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This week we again are seeing distorted attention on cruising, but the reality is that years of hard work and planning mean our industry is prepared for the season ahead and is already experienced in dealing with Covid-19.

As we’ve seen all over the world, cruise line health protocols are effective in mitigating the risks of Covid-19 and have allowed cruise lines and health authorities to respond swiftly when cases arise.

Other countries are well ahead of us on the curve. According to Cruise Lines International Association, millions of people have sailed successfully in more than 100 countries where ships have resumed sailing, and the effectiveness of the cruise industry’s pandemic response means close to 100% of the world’s fleet is back in operation.

Though we again see sensational headlines, our most important message holds true – no setting is immune to Covid-19, but the cruise industry and our own health authorities have processes in place for dealing responsibly with the virus. That is exactly what is happening.

Importantly, health authorities and political leaders around our region have shown confidence in the protocols and their role in the new environment we all live with, now that Covid-19 is endemic in our communities.

On land in New Zealand, there are many thousands of cases each day that don’t gain the same attention, but cruise is unreasonably targeted, even though ships have extensive measures in place to respond to any cases identified at sea. 

The industry’s onboard measures, enhanced medical facilities, and detailed response plans are still the most extensive to be found anywhere in tourism and go much further than those you will find in most settings on land.

It has been great to hear the positive comments from so many cruise passengers still able to have the same incredible cruise experience and enjoy their holidays with confidence.

The experience overseas shows this confidence will continue to grow as cruising’s resumption progresses. I know that we have this to look forward to in New Zealand.

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This week marks the beginning of New Zealand tourism’s road to recovery – the end of two years of domestic-only travel, and the beginning of welcoming back our international manuhiri. There’s a buzz in the air: 2022 could mark the start of a new tourism model for New Zealand, with the pandemic-driven shock to the system forcing us to rethink what we want the future to look like. 

We’ve seen two years of endless discussion around the type of tourism and tourists Aotearoa should focus on attracting, with ‘High Value Tourism’ being the buzzword in nearly every conversation. From the opinion that New Zealand should ‘unashamedly’ target the wealthy (Tourism Minister Stuart Nash, November 2020) to Otago University’s Tourism Policy School encouraging the shift from ‘High Value’ to ‘High Values’ (April 2022), the new model of tourism that we should be embracing is still up for debate. 

Most of industry agrees that ‘High Value Tourism’ is so much more than flying business class and eating at a high-end restaurant. It’s about a tourist giving back more than they take, being socially aware and engaged and caring about their environmental footprint. It’s regenerative, and matches core Māori values of kaitiakitanga, kotahitanga and manaakitanga. And it creates a future legacy that is both positive and sustainable. 

Building high value tourism from the inside-out 

As we reimagine tourism, policymakers and opinion leaders are focusing primarily on the types of tourists we are marketing to and enhancing the impact this specific type of tourism has on our communities. There’s a piece of the puzzle that’s missing here: We need to consider how to deliver high value tourism from the inside-out and that means building high value tourism businesses, not just attracting tourists. 

We want to attract travellers who care about their environmental impact. So how can operators and staff learn the skills to deliver a customer experience that heroes sustainability? We want to attract and retain a passionate and valuable workforce. So how can businesses learn how to become an employer of choice, and the relationship between employer experience and customer experience?

From passionate zipline guides imparting the biodiversity in EcoZip Waiheke’s prehistoric rainforest to team leaders focused on making their business an incredible workplace, there’s strong argument for tourism to embrace a better model ‘from the inside’. By empowering operators and tourism professionals to upskill in the practical and strategic skills that will deliver high value tourism, we can embrace change that is transformational, while still feasible and pragmatic.

Workforce capability lies at the heart of a high values tourism model, and there are a number of initiatives being worked on from the Go With Tourism Workplace Wānanga last November. With the tools, awareness and knowledge of how to embrace a more values-driven tourism model, achieving higher value tourism in New Zealand needs becomes a bottom-up, almost grass-roots movement – rather than a top-down, bureaucratic and policy-driven approach. 

The WTTC predicts that over the next year, one in every three new jobs will be related to the tourism sector. The 2020 Tourism Futures Taskforce Interim Report stated “Tourism needs to focus on the people and businesses of tomorrow”. 

By helping tourism professionals to embrace the specific skills that drive a higher value tourism model, we’re growing and transforming our high value tourism engine: A workforce that can sustainably deliver on the future-driven model of tourism we’re trying to create.

Alex Dykman is founder and chief executive of Maverick Digital.

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One of the ironies of Tourism Minister Stuart Nash calling out the slow delivery of destination management plans from RTOs is that it focuses the mind on what exactly he is delivering for the sector.

Yes, there has been valuable and significant targetted support for tourism through the poorly executed pre-Nash $290m Strategic Tourism Assets Protection Programme, part of Budget 2020’s $400m Tourism Response Fund.

That was followed last year by the $200m Tourism Communities: Support, Recovery and Re-set Plan.

Both initiatives have provided lifelines to operators and, as Nash noted in his address to the Tourism Policy School, they have also allocated $47m to RTOs to develop their destination management plans and prioritise regenerative practices for tourism’s post-Covid future. The $49m Kick-start Fund, part of the Tourism Communities plan, will also give hard-hit operators a welcome boost as the borders re-open.

But what is New Zealand’s overarching post-Covid destination management plan? What are the priorities for the sector through the recovery and out the other side of the pandemic?

The tourism minister has been urging the industry to change and challenging it to do better but in what ways exactly? More electric vehicles? Less plastic in hotels? A bigger focus on value over volume? More conservation-focused product?

Nash has made a lot of noise about tackling freedom camping and expects changes to be in place for this summer. Sure, tidying up freedom camping is a good thing, but deeper structural challenges in tourism remain and exactly how the sector reshapes, if at all, remains a mystery.

The minister is putting a lot of stock in the Tourism Industry Transformation Plan, which aims to tackle issues in a single-focus way over the long term. That’s a sensible approach given that industry challenges in education, the workforce, and the environment will take years to turn around.

Let’s look at the proposed timeline. An action plan for the ITP’s first focus, building a better workforce, is not expected until Q3 2022, with implementation expected over the following 2-3 years. At some stage, the ITP will move on to the environment, its next challenge. That leaves the sector waiting years for the initiative to complete all of its work.

