The hospitality sector is looking to a big Easter weekend
for a boost in earnings after a very disappointing
summer.
A survey of Hospitality NZ’s 3000 members
has revealed that nearly two-thirds had a revenue drop of at
least 25% over summer as the borders remained
closed.
Of those, 39% said revenue was down 50% or
more compared to the summer of 2019/20. In total, 82% of
respondents to the survey said revenue was below the
previous summer.
Hospitality NZ represents the whole
hospitality sector, which includes cafes, bars, restaurants
and accommodation providers.
Chief Executive Julie
White says businesses are hoping Kiwis will be travelling
and spending and help the sector make up for a disappointing
holiday period.
“Cafes, restaurants, bars and
accommodation providers all around New Zealand were pinning
their hopes on a good summer to make up for a terrible 2020,
but it didn’t happen for most.
“Summer wasn’t
the silver bullet most were hoping for, and I fear what’s
to come with winter on the way. How many businesses already
weakened by months of no international tourists can recover
from such revenue drops?
“We’re pinning our hopes
on a strong Easter as the last big break between summer and
winter, and we’re encouraging Kiwis to get out and have a
great time and help out our struggling businesses at the
same time.
“I’m seriously worried about the mental
wellbeing of many members. They are beyond frustrated.
They’re constantly stressed.”
While a big Easter
would make a difference, what the sector desperately needs
is a trans-Tasman bubble as a matter of
urgency.
“It’s time we learned to live with a bit
of risk – businesses and livelihoods will suffer if we
don’t.
“Businesses are closing every day our
borders remain closed, and a trans-Tasman bubble will be the
lifeline many need. They’re all hurting and need action
now.”
Respondents to the survey, which was conducted
from February 16-22, comprised 60% accommodation providers
and 40% food & beverage. Some 47% were small business
owners, 44% medium, and 10% large. Some 77% were single-site
venues.
Results from the poll:
- 39.1% said
their summer revenue was down 50%+ compared to summer
2019/20
The biggest
challenges
- “Lack of visitors” was identified
by 70.3% as the biggest challenge over
summer - “Staff” was the second most identified
challenge, by 37.6% - “Reduced average bill spend”
was the third most identified, by
21.8%.
Staffing
Those who identified
staffing as the main challenge were asked what the main
cause was. Of them:
- 46.1% said “challenges
around visa requirements” - 44.7% “lack of
skills” - 32.2% “expectations around
wages”
Cashflow
Respondents were asked
what was the main challenge for business following changes
in alert levels:
- 63% said “impact on
cashflow and working
capital” - 55.7% “significant
downturn in patronage” - 54.9%
“uncertainty surrounding
length” - 53.9% “lost
reservations”
Outlook for
2021
Respondents were asked what was the biggest
problem looking to the remainder of
2021:
- 63.8% said “lack of
visitors” - 49.3% “border
closure” - 49.3% “lack of
cashflow” - 42.6% “cash reserves
running low”
Business
plans
Respondents were asked what their business
plans were for the year:
- 65.2% said they would
stay in business as is
Government
demands
Respondents were asked what was their biggest
‘ask’ of the Government:
- 50% said “halting
the minimum wage increases” - 44.2% “support for
fixed business costs like rents or leases” - 35.4%
“active lowering of compliance costs”
About
Hospitality New Zealand
Hospitality New Zealand is
Aotearoa’s leading nationwide hospitality industry
association covering commercial accommodation and food and
beverage businesses. It is a not for profit organisation,
which currently supports over 3,000 members across the
country. The association was first formed in 1902 as the
United Licensed Victuallers Association, and has
consequently been helping New Zealand’s small businesses
and communities for over a century.
To find out more,
visit www.hospitality.org.nz,
or connect with Hospitality New Zealand on Twitter, Facebook,
Instagram
or LinkedIn.
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