14th May 2020 By Staff Reporter | news@tourismticker.com | @tourismticker
A $400m targeted Tourism Recovery Fund, alongside the extension of the wage subsidy scheme and a domestic tourism campaign, have been announced in the Government’s Budget 2020.
The TRF would focus on supporting tourism operators transition to the domestic and Australian markets, protecting industry assets, and funding the domestic campaign, said tourism minister Kelvin Davis.
“Initial, wide-ranging consultation identified a strong desire for a deep look at the future of tourism, but also significant short-term pressures because of Covid-19,” Davis said.
Kelvin Davis
“There were strong calls for further support for staff costs, the extension to the wage subsidy scheme announced today will also help businesses cover staffing costs and protect jobs, while we ramp up a domestic tourism campaign.”
Davis said the establishment of the $400m TRF enabled the Government to deliver various support mechanisms to the industry under one umbrella.
“Tourism New Zealand has this week begun work to showcase New Zealand on social media promoting safe travel to New Zealanders. Further domestic activity will roll out soon, including a nationwide campaign,” he said.
“This package is designed to help the tourism sector at this point of our journey together. As we move through our recovery we will look at what further support we may need to provide in the days to come.”
The response package included:
Tourism Transitions Programme
The programme would deliver advice and support for either pivoting a business towards the domestic and Australian market, hibernating a firm, or other options. Tourism New Zealand would provide customer insight and views of overseas market conditions to help businesses make good decisions about their futures.
NZ Māori Tourism would also be supported through this fund to deliver the Transitions Programme directly to its stakeholders.
Strategic Tourism Assets Protection Programme
“Some of our key tourism assets, in the form of attractions and amenities, play a vital part in our domestic tourism offering and our international brand as a tourist destination,” said Davis.
“Some of these are at risk due to the effects of Covid-19 and if lost, could slow down either the national or regional recoveries, and have a major impact on some communities. This fund will identify those strategic assets and provide them with the protection and assistance they need so they will not be lost.”
Tourism Recovery Ministers Group
Davis said this would be established to oversee the Tourism Recovery Package and the industry’s recovery.
Members were expected to include ministers of tourism, finance, Māori development, conservation, and the Under Secretary of Regional Economic Development.
New Zealand Futures Tourism Taskforce
This public-private taskforce would lead the thinking on the future of tourism in New Zealand.
It would consist of cross-government and tourism sector representatives and would prioritise the current and future issues that would shape and impact tourism, and lead recommendations on further policy and regulatory reform in the sector.
Tourism New Zealand had its budget preserved at $112m with the agency’s chief executive, Stephen England-Hall, saying it would have an “important role to play to support New Zealand’s economic recovery”.
He said the agency would work to keep the New Zealand brand alive internationally and prepare international market response plans in advance of the country’s borders reopening.
Budget 2020 also contained:
Grant Robertson
Finance minister Grant Robertson said the $50bn Covid-19 Response and Recovery Fund would target investment at protecting existing jobs, creating new ones and providing support for workers to retrain and for businesses to survive, as well as targeting support to those sectors most affected by the virus.
The extension of the wage subsidy would be open for applications for a 12-week period and would be paid as an eight-week lump sum to employers at the same weekly rates as the current scheme.
“Many New Zealanders will be back at work now, but we know there will be some businesses that are still struggling, particularly in the tourism, hospitality and retail sector. This is why we are extending the wage subsidy scheme,” Robertson said.
From 10 June, businesses that have suffered, or expected to suffer, revenue loss of at least 50% for the 30-day period prior to the application date versus the nearest comparable period last year would be eligible for the extension of the scheme.
Applications for the extended subsidy would be able to be made through the Ministry of Social Development’s website. The extension of the scheme is estimated to cost up to $3.2bn.
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