Call for Government to get TranzAlpine back on track

Friday, 5 June 2020

The TranzAlpine is regarded by many as one of the world's great train journeys.

West Coast tourism industry leaders are appealing to the Government to reopen the TranzAlpine passenger service between Christchurch and Greymouth.

The West Coast Tourism Recovery Group, made up of the region's tourism industry leaders, has written to the State-owned Enterprises Minister and Deputy Prime Minister Winston Peters to intervene in getting the TranzAlpine passenger rail service back up and running as soon as possible. It closed in March, along with other scenic train routes.

KiwiRail's TranzAlpine Express crossing the Waimakariri River in Canterbury on the way to the West Coast.

The group includes Development West Coast, Glacier Country Tourism Group, Fox Glacier Guiding, the Department of Conservation and Scenic Hotel Group.

The TranzAlpine service carried 110,000 visitors both in and out of Greymouth in 2019.

Development West Coast chief executive Heath Milne said tourism brought $276 million to the West Coast economy and employed 3750 people.

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The letter urges to Peters to consider the 'wider economic springboard' the TranzAlpine service provided.

It carried 110,000 visitors both in and out of Greymouth in 2019. In Summer, 70 per cent of passengers were international visitors, but in winter the majority were domestic visitors.

Development West Coast chief executive Heath Milne says tourism is crucial to the local economy.

The group estimates the train could bring 60,000 people from the domestic market into Greymouth over the next year, bringing $40m to the West Coast GDP and supporting more than 500 jobs.

Peters said he was considering his response to the letter.

“We fully appreciate the impact our border restrictions are having on New Zealand’s tourism industry, including the West Coast. The TranzAlpine is a commercial train service that does not receive government funding to operate,' he said.

'We continue to work urgently on establishing a trans-Tasman bubble, which would bring relief to many of New Zealand’s tourism-dependant businesses that have been severely impacted by Covid-19.'

KiwiRail's chief operating officer Todd Moyle said the company understood the importance of the TranzAlpine to Greymouth.

'We are continuing to look at the best way to re-start our scenic train services, and the timing of that restart …. As with the rest of the New Zealand tourism industry, overseas tourists are important to the viability of the scenic train services,' he said.

Milne said a recent survey of West Coast businesses found 62 per cent of respondents reporting major financial impacts from Covid-19, with sales/revenue down 25 per cent or more. He said 26 per cent of businesses surveyed also reported reducing their staffing levels.

The Mountain Jade shop in Hokitika has closed after decades.

The survey was conducted during Alert Level 2 and received about 200 responses. He said 64 per cent of those surveyed believed their businesses would survive the crisis, but 30 per cent said they would have to reduce staff over the next three months.

Unemployment on the West Coast has gone from a low of 3.3 per cent in March 2018 to 7.5 per cent. However, he expected the rate to climb once the Government's wage subsidy ran out.

The West Coast had received Provincial Growth Fund support of $2m to run an employment scheme and training programme targeted at skill shortage areas, Milne said.

Development West Coast also received $800,000 to set up two digital hubs in Grey and Westland, which would be similar to EPIC Westport – a shared office space for technology companies.

Meanwhile, pounamu outlet Mountain Jade has put its physical stores in Auckland, Rotorua and Hokitika into hibernation after 30 years, with the loss of 43 jobs.

Founder John Sheehan said prior to Covid-19, the company was experiencing one of its best ever years, but it was heavily reliant on the tourism market. The decision to close was 'heartbreaking'.

He said the company was considering selling the building and business in Hokitika, which it had owned for the past 19 years.

'This will be a sad day for us if this were to eventuate as it would mark the end of a long period of engagement in jade country, and a strong connection with its people.'

The company would continue online, and reopen its Rotorua store for the domestic market.

'Many of the affected staff have been with the organisation for years and in some cases; decades. We never thought we would be facing a crisis of this magnitude and, unfortunately, the impact from Covid-19 has shocked us all.'