(TAN): Tourism businesses across New Zealand have suffered huge losses as an aftermath of COVID-19, and are devising new ways to stay afloat, data from an industry survey organised by Tourism New Zealand showed.
Around 79% of the 1619 businesses who responded to the survey made changes to their operations to survive, while nearly a fifth were at “high risk of ceasing operation”. About 26% “sharply” cut capacity, and 27% suspended their operations so they do not have to absolutely close their businesses.
Though respondents represented various industry sizes, 88% of them were either small businesses or individual traders. Nearly half of these respondents came from accommodation-related businesses, with others from visitor activities and services, and transport.
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The data also revealed that across the country Kiwis employed in the sector had lost jobs – 37% of the businesses had reduced staff.
With all the businesses surveyed saying they had to take tough calls in order to stay alive, 31% of those surveyed said they were freezing assets and operations, 9% had sold their assets while 61% were exploring other means to cut costs.
Tourism New Zealand Chief Executive Stephen England-Hall said there was a need for “urgent action and collaboration across the sector”.
“The results show that the sector have made significant changes to their operations to try and keep their business alive since the Covid-19 outbreak that and many are orientated to welcome Kiwi tourism. The industry has been focused on survival, it’s now time to work towards how we can thrive again and what is required to get there,” he said.
“While there are tough roads ahead, I’m confident that there will be a viable and productive visitor economy for New Zealand. It’s vital that we continue to support those who need it, so that when activity does resume, there is a sector to return to,” England-Hall added.
Although close to 90% of the respondents said they were confident they could adapt their product to appeal to the domestic market, 90% have taken some form of support from the government – 87% took the wage subsidy in April, 18% took tax relief and 11% are accessing business financing.
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Predictions looked dim as business owners forecast 52% layoffs. Operators forecast almost 50% downsizings in in regional New Zealand. Around 81% of those reviewed said they will resume operations when demand picks up, 64% said they will slowly return to levels of operation to satisfy demand, 26% will start over with a new business model while 3% of the respondents said they think they will not be able to reopen their business.
New Zealand recently started lifting its lockdown measures in phases, with travel allowed within the country, reports said. According to data from Johns Hopkins University, New Zealand has reported 1,499 cases including 21 deaths.
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