Rotorua's $40m Chinese tourism industry to feel impact of coronavirus

Hells Gate operations manager Paul Rayner says the tourism business has had Chinese groups cancel their reservations. Photo / Stephen Parker

A market that brought $40 million into the Rotorua economy last year will be impacted, at least partly, as a result of the coronavirus.

China's Ministry of Tourism and Culture notified tourism bureaus in China to suspend the group tours and flight and accommodation packages, which would impact Chinese arrivals in New Zealand over the short term.

Last year, Chinese tourist groups and individuals contributed nearly $40 million to the Rotorua economy, making it the fourth-highest source of international visitors to the city.

While the city's tourism would be affected, it was too early to say to what extent.

Hells Gate operations manager Paul Rayner said groups from China had cancelled their bookings.

"We'll definitely see an impact."

But it would not be as detrimental to the business if it had happened two years ago when the Chinese market was booming in Rotorua.

"You're talking about a softening market right now ... We'll feel the impact but it's not going to be as significant as it could've been," he said.

He said even if there were no restrictions on Chinese group travel, they would expect 20 per cent fewer Chinese tourists than last year.

Rayner said there would be a bigger concern if the virus spread and travel restrictions were imposed in additional countries.

"We've just got to wait and see. Hopefully, it doesn't affect the US market because we're seeing really strong numbers out of there at the moment," he said.

Australia was currently Hells Gate's biggest market, and the tourist attraction was Rotorua's biggest tourism market.

Skyline Rotorua has had 15 cancellations since the travel restrictions were announced.

Sales and marketing manager Andrew Aitken said visitors from China made up 7 per cent of their total visitors last year.

"The safety of our staff and customers is the top priority for us therefore, at this point in time, we support any measure taken to stop the spread of this virus."

Destination Rotorua chief executive Michelle Templer said while group travel was part of this contribution, large tour groups were being overtaken by more independent travel visitors.

Destination Rotorua chief executive Michelle Templer. Photo / File

She said there would be a push to increase the already active marketing to Australia, the biggest market; North America, which was showing positive growth; and other key international markets.

She said domestic holidaymakers contributed 57 per cent of the city's annual visitor spend and promotion of Rotorua experiences to Kiwis would continue.

In a move to protect locals and visitors, Templer said fact sheets and advice from the Ministry of Health had been circulated, and they would continue to follow World Health Organisation recommendations.

"We are also encouraging the industry to keep us up to date on impacts from the coronavirus on their business so that we can shape our destination response."

Tourism New Zealand chief executive Stephen England-Hall said Rotorua, Queenstown, Auckland and the Milford Sounds had a significant Chinese market and would be the most affected destinations.

He said Chinese tourists brought in $1.7 billion across New Zealand last year, which was equal to the total amount made from wine exports.

"It has the potential to be quite significant," he said, but it was too early to predict what might happen.

River Rats owner Justin Hutton said the Chinese market did not seem particularly keen on the adventurous activities they had to offer and he had no concerns about the restrictions.

Hospitality New Zealand chief executive Julie White declined to comment on the impact the coronavirus would have in the Bay of Plenty.

"This is an evolving issue and it is too early and not possible to predict the extent and impact on the tourism industry and economy," she said.

Symptoms of the coronavirus include fever, cough, and trouble breathing, and can appear anywhere from two to 14 days after exposure.

Lakes DHB chief executive Nick Saville-Wood said staff were aware of the need to be vigilant for symptoms among people who may present to the emergency departments with flu-like symptoms.

He said staff were working closely with Toi Te Ora Public Health to keep health professionals across the Lakes district informed of the risk.

Rotorua Community Hospice and Waipuna Hospice were calling for participants for a new fundraiser in October, Hike for Hospice - a trekking adventure on the Great Wall of China that would raise funds for the two hospices.

However, they are postponing the Hike for Hospice due to the coronavirus.

Hospice said its supporters' health and safety were paramount and it would continue to monitor and assess the situation.

If the virus situation was given the all-clear and travel to China was confirmed by the Government to be safe, they would move the campaign trip to late 2021.