Coronavirus: No tourists, lockdown, bad weather decimates Northland diving

Thursday, 4 June 2020

Tūtūkākā dive charter operators struggle for financial survival as the reality of trying to run a business without international tourist begins to bite. (First published June 2020)

The blows have come swift and fast this year for Northland's marine tourism industry.

Like the rest of New Zealand's tourism industry, the lack of international visitors due to coronavirus meant businesses have taken a hit since February, and March numbers were down 75 per cent.

The Covid-19 lockdown spelt a complete stop to business under both alert level four and three.

Jereon Jongejans of Dive! Tutukaka says the lack of international tourists due to coronavirus is the biggest challenge to face his industry in more than 20 years.

But since businesses could start operating again under alert level 2, the weather has not co-operated, with massive swells and strong winds.

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Jo Thomson from Yukon Dive in Tutukaka is trying to be positive about the future, despite having zero income and mounding costs.

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Tutukaka marina (back left) is set in a majestic spot and is the gateway to the Poor Knights Islands.

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Tutukaka dive charter Yukon Dive has had just one sailing since lockdown began - on the Saturday of Queen's Birthday Weekend - and only three customers were aboard.

Co-owner Jo Thomson said it was not sustainable to have no income for months, while still facing large bills for maintenance, rent and marina berths.

'It's 99.9 per cent down - it's not even break-even and it's looking very uncertain going forward.'

About 250 people in Tutukaka are employed in tourism or related businesses like hospitality.

Such weather is not unusual for this time of year but the lockdown meant closure at the one time operators were normally profitable before winter, Thompson explained.

Jeroen Jongejans from the larger operator Dive! Tutukaka said it was sink-or-swim time for tourism operators, as well as surrounding businesses like cafes and shops.

Dive! Tutukaka had 14,000 customers last financial year but expected that to be down by 4000 this year due to Covid-19. Next year could see a drop of 7000 to 8000, he said.

'Fifty per cent of our clientele would be from overseas, which is really exciting, and they always go for the full packages, so it's 60 per cent of our income.

'Suddenly, with the border closures, bang that is stopped, and that has a major impact on the sustainability of the business.'

Both businesses are grateful for the Government's wage subsidy, which has enabled them to hang on to key staff. Dive! Tutukaka plans to keep 20 staff, down from 60 in a usual summer, and Yukon will keep seven, down from 12 in a usual summer.

Jongejans said while Kiwi dive enthusiasts are back, he would like to see the border open with both Australia and the Pacific as soon as possible.

'We are cutting costs but it's hard. We are trying to reinvent some products but you can't make a fish climb a tree - we have to stick to what we do best.'

Thompson said any Government help with cash flow, such as a return of GST, would help the business get through a lean winter.

Cash flow has been short since Yukon Dive refunded $49,000 in deposits to customers who cancelled due to Covid-19.

An extension to visas would also be a huge help, so Yukon could keep trained dive instructors, which are in short supply in New Zealand, Thomson said.

Jongejans said he would also like to see an increase in marine reserves, as only 0.4 per cent of New Zealand's sea is protected.

The reserve at the Poor Knights Islands is the key attraction at Tutukaka but more marine reserves could see the industry grow, like the $13 billion industry related to Australia's Great Barrier Reef, he said.