Government's $400 million tourism boost a 'beginning place' for industry hit hard by Covid-19

May 14, 2020

Arihia Bennett of Te Rūnanga o Ngāi Tahu believes the industry's cut of the 2020 budget is a start.

The Government has given the tourism industry a $400 million boost in its 2020 Budget to help it recover in the aftermath of the Covid-19 pandemic.

But for an industry worth $17 billion dollars in 2019, some have questioned whether that amount will be enough. National’s Simon Bridges questioned it today, but one tourism expert thinks it will do for now.

Arihia Bennett of Te Rūnanga o Ngāi Tahu in the South Island believes $400 million will enable the sector to begin to get back up and running, for the domestic market at least.

“I think it’s a beginning place,” said Ms Bennett.

“Ngāi Tahu has been in tourism for a long time and whilst we are aligned with many other tourism entities across the country both small, medium and large… this package that will be infused into the tourism sector will actually help take us from hibernation into that regrowth stage.

“We want to actually look at how that funding can actually support, supplement and assist us to get those tourism activities up and running as quickly as possible so that we can begin to engage with our domestic market."

If it becomes clear that it hasn’t helped she says the industry will need to engage with Government to “lift” that number.

The businesses will also be ab able to benefit from the Government’s Covid-19 wage subsidy scheme.

"We just need to get this going to start with and I think it’s going to become very clear to us if it is not enough, if it is too slow and if it is not covering all of those critical areas around building our tourism sector," says Ms Bennett.

"Over time we know that we’re going to be able to introduce and infuse our domestic market but if this isn’t enough to actually bring back our international market then I think we need to be encouraging this Government to actually lift in that particular area."

The targeted tourism recovery fund gives $400 million to the struggling industry. However, no further details were given on how the funding will work.

Tourism Minister Kelvin Davis said Government will look at what support the industry needs in the days to come.

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