis and resulting border restrictions have had on the industry.
Answering questions at yesterday’s Covid-19 press conference, Ardern said that the Government was working on more support for those worst affected.
Jacinda Ardern
“We have always said that we want to keep monitoring the impact on different sectors and I’d say tourism would be a very obvious one,” she said.
“Those who work in the space of large events – let’s not forget they were among the first to be affected and the last who are likely to be able to operate again – so there are specific areas where we are working on what additional support redeployment or initiatives from Government can support the ongoing employment of those people who have previously been in that sector.”
On whether the 12-week wage subsidy should be extended for the hardest hit sectors, Ardern said: “And that’s where potentially you start looking at more specific and specially designed initiatives that will address the needs of what are a very particular set of businesses, keeping in mind that with the wage subsidy, here we are after five weeks in with a 12-week subsidy still in place. And so, for us, it’s actually looking at whether or not there are more specific initiatives that should be designed.”
So, what form of support could be in the works?
The Ticker asks industry leaders what form of support they would like to see.
Chris Roberts, chief executive of Tourism Industry Aotearoa:
Chris Roberts
We certainly agree with the Prime Minister that tourism is an obvious sector that needs specific support.
TIA has contributed to some thinking about the redeployment of workers from the tourism industry who have lost or are likely to lose their jobs. That proposal is working its way through the system and I am optimistic it will get support.
Our tourism businesses essentially have three options – keep trading in a limited way, hibernate or close. To assist their planning, they all need an early signal on whether the wage subsidy scheme will be extended beyond its current 12-week period or replaced by something else more targeted. We would hope to get that signal this week.
Further relief is needed for fixed costs. The Government should be considering targeted loans or grants to cover rent and lease payments.
Tourism businesses need clear guidelines on what is required under alert level 2. Safe behaviour must be the guiding principle for alert level 2 requirements. New Zealanders should be encouraged to move safely and TIA believes safe domestic travel will be possible at alert level 2. It would be devastating for tourism if they have to wait until level 1 before being allowed to open.
When New Zealand reaches alert level 1 and most domestic business activity is possible, Government support should focus on those businesses still directly impacted by border restrictions.
Other specific measures the Government should take to support the tourism industry:
Debbie Summers, chair of New Zealand Cruise Association:
Debbie Summers
This is the biggest challenge faced within the tourism industry in our lifetimes. Regulation has constrained world travel completely. We are at zero business and currently zero forward business.
We are in critical survival mode and survival is key. Our future has never been so uncertain yet it is not all over. People will always travel when permission is again given and it is made safely possible. It is within all of us that travel is almost a birth right – no longer a luxury afforded to just a few.
Tourism must have more targeted help from our Government and quick sharp. NZ Cruise must be at the table from the very off within any trans-Tasman safe bubble discussions. There is real merit and possibility of hope in starting local and regionally with small luxury cruise ships cruising domestically, getting Kiwis and Australians out to the far corners of our wonderful country. To get that spending of valuable dollars in the more remote regions that are currently inaccessible for many and will be for some time, in the future. A reimagined and safe cruise industry in phase one is the perfect tool to get that regional spend going again.
Bottom line? We need clarity around border restrictions quickly, time is of the essence and we need more targeted help urgently. Cruise is very much part of a successful recovery for New Zealand economy despite it being the political hot potato right now.
Lisa Hopkins, chief executive of CINZ
Lisa Hopkins
Although the business events industry has specific nuances, there is a collective agreement amongst all associations supporting the visitor economy, including CINZ, TIA and TECNZ, that the Government must consider an extension of the wage subsidy.
CINZ welcomes the Prime Minister’s recognition that the event sector has been hardest hit. A recent temperature check amongst the BE industry indicates that almost 50% of businesses will no longer be trading come December without additional financial support, along with 65% of employees in this sector facing the possibility of redundancy. The situation is critical because it is amplified by the dependencies on border management and the need for clarity around alert level 2. The industry is simply unable to shut one day and reopen for trading the next. It takes time to reinvigorate and reinstate much of what had been in planning before Covid-19, and we need the Government to understand the fundamental difference between this industry and, for example, hospitality. Time is required to rebuild a pipeline of business in order to get the sector moving again.
The Prime Minister did mention that events are difficult to trace attendees, however this is not the case with business events. The sector already has robust registration systems in place as part of their standard business model, which can support any contact tracing mechanism. This, coupled with advice and protocols around “safer meetings” would mean there wouldn’t be a need to restrict numbers for indoor business events to commence planning and to take place.
Strong support from the industry for a way for attendees from Australia to come into New Zealand at level 1 would be the surest way to drive initial confidence back into an industry that has indeed suffered from the beginning. CINZ is also asking for visible support from Government and ministries to support, sponsor or host events to help boost domestic business pipeline recovery.
Lynda Keene, chief executive of TECNZ
Lynda Keene
It’s encouraging to hear the prime minister reference the possibility that Government is now looking at potential specific sector support of which tourism was one mentioned. Government has indicated it is hearing what we are saying, which we are thankful for.
We have been lobbying collectively with TIA, CINZ, TNZ, HNZ, NZ Maori Tourism and Cruise NZ to have the wage subsidy extended from 12 weeks to 26 weeks and hope this is one of the possible positive outcomes that will soon be announced. We have also advocated for no DOC concession fees for 1-2 years, commercial rent relief, zero-rate GST for NZ-owned inbounds (on facilitation fee) and reduction in compliance costs. Any specific sector initiative designed to help the tourism sector rebound as quickly as possible will be very welcomed by industry. The stress and anxiety about future business survival are through the roof. When you have businesses that have been around for decades and generations who have just seen their legacy stripped away within a month, and out of their control, is soul destroying.
The tourism and hospitality industry has been significantly impacted since Covid-19 and will continue to be severely impacted for the next six-12 months, during the time other industries can commence trading through levels 3, 2 and 1. Key sectors affected include international/inbound sector, hospitality, business events and cruise. All of which have a high component of visitors from offshore markets.
TECNZ’s preliminary results from a recent survey on the impact of Covid-19 shows the reasons why tourism needs additional support.
We are holding faith the Government can provide further financial support to get businesses to a point in time (start of season 1 October) where they (tourism businesses) will do their work to help the NZ economy make great strides towards a positive rebound. NZ has been successful on the health front and we can take pride in that. NZ can also achieve a successful economic rebound as well, with a little more help. We know it won’t happen overnight, but with Government and the private sector working together, we can do this.
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