Major NZ tourism operator Skyline Enterprises to cut half its jobs

Tuesday, 5 May 2020

Prime Minister Jacinda Ardern at the daily national coronavirus update for May 5.

Major New Zealand tourism operator Skyline Enterprises has made at least 500 staff redundant as it struggles to survive through the Covid-19 pandemic.

Chief Executive Geoff McDonald said after spending the past 10 days consulting on a restructuring proposal the company told staff of the job losses on Monday.

Skyline's different portfolios include Queenstown and Rotorua's gondola and luge operations, Christchurch Casino, hotels in Dunedin and Queenstown, as well as offshore operations in Korea, Singapore and Canada.

Looking towards Queenstown and Lake Wakatipu from the skyline gondola. (file photo)

* Coronavirus: Tourism companies plan to lay off more than 13,000 workers

* Coronavirus: Ngāi Tahu Tourism may lay off 300 workers**

McDonald said of the company's staff — which fluctuated seasonally between 1000 and 1200 — more than half of its workforce across a range of levels would be made redundant.

“It's devastating for people who are losing their jobs, but they have been really great and understanding. A bit of that is they are seeing it happening all around them … while it doesn't lighten the impact for them it gives a bit of perspective. I am incredibly proud of how they responded.”

Since early level 4, the company had been working through what the world would look like emerging from lockdown.

The Casino closed and empty in the Christchurch city centre on the first day of level 4.

“Clearly for tourism this is a challenging environment … I am making noises about the trans-Tasman bubble, and we would clearly love to see some domestic travel under level 2. If that doesn't happen it will be difficult for us to open … We will do whatever we can to open, even if with skeleton staff — especially for Queenstown where the gondola is an iconic attraction.”

Despite the uncertainty and not being able to plan ahead, McDonald was confident business would recover.

“We do think we will recover and get back to really good visitor levels … Our story is linked with the rest of Queenstown, and we have a vested interest in making sure the town stays vibrant and viable. We know there is nothing wrong with the product, it's just the tap has been turned off.”

Skyline Enterprises chief executive Geoff McDonald.

The company had put a number of its international developments on hold. However, it hoped to be able to continue the Queenstown $26m redevelopment of O’Connell’s shopping mall and the $200m Queenstown gondola/restaurant redevelopment, he said.

Ngāi Tahu Tourism has announced it may lay off 300 workers.

“Decisions are yet to be made on exact details. We have applied for support to complete these and if we can this will be a big positive for jobs in Queenstown.”

Last month, Ngāi Tahu Tourism announced it may lay off 300 workers.

Te Rūnanga o Ngāi Tahu Kaiwhakahaere (chair) Lisa Tumahai said in an email, the move — which would more than halve Ngāi Tahu Tourism's 500-strong workforce — was necessary because the company had been so severely affected by Covid-19.

Its 14 businesses had gone into “hibernation” and were being shut down.

They included high profile attractions such as Shotover Jet in Queenstown, Franz Josef Glacier Guides, the Agrodome and Rainbow Springs in Rotorua, the Dark Sky Project in Tekapo, and the All Black's Experience due to open in Auckland mid-year.

Queenstown Chamber of Commerce chief executive Anna Mickell said although they were waiting for unemployment data from the Ministry of Social Development, the town was preparing for “hundreds” of redundancies over the next month.