That makes it clear the ITP is not a vision or strategy for tourism, it is a framework for addressing longterm challenges.

But what New Zealand needs now, as the recovery begins, is a clear vision and a plan to build the tourism sector we want.

Why? Let’s take Air New Zealand’s announcement of its direct New York service starting in September. We’re as pleased as anyone that the airline is reconnecting with the world to bring in much-needed visitors for the recovery.

But the IPCC said yesterday that we should all fly less to help tackle climate change and the tourism minister wants the sector to become more regenerative, so what is the correct way to view a new 17-hour non-stop flight?

More importantly, how does the tourism minister reconcile the operations of the country’s large volume tourism businesses, like airlines and airports, with his view of a more sustainable and regenerative sector? Is he going to tell Air New Zealand to fly less and carry fewer passengers as it tries to repair its balance sheet? Should it jack up prices so only wealthier visitors fly here? What role should airports be playing in tourism’s regenerative future?

In fact, how exactly does Nash want the tourism industry to change as operators focus in the years ahead on rebuilding their businesses? Two years on from “reimagining tourism” we still have no idea of what that actually means. Nash has focused on “regenerative tourism” but where is the plan for such a system?

The Tourism Futures Taskforce was ditched by Nash before it could complete its work, the government’s 2019 Tourism Strategy spoke to a different era, and the Environment Commissioner Simon Upton’s major recommendation – a distance-related departure tax – never made it off the page.

They are all, apparently, feeding into the ITP, which will at some stage, in the years ahead, present some findings, and some action plans, on the different issues it tackles, one at a time.

Tourism cannot wait for that and it needs more than just the minister challenging some to do better and chastising others to work faster to create the change he so often talks about. It needs a plan and it needs it now.

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I feel incredibly privileged to be in, what is essentially, my dream role as the Department of Conservation’s director-general. It follows a lifetime love of science and nature.

When I met my husband Pete 30 years ago, he worked for DOC catching mice on Mana Island. Our first son Sam was born while we lived on Kapiti Island – I will never forget taking him home for the first time on the DOC boat surrounded by dolphins.

Born in Canterbury, my childhood was spent around the South Island. My father worked in the primary sector and my mother was a teacher. We were brought up with a strong sense of public service, valuing people who work on and care for the land and a love of the outdoors.

The journey to DOC D-G has been via an eclectic and rich career working across the public service, with business and in the science sector at Maanaki Whenua. The common thread throughout my career is working with diverse groups of people to clarify strategy and turn it into on-the-ground results.

For DOC’s visitor work, this means understanding and delivering on tourism and recreation’s important contribution to the health of New Zealand’s people and environment – in line with our Heritage and Visitor Strategy. It means strategically and deliberately building on work with mana whenua, communities and others to foster New Zealanders’ love of the outdoors and appreciation of nature and heritage.

Getting people into nature is vital for them to understand its value (for their own wellbeing and the planet’s) and take action for its protection and restoration.

New Zealand has unique biodiversity that you don’t find anywhere else on the planet. If we lose it, it’s gone for good. It matters for our economy, which is based on ecosystem services from nature – soil, clean water and climate regulation and our identity as New Zealanders. I’ll be guiding DOC to deliver a recreation network that celebrates and contributes to the health and protection of biodiversity.

On top of around 1000 huts, 300 campsites and more than 14,000km of walking tracks, DOC is also responsible for the largest cultural heritage portfolio in the country, containing more than 16,000 known archaeological and historic sites.

The stories and visible traces of what went before are key to building deeper connection to species and places. I’ll be looking at how we can better share the stories that shaped Aotearoa New Zealand and encouraging more people to understand and enjoy important heritage sites such as Tohu Whenua or Icon Sites.

Both tourism and conservation are undergoing extraordinary and trying times globally. It’s more important than ever before that we safeguard and grow thriving natural ecosystems.

The Covid-19 pandemic has highlighted how DOC needs to be able to quickly adapt to fluctuating numbers and visitor patterns. The silver lining for DOC has been seeing so many New Zealanders enjoying nature and making the most of their world-class recreation network. For example, DOC booking data shows 75% more New Zealanders undertook a Great Walk between 1 December 2020 to 28 February 2021 compared to the previous year. I am eager to see how this summer compares and how we can foster this increased connection to the outdoors for years to come.

In responding to the Covid crisis and supporting recovery, there is an opportunity to reimagine a better future. Two game changers in this space are Predator Free 2050 and Jobs for Nature/Mahi mō te Taiao, both designed to support communities and turn the health of Aotearoa around.

DOC was allocated $488m through the Government’s Jobs for Nature programme to provide nature-based employment to communities and industries, such as tourism and hospitality, hit hard by the pandemic.

Tourism workers have been able to supplement their primary job and allowed tourism businesses to retain staff despite reduced demand. The programme has also provided security to people and their families, who would have had to relocate from areas where work was scarce. In addition, tourism workers developed knowledge about Tikanga Māori and conservation, which will enrich their work when the border reopens. All while investing in the landscapes, culture and wildlife that attract people to visit New Zealand.

Predator Free 2050 is the ambitious goal to rid New Zealand of the most damaging introduced predators that threaten our nation’s natural taonga. It brings together those who envision a flourishing Aotearoa with abundant native wildlife and forests. It also has flow-on benefits for the economy and primary sectors.

This nationwide movement already has more than 5000 groups and iwi and 13 landscape partnerships. As more people and resources are mobilised, and new tools and technologies developed, eradication across the country will accelerate towards a predator-free Aotearoa by 2050.

In the long-term, DOC is working to shift to a regenerative tourism system that has the wellbeing of whanau, hapū and iwi, communities and the environment at its heart. It’s exemplified by a place close to my heart. On Kapiti Island visitors not only experience New Zealand nature up close, but they learn about the extraordinary conservation efforts of DOC, mana whenua and conservation groups. Both operators providing tours to the island are active contributors to predator control and restoration, demonstrating how tourism can give back to ecosystems and provide an important avenue for reconnecting our people with nature.

Regenerative tourism ensures stakeholders in tourism work with nature to enhance its capability to thrive and evolve naturally. It’s heartening to see so many in the industry already working towards the same goals.

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Fresh data from Q4 2021, paints a desperate look at the impact the lockdowns have had on the sector, with the number of events held down by almost 50% when compared to the same quarter the previous year.

