The absence of cruise ships will hit small operators hard this summer. Photo / Mike Scott
The absence of cruise ships will hit small operators hard this summer. Photo / Mike Scott
If there is one industry really looking to the next government for a lifeline, it is tourism.
Tourism Industry Aotearoa chief executive Chris Roberts recalls Grant Robertson's comments as the border closed in April: that the Government would need to provide a "rolling maul" of support.
"We certainly agree withthat," he says. "There were a number of initiatives taken in the May Budget, but that can't be the end of it.
"The best predictions are that we are facing at least a three-year recovery, possibly a five-year recovery."
"It was a really good example of industry and government working together and getting things done quickly. We were getting decisions made in 24 hours that would normally take six months."
But that time has well and truly passed, Roberts says.
"We seem to have slipped back to normal processes, and discussions take as long as they ever did."
There are three key areas where the industry wants action from the new government.
"Number one is a plan," Roberts says. "What is the road map to recovery? What are the conditions that will be set for the gradual re-opening of borders?"
He accepts there are "political risks for every party" in being too specific about border policy pre-election.
"We accept the Government can't give firm dates on when things might happen, but what preparation is underway to allow those openings? Just some indication that we are in the conversation."
Chris Roberts, chief executive of Tourism Aotearoa. Photo / Jason Oxenham
As an example, he cites news last week that Japan is starting discussions with other countries about reopening borders.
"They've got the Olympics in mind and they want to be sure they can hold those in July next year," he says.
"We've got no idea - from MFAT or any other means - if New Zealand is talking to Japan.
They want to talk to other countries … are we taking up that offer?"
At some point global travel will resume and New Zealand can't be left behind because we haven't done the planning to prepare for that event, he says.
The second big issue is policy to stimulate domestic demand.
Domestic tourism has been a saviour so far and the industry is thankful for that, Roberts says.
"Kiwis got it, that they can have a great visitor experience in their own country and they're felling good about doing that. Every dollar they spend is helping keep someone in a job."
But domestic tourism happens mostly at weekends and school holidays.
"Monday to Thursday is dead," Roberts says.
That's making it incredibly difficult to employ full-time staff. So initiatives to address that lumpiness will be important.
The third big area is supply-side support - either loans or direct stimulus to keep as many operators as possible afloat.
While there has been some direct support to about 130 larger operators, the backbone of the industry is the thousands of small operators up and down the country, Roberts says.
"We accept not all will survive. But when the borders open we will need the bulk of those to have survived. So we need the government to think about what bridging support can be provided."
Businesses are coming out of the past two weeks of school holidays with a reasonable level of activity, he says.
There will be a quiet period through to Christmas but the summer holidays will be good.
"We don't need particular stimulus from Christmas to Waitangi day. But the big concern is what happens after that. February/March is when businesses make their money, from the big overseas numbers.
"If the borders are still closed, that period will be very problematic."
