Bay businesses look forward to a busy summer as the border fully opens this weekend

Bay of Plenty businesses are combating a crippling staffing shortage as the country's border prepares to fully open.

Yet optimism and excitement bolster the hope the region's streets will be bustling with overseas visitors once more by October.

From 11.59pm on Sunday, all visa categories including tourist, visitor and student visas will reopen for applications for travellers from anywhere in the world. This includes the maritime border, and consequently, cruise ships.

V8 Trike Tours New Zealand co-owners Nigel and Kathryn Busbridge were excited to see cruise ships able to return in number.

"That is something that has been really missed ... it brings a vibe to the Mount," Nigel said.

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Visitor numbers from Australia had increased in recent months but he knew those in the northern hemisphere would not venture south until it cooled down at home first - and heated up here.

V8 Trike Tours New Zealand co-owner Nigel Busbridge. Photo / Andrew Warner

He said they were looking forward to a return to normality.

"There are a lot of people wanting to see New Zealand."

Hugo and Carters Backpackers and Motel owner Emily Gillette believed requirements such as the need to be vaccinated were a disincentive to backpackers.

"In terms of workers, we have none, in terms of backpackers, we have few."

She said they had needed to get creative and had altered their approach by offering long-term rates and rooms for seasonal workers.

"It's been an interesting two years. The way we do business has totally changed."

Tauranga Business Chamber chief executive Matt Cowley said it is the uncertainty that troubled businesses, particularly those in tourism and hospitality.

Tauranga Business Chamber chief executive Matt Cowley. Photo / Mead Norton

"They don't want to be either over- or under-prepared for an unknown number of international tourists."

This was less of a concern in the Western Bay of Plenty as it was unlikely to get many international tourists during the colder months. And with that being the situation, he said, plenty of people were taking well-earned winter holidays overseas.

But staff challenges could mean businesses struggle to consistently meet high-quality experiences that New Zealand has been promoting to overseas markets, he said.

Wanderlust hostel and Pacific Coast Lodge and Backpackers co-owner Sarah Meadows held those concerns Cowley listed, including not knowing how many visitors will head into the country and the region, as well as not being able to find staff.

"It's just impossible."

There had been no floodgate-opening effect when Working Holiday Visa holders were allowed back into the country from March, she said. Looking forward, she said they were optimistic for a busy season from September or October when it got warmer.

"We are hopeful they will come."

In the meantime, she and husband Matt Young were working to freshen up the properties before visitor numbers rebounded.

Pacific Coast Lodge and Backpackers manager Laure Gamelon and owner Matt Young giving the lodge a freshen. Photo / Mead Norton

Priority One workforce and policy general manager Greg Simmonds said the tight labour market was of significant concern for most businesses in the Western Bay of Plenty and the border reopening would bring relief to some unable to recruit from overseas.

He said there was also some concern about younger staff leaving for an overseas experience.

Restaurant Association of New Zealand chief executive Marisa Bidois said staff shortages were the "single biggest issue" facing the sector, and this was only worsened by sickness.

She said businesses have been on big recruitment drives, including applying for immigration accreditation to enable them to recruit overseas workers where they need to. They also looked at ways to attract and retain staff.

Tourism Bay of Plenty general manager Oscar Nathan said its forward-looking accommodation monitor showed relatively muted demand during August.

Tourism Bay of Plenty general manager Oscar Nathan. Photo / Supplied

He said many of the first to come through, particularly while it is cold, will be staying with friends and whānau.

Looking ahead, he said the return of cruises will significantly boost the number of international visitors but would not be reflected in onshore accommodation bookings.

He said New Zealand being one of the last countries to fully reopen its borders caused it to lose ground to other overseas destinations desperate for the return of tourism.

Australia was working to keep domestic travel alive, which Nathan said it was working to counteract alongside Tourism NZ and other central North Island regions.

Concerns around staffing and recruitment remained a concern and he hoped the border opening and the revised visa application process would help relieve issues in time for October when the cruise season started.

In general, he said tourism operators were optimistic, albeit realistic.

"It's simply a very difficult time in terms of predicting the exact scale and scope of demand."

As for planning for challenges, businesses would not be taking their eye off of the domestic market, he said. Pre-pandemic, this sat at 80 per cent of all visitors to the coastal Bay.

Tourism Industry Aotearoa chief executive Rebecca Ingram said the border opening was a momentous occasion.

Tourism businesses were reporting that forward bookings and inquiries were encouraging, particularly from Australia and the US.

But having enough skilled workers was a key part of the sector's successful recovery, she said.

"Many tourism businesses are offering great incentives to work in tourism, including flexible hours, free transportation, live-in accommodation and more."

Short-term problem solving required some creativity, such as how some hotels offered reduced rates if guests were happy without room service.

She said pent-up demand for New Zealand travel was strong and alongside the agency's members, she was feeling hopeful.

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An Air New Zealand spokesperson said it will be operating at 60 per cent of its international capacity and this month would be the busiest July in two years with the relaunch of 14 international routes.

"Getting aircraft out of storage, people back in, opening ports, and working with new travel requirements, there's a lot to consider, and the Air New Zealand team are doing their very best to make it happen as quickly as possible."

Tourism New Zealand chief executive René de Monchy said there had been "green shoots" of recovery over winter as the border partially opened.

He said the recovery of the sector would be gradual but it had been keeping destination New Zealand's brand alive in core markets such as Australia, the US, China and the UK.

The competitive nature of destination marketing globally was one of its challenges and its global activity will focus on attracting high-quality visitors.

He said online searches for international flights to New Zealand were up 39 per cent since the border announcement was made.

In January, 58 per cent of Australians who would like to visit New Zealand wanted to come within six months of borders opening.

"This number is even higher for our American target market, at 77 per cent."