Rotorua businesses confident they'll weather coronavirus tourism dip

Paul Rayner, operations manager at Hell's Gate, is confident they'll weather the dip in tourist numbers due to coronavirus. Photo / Stephen Parker

Rotorua's tourism sector is confident the Government's support package will bear them through the brunt of the coronavirus crisis, but say there needs to be more flow-on help for adjacent sectors as well.

Hell's Gate operations manager Paul Rayner said the Government's decision to deliver a support package was "a great idea" but there needed be more steps taken.

"We definitely need to bring in something ... everyone's going to be looking for that money, it'll be interesting to see how much is given out," he said.

This comes as Cabinet approved a package on Mondayto support business continuity into the outbreak.

Finance Minister Grant Robertson said the details were still being worked through, but at a general level, the package would include a target wage subsidy scheme for workers in the most affected sectors, training and redeployment opportunities for affected employees and working with banks on potential support that could be offered to firms.

"For certain sectors who have seen a complete drop off of business ... obviously those people are going to need a lot more," Rayner said.

But it would have a "flow-on effect" throughout the entire Rotorua community, he said.

"It's not just Rotorua, it's not just tourism ... I believe it needs to be across the board, rather than just focussing on individual businesses."

Hell's Gate was still trying to work through plans for how the economic downturn would affect staffing, he said.

"We're a whanāu. We're a family, first and foremost," he said.

"I don't want to break that family up, so all my team know we need to knuckle down, tighten our belts and work through this."

They needed to trade through "extremely smartly" to get through the crisis, Rayner said.

"We're currently planning to not lose any jobs."

He said Hell's Gate was taking "all reasonable steps" to ensure staff and visitors were kept safe, including promoting personal hygiene.

He couldn't say for sure how long it would take before everything was back to normal.

"We currently believe it will be approximately 18 months ... but it's a piece of string. It could be a lot worse," Rayner said.

Andrew Jensen, general manager of Skyline Rotorua, said like many other operators within the region, they were "feeling the impact" of the downturn in visitors, and "welcome the support the Government is providing at this time to help promote our region".

In terms of changes to employment, they were already "heading into the quieter season", Jensen said.

"Therefore the staffing levels are already programmed to adjust accordingly. Where possible, staff will be trained to take on any shortfalls within the business before recruiting externally."

Destination Rotorua chief executive, Michelle Templer, said it was "good news" that Cabinet had approved a business continuity package.

"The Government's focus on a tailor-made response is positive, but it's important that the benefits flow into the regions as soon as possible," she said.

Destination Rotorua chief executive Michelle Templer. Photo / File

Most small to medium businesses would be eager to see whether the package addressed cash flow, as this was the top issue affecting business confidence, she said.

Templer advised local businesses to continue supporting each other and working together. She said Destination Rotorua would continue to advocate on behalf of Rotorua to ensure local input helped shape the Government's ongoing response.

Rotorua businesses were also invited to access the Destination Rotorua's economic development capability to help shape their response to the current operating environment.

Craigs Investment Partners head of private wealth research, Mark Lister, said a recession was "definitely possible" but it did not mean it would result in "another 2008-style collapse."

"A recession is simply a slow down or a decline in output from where we were before," he said.

Mark Lister, head of private wealth management at Craigs Investment Partners. Photo / File

This did not necessarily mean there would be a "global meltdown", he said.

He said New Zealand was in a strong position - with low Government debt levels, unemployment, and interest rates - to tackle a recession, compared to the 2008 crash.

Tauranga's Chamber of Commerce chief executive Matt Cowley said a recession was possible for New Zealand, but it did not mean the country was doomed.

In the case of a recession, he said the local population was likely to continue to grow and "hopefully" fruit would continuing to be taken to the international market and the domestic tourism to the Bay would pick up.

Matt Cowley, the Tauranga Chamber of Commerce chief executive. Photo / File

Covid-19 had hit the region towards the end of the tourism season, he said, but it had coincided with the beginning of the kiwifruit exporting season and exporting restrictions would make a number of local businesses "nervous".

"It is in everyone's best interests to keep as many people employed and in business as possible. Cash flow will be key for businesses getting through these tougher times."

Rotorua Chamber of Commerce chief executive, Bryce Heard, declined to comment.

For more information

investnewzealand.nz- Information for exporters
business.govt.nz - Information for businesses
worksafe.govt.nz - Workplace preparedness

Source: Priority One