Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Government Job Not Yet Done For Tourism

The tourism industry is feeling underwhelmed by the Government’s latest allocation of funding to support devastated tourism businesses, Tourism Industry Aotearoa says.

The Tourism Minister has today announced that 126 operators will receive grants of up to $500,000, supplemented by the offer of loans. There is a further loan facility for inbound tour operators, a fund for event organisers and support for increasing digital capability.

TIA Chief Executive Chris Roberts says while operators are grateful for all the Government assistance that has been provided to date, especially the wage subsidy, the latest funding falls short of what is needed to ensure the industry is in a position to rebuild when our borders reopen.

“Prior to the pandemic, tourism in New Zealand was a $112 million per day industry. Much of the package announced today is actually loans that will have to be paid back, but even at $300 million is equivalent to less than three days of tourism’s contribution to New Zealand’s economy.”

126 organisations out of the 20,000-plus tourism businesses in Aotearoa are receiving direct support. However, the unexpected cap on the grants at $500,000 will surprise many of the recipients. Businesses will have to very carefully consider whether to take up the offered loans, as they will be reluctant to take on more debt when their incomes are restricted. In particular, it is a surprise that inbound tour operators, who have no income while the borders are closed, are only being offered loans.

“As we pointed out in the joint industry letter I delivered to Prime Minister Jacinda Ardern on Tuesday, businesses suffering directly from the necessity to have border restrictions will need a supportive Government partner for the foreseeable future. Thousands of vulnerable workers remain desperately worried about their futures. TIA’s Tourism Election 2020 Action Plan, released last week, calls on the Government elected on 19 September to prioritise the survival and recovery of tourism businesses,” he says.

“Finance Minister Grant Robertson has talked about a ‘rolling maul of support’ for those businesses directly impacted by the COVID-19 pandemic. Today’s package is fine, as far as it goes, but it cannot be the end. We accept that not every tourism business will survive this crisis, not every job can be saved. But in partnership with the Government, we can limit the damage.”

TIA’s monitoring shows that its own members have already cut more than 13,500 jobs and across the industry job losses could yet exceed 100,000 as the wage subsidy comes to an end.

Mr Roberts is also disappointed that applications to support the Tourism Sustainability Commitment and the annual TRENZ tourism trade show were unsuccessful.

“While not physical assets, both the TSC and TRENZ are essential strategic assets that influence how tourism operates in New Zealand well into the future. TIA will continue to promote the TSC within its own limited resources and pursue the vision of building the world’s most sustainable tourism industry.

“We are also determined to find a way to put on TRENZ 2021, an event that will need to have a large virtual component given border restrictions. With the STAPP funding application rejected, we have immediately begun work on Plan B. TRENZ is the most important way our tourism operators connect with global travel sellers and we need to retain our place and profile in the global marketplace.”

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: Further Easing In Monetary Policy Delivered

Tēnā koutou katoa, welcome all. The Monetary Policy Committee agreed to expand the Large Scale Asset Purchase (LSAP) programme up to $100 billion so as to further lower retail interest rates in order to achieve its remit. The eligible assets remain ... More>>

Retail: Post-Lockdown Retail Card Spending Picks Up

The rise in retail card spending was boosted by sales of furniture, hardware, and appliances, Stats NZ said today. “For a third consecutive month, card spending on the long-lasting goods (durables) remained at higher levels than last year, after ... More>>


Contact: Business Drops, New Generation On Hold

New Zealand’s second-largest energy company Contact Energy (‘Contact’) released its full year financial results for the 12 months to 30 June 2020 (‘FY20’) this morning. More>>

Mining: OceanaGold Announces Receipt Of WKP Mining Permit

MELBOURNE, Australia, Aug. 6, 2020 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) (the 'Company') is pleased to announce it has received the mining permit for Wharekirauponga ('WKP') on the North Island of New Zealand. ... More>>

ALSO:

Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>

ALSO:

NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>

ALSO:

Antarctica NZ: Ice-Olation

Antarctica New Zealand is gearing up for a much reduced season on the ice this year and a very different deployment to normal! Before they head to one of the remotest places on the planet, all personnel flying south with the New Zealand programme will ... More>>

ALSO:

QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>

ALSO:

Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>

ALSO:

FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>

ALSO: