Bouncing back

New Zealand associations respond to the government’s plan to save struggling businesses

By Natasha Parrant

New Zealand’s tourism, retail and hospitality businesses are trying to move forward from yet another lockdown.

The question is how are New Zealand companies recovering from the Delta outbreak? New Zealand prime minister Jacinda Ardern set out a plan in August to reconnect New Zealanders to the world. The plan outlines: • Speeding up the vaccine rollout so everyone would be eligible to book by

September 1 • Move to six weeks between doses to ensure more Kiwis are vaccinated (at least partly) • Gradually reopen the borders with a self-isolation pilot this year and set up new testing and vaccine checking systems at the border • Move to new individual risk-based border settings to establish low, medium, and high-risk pathways into New Zealand from the first quarter of 2022 • Continue to keep the borders closed for as long as required, wear masks, scan QR codes, contact tracing, and vaccinate to keep people safe and the economy open. Jacinda’s plan was introduced before the Delta outbreak, which caused the country to move to level 4 at 11:59 PM on August 17. Since the second lockdown, various associations speak out on behalf of affected businesses, responding to the different stages of levels, and reflect back on the government’s plan.

Tourism

Tourism Industry Aotearoa [TIA] chief executive, Chris Roberts, says protecting the health of New Zealanders needs to be prioritised, but the latest lockdown has majorly affected tourism operators. “Most businesses now accept our borders are unlikely to reopen this year and probably not until well into 2022. So many tourism operators are having to make hard decisions about their future, knowing that domestic travel over the summer holidays will not be enough to replace the lost international visitors.” Chris says many operators have had to downsize or put their business on hold. The COVID-19 Tourism Industry Survey conducted in August [www.tia.org.nz/resources-andtools/insight/covid-19-tourism-industrysurvey-results], shows almost five percent of respondents won’t be operating in six months. However, 60 percent of businesses believed they’ll be operating in five years. This result indicates many businesses may close temporarily rather than permanently, and this was before the second lockdown. TIA wants the government to extend the current wage subsidy, even when Auckland is at level 2, as many tourism businesses have been suffering a 40 percent decline in revenue during levels 4, 3 and 2. TIA suggests tourism operators get vaccinated and encourage colleagues, whanau, and the wider community to get vaccinated. Retail NZ chief executive Greg Harford says it’s been difficult for hospitality and retail businesses since the second lockdown. Level 3 has had almost as much of an impact on retail businesses as level 4 because “it takes time to recover”. “Physical stores need to remain closed and online sales or click and collect don’t generate the same level of sales. At level 2, customers are still nervous about getting out and about. There is a strong need for additional government support to help businesses survive the current situation.” Greg says the best thing for retail right now is to get back to operating normally, make sure most of the nation is fully vaccinated, customers feel confident shopping again, and money is circulating. A key issue for New Zealand is the borders remain closed. Greg says businesspeople can’t travel overseas to meet with suppliers, undertake quality assurance, order goods, and there’s a shortage of workers. While public health is important it’s also important for the government to facilitate business travel. “This means a more liberal approach to the border and access to MIQ facilities for business travellers if required.”

Retail Hospitality

Hospitality New Zealand Canterbury branch president, Peter Morrison, says most businesses are doing their best to recover from another lockdown. He says during COVID-19, “We didn’t have a great summer because there were no overseas tourists.” Since both lockdowns, many hospitality workers are in debt. “Some of them I don’t think will survive.” Peter says hospitality workers need more government support because “this sector is the worst one affected”. He says operators need the resurgence support payment weekly. After lockdown, some consumers want to shop more than anything. “In hospitality, we’ve got restricted levels.” Some employees can’t physically distance with dining tables in the way, despite the extended gathering. Auckland is the country’s biggest market for hospitality, so businesses are majorly affected since Aucklanders are not allowed to travel freely yet. Peter encourages the wider community to support hospitality businesses. He also says the government could have encouraged more people to get vaccinated sooner. The general public started getting vaccinated in July but even in October, only 40 percent of people are fully vaccinated. “As soon as that happens, we’ll be able to open up our borders I would think.” CT