Tourism Industry Aotearoa is calling for wage subsidies to continue if Auckland's boundaries remain closed when it moves to level 2.
“For tourism businesses in Auckland and around the country, the boundary restriction will have the same impact as Auckland remaining at Alert Level 3,” TIA chief executive Chris Roberts said.
With New Zealand's borders closed and no international visitors, over 40 percent of the total visitor market is unavailable. Aucklanders provide another 20 percent of that total visitor spend across New Zealand - and are also unavailable.
“So while borders are closed, including Auckland’s, the available visitor market is about a third of what it was. It’s tough to survive when two-thirds of the customer base is gone,” Roberts said.
Auckland at level 2 with a closed boundary would mean tourism businesses in Auckland wouldn't have any visitors from the rest of New Zealand, and vice versa.
Many tourism businesses were hoping for increased business during the October school holidays. There should be some pick-up, but booking levels were generally not encouraging.
"The wage subsidy should continue. Keeping Auckland’s boundaries closed will present trading conditions just as difficult for tourism businesses as Level 3. Many of our operators around the country will still have at least a 40% reduction in revenue and be able to meet the wage subsidy criteria if it is still offered."
And in Auckland, a hotel that’s empty now will still be empty at Level 2.
TIA said while tourism businesses are vulnerable and need government support, there is one thing they could do.
“Encourage everyone to get vaccinated so that we can have free movement of people again and revive the visitor economy.”
