Hotel industry seeing mass cancellations amid current lockdown, plea for more Government help

August 17, 2020

NZ Hotels Association head Amy Robens says the accommodation sector needs more help than a wage subsidy. (Source: Other)

New Zealand's hotel sector is calling for Government assistance beyond the wage subsidy scheme, with cancellations due to the latest Alert Level changes going into "the thousands".

Amy Robens, Executive Director of the New Zealand Hotel Association, told TVNZ1's Breakfast today that hotels need occupancy of about 70 per cent or more to be profitable, but many around the country are currently in "single digits".

With Auckland at Level 3 and the rest of the country at Level 2, many hotel stays had vanished, she said, especially in Auckland, Wellington, Queenstown and Christchurch.

Ms Robens said even though the country outside Auckland is at Level 2, the market is hugely reliant on Auckland.

"Our lobbies in our hotels are virtually empty, it's a very sad state of affairs for what has been our dream industry," Ms Robens said.

"Hotels are the backbone of tourism - were looking at $41 billion annually."

Ms Robens called on the Government to step in to help with fixed costs beyond wages, such as rate, insurance and utilities, saying hotels are essentially an extension of airports and need to be protected.

"We're calling on the Government to assist us - the extension to the wage subsidy is very helpful, but as with other industries, we have very unique issues and challenges."

She pointed to Australia's Covid-19 assistance programme, which extends all the way through to March of next year.

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