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Tauranga businesses are adapting to a new way of working to survive Covid-19.
One Mount Maunganui tourism business has changed from passenger transport and tours to delivering groceries, and a Mount brewery is now delivering its own beer and making hand sanitiser.
The nationwide alert 4 lockdown means some businesscannot operate and Paymark's latest figures mirror their struggles, showing the region's spending has almost halved compared to this time last year.
But businesses are preparing for life beyond lockdown.
Owner of Mount Classic Tours Ltd, trading as Shores Trips and Tours, Ian Holroyd, said the impact of the global Covid-19 pandemic has plunged them from "a $3 million a year business to zero".
He's now moved from providing shore excursions to cruise passengers to delivering groceries for New World Mount Maunganui.
Holroyd said 98 per cent of his business, which had operated since 2001, focused on the cruise ship industry.
Shore Trips and Tours managing director Ian Holroyd. Photo / File
"We travel with about 30,000 customers throughout New Zealand each year and when the last cruise ship came in on March 16 business stopped.
Holroyd said the company had to return money to about 99 per cent of its passengers who had already booked, although some opted for a credit.
But he was positive business would come back. He just didn't know when - or what that would look like.
"We have had to face the reality of what we used to do isn't going to continue for the next six months at least."
Cash flow from bookings during the off-season that kept him going through the winter had disappeared and he had to find a way to pay the lease of a building the business moved to about two months ago.
"That is the predicament we are in. The big issue is paying those costs we can't stop."
Holroyd said Tourism Bay of Plenty put him in touch with Mount New World to help pack and deliver groceries and "nine staff are doing that out of about 50".
"There is a demand for online shopping. It is a service people need."
New World Mount Maunganui owner Allan Rudkin said he was approached by Tourism Bay of Plenty to find out if the supermarket needed delivery drivers.
"There was certainly the need and we have taken on a number of people and their vans. They are helping us and we are helping them."
Mount Brewing Co owner Glenn Meikle said he was lucky to own the Super Liquor, Rising Tide and the brewery, which was an essential service "but our biggest customer The Rising Tide is shut down".
Luckily, he said, the building on Newton St in Mount Maunganui held a remote license to deliver alcohol.
Mount Brewing Co. employee Niall Harley with the beers he now delivers. Photo / Supplied
The sale and contactless delivery of alcohol is allowed under the Government's rules but the business must hold an off-licence with an endorsement for remote sales under the Sale and Supply of Alcohol Act.
No more than three bottles (or other containers) of no more than 1.125 litres of spirits or liqueurs can be bought at one time.
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The company is selling craft beer, cider and pink gin online only and can deliver to customers on Mondays, Wednesdays and Fridays.
Meikle said it delivered 20 orders last Monday. Last Wednesday they did 30 deliveries.
"It is not breaking records," he joked. "It is not going to pay our bills but we are lucky to have something going on."
The company employed 40 staff but it was down to only five working staff, mostly family. The government subsidy helped to pay the rest, he said.
"Hopefully we will be back in business soon."
Meikle made sure they had a health and safety plan in place before deciding to deliver alcohol and were taking appropriate safety precautions.
James Russell and Niall Harley make hand sanitiser for the community. Photo / Supplied
The family was also making hand sanitiser in the brewery, for delivery.
"It is nice to get support from local people helping local businesses," he said.
Tauranga Chamber of Commerce chief executive Matt Cowley said businesses were preparing for life after lockdown.
"E-commerce is a big focus for many retailers and eateries for takeaways, curbside pickups and delivery options. This will be a big shift for most businesses that rely on people visiting their store."
Tauranga Chamber of Commerce chief executive Matt Cowley. Photo / File
His advice to owners was to not try to rescue their business on their own and instead use networks and use government-funded advice and support available.
Cowley said businesses would have to be more resilient, have choices in their supply chains and be agile in understanding how their products and services could be put to different uses as markets change.
"Markets will change rapidly in the future and businesses need to understand how their core offerings can be valued by different markets.
"They would then be able to diversify their revenue streams and smooth seasonal demand cycles."
He said the Paymark results were not surprising as retailers, hospitality, tourism and entertainment businesses were all closed, which meant millions of international tourism dollars are not being injected into the economy.
Cowley said residents were also tightening spending as they were uncertain about their jobs or had reduced working hours.
"People may also be worried about personal loans and mortgages. Many people are also cautious whether the value of their property or financial assets has decreased."
Spending drops in Bay
- There were just over $1 million transactions in the Bay between March 22 and 29 - nearly 45 per cent less than the same time last year.
- Bay shoppers spent $62.3m, which was about 26 per cent less than 2019.
- Nationwide, restaurants, cafes and bars dropped the most at a massive 87 per cent and 78 per cent for accommodation the first week of lockdown.
- Spending at pharmacies jumped a massive 81 per cent and 52 per cent at food and liquor stores the week before lockdown and 25 per cent for pharmacies and 31 per cent for food and liquor the week after.
