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The government’s tourism financing package has not reached the wish list of the tourism industry, which has borne much of the worst part of the coronavirus pandemic and for which the Budget was “decisive”.
Tourism, which directly employed more than 229,000 people and is a major export industry, first saw demand drop in January when Chinese travelers stopped arriving, and the closing of the borders exacerbated the pain.
In its Thursday budget, the government announced a $ 400 million tourism recovery fund and a national tourism campaign, along with an extension of the Salary Subsidy Plan.
Tourism Minister Kelvin Davis said there would be funds to identify and help protect key tourist attractions and services.
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Bejon Haswell / Things
Tourism experts say additional government support is needed for operators to survive. In the photo is the Church of the Good Shepherd of Lake Tekapo, a card for tourists.
“Some of these are at risk due to the effects of Covid-19 and, if lost, could slow national or regional recoveries,” Davis said.
A tourism transition program would advise and support companies turning to the Australian and domestic market, hibernating or considering other options.
A group of tourism recovery ministers would be established, whose members would include Maori tourism, finance, development and conservation ministers.
A public-private working group would help shape the future of tourism in New Zealand, made up of representatives from the government and the tourism sector.
“New Zealand tourism has started this week to work to show New Zealand on social media promoting a safe journey for New Zealanders,” Davis said.
“More domestic activity, including a national campaign, will be rolled out soon.”
The Government would consider providing more support in the future.
The extension of the 12-week Salary Subsidy Plan would help companies cover personnel costs and protect jobs as the national tourism campaign unfolds, he said.
Tour operators had asked for an extension of up to six months to help them survive until the peak summer season, and an increase in the amount offered from $ 585.80 a week for full-time employees, up to $ 1,000 a week.
Ross Giblin / Things
Tourism Minister Kelvin Davis announced a $ 400 million directed tourism recovery fund and a national tourism campaign.
However, the extension announced Thursday amounted to a lump sum of eight weeks for employers at the same weekly rates as the current scheme.
Starting June 10, businesses that suffered or expected to experience a loss of income of at least 50 percent over a 30-day period would be eligible.
There were also calls from the tourism industry to ask for help with fixed costs like rent, wages, and fees in the form of grants or loans; and relief from charges such as the Department of Conservation’s concession fees.
Annual tourism spending totaled more than $ 40 billion, of which $ 23 billion was from domestic tourists.
Since the closing of level 4, many traders have seen their revenue drop to zero.
The industry had a long lead time, which meant that reserves would not generate revenue for months and, in some cases, years.
