On Monday, January 31, the Ministry of Business Innovation and Employment released data that showed international tourism spending in New Zealand has fallen 91 per cent since Covid-19 closed the borders to international travel.
This equates to a $16 billion loss, with international tourism expenditure plunging from $17.7b in 2020 to $1.5b in 2021. Pre COVID, tourism was our largest export.
The number of people directly employed by tourism decreased by a third (from 219,000 to 146,000). Over the same period, 35 percent of tour and charter bus companies have also closed.
Many tourism businesses have received assistance from the government.
"But due to the unique nature of the tour and coach sector, most operators haven’t received any assistance," says CEO of the Bus and Coach Association Ben McFadgen.
"In many cases they didn’t meet the criteria, despite clearly having serious difficulty surviving. So, they have been doing it tough. And they have been doing it on their own."
The sector has been reaching out to the Government regularly to communicate the dire situation its operators are in.
"Without government assistance, the BCA estimates another 30-35 per cent of operators will close their doors forever." Ben says.
"If that happens then there will be extremely limited transport options for overseas tourists to travel New Zealand. If the Minister of Tourism doesn’t do something, there will be absolute carnage in the tourism sector."
The tourism industry has a unique opportunity with a short window to help alleviate the physical, financial and economic impacts of what is hopefully, the closing stage of this pandemic.
The BCA along with other tourism businesses is welcoming the opportunity to work with government and officials to help them manage the safe return of international visitors to New Zealand.
Their key focus is to protect the health of New Zealanders whilst saving jobs and communities.
"Tourism was the first hit by the pandemic. It’s the last to get back on the radar. The industry needs help if government wishes to still have any international tourism offering, high value or otherwise, in 2022 and beyond."
