Level 3 'tough blow' to Auckland events and hospitality industry

Wednesday, 12 August 2020

Public relations specialist Deborah Pead says New Zealand was too complacent in its response to Covid-19.

Moving to level 3 will be a “tough blow” to the hospitality and events industry, a public relations veteran says.

Pead PR founder Deborah Pead said the sudden changes made it difficult for companies in the events and hospitality industry to plan ahead.

“Events take months of planning, booking sponsorships and delivering value for them. If that can’t be done, sponsors will naturally rethink their support. Weddings, celebrations, all hospitality is impacted by this,” Pead said.

“Those companies that managed the first time around are only just getting back on their feet. It is a tough blow. For people in business, they’re not only worried about the health impacts of Covid-19 but also the economic impact on their businesses and livelihoods.”

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She said self-congratulating about how the country managed to stamp out community transmission of Covid-19 gave the country a false sense of security.

Former SkyCity chief executive Graeme Stephens oversaw the redundancy of about 200 senior managers and 700 workers in 2020.

“We were pointed out as a poster child for how to manage Covid-19. We were just starting to see the turn in confidence, with concerts being promoted and almost being sold out. We are now dusting off the plans we put together a few months ago. A sense of deja vu.

“With the uncertainty you don’t see an end in sight, and that’s frustrating.”

Pead copped flak for her tweet on Tuesday when the level 3 announcement was made.

”And just as we were getting our business back on its feet. The events and activities we have had to cancel in the next three days alone will cost us dearly. We can't keep running from this virus,” Pead tweeted.

Restaurant Association chief executive Marisa Bidois knows visas are a big issue.

“I meant there needed to be better planning so businesses could prepare to cope with a change in alert levels and restrictions,” she said.

Pead said her company had about a dozen events in the pipeline between now and the end of the year that would be disrupted.

“There are a number of industries and jobs that hang around events that are all impacted, including promotion, venues, production, road works, artists and talent, catering.”

Miann closed its three Auckland stores on Wednesday as the city moved into Level 3.

Essential businesses, such as retailers, will be able to open in level 3. Those who can offer a contactless click-and-collect or delivery service can also continue.

Level 3 will mean all Auckland based hospitality businesses are closed to the public other than through contactless delivery and pickup.

There will also a limit of 100 customers.

SkyCity said in a statement it would close its Auckland casino and entertainment facilities and implement physical distancing and hygiene requirements at its Hamilton and Queenstown properties.

The company said its Auckland hotels would remain open for people currently staying there, pending further advice from the Government.

Appropriate physical distancing and hygiene requirements would also be implemented at the Auckland hotels, the company said.

SkyCity chief executive Graeme Stephens said the company was well-prepared to respond quickly to the changes and was in a strong financial position to withstand the financial impacts of the temporary restrictions.

Restaurant Association chief executive Marisa Bidois said moving back into level 3 was a “devastating blow” for businesses already struggling financially.

“For the rest of the country level 2 means restaurants and cafes need to follow the three S’s where practicable, with diners seated, separated and served by a single server,” Bidois said.

“We are of course very disappointed but our focus is now on supporting our members to manage this situation as best they can and hopeful that we can get back to normal trading quickly,” she said.

Auckland dessert restaurant Miann owner Brian Campbell said the next three days looked uncertain.

“The look on our staff’s faces last night when they saw the news, they all looked pretty dejected. I’d rather let them rest and take in what’s happening,” Campbell said.

“I see this lasting longer than three days. We’re waiting to see what is said later today and what happens on Friday rather than putting all our efforts upfront and wasting time.”

Campbell said he was expecting a second wave as had happened in many other countries.

“It was a matter of when not if. The news recently also indicated it would come sooner rather than later.”

Campbell said while he was still deciding whether his three stores would operate delivery over the next three days or not, he said the financial impact was immediate.

“This will slow us down by about $30,000 to $40,000 by not being open.”

A Christchurch business owner said she would rather spend the rest of the year at alert level 2 than end up back at level 3.

Ava Nakagawa, owner of Little Pom's cafe and the general manager of Pomeroy's Pub, said in level 2 there was still a business to operate.

Nakagawa said although the cafe did okay last time New Zealand was at level 3, the pub's takeaway operation was not sustainable long-term.

“Because we're not a takeaway business, we're not set up for it, it was quite difficult … people don't want to order takeaways every night, people want to go and have a pint,” she said.

“There's only so much our offering actually works for people at level 3,” she said of the pub.

Under level 2, Pomeroy's Pub has to halve its capacity from 200 to 100, Nakagawa said.

“I think that the Government has responded so quickly that I do have really good faith that we won't move to level 3 in the South Island any time soon,' she said.

Nakagawa said she also had faith the Government would support businesses “like they did with the wage subsidy” if the entire country went to alert level 3.