From a national value of $1.5bn in 2019, the sector has recorded a 78% decline in revenues since the beginning of 2020. More than 22,000 people worked in the industry pre-Covid; today, estimates put that number at closer to 6,000. Those who remain are working multiple roles in hotels and venues or are the business owners of the hundreds of SME’s who supply the sector. Last count, over 32 individual industry types were reliant on the staging of a business event.  

While the supply chain is deep and broad, it cannot operate on passion and energy alone. A sector intensely proud of its “hand up” versus “hand out” approach to Covid has been decimated by restrictions and roadblocks.

But we retain hope. That hope comes from a combination of initiatives including government support, the exceptional knowledge of the industry in managing safe events, and the gradual resumption of international visitors to our shores via an open and unrestricted border, sooner, rather than later. Today’s announcement from Minister Carmel Sepuloni of a $120m boost to the arts and culture sector demonstrates the appetite for government intervention with financial support, business events just need to see this swing their way.

Many have repeated the mantra – we are currently operating under level red, which is not a lockdown. Yet it feels horrifically like a repeat of last August, but without the financial assistance. Moving from Alert level 1 up to level 4 presented a significant alteration in doing business. Moving from orange level to red level has replicated that change. Fear. Caution. Optics and public opinion. If confidence is the lifeblood of business events, a transfusion is needed stat. 

This can start now with government departments committing to holding their business events already booked, instead of cancelling them. This would show the rest of the country confidence in our highly vaccinated population, the Covid-19 Protection Framework process, and the rigours that are characteristic of a highly-managed business event. 

Indeed, the sector merits government recognition as a critical component of New Zealand’s recovery. Reconnecting New Zealand with the rest of the world in business, cultural exchange, experiences and knowledge sharing is vital to the business events, tourism, and hospitality sectors, working in partnership with government. 

Right now, we have $150m in revenue at risk through a combination of domestic and international business events, scheduled for 2022. While our Australian neighbours continue to hang in there with bookings still showing in March, we know it’s a matter of time before this figure dwindles while the spectre of forced isolation upon arrival in New Zealand looms. No international traveller is willing to spend seven to ten days in isolation, before attending a three-day conference. Yet we know these travellers are fully vaccinated, healthy, and prepared to contribute to the recovery of our country.     

Business events are a strategic tool for attracting trade, investment, and people. The government is currently investing in the industry through infrastructure to maximise the high value and long term benefits the industry delivers.  

But it’s not just the economic contribution. The sector goes much deeper than that, aligning with communities, encouraging foreign investment, and providing stimulus for industries that are important to New Zealand’s long-term vision for growth and prosperity. The industry nurtures collaboration in research, fosters innovation and boosts productivity, while at the same time encouraging and developing career aspirations within a predominately full-time, yet wonderfully exciting, employee environment.

Over the past two years, both hospitality and tourism operators have not only felt the decline of the sector in their revenues, but also in job retention, company culture and creativity. It’s the business event sector that helps keep hotels and restaurants full and tourism operators busy during the week. A loss which our friends in those sectors have felt keenly.

It also supports important cultural exchange and diplomacy, most recently demonstrated at APEC 2021 and COP26, two of the biggest and most crucial business events on the calendar. A mature business events sector is a signal of a mature society.

The business events industry was on the precipice of global greatness, through people and talent, infrastructure, and New Zealand’s position as a premium destination. Today, we find ourselves tested in a way we couldn’t imagine two years ago. Over the next few weeks, we will learn more about the government’s intentions to fully reconnect New Zealand to the world. A well-supported business events sector plays a crucial role in that strategy.

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I started writing this piece a week ago planning on being forward thinking and seeking optimism in yet a still uncertain environment.

It’s tough out there. The holiday break did nothing to alleviate the mental stress and anxiety that business owners have. The announcement on 24 January 2022 placing New Zealand in the red zone of the traffic light system has stifled my thoughts a bit.

The red zone effectively is the same as a level 3 or level 4 lockdown status. Although the government says Kiwis can still travel and conduct business as usual with some restrictions, the reality is no-one will be travelling for at least two months. This is confirmed by the hundreds of cancellations that ITOs and tourism businesses have had in just 48 hours and Kiwis hunkering down all over the country.

To help businesses survive the next few months, the wage subsidy being re-instated and other targeted funding support businesses are urgently needed. 

This aside, here is what I wrote about the international tourism sector outlook for 2022.

There is still a long way to go. TECNZ expects 2022 will be much like last year with no international visitors until Q4 of 2022 and a lot of uncertainty. If we’re able to get visitors back by mid-year, that would cast a great lifeline for many businesses. Gazing ahead, we think it’s going to be a game of two halves. The first half of 2022 will be quiet as New Zealand manages its way out of the Omicron infection cycle. It’s not going to be easy.

TECNZ chair Scott Mehrtens said, “We have really big concerns for the entire industry. Having come off four months of lockdowns from Aug-Dec then to only have a few short weeks of earning potential from mid Dec to 23 Jan, and now to go into the red traffic light system where it’s basically impossible to run any events or inter-island tourism – it is a recipe for disaster. The international tourism industry is in crisis. Yet again it is the same sectors that are taking the body blows caused by restrictions but this time with no financial support. I really cannot see how some of our members can survive this outbreak ,which is horrific given that they have lasted this long only to tumble in the last stretch of the marathon we have endured. Surely with widespread cases in the community that will no doubt occur with Omicron, the border will no longer pose the same threat so we must be closer than ever to seeing international tourists return to New Zealand. But right now our industry needs urgent support, or this could be the end of the line for so many businesses.”  

Covid-19 Response Minister Chris Hipkins said border changes are possible in the first half of this year.

“The coronavirus will eventually become endemic in New Zealand, and there may be significant changes to the borders in the first half of 2022,” he said.

TECNZ anticipates the second half of 2022 will see the return of international visitors and we wait anxiously to see what details will emerge from the border setting review expected late February.

