Despite budget tightening, Northland businesses expect support as the region is a top holiday destination this festive season.
Despite budget tightening, Northland businesses expect support as the region is a top holiday destination this festive season.
With 20 days until Christmas, many Kiwis face economic pressures from food, utilities and insurance costs.
Despite budget tightening, Northland businesses expect support, as the region is a top holiday destination.
MYOB’s survey shows average festive spending in Northland is $541 on food and $223 on gifts.
With 20 days until Christmas many Kiwis are facing similar economic pressures to last year, with household budgets feeling the strain of ongoing costs like food, utilities, and insurance.
Despite the tightening of belts, local businesses are poised to benefit from continued support as the region ranks as a top holiday destination for Kiwis.
According to a recent survey of 1000+ New Zealanders, by MYOB, the cost of food/their supermarket shop (70%), utilities (45%), and insurance (36%) account for the top three pressures on household budgets.
While 30% are feeling the heat from rent prices and almost a quarter (23%) say that their mortgage is creating pressure on their budget, another drop in the Official Cash Rate (OCR) last week is unlikely to stir significant additional spending in the run-up to Christmas.
MYOB’s data also showed that Northland is the No 3 holiday destination for Kiwis’ domestic travel this summer.
Of those polled in Northland, the average estimated spend on food and drink for the festive season is $541, and the budget for gifts is $223 on average.
The Far North Business Association is cautiously optimistic about the summer/festive season and chairperson Josh Kirby said they hope the interest rate cut and the reopening of State Highway 1 over Mangamuka Gorge could be beneficial to various industries.
“For example, a cut may influence the decision to travel north this summer, potentially increasing visitor numbers to Te Hiku which would be great for accommodation providers, hospitality, retailers, and tourism operators.”
Far North Business Association chairperson Josh Kirby said they hope the interest rate cut and Mangamuka reopening could be beneficial to various industries this festive season.
He added that the Mangamuka Gorge reopening later this month also makes the decision to head north much easier.
“We are mindful that our main road into town has been closed for over two years, and is soon to be reopened on December 20, just in time for Christmas. So our business community is busy preparing for additional visitors.”
He echoed North Chamber CEO Leah McKerrow’s comments about the importance of buying local, saying: “The community has been very supportive of local business, opting to spend locally whenever they can. The community is responding well to Late Night Shopping events, local market stalls, and various fun events across the region. Also, with more frequent events planned for our Town Square, we anticipate a positive summer trade in Kaitāia.”
McKerrow said for many businesses the trading environment was very challenging, particularly for the retail and hospitality industry, while encouraging residents to shop locally.
“I’d really encourage people throughout Northland that, to the extent they can spend over the Christmas and summer period, they support local shops, restaurants, cafes, tourist operators and entertainment venues as much as possible. Their vitality is essential for our community across Te Tai Tokerau. Our local business associations are working hard to bring people into their business districts with events and community-focused decorations to encourage visitors and in turn spending.”
NorthChamber CEO Leah McKerrow said for many businesses the trading environment was very challenging, particularly for the retail and hospitality industry.
She said they expect that it will be still quite some time before lower interest rates flow through to consumer spending.
“Most households are on fixed-term mortgages, so I’d think it will be well after Christmas before we saw any material impact. And lower interest rates don’t significantly impact those who don’t have a mortgage. Job losses have obviously increased, and the concern of further downsizing and business closures remain ... but also remember Christmas is about people and not putting themselves under stress that could impact them in the new year.”
Far North resident Alesha Norman said the current economic situation will see her and her whanau having a simpler Christmas.
“For our whanau, it’s about spending time together, that is what matters most. We are having celebration with whanau, having kai together and keeping it simple.
