Covid 19 coronavirus: Business leaders push for privately run managed isolation

By RNZ

Privately run managed isolation could be a reality early next year if business leaders can drum up a suitable plan and convince the Government.

High-level talks to set up private, pay-as-you-go isolation hotels have begun, with a meeting of like-minded business people at the Covid-19 recovery summit in Auckland yesterday.

Those behind the idea say borders could re-open to international students, highly skilled foreign workers and wealthy tourists.

Entrepreneur Nicola Alpe is spearheading the idea and said it's time for the private sector to run managed isolation hotels and attract internationals to New Zealand who can help re-build the economy.

"Naturally you are going to have ultra high net worth individuals who are going to want to come in and escape hot spots like America and Europe at the moment and stay here for a time as a holidaymaker," she said.

"We've heard from a lot of people who are struggling to get experts in, so they're struggling to get engineers in to audit machinery and experts in to train their staff."

She and her husband Chris, who heads Jucy Rentals, returned from Los Angeles earlier in the year.

Together with business professor David Teece, they are gathering leaders together to come up with a detailed plan for privately run managed isolation.

Alpe said it would be run as a business, with different price points for bells and whistles.

"It would be accessible to anyone really, anyone who's willing to pay," she said.

"As with any hotel models, there's different room rates and package rates so that's what we'd be looking at providing."

She said the New Zealand public is understandably wary of opening borders but those entering privately managed isolation would need to prove their worth.

"Even a fortress has to have a door, that's true you have to let some people in. We're not advocating to open the borders and for it to be a free for all like Britons heading off to Benidorm for a two-week holiday, it's really going to be very managed."

More than 200 businesses and local body leaders gathered for a Covid-19 economic recovery summit in Auckland yesterday.

Many expressed concerns at the closed borders cutting off much-needed skills and investment.

Former prime minister Helen Clark, who has been chosen to review the World Health Organisation response to Covid-19, told the audience "major private sector partnerships" are needed to scale up the quarantine system.

"If, post-election, the thinking can go to how to try to remove this choke point which is existing, quarantine capacity would help a lot, even on the existing two-week quarantine setting."

Business leader Rob Fyfe said the idea has traction given managed isolation could be here for years.

"You could think two, three, four, five years because there will be some countries in the world that could be struggling with this virus for a long time to come."

He said creating a plan for privately run managed isolation will be complex.

"It's important that if we create private quarantine options that people are able to pay for that, we need to make it as universally available as possible. If it's just for top-end ultra-elite tourists and it comes with a lot of complexity and there are additional risks I don't think that will fly."

Fyfe said it could be possible to set up privately managed isolation hotels by early next year, with the focus on attracting people with skills and wealth to contribute to the economy.

About 20 business leaders discussed the idea at a forum during the Covid-19 recovery summit.

Among them was Pooj Prenna, who recently returned to New Zealand with his family, after 20 years overseas.

"New Zealand is viewed, at least in San Francisco where I came from, as a safe haven right now," he said.

"There are a lot of people who would love the opportunity to come into New Zealand and contribute to the economy in some way. They could bring capital or they might start companies or invest in companies that can then employ people and try to offset some of this reduction in [work] force that you're going to see over time."