Business community welcomes relaxation in alert levels

Wednesday, 17 February 2021

Auckland Home Show organiser Amanda Magnus says uncertainty over alert levels has forced a decision to postpone next week's show until September.

The business community has welcomed a relaxation in Covid-19 alert levels but also warns it may take time for economic activity to bounce back.

Prime Minister Jacinda Ardern announced that from midnight Wednesday Auckland would move down to Alert Level 2, while the rest of the country went to Alert Level 1.

Business NZ chief executive Kirk Hope said it was good news because tighter restrictions on Auckland inevitably affected the whole of New Zealand, and the focus now needed to be on avoiding a repeat of the level 3 lockdown.

“That three to four days would be [worth] a couple of million dollars. The economy had been operating reasonably openly and when that slows down in one corner of the country, that has a massive impact.

“It’s good we are back to level 2 [in Auckland] but we need to have all the things in place to ensure we don’t have to keep shifting alert levels.”

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Good Group chief executive Russell Gray is responsible for 14 restaurants and bars in Queenstown and Auckland. During the level 2 and 3 Alert Levels he said the new “normal” was about a 50 to 60 per cent drop in business for Queenstown businesses, and about a 30 per cent drop for those in Auckland.

The hospitality industry was particularly hard hit by Auckland’s return to lockdown and it too is keen to avoid a repeat.

NZ Restaurant Association chief executive Marisa Bidois said it was pleasing the Government was looking at ways to combine stopping the spread of the virus with the safe opening of businesses, but financial support needed to start sooner.

Under Covid resurgence business support announced by the Government earlier this week, firms that experience a 30 per cent drop in revenue over a 7-day period will be eligible for a payment of $1500, plus $400 per employee up to a total of 50 full time staff ($21,500).

“What is now imperative is that the Government looks to start financial support of affected businesses from the first day of any level change,” Bidois said.

“The constant last minute closures and restrictions on trading are no longer workable for our industry, placing an untenable financial and emotional strain on owners. Three days of restrictions generally means weeks of cancellations and subdued trading for our sector.”

Christchurch Central City Business Association manager Paul Lonsdale says the switch to level 2 led to a noticeable drop in foot traffic as office workers were encouraged to work from home.

Tourism Industry Aotearoa chief executive Chris Roberts agreed the resurgence support needed some tweaks to be more effective.

“The criteria are quite rightly aimed at businesses that have taken a significant financial hit, and that should be the criteria, not how many days the alert level was in place for.”

Roberts said that while Aucklanders would be allowed to travel, they were supposed to “take their alert level with them” and there was confusion about exactly what that meant.

“It seems to be that if someone is getting married in Christchurch this weekend, and they’ve got more than 100 guests, Aucklanders would not be allowed to turn up. This is definitely an area where there needs to be some more clarity.”

After last year’s Auckland lockdown ended, Roberts said there were instances where Aucklanders travelling to other regions were shunned “or worse” and he hopes that will not happen again.

“We’d hope people would accept that Aucklanders turning up in other parts of the country are not a risk to you, they are entitled to be there, and you treat them as kindly as you always would, and gladly accept their money.”

Christchurch Central City Business Association manager Paul Lonsdale is also relieved at the return to Alert Level 1.

He said that during Alert Level 2 there had been a noticeable drop in foot traffic because many office workers switched to working from home a couple of days a week.

“That’s 20 per cent of the time and that’s a 20 per cent loss of people eating and drinking in the CBD.”

Lonsdale said the South Island relied heavily on North Island corporate and leisure travellers, and their absence was felt, and he expected there would be a lingering impact.

“After we’ve had lockdowns, people’s confidence drops a little bit, they decide they might just hold off their travel, and hold off going back to work on a regular basis … so we won’t get them back straight away.”

The Auckland Home Show due to open next Wednesday has now been postponed until September.

Exhibitions and Events New Zealand general manager Amanda Magnus said changes in alert levels were very difficult for large events planned years in advance.

The show, which had attracted 400 exhibitors and normally drew thousands of customers, could only go ahead at Alert Level 1, despite its ability to track and trace all attendees.

“Our show is too big to risk asking 400 companies to build a stand and spend extra money on a chance we go to level 1 on Tuesday,” Magnus said.

She said it was unfair shopping malls, where scanning in with the Covid tracer app was voluntary, could operate at level 2, but business events could not.

“So we are pleading with the Government to please hear event organisers’ voices.”