$100m risk in border plans, says industry

‘‘We don’t want to see a degradation of New Zealand’s position as a welcoming, open country.’’ Lisa Hopkins Business Events Industry Aotearoa chief executive

The Government’s border reopening plan is causing ‘‘widespread panic’’ in the tourism industry, with the cost to the business events sector alone estimated to be worth at least $100 million.

From April 30, New Zealand will start to reopen to all fully vaccinated foreign nationals provided they have a negative predeparture test, proof they are fully vaccinated and a declaration about their travel history. They must produce a negative test on arrival, self-isolate for seven days and produce a final negative test needed before entering the community.

Business Events Industry Aotearoa chief executive Lisa Hopkins said it was projecting ‘‘easily $100m’’ worth of business events were in jeopardy from February to the end of June because of the strict reopening plan. ‘‘We don’t want to see a degradation of New Zealand’s position as a welcoming, open country.’’

Other countries were taking advantage of the opportunity to promote themselves as open destinations, she said.

Tourism Export Council of New Zealand (TECNZ) chief executive Lynda Keene said there had been ‘‘a tsunami’’ of cancellations within 24 hours of the border announcement, resulting in millions of dollars worth of cancellations for the January to April period. ‘‘There is widespread panic among the industry.’’

Covid-19 Response Minister Chris Hipkins told RNZ’s Morning Report on Thursday that tourism was the Government’s last priority. Keene said that had fuelled anxiety and anger for many in the industry.

Before Covid-19 international tourism was worth $17.5 billion to New Zealand.

If the Government had any intention to try to salvage New Zealand’s international tourism offering in 2022, it needed to quickly make changes to its border reopening plans, she said.

TECNZ had sent an urgent request to Hipkins, via the Ministry of Business, Innovation and Employment, asking for the following changes: remove the need for selfisolation; get Australian visitors back in January or February; and bring the international visitor return date forward to March 1.

Destination Queenstown chief executive Paul Abbot said it had spoken with operators and estimated that the meetings, incentives, conferences and exhibitions sector alone would have suffered a $25m to $30m hit between January and July in lost business. Such activity could draw in 500-plus guests for a single event. ‘‘You chuck in there an impediment, which is the self-isolation period, with no end in sight for that mandated, and all of a sudden you’ve got a huge barrier of entry for people.’’

Board of Airline Representatives (Barnz) executive director Justin Tighe-Umbers said airlines were telling him New Zealand would be off the radar next year with the seven-days isolation requirement. ‘‘It’s a market killer for us, while global markets are already open and planes are filling fast.’’

Barnz has let the Government know they have until February at the latest to provide a plan to international airlines if the country’s air connectivity is to recover from the 1960s levels it is at right now. ‘‘This isn’t a threat, it is simply a commercial reality – airlines can’t afford to fly loss-making routes.’’

After February, plans for summer 2022-23 are locked in, he says, and if airlines can’t fill planes, New Zealand will lose more routes and capacity.