The visitor economy will continue to face a number of challenges:

• Attracting visitors in a global environment will be highly competitive. We need to ensure Tourism NZ and Inbound Tour Operators are resourced adequately to lead the charge with marketing New Zealand and reconnecting with offshore partners as soon as we get ‘set dates’ to welcome back visitors. The worse thing that could happen is the government reducing TNZ’s international marketing budget, and ITOs can’t hang on until the border reopens. ITOs are needed to contract business back to New Zealand.
• The current restrictions are a major handbrake for businesses. We need to have hope that there are some green shoots and businesses can face the future with some confidence. At the moment, the stringent border restrictions and ever-changing government guidance continue to stifle recovery.
• A number of visitor experiences and infrastructure (accommodation, transport providers, coach and tour operators) will likely have no funds for refurbishment programmes or be able to upgrade fleets, which could in the longer term impact the quality of our visitor offering. 
• Workforce issues and immigration policies continue to affect the tourism industry with no international visitors here on Working Holiday Visas. We hope this can be resolved in the next few months. WHV holders are critical for both the tourism and hospitality sectors.
• Word from China agents is that at this stage there is no outbound travel until 2023. As New Zealand’s second largest market, this is worrying. We’ll keep an eye on things.
• There is widespread concern the government is letting international tourism go. We’d have more confidence in a future if targeted funding assistance was provided for international tourism businesses. We’ll work hard to keep advocating for support. 

Key insights:

• We must up the ante on a campaign that shares why tourism is important to communities and the value of tourism as a career pathway. We need to create stories that rebuild acceptance of tourism and recreate a positive social licence to operate in communities. This is something that is well overdue. It needs to be done as soon as possible so Kiwis warmly welcome back visitors and once again roll-out the amazing manaakitanga we’re globally known for. 
• A key trend that has emerged is the major priorities by prospective travellers, including ’duty of care for visitors’ and refundable cancellation policies. The travel inbound and outbound system has become even more important and will continue to gain prominence over the next few years versus travellers making bookings via OTAs. Make sure you are best friends with ITOs if you have no funds to do international marketing in the next two years and your travel agent for future outbound travel.
• Pre-Covid our industry had an excellent sustainability record and range of achievements. This effort has continued and New Zealand will be well-placed to deliver a strong sustainable visitor offering when travellers return.

Are there any opportunities?

Not at the moment for many international businesses, they are still in survivor mode. Most have reviewed their operations multiple times and adapted to be more nimble and agile. Any further innovations are difficult because balance sheet reserves are depleted. Trying to generate sales out of the domestic market is now taking a back seat for Omicron and keeping staff motivated to stay in the workforce is not an easy task with no certainty of a future.

Whilst most working in the industry had a few moments to refresh and recharge over the Christmas/New Year period, we’ve been pulled back into reality pretty quickly. Mental stress is back on the agenda and we’re mindful this is a critical issue for business owners and employees moving forward. Having key dates for border reopening for visitors and funding support would greatly alleviate some of this stress.

Is there hope?

There is hope. If comments by Covid-19 Response Minister Chris Hipkins can be taken at face value, then perhaps by mid-year New Zealand will be in a position to welcome back visitors. Australian visitors in particular would provide a much-needed boost to support winter destinations and businesses across New Zealand.

We know the demand to visit New Zealand is still high. As a colleague in the UK inbound sector said, “I feel for you guys. Keep strong. The world knows it will be worth the wait to visit New Zealand!” 

We are a resilient industry and will rise again. We’re keen to work with government and develop a plan forward. We offer our expertise to work with you (government) and Tourism NZ to rebuild our world-class visitor economy and be a positive contributor to communities and New Zealand again.  If airlines can secure their routes to New Zealand for the next three years, our sector can attract targeted funding and we let the world know we are open for the 2022-2023 season, we can face the future with a degree of confidence.

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Chris Roberts

It has been a roller coaster ride since February 2020 for the country’s 35,000 plus tourism businesses. Border closures were necessary but a huge blow. The opening of the Tasman travel bubble in April 2021 lifted spirits but the outbreaks in Australia and the shutting down of Tasman flights meant the benefits were temporary and minimal.

Kiwis have been our saviours. There’s been a huge range of individual business outcomes – from closure or hibernation, to record revenue levels for a fortunate few. But overall, tourism businesses delivering services to a domestic market had been doing okay prior to the August outbreak. Domestic travel for leisure and business was buoyant, accommodation occupancies were steadily increasing, and a strong programme of events and conferences was underway. The July school holidays had generated good business. The biggest issue, other than the closed border, was a shortage of workers.

Domestic travel was stopped in its tracks when New Zealand moved to Covid-19 alert level 4 on 17 August. Almost every tourism business is using the wage subsidy to hang on to their staff, and the Resurgence Support payment to partially meet fixed costs. But the losses are quickly mounting. Businesses outside of Auckland were relieved to get back to level 2 on 8 September but visitor activity remains low. And for those in Auckland, there’s no business at all.

Tourism operators tell us the impact of the lockdown is very different from last year. The March 2020 lockdown came towards the end of the peak season, when operators had cash reserves to draw on. This time it’s unclear how quickly domestic tourism will bounce back. The biggest domestic market, Auckland, remains unavailable and with summer around the corner New Zealanders may delay any leisure travel until the Christmas holidays.

Operators are tiring. We’re now 18 months into the pandemic with no certainty on when we will emerge to the ‘new normal’. Operating a tourism business with closed borders and changing alert levels is incredibly hard. Revenue dries up overnight. The mental wellbeing of many operators is being impacted, severely for some. Anger and grief are common emotions. Some have made the hard decision to close.

However, tourism people are very resilient. They know we have an amazing visitor offering here in Aotearoa. Most are determined to survive, revive and then thrive again. But they can’t do that on their own.

Tourism is a complex ecosystem with multiple players. This includes government as both a steward, looking across the whole tourism system to make sure that it is working effectively, and as an actor directly through its own assets and interventions. The private sector has a few larger players but is dominated by SMEs and micro-businesses. It is locally owned, and in recent years increasingly Māori owned and operated. There are embedded inter-dependencies, with tourism businesses reliant and supportive of each other.

As tourism looks to survive the current challenges and return to its previous levels of contribution to New Zealand’s economic and social wellbeing, it will need a range of solutions that protect essential parts of the tourism ecosystem. Mass business failures will create gaps in the overall offering, making the road to recovery much more difficult and retaining the strength of the New Zealand brand highly problematic.

If businesses are supported, tourism can recover faster, supporting more jobs for New Zealanders and making a greater contribution to New Zealand’s prosperity. The difference between a patchy recovery and a strong recovery is significant.

TIA has identified 10 priority survival steps for tourism. Some are led by government, some by industry. Some are underway. All require partnership. Put together, they can get us through the biggest crisis our tourism industry has ever faced.

