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Davis responds to TIA letter

Tourism Minister Kelvin Davis has responded to Tourism Industry Aotearoa’s recent letter to the government calling for ongoing Government assistance.

“Thousands of vulnerable workers remain desperately worried about their futures,” the letter said.

“If there is to be no targeted wage subsidy extension, please signal as soon as possible what form ongoing Government support for our devastated sectors will take.

“We accept that not every business will survive this crisis, not every job can be saved. But well targeted Government support can limit the damage and give us something to rebuild from.”

Kelvin says, in his response to TIA, that the Government has not only extended the Wage Subsidy scheme, but has also created business support measures.

“We are in a strong position to support our economy and are well placed to manage the impacts of COVID-19. We remain strongly committed to supporting businesses as we continue to navigate through this crisis towards economic recovery,” says Kelvin.

Broad business support measures included:

  • A tax loss carry-back scheme, which allows businesses expecting a loss in either the 2020 or 2021 year to use that loss to offset profits made the year before
  • Changes to the tax loss continuity rules, which will provide an estimated $60 million annual savings to businesses each year
  • Greater flexibility for affected businesses to meet their tax obligations, and
  • A further $40 million in funding for business advisory services through New Zealand Trade and Enterprise’s Regional Business Partners Network.

Kelvin says a number of initiatives are also in play for the tourism sector specifically.

“As part of the initial [Tourism Recovery] Package, a Tourism Transitions Programme has been developed to help tourism operators to navigate a sustainable way forward through the COVID-19 crisis with a focus on business continuity.”

Additional support for the tourism sector includes:

· More than $230 million in grants and loans for 126 strategic tourism businesses, that could help protect the jobs of around 3,000 people directly employed in the industry
·$50 million for a Regional Events Fund
·$20 million in loans for inbound tour operators
·$10 million to lift digital capability in the sector

Tourism Industry Aotearoa chief executive Chris Roberts presented the joint letter to Prime Minister Jacinda Ardern at a meeting at the Beehive on July 28, which Kelvin also attended.

The letter is signed by the Bed & Breakfast Association New Zealand, Bus & Coach Association, Conventions & Incentives New Zealand, Entertainment Technology New Zealand, Entertainment Venues Association of New Zealand, Holiday Parks New Zealand, Hospitality New Zealand, Luxury Lodges of New Zealand, New Zealand Airports Association, New Zealand Cruise Association, New Zealand Professional Fishing Guides Association, Rental Vehicle Association, Restaurant Association of New Zealand, Ski Areas Association New Zealand, Tourism Export Council of New Zealand, Travel Agents’ Association of New Zealand and Youth Hostels Association New Zealand.

 

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