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Coronavirus travel restrictions predicted to 'kill' tourism industry

Author
Newstalk ZB / NZ Herald,
Publish Date
Sun, 15 Mar 2020, 9:34AM
The new restrictions will be a massive hit to airlines including Air New Zealand. (Photo / File)
The new restrictions will be a massive hit to airlines including Air New Zealand. (Photo / File)

Coronavirus travel restrictions predicted to 'kill' tourism industry

Author
Newstalk ZB / NZ Herald,
Publish Date
Sun, 15 Mar 2020, 9:34AM

The new travel restrictions announced by Prime Minister Jacinda Ardern will "kill" the local travel tourism industry, the New Zealand China Tourism and Travel Association says.

Unprecedented measures to fight Covid-19 was announced by Ardern yesterday, including a mandatory 14-day self-isolation for all travellers arriving in New Zealand except those coming from the Pacific.

All cruise ships have also been asked not to come to New Zealand until June 30.

Association chair Simon Cheung said the new rules took away "any glimmer of hope" that many in the industry had to surviving the global coronavirus outbreak.

Auckland-based tourism operator Simon Cheung, chairman of New Zealand Chinese Travel and Tourism Association, says many in the industry have lost hope in surviving the crisis. Photo / Jason Oxenham

Auckland-based tourism operator Simon Cheung, chairman of New Zealand Chinese Travel and Tourism Association, says many in the industry have lost hope in surviving the crisis. Photo / Jason Oxenham

"Most of our businesses was down 50 to 60 per cent since the coronavirus outbreak started, after this it is almost certain that we'll be down 100 per cent," Cheung said.

Many tourism related businesses had been making job cuts, but now would most certainly be considering total lay offs or even closing down.

Cheung, who runs a luxury vehicle business, used to employ four full-time staff and several part time drivers - but has in the past month let off all but one.

"We didn't see this coming, it won't be the coronavirus that killed us but rather this government's travel restrictions," he said.

Tourism Industry Association chief executive Chris Roberts told Andrew Dickens the fallout from the tough new restrictions will require wide-ranging support.

"We will need tax relief, relief from government fees and charges, and wage subsidies so businesses can retain those vital staff and keep as many people as possible in employment."

The restrictions will also be a massive hit to Air New Zealand, which is 52 per cent owned by the government.

Around 41 per cent of the airline's $6 billion annual revenue comes from international flights.

While it dominates domestic flying, it has already scaled back some domestic routes because of falling demand from business travellers.

On Monday it said it could no longer forecast its profit because of uncertainty over the future of air travel.

Its share price has plunged since the start of the year when the coronavirus became known and the company has lost nearly half of its market capitalisation.

Other airlines serving New Zealand will also move quickly to change their schedules.

Corazon Miller, a returning New Zealander who is due to arrive on Monday, will be among those caught up in the new rules.

Miller, a former journalist, said it was frustrating to have missed out on the deadline by just a matter of hours.

"Of course I agree with doing everything possible to restrict the spread of the disease, part of me questions whether this is the best way to go?," she said.

"Will people actually self-isolate appropriately? Also, why the few hours delay in the restrictions - if it was that imperative one would think they would just make it effective immediately?"

Miller said she had not been to anywhere in the last two weeks that were considered hot spots for coronavirus outbreaks.

"I haven't been home for two years, was due to go to a wedding, spend time with family, including a new niece, and start a new job," she said.

"I just really wish there was a way they could more decisively rule out whether I actually had the virus or not."

Last year, about 5.3 million international travellers arrived at Auckland Airport - averaging more than 14,500 per day.

All, except for a small number arriving from the Pacific Islands, will need to self-isolate from midnight tomorrow.

Airline and marine crew are however exempt from self isolation if they have taken appropriate infection control and wear the required personal protection equipment.

 

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