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INDUSTRY LEADERS: JAMES DOOLAN, HOTEL COUNCIL AOTEAROA
INDUSTRY LEADERS: James Doolan
Strategic Director, Hotel Council Aotearoa
WITHOUT DOUBT, THINGS are looking much rosier for Kiwi hotels in 2023 than they were 12 months ago. It’s worth reminding ourselves that New Zealand’s international borders were still effectively closed in January 2022, with possible reopening signaled for the start of summer 2022/23.
Thankfully, robust advocacy from Hotel Council Aotearoa (HCA) and others contributed to an earlier loosening of travel restrictions, which likely saved many hundreds of jobs and businesses. Consistent messaging around that fundamental truth – that New Zealand’s tourism economy would permanently suffer if forced to survive on domestic business alone – is a piece of work I’m proud of as we look back on 2022.
James Doolan, Strategic Director, Hotel Council Aotearoa
Unfortunately, HCA could not replicate our advocacy success in other areas. New Zealand, like many other countries, is suffering from a massive shortage of tourism and hospitality workers. It’s near impossible to fill entry-level hospitality jobs, especially in resort locations such as Queenstown which are also experiencing a cost-of-living squeeze. HCA clearly signposted the looming labour shortage to government in mid-2020 – well before border reopening was even a thing – but we failed to get buy-in for targeted policies and interventions to make it easier to attract foreign workers to fill the gaps.
As a direct result of chronic labour shortages, stories of limited service and reduced opening hours are now commonplace throughout New Zealand. A key servicedelivery pressure point in 2023 will be the FIFA Women’s World Cup, which is being co-hosted by New Zealand and Australia. New Zealand’s true ability to deliver international travellers an even adequate experience will be fully tested on the world stage.
New Zealand’s tourism industry continues to grapple with staff shortages
Over time, technological changes (self-service, anyone?) and more domestic training and career pathways will no doubt help to ease some of the global reliance on migrant workers in tourism and hospitality. But the fact that isolated locations with low populations turn to imported hospitality workers is not a market failure and will never go away completely. It’s important that government policymaking is more nuanced and thoughtful around this topic, especially when tourism was once New Zealand’s largest export earner.
The biggest challenge and opportunity for 2023 is undoubtedly the return of outbound Chinese travel. Countries that welcome and host those first waves of outbound Chinese travellers in the best possible way will be the most successful tourist destinations for the next decade.
Successful hotels, tourism businesses and countries will be those that actively create hassle-free and life-affirming travel experiences. In 2023, guests are once again seeking the joy of travel
That means, ensuring visa processing is efficient and dependable; not imposing unnecessary COVID-related testing regimes; welcoming Chinese travellers warm-heartedly and sympathetically following the recent upsurge in COVID cases there. Finally, while acknowledging that costs have increased and dynamic pricing is an industry reality, we must still strive to deliver value-for-money. Otherwise, long-term reputations will take a hit.
Once again, it’s the basics that matter in 2023. Ultimately, the COVID period will be remembered for the constant overhang of fear, restriction, illness and death. Successful hotels, tourism businesses and countries will be those that actively create hassle-free and lifeaffirming travel experiences. In 2023, guests are once again seeking the joy of travel.
