Hospitality industry haemorrhaging $6m per week due to coronavirus fears and travel ban

March 5, 2020

First Union president Rob Reid is calling for the Government to step in urgently.

The Government is being asked to step up when it comes to tax cuts and financial assistance for Kiwi businesses struggling in the wake of coronavirus and its subsequent travel ban.

Within the hospitality industry, the Restaurant Association reports $6 million per week is being lost by businesses. 

New Zealand's travel ban on those travelling from mainland China has been in place since February 2 and reviewed multiple times since.

The Government last week extended that travel ban to Iran. 

Marisa Bidios, chief executive of the Restaurant Association says every day that passes, the impact from Covid-19 increases.

“We are fielding a number of calls from business owners in desperate situations, asking for advice as they face temporary closure,” says Ms Bidios.

“It’s not only restrictions on travel that are impacting businesses, but also through local diners staying home for fear of contracting the virus.”

The Restaurant Association did a survey of its members which it says shows how significantly the hospitality industry is being impacted.

Some businesses have reported losses of up to 60 per cent.

“Latest figures show that figure is approximately $50 million in losses per week for the tourism industry of which we estimate approximately $6 million per week is being lost by hospitality businesses – a figure we expect to rise if travel restrictions extend to other regions,” said Ms Bidios.

The association says its efforts to raise these issues with Government "have fallen on deaf ears".

"We are calling on the Government to set up and offer the hospitality industry immediate fiscal relief," she said. 

“Thousands of jobs are at risk, and many communities can’t afford this.”

Further coronavirus cases are being reported around the world, despite a decline in case numbers in China - the virus' origin country.

New Zealand today reported its third case. Results for another person who is showing symptoms are expected later today. Tonga has its first suspected case while two Australians have died from the illness. 

To date over 94,000 people are reported as having Covid-19 and over 3200 deaths.

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