1. Vaccination uptake: Achieving a high rate of vaccination is a must. TIA is actively encouraging employers and employees to get vaccinated.
2. Compulsory vaccination: Employers want to keep their staff and their customers safe. Can they ask their customers to be vaccinated or declare their vaccination status? And can they insist that their customer-facing employees are vaccinated? Government needs to work with industry to provide guidance.
3. Wage subsidy: The wage subsidy should continue until all of the country, including Auckland, moves to Alert Level 1. Many tourism and hospitality businesses can still show a 40% or greater decline in revenue operating under level 2 conditions.
4. Resurgence Support Payment: Similarly, the RSP should also remain available until all of Aotearoa is at Level 1.
5. Rent relief: After wages, rent is often the biggest cost facing tourism businesses. The government has this week introduced a new legal requirement for landlords and tenants to agree on a ‘fair’ rent when Covid restrictions prevent normal operations. This will assist some businesses but shifts the economic burden to landlords.
6. Business loans: The Small Business Cashflow Scheme through IRD has been successful but an anomaly is that businesses can only apply now if they have not applied before or have already repaid their first loan. We seek a change allowing operators to re-borrow and to top-up loans to the maximum of $100,000.

Few tourism businesses met bank criteria for last year’s Business Finance Guarantee Scheme, as they were unable to show what future revenue will be under a ‘normal’ scenario. It would be helpful to have a re-aligned loan scheme designed for SMEs.

7. Mental Health support: 75% of respondents to the recent Tourism Industry Aotearoa survey were concerned about their personal health and wellbeing, with 9% being very concerned. TIA is doing what we can to support our members and we are exploring a national mental wellbeing service for tourism operators.
8. Fee and levy relief: TIA is seeking relief from the financial burden on operators of fees and levies from agencies like the Department of Conservation, Maritime NZ and Civil Aviation Authority.
9. Travel incentives: Direct domestic travel stimulus is worth considering with borders likely to remain closed for some time. Voucher schemes have been used successfully in many countries including Australia. There is some smart technology that can be used to tailor any scheme, matching special operator deals with government support.
10. Workforce support: If New Zealand is out of lockdown this summer, tourism businesses will need to staff up. A dozen different activities are underway to head off workforce shortages.

TIA is also looking to partner with government on longer-term strategic initiatives, including the proposed Tourism Industry Transformation Plan; TIA’s Tourism Sustainability Commitment; the TRENZ international trade event; and the government funded/industry led Go with Tourism initiative.

These initiatives all support the development of a sustainable tourism industry that delivers for Aotearoa and its people, while the 10 measures above will ensure the short-term survival of the industry.

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Scott Mehrtens

Last Wednesday, I chaired my first TECNZ Board meeting taking over from the sterling work done by Anna Black over the past four years. Two years of which have been during the most tumultuous time the international tourism industry has ever encountered. Our sincere thanks to Anna for her commitment and leadership and her tenure of twelve years on the Board.

We have received a reply from tourism minister Stuart Nash about our request for new funding for ITOs and our supplier businesses sent 3 September 2021. Click here for the response. No specific funding is being considered. However, we will explore other options.

As each week passes our industry becomes more anxious and business owners more stressed when we learn about other countries that have either opened or have a border reopening plan they have shared with their nation. Businesses are falling and a number in hibernation will not rise.

Some of New Zealand’s most recognized business leaders like Rob Fyfe and Sir Ian Taylor are expressing their frustration about the Government’s hesitancy in embracing some of the private sector’s ideas to ‘help’ our nation through the health and economic crisis.

Covid-19 has pushed inbound tour operators and TEC members who had a strong focus on international tourism to the top of the emergency waiting room list needing serious triage assistance. Our supplier businesses have created world-class visitor activities, attractions, accommodation and transport experiences over a period of 50 years and have never asked for financial help before Covid. These businesses have invested millions of dollars in infrastructure, created new visitor products and experiences, strengthened relationships, built New Zealand’s global reputation, and they are bleeding.

The tourism industry desperately needs further targeted assistance to ensure the right businesses are operational and that there is a semblance of a quality international visitor offering in 2022 and beyond. TECNZ acknowledges the government’s tourism specific investment in 2020 and 2021 and mainstream business funding lockdown support in 2021. Thank you. However, more support is needed for those most affected with the closure of New Zealand’s border and Delta lockdown.

For many ITO international partners – offshore wholesalers and agents – we have reached a tipping point of them now removing New Zealand off their list of countries to sell. This will only get worse with every day that passes that the Government cannot give us an indication of when the border will reopen. We need to make it as simple as possible for our partners to ‘sell’ New Zealand and attract visitors back, therefore we need dates.

It is more critical than ever that we can advise our international partners as soon as possible when we can welcome back international visitors with an indicative reopening date in Q1 of 2022. Why? The booking lead-in time from ITO’s offshore partners can be anything from 3 months for FIT’s to 18 months for group tour series.

If we cannot let the world know soon that our borders will reopen in Q1 of 2022, offshore partners will simply look for other international destinations. Bookings currently being held in ITOs systems will then move to the 2023-2024 year and the window for New Zealand to capitalise on reconnecting to the world could be lost and the potential of hundreds of tourism businesses closing will become a reality.

We cannot understate the seriousness that a delay in announcing a border reopening date will have on New Zealand’s global reputation and the international tourism sector, let alone the prospect of the $17.5bn of lost annual international tourism earnings not flowing through the economy.

TECNZ has actively supported and promoted with minister Stuart Nash and minister Michael Wood a safe and phased reopening of New Zealand’s border to international visitors, when the time is right. What we are saying is Q1 of 2022 is the right time to start.

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Peter Harris

It seems so obvious looking back. Queenstown had too many tourism eggs in our economic basket.

We knew disruptions to tourism can happen, but we’d navigated these before – SARS and the Global Financial Crisis put a short term dent in tourism growth but we bounced back quickly.

Growth pressures caused stress on infrastructure, people and our environment but the problems we faced were preferable to some other New Zealand communities grappling with high unemployment, and intergenerational poverty.

We weren’t blind to the need to spread our economic risk, but just like that nagging intention to update our will or refresh our earthquake emergency kit, it’s easy to put these things off when you are busy being busy.

We had made a start.

