Tourism head forecasts grim 3-5 years for industry, calls for clarity on flights and wage support

May 5, 2020

Tourism Industry Aotearoa Chief Executive Chris Roberts talks about the immediate challenges facing the industry. (Source: Other)

New Zealand tourism businesses urgently need a clear idea of what help is ahead, and whether Kiwis will be allowed to fly within the country, the industry association's chief executive says.

Speaking this morning to TVNZ 1's Breakfast, Chris Roberts of Tourism Industry Aotearoa said the tourism industry will be "the last to recover" and could take between 3-5 years to get back on its feet.

That extends well past the current wage subsidy provisions provided by the Government, and Mr Roberts said he, and the entire industry, is desperate to know what happens afterwards.

"It's survival right now - there are literally hundreds of thousands of jobs at stake here and thousands of businesses," Mr Roberts said.

"So we're all doing everything we can to help those businesses survive - and we need Government help to do that.

"Close enough to 400,000 New Zealanders depend on tourism for their livelihoods, plus their families - all the surveys we've done, all the information we're getting through suggests that up to half those jobs could disappear.

"That's really, really significant - that affects every community across the country - but in particular those communities that depend on tourism."

Mr Roberts said many tourism businesses weren't sure what would happen once the wage subsidies run out, while many others also desperate for information on when inter-regional travel will be allowed again.

"The wage subsidy has kept a lot of tourism workers in work for now, but our businesses are desperate to know what's going to happen at the end of the 12-week wage subsidy - what's next?" he said.

"The Government has hinted at some targeted interventions for sectors like tourism, we need to know what that's going to be so businesses can plan.

"We need New Zealanders to be able to move, to be able to be connected again, by travelling around New Zealand under Level 2.

"They're getting the ski fields ready in Queenstown - tourism people tend to be optimistic, so they're getting the snow groomers up there and the snow-making machines - they're getting ready," Mr Roberts said.

"As we stand today, the only people that would be able to go skiing would be those local residents of Queenstown.

"So they need the people of Christchurch, Dunedin etcetera to be able to travel to the skifields, and ideally we could get some plane loads of Australians flying into Queenstown as well."

Earlier on Breakfast, several other guests spoke about the plight of tourism in New Zealand.

Nelson Mayor Rachel Reese said the town really needs inter-regional flight capacity restored at a reasonable cost for Nelson to begin its financial recovery.

Rachel Reese says Nelson depends strongly on air travel for tourism – but “the tap’s been turned off”. (Source: Other)

Kauahi Ngapora of Kaikoura Whale Watch said the Covid-19 pandemic will hit the town even harder than the 2016 earthquake did.

Kauahi Ngapora of Whale Watch Kaikoura says he may be forced to downsize by up to 80 per cent. (Source: Other)

Takurua Mutu of MDA Experiences in Rotorua urged Kiwis to explore New Zealand's back yard to support local tourism companies.

Takurua Mutu is encouraging Kiwis to explore New Zealand's backyard and support local businesses. (Source: Other)

Mr Roberts agreed that domestic tourism could help, but said it will be far from enough to save the industry.

"We can not only have a great experience travelling around our own country, but we can keep businesses alive, we can keep people in jobs, we can keep communities going," Mr Roberts said.

"So it is incredibly important - but it won't be enough by itself, domestic tourism.

"It will be a huge help, but if we can get the Australians across the ditch as well - and that's the second phase of this recovery - opening up the trans-Tasman border hopefully within a few months' time - that will again save jobs and keep businesses going."

Mr Roberts said while the Government has been helpful and has listened to their input during Covid-19, they urgently need more clarity on what the future could hold - even before next weeks' Government Budget.

"We've been giving input all along and the Government has listened on many occasions, which is fantastic," he said.

"Some of the things we need right now need to happen before the Budget, I know it's only a week away, but that Level 2 decision is the absolutely crucial one right now, and it's the ongoing support as we go through the recovery.

"Tourism is going to be the last industry to recover - I think it's a three-to-five-year pathway ahead of us into some new form of tourism in New Zealand - and it won't look like what it used to look like.

"That's a long time to help businesses survive, so there's got to be some very specific initiatives to make sure that we have enough tourism businesses left to have a viable tourism industry in New Zealand."

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