AJ Hackett Bungy to receive millions from government

Wednesday, 24 June 2020

Tourism New Zealand's new campaign is designed to change Kiwi attitudes to holidaying in NZ. (Video first published May 22, 2020)

AJ Hackett Bungy New Zealand may get up to $10.2 million in government funding to ensure its survival post-Covid-19.

The announcement was made on Wednesday by Tourism Minister Kelvin Davis as part of the $400 million Tourism Sector Recovery Package.

It will receive a $5.1m grant in the first year, with a possible loan of up to $5.1m available in the second year if borders remain closed to international tourists.

AJ Hackett Bungy may get up to $10.2m in government funding.

AJ Hackett Bungy New Zealand co-founder and managing director Henry van Asch said the government funding was well-timed for the internationally recognised company.

“We’ve been contributing to the communities we’re operating in, and delivering our life changing experiences to people from around the globe for more than thirty years, and are doing everything we can to ensure we can continue to do so,” he said.

“Even after considerably resizing our business across New Zealand we are still facing significant losses through to whenever the tourism market rebounds.'

AJ Hackett Bungy announced staff cuts in May, with a spokeswoman saying at the time 150 jobs out of 224 could go.

AJ Hackett Bungy New Zealand was established in 1988, with the first site situated at Kawarau Bridge near Queenstown. The company has expanded its experiences to six sites across Queenstown, Auckland and Taupō, offering jumps, swings, sky walks, catapults and zip rides.

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AJ Hackett Bungy New Zealand is owned by Bungy New Zealand which has three shareholders, including Fun Innovators NZ, owned by Henry Van Asch and John Ward; Trojan Holdings, owned by John Davies; and Gulley Holdings, owned by Andrew and Claire Brinsley and Farry & Co Trustees.

Bungy New Zealand received a $219,288 Government wage subsidy for 32 staff. Queenstown Bungy – which is part of Bungy New Zealand – received $1.363m for 196 staff.

Queenstown Lakes District Mayor Jim Boult and AJ Hackett Bungy New Zealand co-founder Henry van Asch were the first jumpers on Thursday morning as the country moved into level 2. Coronavirus, lockdown, Covid-19.

But van Asch said the grant will help retain staff.

“This grant enables us to keep the specialist skills we need – in particular the jumpmasters – to continue to offer our experiences. And allows us to be ready to scale up again when international visitors return,” he said.

AJ Hackett operates a jump from the Kawarau Bridge near Queenstown.

“Our specialist jumpmasters, who require two or four years of rigorous training to develop the skills they need to coach people to jump off a bridge, are crucial to our operation’s ongoing sustainability.

“If we can keep them working and using their specialist skills we’ll be in a much better position longer term.”

Stuff Limited, publisher of this website, had received about $6.3m in wage subsidy for more than 900 staff.

Minister for tourism Kelvin Davis said it was important to protect a “world-famous tourism asset” that offered flow-on benefits to its local community.

“AJ Hackett Bungy has been giving thrill-seekers exhilarating experiences for more than 30 years,' he said.

“With our borders closed to protect us from COVID-19, the downturn in visitor numbers is felt far and wide, not only by the operator but also by other local businesses who cater to visitors through accommodation, hospitality and retail.”

The government's Tourism Recovery Ministers Group will decide where the money will go, and which tourism operators were of strategic importance, as part of the Strategic Tourism Assets Protections Programme.

The programme was designed to protect assets in the tourism sector that were nationally or regionally vital, were culturally and historically important, and had wider benefits to the region where it was located.

More than $35m had already been allocated to tourism operators, including $1.5m to Whale Watch Kaikōura, $4m to Discover Waitomo and $20.2m to 31 Regional Tourism Organisations.

“We’re committed to the tourism industry’s recovery, which is why our $400 million Tourism Sector Recovery Package is so important,” Davis said.

Tourism operators were given only two weeks' notice to apply for the fund, with more than 300 operators already applying.

On Friday an announcement regarding concession fees for tourism operators would be made in Queenstown by Davis and Conservation Minister Eugenie Sage.