Staffing shortages could hamper tourist spending in Queenstown, report warns

Several Queenstown businesses are unable to open every day. Photo / Supplied

Record levels of tourist spending during what was a lucrative ski season for Queenstown-Lakes might not be repeated during the peak summer season unless acute staffing shortages can be managed, a new report warns.

Independent Arrowtown economist Benje Patterson said in his workforce study, commissioned by the Queenstown Lakes District Council, that the region’s hospitality and accommodation sector alone would need to expand its headcount by 1500 workers just to return to its pre-Covid summer level.

“Businesses would be wise, wherever possible, to invest in systems and technological solutions to help them be able to maintain their yield with a leaner workforce.”

Patterson predicted a challenging summer for business.

Some council facilities are already operating on limited hours due to staff unavailability and several businesses are also unable to open every day for the same reason.

Despite a 330.4 per cent increase in local job ads listed on Jobfix between September 2021 and 2022, and an overall 3.6 per cent increase in filled jobs in the district over the past year, worker availability for the same period was down 36.8 per cent for those on employer-assisted visas, and down 52 per cent for those classified as “job-seekers” in the district.

Council economic development manager Peter Harris said that increase masked a drop of 1043 jobs in accommodation and food service employment this September, compared to September, 2019.

Jobs mostly grew in construction, up 582, professional services (304), recreational services (211), manufacturing (191) and health (190).

Harris said the report underscored the span of the workforce challenges, and the need to change to achieve greater stability for businesses.

"While it’s encouraging to see early signs of diversification in job growth outside of the hospitality industry, there’s a long way to go."

Harris said businesses were losing income because they could not offer their normal levels of service, and visitors had fewer options about what they could do in the district.

“By adding data to the issue, the QLDC economic development team hopes it helps business and Government leaders understand the scale of the challenge and prompts decisions that help relieve the pressure.”

The report was released as the council announced it was being forced to close the Frankton and Wanaka transfer stations every Sunday, from this weekend until January 8, due to staffing shortages.