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Home / Bay of Plenty Times

Covid 19: Tauranga summer spending slows, retailers face Omicron uncertainty

Laura Smith
By Laura Smith
Local Democracy Reporter·Bay of Plenty Times·
23 Jan, 2022 05:00 PM5 mins to read

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National Party leader Chris Luxon says rest homes, retirement villages and at-risk communities must be flooded with boosters if New Zealand is to withstand Omicron.

Summer's spending boom has dried up in Tauranga but some retailers remain hopeful despite uncertainty over the looming Omicron outbreak.

Retail NZ chief executive Greg Harford said spending in Tauranga and the Bay of Plenty had anecdotally been strong over the festive season but the majority of businesses were yet to recover from last year's lockdown.

Harford said Retail NZ expected spending to remain relatively slow because of the likely emergence of Omicron in New Zealand and other economic pressures.

Omicron is a variant of Covid-19 and has spread rapidly worldwide. In New Zealand, more than 380 Omicron cases have been detected at the border since December 1.

As of today, there were 19 community cases of the highly-contagious Omicron. All are in isolation.

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Modelling Covid Response Minister Chris Hipkins had received suggested there could be "tens of thousands" of daily Omicron cases within weeks and New Zealand was placed into the red traffic light level at 11.59pm on Sunday.

Today there was also one new case of Covid-19 in Rotorua and one in Atiamuri.

"Omicron is the big unknown - and that is creating significant uncertainty for Bay of Plenty retailers," Harford said.

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Any staff absences would make it hard for retailers to maintain business as usual, and there would likely be disruption to services in-store and on supply chains, he said.

Retail NZ chief executive Greg Harford. Photo / Supplied
Retail NZ chief executive Greg Harford. Photo / Supplied

"As the situation evolves over the coming weeks, Retail NZ is asking customers to be patient, to shop normal, and to shop nice."

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The Cottage sales consultant Melissa Howell was staying positive, particularly with two long weekends on the horizon.

She said while summer had been busy so far, last week had been much slower.

"It's just the way it is at the moment, I think things will return. I'm being positive and just hoping it is a bit of a lull.

"You've just got to hope for the best."

Tauranga Chamber of Commerce chief executive Matt Cowley said it had been slightly quieter than usual, although there was generally a break between the peak periods of new year and Auckland Anniversary Weekend.

This gap was usually filled by visiting cruise ships, which were absent for a second summer.

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"A reason why it's quieter could be that Kiwis know the cost of living is going up this year, so they could be acting more cautiously."

Rising costs for things such as petrol, mortgage rates, rents, and groceries will mean less discretionary spending from domestic tourists, he said.

Mount Surf Shop manager Grace Rich said its adjoining cafe helped it get by.

She said it had been quieter in the past week or so but "not too out of the ordinary".

As for Omicron, everyone had already adapted in the last few weeks, she said.

"Hopefully it will stay the same going forward."

Hammon Diamond Jeweller owner Julie Hammon agreed adaptation was needed in the face of the emerging variant.

Retailers in Tauranga's CBD say summer spending has died off but many remain hopeful. Photo / NZME
Retailers in Tauranga's CBD say summer spending has died off but many remain hopeful. Photo / NZME

"I think we are realistic about its inevitability being out in the community. So, we'll find ways to cope with whatever it looks like at the time."

That was the thing about business these days, she said.

"You've got to find ways of being adaptable.

"Until it hits, who knows. We're ready to go with the flow whatever it looks like."

She had been happy with her in-store foot traffic, which had been a mix of locals and visitors, she said.

"I think people are prepared to be as cheerful as they can under such circumstances.

"You get the odd bit of negativity but generally people are so adaptable and positive about how we deal with things."

Fancy That owner Bill Campbell said activity at his store was down by 80 per cent.

"There was the odd one [customer], but not enough to make the bank balances look super good."

He was surprised there were not more people around.

Downtown Tauranga manager Millie Pidwell said many retailers had a busy December and January but numbers had dropped after the new year and last week was quieter.

"There's the annual drop off at this time of year as people go back to work, and there is likely the impact of Covid-19, of course."

Businesses had told the mainstreet organisation people were more cautious about "window shopping" due to scanning and mask-wearing, she said.

She said it was hard for anyone to predict what would happen with Omicron.

"We're adept at changing, adapting and pivoting where we need to, to support our members' ability to continue operating in most Covid-19 situations."

Pidwell said new developments in the city centre would help revitalise foot-traffic, and there was "an undeniable feeling of renewed optimism and energy across our business members".

Tourism Bay of Plenty general manager Oscar Nathan said the numbers in coastal Bay of Plenty were "not far behind" last summer.

"We've had the usual peak period from December 24 to January 3, with a gradual tapering off in accommodation bookings since then as many holidaymakers have headed back to work," Nathan said.

"Our data showed a 4 per cent decrease in visitor numbers over the December 15, 2021, to January 10, 2022, period – with around 48,000 visitors a day this summer compared to around 50,000 a day last summer during the same timeframe.

"We don't yet have the data for the weeks after that, but we haven't noticed any unexpected drop off in the number of visitors since then."

He said upcoming weekend events would bring a "big influx of visitors".

"This will have a flow-on effect for the accommodation providers, cafes and bars, and tourism activity operators that desperately need this significant financial boost while they continue to recover from last year's Auckland and Waikato Covid lockdowns."

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