‘The Cube’ in Wanaka supported start-ups, Study Queenstown helped grow the number of international students, and Film Otago Southland promoted the region. A strategy was created and in 2017 I was lucky enough to be appointed the first economic development manager for the district. Between then and 2020 we helped create Startup Queenstown Lakes, co-ordinate workforce initiatives, and build a local film office.

The bulk of the funding and effort remained focused on promoting the district to visitors, dealing with the infrastructure challenges of a growing number of locals and visitors, and responding to a community increasingly disgruntled that their little patch of paradise was getting (too) busy. With 6 out of 10 workers being employed in tourism and almost everyone affected in some way by this dominant industry, this focus seemed inevitable.

And then came Covid-19. It may not have been as devastating as predicted (8000 jobs lost) but for every person who has lost their job or business income, it has been incredibly traumatic. And it’s not over yet.

Our conversations have become dominated by talk of bubbles, wage subsidies, vaccinations, lockdowns – and diversification. Why hadn’t we done more to diversify? What ideas could solve this and what would it take to turn us into Silicon Valley?

People floated ideas to mayor Jim Boult, and via the media. A few of these are slowly coming to fruition, but most sit in a digital suggestion box, waiting for someone to drive them forward. Ideas are valuable, but people willing to make them happen are priceless.

Slowly, good people have been putting their hand up. Some of their businesses and projects were in the wind prior to Covid-19 but the crisis has made them more committed to making them real. While not all will come to fruition there are amazing opportunities being worked on including tech training, software that helps hospitality businesses, film studios, start-up investment, off-the-grid energy solutions, and strategies to grow tech across the region.

Diversification is never easy, or fast. Building new industries and businesses takes time and we will need a portfolio of initiatives – including;

• Fostering start-ups and existing export businesses
• Growing industry ‘smart specialisations’ (e.g. software for the tourism industry)
• Attracting individuals committed to growing a team in the district
• Ensuring the ‘ecosystem’ here makes it easy to create new opportunities (e.g. access to investors and talent)

While it is a daunting challenge, we have some unique advantages. The people behind some of the projects have incredible international business experience and contacts, and there are already great tech businesses in the district. We are also a place that talent wants to live. As the work opportunities grow, workers and entrepreneurs will gain more and more confidence that they can build a future here.

The government is realising the role our district can play in growing ‘weightless’ exports for the nation. They are recognising that Queenstown Lakes is home to entrepreneurs that not only run great tourism businesses, but do business around the world in other industries.

International experience shows that smart specialisations are most likely to emerge from support businesses to dominant industries – this is why we are working on supporting hospotech and tourismtech businesses in the region. Done well this will build a weightless export industry plus, as it is taken up by the industry, it can boost the productivity of tourism and hospitality.

Covid-19 has been devastating for tourism, but it remains our largest industry. We need it to rebuild and to simultaneously invest in economic ‘insurance’ through diversification. With the commitment of our local community, entrepreneurs, organisations including the QLDC economic development team and Startup Queenstown Lakes, and government to grow new industries, we can spread our economic eggs into more baskets.

There is no denying the pain that Covid-19 has caused our district. When we look back in 10 years at this time those scars will remain, but we may also recognise it as the moment when diversification went from something we wanted to happen in the background, to something we embraced as a community.

Republished from LinkedIn with permission.

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Todd McClay

New Zealand’s tourism sector has felt the full force of Covid-19.

The Government’s border closures, lockdowns and ongoing restrictions have caused significant and widespread disruption to the industry which supports hundreds of thousands of jobs across New Zealand.

In 2019, tourism was the country’s largest export earner, supporting the jobs of 400,000 New Zealanders.

The overnight collapse of the international market has been unprecedented. Around 92,000 jobs are at risk this year alone. And with no timeline on a trans-Tasman bubble, about 42% of the tourism market shut out of the country, and no clear strategy for opening the borders by Labour, the industry is facing an uncertain future.

Unlike Labour, National has a comprehensive plan to keep our borders safe and secure, so that we can eventually allow international visitors to return, while safeguarding the health of New Zealanders.

It is clear that Covid-19 is going to be with us for a long time so we need to start planning around how we can introduce skilled and essential workers, international students and tourists in a safe way that will not put the health of New Zealanders at risk.

National’s smart border plan will investigate streamlined travel arrangements for low-risk countries and territories, and scale-up managed isolation capacity by allowing private accommodation providers to become approved service providers.

Given flexible arrangements were offered in the Government’s negotiations for rugby tests between the All Blacks and Australia, these options should also be considered for Pacific countries that do not have Covid-19.

Our plan will include developing a long-term solution for safe re-entry by bringing private accommodation providers into the Government-controlled managed isolation network. All private facilities will have to meet or exceed required levels of safety, security, reporting, transporting, training and testing, as well as meet the associated costs.

While better, more efficient border management will ensure international tourists can return to New Zealand in time, there is still the obvious short-term issues, we need to ensure there’s a tourism sector for international visitors to return to.

The Government has so far failed in its support for the tourism sector and its policy for funding tourism assets wasn’t transparent or fair.

Rather than providing a clear plan to support the whole sector, the Government delivered cash handouts to a tiny minority of companies and little to no support for the overwhelming majority of tourism providers. We back the calls for this process to be reviewed.

It is crucial we provide targeted support to the sector to keep people in jobs and help restart the New Zealand economy.

Importantly, we will reduce taxes for all New Zealanders. National will deliver a temporary tax relief package that will put more than $3000, or nearly $50 a week, into the back pockets of average earners over the next 16 months.

Putting more money in the pockets of Kiwis is the single easiest way to give them more confidence to spend that money in areas like tourism, accommodation, and hospitality.

We will also fund TRENZ, our most significant international trade and travel event, for the next two years. It’s important the industry is supported to work together and develop their own strategies alongside Government so we can save jobs and restore the tourism sector.

National knows tourism is a cornerstone of our economy. We will work with the sector and develop strategies to rebuild the industry back to the thriving and growing sector it once was.

National will release our tourism policy soon, it will outline how we plan to support the sector today as you come to terms with Covid and the consequences of the Government’s two lockdowns. It will also deal with the longer term challenges of a vibrant tourism sector when international tourists return.

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Kelvin Davis

Covid-19 has taken a heavy toll on our tourism sector and will likely continue to impact tourism for years to come.

