Survey shows New Zealand tourism business revenue plunging 60%

New Zealand tourism operators are seeing their revenue plunging in an extremely difficult operating environment, according to a new survey by Tourism Industry Aotearoa.

TIA worked with a network of tourism sector associations to survey industry operators about the current state of business with almost 200 operators responded to the pulse survey which was conducted between Thursday 17th and Monday 21th February.

Respondents expect their revenues will be down by 59.8% on average for the period 1st February to 30th April 2022, compared to the same period of 2021. This in turn was half that of pre-COVID levels due to the loss of income from international visitors.

With 95% of respondents classifying the current operating environment as difficult and 66% saying it is extremely difficult, TIA Communications Manager Ann-Marie Johnson commented “the survey results paint a clear picture of the challenges facing the tourism industry as a result of the Red setting. Respondents were from every region in Aotearoa New Zealand and represented accommodation, transport, activities and attractions, as well as events, hospitality and tourism services.

“Many tourism businesses are arguably now in the most difficult financial position they have been since the pandemic began, with New Zealanders reverting to a lockdown mentality and not travelling. TIA is sharing these results with the Government and is continuing to advocate for targeted support until we can get back to business.”

While the financial support for business announced by the New Zealand Government this week ticks some boxes for the industry, TIA has launched another survey to assess how effective it will be in meeting operators’ needs. 

Ahead of the announcement, 91% of respondents said New Zealand Government support would be important to enable them to survive the current period, with 61% saying it was very important. 

Almost 18% of respondents were keen on an extension of the Small Business Cashflow Scheme, which was included in yesterday’s announcement.

However, the reinstatement of wage subsidies was considered to be the most important assistance that the New Zealand Government could offer (84%), closely followed by Business Resurgence Payments (77%). These were not included in the new business support package.

29% of respondents sought relief from government fees and levies such as Department of Conservation concession fees while 15% considered there was a need for more mental health and wellbeing support.

Based on the findings, TIA will continue to advocate for these measures.

When asked what else they would like the New Zealand Government to do, 89% of respondents identified the removal of self-isolation requirements for international visitors as the top priority.

This was closely followed (85%) by speeding up the border reopening timeframes when Omicron is widespread in the community. Australian visitors are not currently scheduled to return until July. Under current settings, they will be required to self-isolate when they arrive.

Johnson added “the removal of self-isolation requirements for international visitors is the critical change TIA is seeking from the Government. The industry cannot resume making its contribution to Aotearoa New Zealand’s economy - up to $17.5 billion a year pre-COVID - until holidaymakers can come here without having to self-isolate.   

“With Omicron endemic in New Zealand, the case for self-isolation essentially disappears. As soon as we get past the spike of Omicron over the coming weeks, TIA will be calling for self-isolation requirements to be removed so the industry can plan for a future where other forms of government support will not be needed.” 

Survey respondents also showed strong support for stepping down from the Red level as soon as possible (70%) and adjusting the stand-down requirements for close and casual contacts (64%).

Johnson concluded “the tourism industry is not seeking long-term government support. The need for support will likely disappear when we can once again welcome international manuhiri with no self-isolation requirement. We are pressing Government to act with urgency on the removal of self-isolation as soon as possible.”

Click here to see the survey results.

Image: The Castlepoint Holiday Park, one of many businesses impacted during New Zealand's 'Red' alet level.