Red Sees Hospo Down 30% - Govt Support Now Urgent

“Our latest numbers show that hospitality trade is down over 30% compared to the same time last year. If extra Government support is not given in the coming weeks and months, we’ll sadly see more business closures and job losses,” says one Auckland business leader.

The Takapuna Business Association has released the latest Marketview data for the North Shore metropolitan centre under the Red setting. For the week ending 6 February, total retail spend in Takapuna was down 21.8% compared to the same week last year.

Takapuna Business Association chief executive, Terence Harpur, joins other business and hospitality representatives calling on the Government to reintroduce previous support packages before the Omicron variant sweeps through country forcing more patrons and staff into self-isolation.

“With public health experts predicting a tsunami of infections, the coming months will be the toughest time for businesses since the Covid pandemic started two years ago. Let’s not forget businesses have still not recovered from Auckland’s four-month lockdown late last year. On top of this, there is now considerably less financial support,” says Mr Harpur.

Takapuna’s Marketview data for the week ending 6 February shows spending on Hospitality & Accommodation was -30.5%; Food, Liquor & Pharmacies 15.7%; Clothing, Footwear & Dept. Stores -38.5%; Home & Recreational Retailing -23.4%; and all other +4.9%.

The business leader says New Zealand moving into the Red setting at 11.59pm on Sunday 23 January had an immediate impact on business. Marketview data shows in the week ending 23 January total retail spend in Takapuna was down 11.4% on the same period a year earlier. On 30 January it was down 19.9%, and then by 21.8% on 6 February.

He says as well as reduced revenue under the Red setting, business was already very tough due to lack of staff, supply issues, office employees working from home, and inflation increasing the cost of wholesale goods.

“A form of resurgence payment and wage subsidy should again be available to those businesses suffering a 30% or more drop in revenue due to the Red setting. While the short-term absence payment and leave support scheme are a step in the right direction, they do not go far enough.”

What’s more, he says, businesses are hesitant to increase their borrowings under the small business cashflow scheme as many are already carrying high levels of debt.

Businesses with small teams, which are not able to work in separate bubbles, are at high risk of shutting down for two to three weeks at a time if staff are forced into self-isolation. However, there remains no business support for this, only a contribution towards staff wages. Without more support in place, Mr Harpur fears there simply won’t be a business for staff to return to.

“We’re now seeing more and more businesses losing staff due to self-isolation and close contact requirements. This will get much worse when Omicron takes hold. The Government tells us a significant wave is coming, and is doing well encouraging people to get boosted, but has yet to acknowledge its huge impact already on business,” he says.

He says as well as reintroducing targeted business support, the Government needs to use more positive messaging, actively encouraging communities to support businesses and dine-out at local restaurants.

“Many people are keeping away because they remain scared, yet the health measures in place are specifically designed to keep people safe. I’d like to see our political leaders talk less about a challenging winter and more about Kiwis needing to return to life as usual, albeit with restrictions,” says Terence Harpur.

www.ilovetakapuna.co.nz

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