It is a pivotal time for tourism in Aotearoa right now.

We are fortunate that the work undertaken between the sector and Government prior to Covid-19 has put us in a good position to move forward, particularly through the New Zealand-Aotearoa Government Tourism Strategy and TIA’s Tourism Beyond 2025 Framework.

Many destinations have already begun moving to a destination management approach that will ensure tourism contributes to the prosperity of regions across New Zealand and enriches the lives of all of us.

I understand the pressure that tourism businesses are facing in this period of uncertainty and I can assure you that the Labour Party shares your concern, and in Government we have been working to mitigate the impacts of Covid-19, particularly on employment.

Right from the early stages of the pandemic, we’ve been doing what it takes to cushion the blow, support businesses and workers, and position the economy for recovery.

We mandated Tourism New Zealand to focus on the domestic market. Their Do Something New, New Zealand campaign is funded from their $112m budget and will be TNZ’s largest ever market investment with rolling campaigns over 12 months.

On top of broad-based support like the Wage Subsidy, the Government also agreed to a $400m Tourism Recovery Package, designed to help protect key parts of the tourism system, and to advance our vision for a sustainable, productive and inclusive tourism system.

This package consists of:

• $290.4m for the Strategic Tourism Assets Protection Programme (STAPP), which includes dedicated financial support to 130 tourism businesses, 31 Regional Tourism Organisations and 26 Inbound Tourism Operators. The funding for tourism businesses will help directly secure up to 3,000 jobs and boost business and local economies at this incredibly tough time.
• $50m for a Regional Events Fund, to stimulate the domestic visitor market. Details of how this will be allocated across regions were released last week.
• $17m for the Tourism Transitions Programme, which has already provided support and advice to over 1,300 tourism businesses that have been impacted by Covid-19.
• $10m for Digital Capability, to help tourism businesses to develop digital strategies, access digital tools and benefit from existing digital enablement initiatives. I’ll be making a further announcement about this programme later this week.
• $10m for NZ Māori Tourism, to support activities including training for young people and Māori tourism operators, business support and mentoring.
• $25m to the Department of Conservation, to offset the payment of tourism concession fees to DoC until June 2021.
• The independent Tourism Futures Taskforce, to lead the thinking on the future of tourism and advise government on what changes we can make to improve the tourism system.

The global pandemic has been devastating for our tourism industry, but we have no other choice than to treat this as an opportunity to rebuild our tourism sector to be better than before.

Labour is committed to continuing to support the rebuild and restart of the tourism industry in the wake of Covid-19.

We will continue to support domestic tourism while the borders are closed through the work of TNZ, and through initiatives like the Regional Events Fund.

We will continue to engage and work with the sector and we will continue to support the work of the Tourism Futures Taskforce to help rebuild our tourism sector so the future of the industry is sustainable, environmentally responsible and of high value.

We know further investment will be required once border restrictions begin to lift, but in the meantime, I’m confident our $400m package lays the foundation for tourism to recover and continue to be a key part of New Zealand’s economy.

Next week, the National Party’s Todd McClay.

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Eve Lawrence

I am seriously dumbfounded by the utter lack of positivity in the media at the moment. From One News‘ School leavers forced to reconsider future career paths as industries struggle amid Covid-19; the NZ Herald’s Heading for an overseas holiday? Don’t bank on free isolation stay, warns Jacinda Ardern; and now Tourism Ticker’s Border opening may be years away, refocus on domestic – report’. I don’t know about you, but I am absolutely exasperated.

ASB’s analysis of free cross-border movement, while interesting and valid in that it presents another side to the argument, does not help with the current mood circulating in our country or the travel and tourism industry. It’s irresponsible of the media to be promoting fear across large swathes of the population, both in New Zealand and overseas, and it needs to stop.

There are far too many articles circulating that focus on the negative impact of Covid-19, which actively promote more negativity, not only in affected markets, but in the minds of travellers. What tourism, travel and business events need is media support. This could be in the form of positivity, promoting propensity to travel and also to put pressure on the need for a forward-thinking strategy to support the New Zealand economy and tourism outlook.

Globally (as of July 7th 2020), Covid-19 has infected 0.15% of the world’s population, and circa 0.0006% is currently infected. Some 0.007% have unfortunately lost their life and on top of that 80% of people that get Covid-19 only have mild symptoms or are asymptomatic. To put this into perspective, 0.12% of the world’s population dies from cancer each year (9.56 million), that’s almost 18x the number of people that have lost their life due to Covid-19. The mortality rate for Covid-19 is currently 4.68%; the mortality rate for Ebola, for perspective, is approximately 83-90%, and for SARS it was 11%. Perspective, perspective, perspective!

Yes, some will argue that they are different diseases and also that our success is due to lockdown periods, however it’s also pertinent to remember that while many countries have had strict lockdown measures, many countries also haven’t. Couple that with the masses of BLM protests around the world and the percentages are still low. Yet we seem to have been surrounded in a blanket of fear that continues to engulf us from all sides. This should be about perspective, giving people a realistic view of the statistics. I haven’t seen a single article around this in New Zealand since Covid-19 began.

There should be a strategy, a plan, coming from those whose role it is to protect not only this country’s health, but also it’s economy. This should be backed up by media support and coverage promoting all sides of the pandemic and all the data/statistics. Instead the media constantly rattles off alarming increases in Covid numbers, promotes panic purchasing and now is actively vilifying industries that are struggling. Of course we’re going to experience a lull, when global travel has all but stopped. How about instead of giving us brief pockets of hope, the media actively seek to publish positive articles on suggestions around what we could do to open borders safely, who we could open them up to, who is doing well and why. And when something does get posted regarding new cases or statistics, how about giving us some perspective on the matter.

Behind the scenes, I am seeing continued positivity from the travel sector – an indication that recovery is coming. At Haka Tours & ANZ Nature Tours, we’ve had a huge uptake in agents wanting to sell our tours and some good traction from customers on purchasing travel products. I know plenty of other tourism businesses across a wide genre that are also seeing good traction. A strategy with subsequent media support needs to be presented. I understand the requirement of the media to present a balanced view, however, most of these pieces are unsubstantiated reports based on a person or a self-proclaimed expert’s ‘best guess’, or they’re based on opinion. I’m all for one of those as you’ve probably noticed, but not at the expense of facts or perspective.

