'Gutted': Business reacts to no change in Covid traffic light settings

Hospitality businesses are ''gutted'' at the Government's decision to remain in the Covid red traffic light setting despite declining daily case numbers.

Prime Minister Jacinda Ardern this afternoon announced the decision to remain at the red Covid setting as the country was "not yet out of the woods" from the throes of Omicron outbreaks. She warned that while it appeared Omicron had peaked in Auckland for now, the country was expected to experience a surge in Covid-19 cases this winter.

The decision comes despite the average daily cases having declined by 36 per cent, and as hospitalisations drop in the Auckland region.

Retail NZ says customers "need to be confident that they can safely re-engage with retail" - and a move towards Green would significantly help. Photo / Getty Images

Hospitality NZ chief executive Julie White said the industry was "gutted" by the government's decision to remain in the red setting.

She said she was at a loss as to how that decision had been made, given the government had already admitted that hospitality venues were not considered vectors of the virus.

"Other industries, where [government] have loosened the settings; they are seeing an uptake in patronage.

"We're still at a loss at how you can go to a stadium that can accommodate 30,000 spectators and yet those same people as soon as they walk into a hospitality venue then have to revert back to the red settings," White said.

"The Prime Minister said two weeks ago that they now have the data that shows our venues aren't the vectors that are spreading it. It's down to around 6 per cent [of all transmission].

"We're at a loss as to why we're not moving."

Cabinet will again review the traffic light settings in 10 days ahead of the Easter long weekend.

"We've got people hanging on by a thread … that's another 10 days on top of the 700-plus that we've already been in this.

"It might not seem a lot to those who aren't in the industry, but this is significant."

Auckland CBD business association Heart of the City also called the lack of change in settings disappointing, along with no date for a move to Orange and no extension of targeted assistance for impacted businesses.

"Things have started to look up over the last week or so with a noticeable increase in foot traffic, and spending has improved – but with the numbers still down significantly on last year, we needed Orange to bring a major injection of people back into the city centre."

Heart of the City's latest data shows that city centre spending is down more than 40 per cent down on this time last year, and pedestrian counts down nearly 50 per cent.

Retail NZ chief executive Greg Harford said the lack of movement from the red Covid-19 traffic light setting was "disappointing". The industry association - like most of the private sector - had been hoping to see a progression down the traffic light setting - to orange at the very least.

"It is disappointing that we are not seeing movement in the traffic light system. Retail NZ does want to see everybody keep safe but in reality case numbers are falling, compliance with the rules is declining, and we really think it is time the Government moved us along," Harford told the Herald.

"Customers need to be confident that they can safely re-engage with retail; and a move towards Green" would have significantly helped that," Harford said.

The Restaurant Association was also expecting the Government to move Auckland, if not the country, to the orange covid traffic light setting. This would have been a step in the right direction towards normalcy, Marisa Bidois, chief executive of the Restaurant Association, said.

The hospitality industry, which is still approximately 35 per cent down on revenue, on average, is in dire need of a relaxing off the rules. The industry has been decimated by Covid-19 restrictions, and has largely become an unprofitable sector for the vast majority of operators as diners continue to err on the side of caution.

A progression down to orange would have meant patrons to hospitality venues would not have to be seated at all times and operators would not have to vet the seated and separated rule expected of businesses.

Number limits into venues would have also been removed under the orange setting, she said.

"Many diners have continued to stay away at the red level" so we [were] hopeful that a move to orange and the removal of number limits and the seated and separated rule will give a boost to consumer confidence and ease some of the challenges our industry has been facing," Bidios said this afternoon.

Auckland Chamber of Commerce chief executive Michael Barnett said businesses had been looking for a move to orange - as a worst-case scenario.

"What business wants is minimum constraints, maximum opportunity, self-management and simplicity," Barnett told the Herald.

"They are looking for a narrative that is positive about recovery and where New Zealand is heading to now – [an update on] opening borders, building trade and international relationships."

Zac de Silva, chief executive of business consultancy and mentorship consultancy Business Changing, said business wanted clarity and to know that no more lockdowns or trading restrictions would be imposed in the future.

"I am surprised that there is no guideline for when Auckland will be able to move into Orange. The business sector would like to know what needs to happen to move to Orange - so what number of hospitalisations are needed given the pressure on our health resources have been the main reason given for staying in Red in Auckland and other similar areas where the Omicron numbers are past their peak."

Prime Minister Jacinda Arden. Photo / Getty Images

Business also wants to "see accountability from the Government here so it is more known what might happen and less of the perception that things are being made up as we go along", de Silva said.

"[Business] would like a message from the Government to encourage Kiwis to start to get out and about again to visit local hospitality places and tourist areas knowing that Covid is here to stay and that we as a country need to keep moving more and more to living with Covid rather than the fear factor of Covid which means that many people are living life in partial lockdown and are not supporting local businesses to the maximum.

"We all get the need to be careful health wise with Covid but many want to get on with living a more normal life so the more encouragement of this from the Government, the better."