Matt Cowley: Events are back, but are we ready?

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

COMMENT:

It's wonderful to see the region's major events calendar filling up.

The tourism and events sectors were the first to be impacted by Covid-19, and they were the last to get fully up and running again. Now, across the Western Bay, most weekends until autumn have something on.

We need events. They showcase our region to new audiences, and give an instant cash injection to local accommodation, hospitality, and tourism businesses.

A prime example is the Zespri AIMS Games. This week-long tournament, which begins today, will see more athletes participate than in the Commonwealth Games.

The region will be at full occupancy with people filling hotels, campsites, homes, and marae. Eateries, retailers and entertainment venues will be busy feeding and entertaining the tens of thousands of visitors.

Most regions across New Zealand would love to host the AIMS Games, and we are fortunate the AIMS Games Trust is dedicated to keeping it here.

Matt Cowley says we need events to showcase our region to new audiences. AIMS Games is a prime example. Photo / Andrew Warner

A big congratulations to the Trust for persevering after two consecutive years of last-minute cancellations due to Covid-19 restrictions. It's a huge effort to organise dozens of sports tournaments to occur during the same week. And well done to sponsors, such as Zespri, who have stepped up this year to support the event.

While we celebrate the return of events, as we look ahead to a packed summer calendar, I have to question: are we ready?

Will we suffer the same fate that plagued Queenstown's peak winter tourism season, where businesses had to limit their operations because of worker shortages?

Our labour market is tight now. It's going to be even tighter through summer, especially with the return of cruise ships.

As we lead into our peak tourism and events season, the challenge will be whether we have the workforce capacity to provide experiences that will be memorable for the right reasons.

Employee pay rates in the hospitality and tourism sectors have gone up considerably in response to the worker shortage. Employees deserve it, they are covering more than their standard job description as employers struggle to fill vacancies.

Businesses need to increase their prices so they can cover not only their employees' higher wages, but the higher wages throughout their supply chain. The worker shortage is undoubtedly inflationary.

Yes, New Zealand's immigration requires its checks and balances. But if the world is facing a worker shortage, wouldn't that self-regulate the supposed influx of migrants to help us deliver great experiences for visitors?

Returning university students will provide some staff cover over summer, but will also add to the demand, particularly for hospitality.

It appears the events, hospitality and tourism sectors are still between a rock and a hard place, despite the borders re-opening and easing of Covid-19 restrictions.

I hope I'm wrong, but if Queenstown is anything to go by, it could be another restricted summer for tourism and hospitality.

Matt Cowley is the chief executive of the Tauranga Business Chamber.