Coronavirus: Bay business expects $500k loss, others focus on domestic market

Miles Johnson, owner and operator of Day Trippers is focusing on the local market. Photo / George Novak

A Tauranga tourism business is honing in on the domestic market while another is predicting a $500,000 loss as the effects of Covid-19 pummel the local economy.

Day Trippers owner and guide, Miles Johnson, said he was focusing on the domestic market in the midst of the disruption.

Johnson, who launched the business in December last year, was "expecting a tough 12 months anyway" but other businesses that relied on cruise ships or foreign visitors would be hit hard.

He said the cruise ship visit restrictions had "cleaned his whiteboard of bookings" after bookings for seven tours during the next three weeks had been cancelled.

Aside from one other casual employee, he was the only person who relied on the business for income.

"Other operators will be in a world of pain," he said.

International and cruise ship visitors were a significant part of the market but he said the local market had plenty to offer, too.

To help lure in customers he was offering Kiwi customers a 10 per cent discount and would begin marketing his business through social media advertisements that targeted locals.

Bethlehem Coachlines owner, Neil Jamieson, said he had budgeted to lose at least $500,000 due to coronavirus.

Kristin Dunne, chief executive of Tourism Bay of Plenty. Photo / File

Jamieson said his business was luckier than others, as about one-third of income was from tourists and he had urban and school bus routes to fall back on.

While he said he supported the Government ban on public gatherings, it did mean there was a plummet in the domestic jobs available.

"Field Days, gone. Kapa haka in Wellington, gone, Super Rugby, gone. All that stuff is gone," he said.

He said his business would "weather" the storm but other operators might not be so lucky and he anticipated a slow recovery.

"It's going to be hard to get everyone through. There will be casualties for sure."

Previously, the business was planning to take on more tourism-related jobs but this was something Jameison was rethinking in light of the outbreak.

Skydive Tauranga operations manager, Tristan Webb, said it was fortunate coronavirus had hit towards the end of the tourist season but it would be a concern if the impact carried on to spring.

Tourism Bay of Plenty chief executive Kristin Dunne said survival was the top priority for affected businesses right now.

"Many operators are very stressed about their livelihoods and also the role they need to play in looking after both the community and the visitors who are needing to self-isolate.

"With this collapse being due to the spread of disease, people are likely to be more cautious travelling domestically but we certainly need to be looking at how we boost domestic tourism when the time is right.

"I know tourism operators will be looking to be as innovative in their offerings and approach as possible to bridge this difficult gap in time."

Dunne said it appeared there would be some relief for small businesses in Tuesday's Government announcement but medium to large-sized operators would not reap the same benefits, due to the $150,000 cap.

She said she understood Government and economic experts predicted the economic impact to likely to be bigger than that were seen during the Global Financial Crisis, but there was nothing that could have been done to prevent the disruption of coronavirus.

"Covid-19 is an unprecedented situation and we need to work together on the immediate actions and future of the visitor economy," she said.

An industry meeting would be held tonightto find out what support operators needed and to start developing a plan to mitigate the impact.

"We need to be there for our tourism operators as a sounding board, a place of advice and support. We will be holding regular industry forums so we can share experiences and ideas."

The organisation was also developing a website with live updates and information on Covid-19 that included information from the Tourism Industry Aotearoa, Ministry of Health and the Government.

Conscious Travel founder, Anna Pollock, who spoke at the launch of Tourism Bay of Plenty's new strategy, Te Hā Tāpoi The Love of Tourism yesterdaysaid Covid-19 highlighted the vulnerability of the global tourism industry and the need to create a sector with greater resilience in the future.