Third AJ Hackett-linked company turns down cash grant

Friday, 23 October 2020

New Zealand had about 20,000 tourism businesses pre-Covid and about 126 key ones received more than $270m in grants and loans to save them from possible closure.

A third tourism company with links to AJ Hackett Bungy NZ has turned down an offer of Government cash because business is better than expected.

Queenstown businessman Sir John Davies said family-owned Ultimate Hikes, which runs guided trips in the Milford and Routeburn Tracks, had joined his other companies, NZ Ski and The Hermitage Hotel, in declining grants of up to $500,000 from the Strategic Asset Protection Fund (Stapp).

Davies said the decision was based purely on the level of demand from domestic tourists.

“We’re surviving, there are people much worse off than us.”

**READ MORE:

AJ Hackett Bungy was among 130 tourism attractions classed as “strategic assets” worth saving, but its cash grant was more than 10 times that given to most other recipients.

* Hermitage Hotel rejects Government help because bookings are so good

* Tourism operators who missed out on funding call for review

* Lifeline or lottery? Questions of fairness over $400m tourism rescue scheme

* Tourism awaits funding news after criticism of 'Hackett cash'

* AJ Hackett payout 'corporate welfare' for rich-listers, economist says

A team of 30 DOC staff and contractors have been repairing the flood damage in the Fiordland National Park over the past eight months. Contractors Mathew Thom and John Henderson talk to Stuff about the special projects they've been working on.

Davies said the move was unrelated to the public backlash against the $5.1m grant and $5.1m loan the Stapp fund awarded to AJ Hackett Bungy NZ, which is 40 per cent owned by his company Trojan Holdings.

“It’s nothing to do with it because the companies we’re talking about that declined it are fully owned by us as a family, we’re a minority shareholder in Hackett, we’re not controlling it, and we don't have much to do with the general operation of it.”

“They needed it, so they got it, we had nothing to do with that at all.”

The Stapp fund administered by the Ministry of Business, Innovation and Employment required recipients to sign a statutory declaration that they had exhausted all other avenues of finance.

Te Department of Conservation is encouraging people to book early. Despite border restrictions, bookings are up 9 per cent for Great Walks compared with the same time last year, even with reduced seasons on the popular Milford and Routeburn tracks.” (File photo)

Asked if AJ Hackett had approached him for assistance, Davies refused to comment.

“Don’t ask me questions like that because I’m not going to answer them.

“I made it very clear I don't get involved in their business, they run it, and they run it on their own, and we are an investor.”

Davies said that when his guided walks and NZ Ski applied for Stapp funding back in June they had no idea what the ski season or the track bookings would look like, and circumstances had changed.

The Milford and Routebourn walks had about 1000 bookings from overseas tourists, but demand from Kiwis was so high Ultimate Hikes was looking at putting on more trips.

“We’re virtually sold out of private rooms.

“That’s what’s happening everywhere. People that normally spend money travelling overseas are spending money on their houses, and all sorts of things, and instead of going multi-share, they’re going private room.”

On a four night Milford Track guided walk, a private twin room with ensuite costs $2730 per person, $500 more than a 4-bed room with shared facilities.

Ultimate Hikes trips will begin in December and Davies is hoping they will host 5000 walkers on the Milford and Routeburn Tracks over the course of the season

A lot of Australians are booked in March, and they have until January to confirm whether they are coming, but if our borders remained closed, those places will open up for Kiwis, Davies said.