Travel allowed under alert level 2 will save thousands of jobs

Thursday, 7 May 2020

The tourism industry is hugely relieved that travel between regions will be permitted at alert level 2.

Almost 4 million overseas visitors came to New Zealand last year, but tourism operators will have to do without them for the foreseeable future.

Tourism Industry Aotearoa (TIA) chief executive Chris Roberts welcomed the move and said businesses were desperate to get back to work.

“This is a sensible decision that will help save thousands of jobs and hundreds of businesses.

“Across our industry there are people with smiles on their faces who haven't had any reason to smile for a long time.”

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Physical distancing requirements under level 2 will likely allow bungy jumping, but TIA says they may be problematic for other adventure tourism operations, such as white water rafting.

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Cabinet will finalise the timing of a shift to level 2 on Monday, and Prime Minister Jacinda Ardern has raised the possibility of a phased introduction of more relaxed travel rules based on Ministry of Health advice.

Under level 2 guidelines just released, travellers will be expected to keep records of how they travel and who with, and to minimise the number of places they stop en route.

Roberts said TIA had worked with government agencies to develop guidelines for maintaining physical distancing and contact tracing, and he was confident tourism could operate safely to avoid a return to tighter travel restrictions.

However, some adventure tourism experiences - such a white water rafting - where people had to be in proximity for extended periods, may not reopen until level 1.

North South Holiday Park owner Dan Fraser is looking forward to more business under alert level 2. He currently has just one family staying, and he says there is still a lot of uncertainty over how many Kiwis will be able to afford to travel. Being close to Christchurch Airport, almost half his guests were overseas visitors.

And even if travel was loosened up, it would not be a return to business as usual for anyone.

“There are restrictions on how many people can be in a confined space, how many people can be on a mode of transport, having to do significantly more cleaning; all of those things reduce revenue or add costs so it will be a struggle for those that do open,” Roberts said.

Hotels experiencing low occupancy rates are also looking forward to level 2 and New Zealand hotel Owners Association chief executive Amy Robens said if ski fields could manage distancing requirements, that would help with winter bookings.

“Particularly Queenstown where just 11 out of 40 hotels are currently open in Alert Level 3, and some are catering for just one or two guests and essential service workers.”

Robens said they had to be realistic because there was still the question of how much travel Kiwis would want to do in the Covid-19 era.

“With so many people out of work, and with little to no discretionary spend, it’s not simply a case of allowing domestic travel and then seeing it return to previous levels.”

Christchurch motelier Bob Pringle said the ability to travel between regions was a positive sign for his sector which was really struggling.

Tourism Industry Aotearoa chief executive Chris Roberts is hoping for more specific targeted assistance for tourism businesses in the budget.

“Everyone is waiting [for level 2] with bated breath, and we're hoping it will rescue some of us.”

The recent cancellation of this year's Canterbury A&P Show was 'a real hit for motels” and Pringle said it remained to be seen whether New Zealanders used commercial accommodation when they travelled domestically, or opted to stay with friends and family.

He is hoping the development of domestic travel packages will help tempt Kiwis into booking holidays.

Holiday Parks Association chief executive Fergus Brown is advising his members to be ready to open on May 14 if level 2 got the tick from Cabinet.

He is “quietly optimistic” the move will help kick start business, despite the continued limits on events which cannot cater for more than 100 people.

“This is such good news. Nobody likes sitting there taking wage subsidies and handouts.

“It will do a lot for people's mental health being about to get out and go away for a weekend.”

Roberts said the industry was now looking forward to next week’s budget announcements to hear what ongoing support the Government would provide to save businesses and jobs until our borders reopened for international visitors.

Thousands of tourism workers have already lost their jobs and TIA has warned more would go if the wage subsidy was not extended.

It has also suggested the Government look at using money already gathered from the $35 a head International visitor levy to help tourism businesses unable to pay overheads such as rent.