The Coronet Peak ski field on its opening day in June last year. Photo / Otago Daily Times
The Coronet Peak ski field on its opening day in June last year. Photo / Otago Daily Times
A New Zealand tourism industry leader says the industry is “in a great place” after recently questioning its survival, with no sign of economic stress impacting it.
Tourism Holdings chief executive Grant Webster said demand had not completely returned to pre-pandemic levels and rising costs were a challenge, but thosewere operational problems the industry didn’t mind dealing with after what it had endured in recent years.
“That has been reflected in pricing, but ... [it’s] a series of problems that we would rather be having than what we had during that Covid period.
“We’re standing up, we’re standing well, and we are looking forward to the future.”
Tourism Holdings chief executive Grant Webster says domestic and international tourists are showing no resistance to higher prices. Photo / Brett Phibbs
Speaking on the Herald’s Stock Takes podcast, Webster revealed the international campervan rental company, which has been listed on the New Zealand Stock Exchange since 1986, considered shutting down in the throes of the pandemic.
“I‘ll be honest ... We asked ourselves that question, ‘Should we survive?’”
THL not only survived, it reduced debt by $200 million in a single year.
“We actually could have survived for quite a few years on that basis and we would’ve been fine.”
Webster reflected on the pandemic’s “devastating” impact for other operators and some commentary criticising New Zealand’s economic reliance on tourism as a considerable export earner.
Now tourists were back travelling our country and spending, society was more accepting of tourism, he explained.
“I think the country has seen as tourism has returned that actually, this isn’t so bad.
“Tourism adds not just to our economy, but it adds to who we are.”
Although admittedly biased because of his position, Webster agreed reliance on the industry’s earnings needed to reduce.
“The industry is probably more open to that than it’s ever been to looking at the environmental issues, the social issues, the community issues, and how that economic contribution can be delivered differently.”
The “positive place” tourism now found itself in included higher spending rates and an increased desire among tourists to visit New Zealand’s hotspots, with North Americans especially eager - capacity on flights from there to here was forecast to be up to 6 per cent higher than pre-Covid levels by later this year.
Domestic tourism demand was also now higher than it was before the pandemic, despite high inflation.
Webster said the economic environment was causing both local and international tourists to take shorter holidays and opt for cheaper accommodation, but it had not deterred travel.
“There doesn’t seem to be any general price resistance at the moment. We’re still in growth mode.”
Stock Takes is available on iHeartRadio, Spotify, Apple Podcasts, or wherever you get your podcasts. New episodes come out every Wednesday and are brought to you with support from Fisher Funds.