All this negativity is affecting our mental health and the outlook for our businesses; it’s doing more harm than good to the economy and it honestly needs to change. I suggest we look forward to what the future holds – tourism and travel will recover, it will become more sustainable, the environment, community and culture will be a key focus and we will move forward from this in a positive way. Let’s put some pressure on the push for a trans-Tasman and Pacific Island bubble and get the recovery going in the right direction!

International visitors will return to New Zealand. But only if they are instilled with the positivity and the confidence to do so.

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Francis Mortimer

In last Thursday’s Tourism Ticker it was interesting to read Tourism Export Council of New Zealand’s Lynda Keene suggest that “inbound operators are relying on ITOs to step up and get things moving again”. In my view, everyone will have a role to play in bringing tourism back and ITOs are only a part of the mix in a post-Covid-19 alert level 4 tourism recovery.

I worked at Air New Zealand for some years before starting my inbound business. I held the role of inbound manager at the airline for the Pacific Islands from northern hemisphere markets during what turned out to be a challenging time from 19 May 2000.

Fiji tourism, which has always been a leader in the Pacific, was on a roll with record arrivals from its main markets in Australia and New Zealand. Following big marketing campaigns in the UK and USA, numbers from those markets to Fiji were strong, adding further promise for the upcoming year.

The Pacific’s version of TRENZ, BFTE, had just concluded with Fiji operators having written an enormous amount of new contracts. However, as we drove to the airport that May morning to fly home, an ominous convoy of military trucks was driving in the opposite direction towards Suva where George Speight had just staged a coup.

Almost immediately the impact of the coup saw tourism inflows drop to levels never before seen, and major airlines serving Fiji either withdrew or reduced services.

It wasn’t like the current situation, in which we find ourselves in New Zealand with forced border closures. The coup erected its own barriers as tourists from all the major markets stayed away and hotels and businesses associated with tourism laid off staff. Manufacturing in Fiji also took a hammering as foreign companies, the backbone of an emerging new garment industry, simply closed their operation and moved factories to South East Asia.

For Fiji, with limited resources and an economy almost totally reliant on tourism, this was a major crisis.

However, the Fiji tourism industry didn’t sit back and rely on one sector to lead the recovery.

Unlike New Zealand, they didn’t have a government to help them recover – the elected MPs were being held hostage by armed men. There were no wage subsidies or special bank loans to help the industry through this crisis. They were totally on their own.

They quickly realised that to survive they all had to play a part – the National Tourism Office, the inbound operators, the airlines, hoteliers, transport operators as well as communications specialists, foreign travel wholesalers and travel agencies. A grand coalition of the industry was formed under the name of the Tourism Action Group (TAG), which worked incredibly well to build and implement the recovery plan. I was fortunate to join TAG as Air NZ’s representative and contribute to the planning. The TAG was so successful it was reactivated following a further coup in Dec 2006.

I believe we in New Zealand can take a lead from our small Pacific neighbour as we move to coalesce our thinking and planning.

Like Fiji, I hope we see a gathering of tourism professionals who are practitioners from the field who can form our own TAG. These should be the people who work in this industry every day, are in touch with the distribution system and who can get things done quickly. They need to not only include ITOs but as in Fiji, Air NZ, hoteliers, tourism operators and all backed up by a top communications team.

As travel movements are relaxed it seems obvious that domestic tourism is going to be the driver of the recovery. For that reason, it is going to be vital that as well as the representation mentioned above, that major national travel agency chains are represented on any team such as a TAG. They can motivate their franchisees who are in touch with the customer either direct or via social media platforms and present them with the offers to get people moving again.

The longer term needs addressing too, especially around how we might find a solution to reigniting international movements, which intuitively could be Australia, on a state-by-state selection basis and the virus-free Pacific Islands. Australia’s importance can’t be ignored because international travel beyond there is not going to open any time soon.

As has been indicated in the prime minister’s briefings, the Government is going to have to give the lead on this.

We don’t need a talkfest, rather an action group that is going to be ready to drive the recovery as soon as travel restrictions are relaxed.

Francis Mortimer
New Zealand Pacific Discovery

Francis Mortimer was a member of the Fiji Tourism Action Group and chair of the NZ/Fiji Business Council. He left Air New Zealand in 2007 to create his own inbound wholesale business, New Zealand Pacific Discovery.

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Paul Yandall

How does New Zealand tourism come back from such a devastating blow?

Thousands of jobs will be lost and hundreds of businesses will probably disappear before the recovery from the coronavirus pandemic takes hold.

In the meantime, those that have the means to see the crisis through are stuck in stasis, scouring news and data for any sign of the outbreak abating.

I fear it may be a long time before the industry reaches pre-Covid-19 levels while conceding that it’s pointless trying to put a timescale on it at this stage – one year? Three? Five? Who knows?

But what I do know is that the industry is full of resilient and smart people, businesses and organisations, making extremely difficult decisions today to ensure they survive and then thrive on the turnaround.

There is no shortage in tourism of leaders, senior managers and staff in both business and government who have had to deal with other downturns – albeit nothing on this scale or sharpness – and it will take all of their experience and resourcefulness to rebuild.

With that in mind, we have launched a new series, Leading through Crisis, so we can hear from those very people during the difficult days ahead.

And who better to start with than Hassle-free’s Mark and Nikki Gilbert, who rebuilt their business from the rubble of Christchurch’s 2011 earthquake to become even bigger and better.

It wasn’t easy and it wasn’t quick but they did it and they tell us they will do it again. It’s an inspiring story full of tips that could help other operators prepare for the months ahead.

As well as our leading industry news, we’ll also connect with the tourism professionals in the Lowdown on the Lockdown addressing the challenges and opportunities they face in their new working environment.

As for Tourism Ticker? Well, we’ll not only be here every day chronicling the impact the pandemic has had on the industry but we’ll also be bringing you the stories and views and plans of the people and organisations preparing for better days.

And, of course, we’ll be there to mark those better days too, to track the rebirth of an industry we know will become even bigger and better – just like Hassle-free Tours did.

You’ve noticed that we’ve put much of our content in front of our paywall at the moment. We believe that during the lockdown it’s important to keep the flow of information as open as possible but we can’t do it for all of our content and we won’t be able to do it for long.

For now, we’re happy to play a small part in sharing information that could help to keep people informed – and amused – during these difficult days.

He waka eke noa

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