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Takapuna Beach Business Association Executive Director Terence Harpur says that many hotel operators in Auckland are now walking a fine line between closure or heavy debt.
A double whammy from the Auckland Harbor Bridge problems and ongoing Covid restrictions have many North Shore businesses calling for help.
The Takapuna Beach Business Association, on the city’s north shore, says some of its businesses have already closed and others are in a dangerous state.
Chief Executive Terence Harpur said that while it was a relief Auckland dropped to Alert Level 2 on Wednesday night, continued restrictions on social gatherings meant that retailers, especially hotel operators, were still doing so. “really tough”.
“Sure, more people can potentially get together, but many will still lack the confidence to go out and start socializing again,” he said.
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Harpur said that social distancing and service requirements meant that restaurants and bars would “continue to take a hit” at Level 2, with large events still banned, fewer tables and chairs and mandatory seating.
Restaurants and bars had business models that depended on a certain number of customers.
” Everywhere where there is a large population of workers it is becoming very difficult … There is the general impact that everyone works from home and then you have the impact of not having so many tables: you can’t stop and have a drink. ”
Simon Maude / Things
Takapuna businesses already recovering from Covid restrictions are also concerned about port bridge issues limiting visitors to the beach.
Takapuna is part of the larger North Shore economy, which has 413,000 residents and 43,000 businesses, which Harpur says produce 18 percent of Auckland’s GDP.
Marketview’s spending data showed that Takapuna’s hospitality businesses were down 22 percent on average last week, and during Level 3, spending from all of its retailers was down 85 percent.
The area also attracted a good number of visitor customers to the popular Takapuna Beach, whose travel could now be hampered by difficulties crossing the damaged Auckland Harbor Bridge, Harpur said.
Many restaurants and bars now faced a delicate balancing act between closing or potentially taking on “hundreds of thousands of dollars in debt, at a time that is uncertain,” Harpur said.
” They still have to pay the rent. Yes, there is a little help with salary subsidy, but there are many more costs to running a business than just salaries, so they are really struggling … We hope to see more closings. ”
Chris McKeen / Stuff
Lanes were closed on the Harbor Bridge after an abnormal weather event caused a truck to collide with a vertical member.
A recent Hospitality New Zealand survey revealed that 16 percent of hotel businesses in Auckland were considering permanently closing their businesses, compared to 10.7 percent in the rest of the country.
Harpur said it was apolitical, but one solution could be sector-specific support packages. Many hotel operators were still charged for the full rent.
” Homeowners have mortgages to pay, we understand. Could there be a scheme in which there would be mortgage holidays in some of those commercial premises where there is a hospitality business, for example? ”
But Harpur said he also wanted local customers to know that his support was making a difference.
” We definitely noticed that after the first shutdown, there was a huge wave of community support that came out and supported local businesses as much as they could. And we really just want to thank you for doing that. ”
