The Tourism Export Council of New Zealand (TECNZ) says it is becoming “increasingly alarmed” with its government’s dogged stance on not reconsidering the removal of the 7-day self-isolation border setting.
At an industry meeting with tourism leaders on 8 Dec, as a follow-up from the Tourism Summit last week, Tourism Minister Stuart Nash alluded to the border possibly not being reopened for ‘real visitors’ without a requirement of self-isolation until late 2022.
In a statement, The Tourism Export Council of New Zealand says this would be disastrous for hundreds of businesses.
Here’s the full statement below.
The risk profile from a fully vaccinated visitor from the UK, USA or Australia is surely no different from the risk profile of someone travelling from Wellington to Queenstown or Auckland to Hawkes Bay?
TECNZ CEO Lynda Keene said, “We just don’t understand the logic of some of the government’s decisions. The industry is in a state of desperation learning there may be a reality that international visitors won’t return until spring or late 2022. For a business that has been hanging on by a thread, this news has broken them mentally and financially.”
“We’re mindful that safety for all New Zealanders is a priority, which tourism businesses fully support.
What we can’t work out is the persistent hermit kingdom mentality when the risk profile of those coming back from overseas into MIQ is very low now compared to community transmission, Australians having a higher fully vaccination rate than NZ, and the country is almost 90% fully vaccinated, why the government is so risk-averse.”
Fact: Covid-19 Response Minister Chris Hipkins told RNZ’s Morning Report (27 November) that tourism was the Government’s last priority. Tourism Minister Stuart Nash’s comments seemingly back this up. If businesses had known this was the true intent from the outset of COVID (Mar 2020), businesses would have made different decisions on their future last year or at least in the last six months. The drawn-out painful process of wait and see has been excruciating.
Industry operators have been very grateful for STAPP funding in 2020 and mainstream funding mechanisms that all businesses in NZ have been able to apply for. The pandemic has dragged on for another whole year which no one had anticipated and further targeted tourism support is needed to ensure there is an international tourism offering in 2022 and beyond.
The industry has tried and done all the things the government advised. They are on the brink of financial ruin. When the government announced on 12 August that NZ would open up in Q1 of 2022, more decisions were made along with the premise international visitors would be coming back in Q1, or at the least Q2. Tourism businesses made what they felt were educated decisions based on this. The government has a responsibility to be transparent to the industry in order for further educated decisions to be made.
Fact: We have heard over the past two weeks the border settings were to ‘test the waters’ to see what New Zealanders thought. This is a cruel strategy to adopt for businesses forced to endure the prospect of possibly 2 ½ years of minimal trading through no fault of their own. We need the government to be more decisive because they are playing with peoples’ lives. The indecision by the government to not put a flag in the ground and say this is the date we welcome back international visitors (without self-isolation) is playing with peoples’ mental wellbeing.
Fact: Businesses need certainty for forward planning. The apparent strategy of ‘let’s wait and see’ or ‘let’s see where we end up’ in Q1 before making further decisions on border settings, is a cycle of misery for business owners, staff and their families. Tourism businesses have no choice but to continue suffering a game of emotional roulette. Where is the kindness from this government? With some of the decisions, we question the logic and rationale behind them.
Fact: The industry is still waiting to hear what the government means with a ‘staged reopening’ from 30 April 2022 onwards. It appears to be based on ‘visas’ but we just don’t know. It is critical government gives more clarity around this before Christmas so the information can be shared with offshore travel sellers. International tourism works 12-18 months ahead of today’s date.
If we want to save the 22-23 season, we need decisions as quickly as possible.
Fact: Domestic tourism will not save the day for hundreds of international businesses. The government is dreaming if they think it will. Domestic visitor spend is the bread and butter for the industry and in many cases is the break/even result for a business. International visitor spend is the cream that links societies together with a vibrant hospitality sector and results in profitability allowing the creation of more jobs and positive wellbeing for communities.
The NZ border is open (in Jan 2022) for Kiwis to now reconnect with the world. This means the captured domestic market will not travel around NZ as they did in 2020 or in 2021. Kiwis by their nature are explorers of the world. Thousands will be flocking to the Pacific Islands and Australia and further afield to spend money in other countries. In addition, hundreds more have been redundant compared to the same time last year and everyone’s bank balances are looking pretty grim.
Fact: If the border settings are not reviewed before Christmas, NZ will go off the ‘sell’ list of all offshore travel sellers and there will be no international tourism recovery because most businesses will not survive till Q4 of 2022. There will be no tourism industry around if government pursues their current border strategy.
Fact: Businesses are on the precipice of falling off the cliff. Everyone is broke. They cannot sustain another 12 months of zero or little revenue.
Fact: Pre-Covid International Tourism was New Zealand’s biggest export industry (NZ$17.5bn), contributing 20.1% of total exports.
Fact: Pre-Covid International Tourism combined direct & indirect contribution to GDP was 9.3% of New Zealand’s total GDP.
Fact: TECNZ is not trying to be alarmist. We’re speaking fact based on the hundreds of years combined experience that tourism business owners have from building NZ’s No.1 export industry over the past 50years. It feels like the government is simply going to ‘lettourismgoasthesacrificiallamb’.
We feel like we can’t move forward with any certainty.
Fact: Tourism businesses have taken one for the team of 5 million. We appreciate the great work the government did in 2020. We really do. We are proud to have built an amazing industry over the past 50 years that successive governments have encouraged us to do. Really proud.
The wheels are falling off every place we look across the industry. It’s at breaking point. Please government, help us. We need certainty, we need changes in border settings for visitors without self-isolation requirements and we need visitors to return to NZ before Sep 2022 (June would be great to capture the ski/winter season). NZ is being left behind all of our competing markets including Australia – we need proactive and aspirational leadership.
How can the government help?
We are here to help advise and partner with the government and officials. If the government does not intend to change their border settings by Q1 to allow fully vaccinated visitors to NZ without self-isolation, they (government) must provide targeted funding support for those most affected with the closure of the border to get to the start line of when visitors can return. e.g. ITOs and businesses that pre-COVID hosted 65% or more international visitors.
Please help. We need decisions with some urgency.
Give us a lifeline with a date that will allow visitors to return without self-isolation to ensure international tourism’ survivability.
Find out more: www.tourismexportcouncil.org.nz
