Coronavirus: Star tourism attractions queue up for rescue money

Wednesday, 17 June 2020

More than 60 tourism business have put their hands up for Government funding to help save some of the country's star visitor attractions.

A $1.5 million Government funding boost helped Whale Watch Kaikōura set a July 4 date to resume its tourism operation.

Applications for the strategic assets protection programme (STAPP) close on Thursday, and Tourism Minister Kelvin Davis said that on top of the 60-plus already lodged, there have been more than 700 downloads of the application form.

'So they're expecting a bit of a last minute flurry.'

Competition for the money is likely to be stiff with more than 20 applications from Rotorua alone.

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Waitomo Caves has received $4 million from the Government as a strategic asset, half of it in the form of a loan. (File photo)

Davis has suggested between 50 and 60 businesses could benefit from the programme as part of the Government's $400 million tourism rescue package, but he said the final count depended on how many were eligible for funding and what they asked for.

Tourism Minister Kelvin Davis, seen here with Prime Minister Jacinda Ardern during a recent visit to Whale Watch in Kaikoura, says visitor attractions that receive Government assistance will have to account for it.

To be considered a strategic asset, a business had to be a nationally or internationally recognised attraction which brought significant numbers of visitors to a region, with considerable spill over benefits to the area that would reduce considerably if it closed.

'It doesn't matter whether a business is big or a Mum and Dad operation if they meet the criteria,” said Davis.

'The most important thing is that they have a positive spill over effect on other businesses in their community or region.”

Davis said some regions may have several attractions worthy of assistance.

'It's not just down to one business per area, if there's three or four or five, and they meet the criteria, they will receive the support.

'I can imagine in a place like Queenstown there would be numerous operators that could be considered strategic, and it would be silly to support just one, and go to another area where there's very little tourism and support a business just for the sake of it.'

Davis said there would be strings attached, and businesses receiving grants or low interest loans through the scheme would have to meet certain conditions, and make quarterly declarations about how it was spent.

Tamaki Maori Village is among Rotorua businesses seeking Government help to cope with the impact of losing overseas visitors.

'It's not just 'here's the money and go for it''.

Tourism Industry Aotearoa chief executive Chris Roberts is expecting more than 100 applications for the strategic assets programme.

'It's essentially about picking winners, businesses that are too important to allow to fail.

'There are merits with that approach, but there are also risks in terms of how those decisions will be viewed by the rest of the industry.'

Roberts said the Government should be prepared to help 'classes' of assets so that a business was not disadvantaged if a competitor received funding.

'As an example, the various Maori cultural products in Rotorua together are an essential asset.

'It would be difficult to identify one as more important than the other.'

The Tourism Export Council said it had been assured inbound tour operators met the criteria for strategic asset funding.

Chief executive Lynda Keene said that pre-Covid-19, inbound operators were responsible for bringing in 1.8 million international visitors a year, and it was important they survived the pandemic to ensure a 'pipeline' of bookings four tourism businesses around the country.

The Ministry of Business, Innovation and Employment will recommend which applicants are deemed strategic, and the Tourism Ministers Recovery Group will decide by late July who will get funding for up to two years.

Davis said the 'vast majority' of the $400m rescue package would be spent on retaining strategic assets, with $20m going to regional tourism organisations, and $10m to Maori Tourism.

The fund will also cover the cost of providing advice to tourism operators adapting to the loss of international visitors.

So far 557 businesses have applied for this assistance and most of them were small enterprises with fewer than 10 employees.