Hospitality New Zealand says many hospitality businesses will not reopen following the four-week shut down announced by
the Government today, as the country prepares to move to Alert Level 4 in the response to COVID-19.
The Government has announced New Zealand is now at Alert Level 3 and will move to Level 4 in 48 hours, forcing all
non-essential businesses to close — including all bars, cafes, restaurants and casinos. Accommodation providers are
considered essential services and will not be forced to close.
Hospitality New Zealand Chief Executive Julie White says operators appreciate the Government is continually adapting and
responding to the unfolding COVID-19 situation, putting public safety first.
She said hospitality businesses welcomed the decision that was also announced today, to remove the $150,000 cap on wage
subsidies. “The $150,000 cap was a significant disadvantage to larger hospitality businesses so we are relieved to see
that cap lifted,” White said.
“However, the costs that hospitality businesses have already faced to implement measures to respond to COVID-19 over the
past couple of weeks, and ongoing costs to their businesses during the four week closure, will mean that many will not
recover and may never reopen.”
Hospitality New Zealand is working today to deliver information and resources to its 3000 members to help them prepare
for and get through the required shut-down.
It will also continue to work with the Government to ensure hospitality businesses have the support that they need to
survive and to recover, White said.
“We are already seeing thousands of job losses from hospitality businesses that have closed over the past couple of
weeks. Further closures could lead to thousands more job losses in hospitality businesses — and supporting industries
such as laundry services, baking, food distributors, tour companies, travel and transport. “
White said hospitality businesses would be a critical part of the country’s recovery, and they need the ongoing support
of Government and New Zealanders.
“Our hospitality businesses are the fabric that connects our neighbourhoods and communities and an essential part of our
tourism sector. They will be more important than ever in our recovery, and it’s vital that we can come together to keep
them operating.”
The hospitality and tourism sectors collectively bring $40 billion per year into the New Zealand economy and employ more
than 400,000 people.