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Exclusive: Cook Islands needs travel bubble by September or economy collapses

Author
Newstalk ZB,
Publish Date
Fri, 19 Jun 2020, 7:00AM
(Photo / 123RF)
(Photo / 123RF)

Exclusive: Cook Islands needs travel bubble by September or economy collapses

Author
Newstalk ZB,
Publish Date
Fri, 19 Jun 2020, 7:00AM

- text by Jake McKee

The future Cook Islands Prime Minister says a travel bubble is needed with New Zealand by September or the country’s economy risks collapse.

On June 19 local time, the Cook Islands will lift all Covid-19 border restrictions for Cook Islands passport and permit holders travelling from New Zealand.

A group of Cook Island business leaders formed the Private Sector Taskforce earlier this month has called for a travel bubble with all New Zealanders to be implemented at the same time.

Prime Minister Jacinda Ardern has previously said a travel bubble with Australia was being prioritised ahead of the Pacific Islands.

Speaking exclusively to Newstalk ZB, Deputy Prime Minister Mark Brown acknowledged a travel bubble would not happen within a matter of weeks. But he said it was needed by September – the same month he will become the Cook Islands’ leader when current Prime Minister Henry Puna steps down.

On June 19, however, Brown will table a Budget that would support the Cook Islands through to the same month. “After that we will look at borrowing.”

The Taskforce also said it would “rather have New Zealand tourism dollars than its aid money” and Brown, who is also Finance Minister, agrees.

The Cook Islands no longer qualified for aid after the OECD graduated the country to “high-income status” and instead had to “borrow its way out of any trouble”, Brown said.

He said “some good years of economic prosperity” meant there was money aside for “anticipated events”.

“Thinking more along the line of natural disasters, like cyclones – not thinking at all that anything like a pandemic would affect us this drastically”.

Brown said he was concerned borrowing money would hinder future infrastructure investments the country needed and already knew would require loans. “So we may borrow ourselves to a level where we can’t borrow any more money and that’s going to be a real challenge for a country like us.”

He said “it can’t be overstated” how important tourism is for the country and holidaying New Zealanders would make a “huge impact”.

“For us, the tourism dollar is much sustainable, has value greater value for the wider economy … and it would definitely be something we’d be in favour of,” Brown said.

“New Zealand comprises about 70 per cent of the tourism market.

“That would be enough, at this stage, for us to get some sort of traction on economic growth.”

He said even just an Auckland to Rarotonga route would be “manageable” and “a step in the right direction”.

Brown said New Zealand’s new Covid-19 cases were “certainly” a setback but he is happy to continue advocating for a travel bubble. “I’m confident in the next few weeks New Zealand is able to demonstrate that this breach [the two women from the Unite Kingdom who have tested positive] has not resulted in any community spread.”

The Prime Minister’s and Minister of Foreign Affairs' offices have been contacted for comment.

 

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