While Tourism New Zealand is confident there will be a viable visitor economy for the country, the results of its pre Budget survey make grim reading.
Operators are forecasting layoffs to 52% of their work force, in the regions 49% lay-offs. All businesses surveyed report making hard decisions to keep their business alive – 37% have reduced staff, 31% are mothballing assets and operations, 9% have sold assets.
More than 40% of New Zealand’s tourism businesses have already been put into hibernation, judging by the preliminary results of a survey by the Tourism Export Council of New Zealand (TECNZ).
With about 50% of the inbound tour operator members having returned their survey, 32% of inbound tour operators say they have made staff redundant and 90% say they will need to make more staff cuts if the government subsidy is not extended past 12 weeks.
The allied member survey (27% response rate) indicates that only 23% have made staff redundant to date. However, 100% say they will make more redundancies if the subsidy is not extended.
In a newsletter this week, TEC says it has been lobbying to have the wage subsidy extended from 12 weeks to 26 weeks.
‘It has been encouraging to hear the Prime Minister reference the possibility that government is now looking at potential specific sector support, of which tourism was one mentioned.
‘Any specific sector initiative designed to help the tourism sector rebound as quickly as possible would be welcomed by the industry.
‘New Zealand has been successful on the health front and can also achieve a successful economic rebound as well, with a little more help.’
Sixty five percent of respondents in a Sabre Corporate Travel Survey say that premium economy continues to gain ground in the region.
One travel manager in three has recorded an increase of close to 5% in premium economy bookings over the last year. As travel-related expenses become a central consideration for companies, the survey also reveals that downgrades, shifting reservations from business to economy class, account for close