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Small tour operators that have been denied additional government funding are asking New Zealand travelers to help them survive rather than businesses that did benefit.
Queenstown-based Shotover Canyon Swing produced a “cheeky Covid” video that is about companies that received large packages of financial support under the government’s Strategic Tourism Asset Protection Program (STAPP).
Targets include AJ Hackett, which controversially received $ 10.2 million in grants and loans, Discover Waitomo, which received $ 4 million, and Whale Watch Kaikōura, which received $ 3 million.
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New Zealand had around 20,000 tourism businesses before Covid and more than 300 applied for government grants designed to save key attractions. (First published 9/28/20)
Another 130 tourism companies received $ 500,000, but most received nothing.
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“We cannot trust the government,” the video says. “Life isn’t always fair, you just do your best, and with a little help from your friends, it usually works out.
“When you’re traveling this summer, make the right decision, think a little about the little one, the one who missed the big check.
“We need your support and we promise to show you a good time.”
Criteria for STAPP funding included demonstrating that the business was a key attraction, recognized nationally or internationally, and generated significant indirect benefits for the region.
Many companies did not apply because they did not believe they met the criteria, but later found they did.
Others complained that the process changed before all the grants were awarded.
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Shotover Canyon Swing owner Hamish Emerson has questioned the fairness of the government’s strategic tourism funding.
Shotover Canyon Swing owner Hamish Emerson said his company received an email saying their application was unsuccessful, without further explanation.
The video was not a case of sour grapes, he said.
“It is not the money. It’s great what the government and the wage subsidy have done. It’s just the process and justice. “
Your company applied for STAPP funds but was rejected. He has received $ 234,000 through the wage subsidy.
Business was tough and the continued support of New Zealanders was needed, he said.
“We are 70 percent less than last year. Without them, it reaches 100 “.
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Laura Douglas, owner of Real Country Farm Tours, missed strategic government funding for tourism.
There were companies much smaller than his that were struggling too, and he hoped the video would give them some support as well.
“People can make a big difference when they are on vacation,” he said.
Real Country owner Laura Douglas shared the video on her Facebook page as it resonated with her business.
She applied for STAPP funds but was turned down.
“The criteria was so subjective … it’s something that I think needs to be discussed,” he said.
About 80 percent of his income depended on bus trips abroad that visited his farm, located south of Queenstown.
The wage subsidy helped keep her and an employee after New Zealand’s borders closed, but she still had to pay rent and insurance and feed her animals.
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Mt Cook Cafe and guide company owners Mary and Charlie Hobbs say all tour operators need help due to the Covid pandemic.
Since then, he had closed his business for everything but corporate events, team activities and workshops while taking another job and awaiting the reopening of the New Zealand borders.
However, she was delighted with the support that Otago and Southland tourism businesses were giving each other, including those that received STAPP funding.
“I am going to Te Anau this weekend and I will pay for all the activities I can,” he said.
Mary and Charlie Hobbs, who operate a café and glacier tourism operation in Aoraki / Mt Cook, were unsuccessful in obtaining funding from STAPP.
“We don’t envy the guys who got it, but we really need help too,” Mary Hobbs said.
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The Hydro Attack Queenstown owners did not request funds for strategic tourism, but believe they were not properly distributed.
Hydro Attack owner Dave Lynott said he did not want to see the tourism industry divided, but was concerned about how the STAPP fund was organized.
“It was very badly thought out, rushed and not distributed as it should have been.”
He did not apply for funding because his company did not meet the criteria, but he believed that small and medium-sized companies should have been treated separately from large companies.
“For us, half a million is too much, but a $ 25,000 cash injection would have been huge,” he said.
AJ Hackett declined to comment.
