Covid 19 Delta outbreak: What hotels want from the Government

Hotels want more targeted help to help them recover from the Covid crisis. Photo / 123rf

An organisation representing hotels wants the Government to legislate for "no jab, no service" policies to protect the struggling sector from being sued.

Hotels also want a range of measures to help the sector, now fighting for survival.

Auckland's Hotel Britomart will take only guests who are fully vaccinated from November and the Hotel Council Aotearoa says if the Government wants to see this implemented widely it should pass a law to allow it.

"If the Government wants hospitality venues to implement 'no-jab-no-service' vaccine mandates, then it should do the obvious thing and pass legislation clarifying that vaccine mandates are legal," said James Doolan, the council's strategic director.

"Hotels and other hospitality venues should not be at risk of being sued by anti-vax customers or employees."

Hotel Britomart says it would require all staff, suppliers and contractors and visitors whether they be guests or restaurant patrons also double dosed and able to provide evidence of that.

Another Auckland hotel, strongly behind the vaccination push, is waiting for the Government to lead the way on requiring jabs.

Cordis Auckland managing director Franz Mascarenhas said the hotel wants staff and guests to be fully vaccinated, as this offered the best protection for everyone and a pathway for our business getting back to normal.

It had offered a free night at the hotel as an incentive for fully jabbed staff.

''However, we do believe that mandating vaccines should come in the form of Government legislation, so that individual businesses have the legal backing to proceed," he said.

The hotel council has said the sector has lost at least $1.5 billion in revenue during the past 18 months.

Ahead of the Government's much anticipated announcement tomorrow of further support for business, Doolan said it is devastating for tourism and hospitality workers to hear about how New Zealand's economy was supposedly doing well.

"Some businesses may be producing record profits, but tourism businesses are not. Our sector continues to fight for survival and the recovery will take many years due to the massive losses already accumulated."

Hotel Council Aotearoa wants to see targeted support for the tourism and hospitality sectors, but he said members aren't optimistic.

The Hotel Britomart has imposed a strict vaccination policy. Photo / Supplied

When Covid first hit in March 2020, the Government introduced a broad-based wage subsidy programme to help all businesses deal with the cash-flow implications of lockdowns.

Doolan said that made sense at the time, when the duration and impact of Covid was expected to be relatively brief.

"The original policies have helped, but since the initial response Government has refused to implement targeted support for businesses battling the ongoing impact of closed international borders and new borders around Auckland."

The tourism industry exists to sell goods and services to travellers, and earnings – not just short-term cashflow – are permanently impaired when borders are closed.

"Unlike many other industries, our product is experiential, perishable and cannot be stockpiled during lockdowns."

Doolan said the Government has shown willingness to adjust its health policies in light of new information but its economic response to Covid was largely unchanged from 18 months ago.

"We now have better information and advice about the economic winners and losers from Covid, but Government isn't acting on that information and advice.''

The council was expecting to see untargeted support that ultimately leads to increased national debt and inflation.

"At this stage in the economic recovery, New Zealanders would be better-served by targeted economic packages designed in collaboration with the worst-affected sectors, rather than continuing with broad-based cash-flow support packages."

The council wants the Government to provide tourism businesses with targeted wage subsidy support until borders re-open properly.

It has also proposed accelerated depreciation for investment in tourism sector assets to help the sector build back stronger once borders re-open.

The council is also worried about local body "targeted rates" or bed taxes.

"Central government should confirm that is funding local government marketing bodies for the next three years so that businesses get relief from unfair local government rates increases and tourism taxes," said Doolan.

The sector continues to request greater transparency about the pathway towards eventual re-opening of New Zealand's borders and elimination of the Auckland border.

"Hotel Council Aotearoa does not question the Government's strong health response and we recognise the uncertainty of how pandemics evolve, but asset and employee-intensive businesses cannot plan effectively in an information vacuum."

Doolan wanted to know whether there would be a move to quarantine-free travel for healthy, double-vaccinated foreigners in the first quarter of next year.

"if not, why not? It's past time for Government to clearly state New Zealand's national goals for reopening, since the tourism sector is hanging in the balance."

Hotel Council Aotearoa advocates on behalf of New Zealand's 350 hotels, comprising approximately 32,000 guest rooms in total.

Its paid-up membership is 140 of the largest of those hotels, with 15,600 guest rooms and an estimated replacement value in excess of $7 billion.