David and Goliath story: Queenstown business owners claim unfair playing field

Paradise Ziplines in the South Island. Photo / Supplied

Kirsty Tennent and Chris Russell aren't complaining about finding themselves stranded and creating a new life on the Coromandel thanks to Covid-19.

But the tourism business entrepreneurs are bitter about why they now face a winter closure while billionaires got a rescue package.

The couple are among a chorus of businesses that have claimed the distribution of the fund has created unfair advantages for giants such as AJ Hackett Bungy.

Kirsty says a "David and Goliath" battle has resulted for smaller businesses like theirs.

They own Paradise Ziplines - a thrilling 1km of ziplines through the bush-flanked Oxburn Stream at the start of the Routeburn Track in Glenorchy.

This is literally a David and Goliath story with Goliath getting the backing.

Kirsty Tennent

Chris also co-owns Shotover Canyon Swing, which he started with a business partner 18 years ago.

Both are among the fallout.

The Canyon Swing stayed open at a huge financial cost because it was more expensive to close because of the overheads that don't disappear.

Their Paradise Ziplines business must now close for winter.

Having slashed on costs to stop from going under, they have no marketing budget to help them compete for tourists once they have taken the losses through winter.

"Others can afford to market and operate - we can't and that's created a very unfair marketplace," says Chris.

Kirsty said she disagreed with the Government stepping in with money via its strategic tourism asset protection programme (STAPP).

Said Chris: "They threw money at a problem, and created more problems.

"We've been left to follow nature's plan - to live or die - but the fact that the other guys have been fed might help kill us."

The couple shifted to Tairua's Mt Paku at lockdown last year, after being caught out while on a road trip when level 4 was announced.

"We love it here, Tairua is amazing. We have the beach on our doorstep, it's only an hour and 50 minutes to Auckland Airport when we want to fly to our businesses in Queenstown.

"We don't want to be seen as 'sore losers'," says Kirsty.

Kirsty Tennent of Paradise Ziplines disagreed with the Government stepping in with money via its strategic tourism asset protection programme. Photo / HC Post

"I just don't feel that the losses [we face] are fair because the business is amazing. People literally love the product and we want to keep offering it."

She said she hopes Kiwis will support the little guys when they visit the South Island's adventure tourism spots.

"This is literally a David and Goliath story with Goliath getting the backing. I'm hoping some people will realise they can support us, those little guys.

"It's been amazing when we get five star reviews from Kiwis. We've still got a lot of confidence in it, if we didn't, we would say 'let's just close the business'."

In the meantime they are enjoying all that Tairua has to offer.

A spokesperson from MBIE said the intention of the Strategic Tourism Assets Protection Programme (STAPP) was to protect the assets in the tourism landscape that form the core of the country's essential tourism offerings "to ensure their survival through the disruption caused by Covid-19, and ensure New Zealand remains an attractive place to visit once borders are open".

The STAPP was allocated to support tourism businesses, Inbound Tour Operators (ITOs) and Regional Tourism Organisations (RTOs).

Applicants for the STAPP were asked to self-assess their eligibility for the programme, and more than 330 submitted an application. Overall, 130 businesses have received support through the STAPP.

"Decisions on funding allocations were made by the former Tourism Recovery Ministers Group. The group also had a mandate to decide on urgent investments which were outside the application round, and did so for AJ Hackett, Discover Waitomo, and Whale Watch Kaikōura.

"The Tourism Recovery Ministers Group has confirmed that all funding available under the STAPP process has been allocated. No new applications can be made or reconsiderations of original decisions undertaken."

The spokesperson said as well as the various components of the $400 million Tourism Recovery Package, the Government provided broad-based support to businesses including the wage subsidy, small business cashflow scheme, business finance guarantee scheme, amongst others.

The Government's recent $200m Tourism Communities: Support, Recovery and Re-set Plan targets five communities and the national tourism system. Business owners and operators in Kaikōura, Mackenzie District, Queenstown Lakes, Fiordland, and South Westland maybe be able to take advantage of the support offered, including mental health first aid.