Sigh of relief in tourism industry

By SIMON HENDERY

Tourism operators have welcomed the Government's commitment to keep Air New Zealand flying.

But anxiety remains, after the double whammy of the terror attacks in the United States and the collapse of Ansett, that mooted cuts to Air New Zealand's operations could deal a further blow to the battered tourism industry.

Travel Agents Association president James Langton said the Air New Zealand rescue package provided much-needed reassurance to the industry and travellers.

Tourism New Zealand chairman Peter Allport said: "Anything that keeps Air New Zealand in the air is good for New Zealand. The converse of that would have been pretty serious from the industry's point of view."

Air New Zealand spends more than $70 million a year promoting New Zealand as a destination.

Mr Allport said it was vital that the spending continued.

"This [package] will restore a great deal of confidence in New Zealand as a destination and that's the time when everyone needs to apply some promotional pressure."

Air New Zealand spokeswoman Rosie Flay said the company's international marketing budget would be part of a business plan which would be put to the airline's new board.

She said it was clearly an important component of Air New Zealand's business.

"The whole reason for the [rescue] package is the recognition of Air New Zealand as a key part of New Zealand tourism," she said.

The Tourism Action Group - formed to assess the impact on tourism of Air New Zealand's woes and last month's terror attacks - said last week the country could expect a drop of up to 10 per cent in visitor numbers between now and the end of the year.

Mr Allport said he did not expect the Air New Zealand bailout to affect that forecast.

The rescue package's benefits would not be felt until next year because reassured holidaymakers would now feel confident about booking with the airline two or three months ahead.

While there is industry concern that Air New Zealand may be restructured into a leaner operator flying fewer routes, Tourism Industry Association chief executive John Moriarty said airlines worldwide were facing similar pressures after the attacks.

"Air New Zealand is still in the game and it's now up to directors and management to deliver on the benefit of the Government coming in to rescue it," Mr Moriarty said.

Air New Zealand's acting chairman, Dr Jim Farmer, said one of the airline's main tasks was to rebuild its reputation in Australia - its most important market, and New Zealand's biggest tourist market.

Australian travellers have threatened to shun the airline, after the collapse of its subsidiary, Ansett, with the loss of 16,000 jobs.

But Air New Zealand insists that it inherited a terminally ill operation when it took control of Ansett, and had no alternative but to shut it down.

Dr Farmer said: "We hope that the anger in Australia ... will evaporate as the facts of the matter unfold."

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