Hospitality NZ pleads for targeted sector support

Hospitality New Zealand says many hospitality businesses are facing breaking point under the present lockdown and it is urgently seeking targeted funding from the government.  

The industry body has written to Finance Minister Grant Robertson outlining the situation and pleading for help. 

The call comes as Auckland remains under an Alert Level 4 lockdown until at least September 13, and Northland’s Alert Level 4 status to be reviewed on 2 September. The remainder of New Zealand is at Alert Level 3 with this due to be reviewed on 6 September.

Hospitality New Zealand Chief Executive Julie White says many hospitality and accommodation operators are finding that this latest lockdown is hitting them harder than any of the previous ones, and they will need help to survive. “It’s not even a case of getting out of Level 4. For many businesses it’s not viable to re-open till we get to Level 2.

“The problem is there is no access to ongoing funding for businesses. They can access the Wage Subsidy Scheme, which is great, but it doesn’t pay the rent and other fixed costs. And I’m hearing there’s less help coming from landlords this time around.”

White says while the Finance Minister has acknowledged that hospitality operators are doing it tough, he hasn’t offered any targeted support. “Our ask is very simple: extend the current Resurgence Support package to hospitality and accommodation operators, similar to the way the Wage Subsidy Scheme works.

“I’m talking about the livelihoods of family owner-operators who are coming under greater stress, and I fear for their mental health. It’s a matter of balance, and right now the Government assistance is not balanced.”

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