'It's bloody hard' - West Coast community 'on the brink' of collapse as overseas visitors vanish

March 3, 2021

Development West Coast chief executive Heath Milne says the community is desperate for Government help.

Development West Coast chief executive Heath Milne says the "community is on the brink" of collapse as international visitors have vanished from the region amid the Covid-19 pandemic.

However, Tourism Minister Stuart Nash told Breakfast this morning the Government hasn't got "bottomless pit of money" to save every tourism business affected by Covid-19.

Nash said he was being brutally honest with operators when visiting the West Coast this week that New Zealand's borders wouldn't be open to international visitors, except maybe Australians, until 2022.

"He does have a point, and fair play to the Minister for coming down and being honest, and somewhat brutally honest by his own admission," Milne told Breakfast.

"But the point we're trying to make is that yes we know we can't save every business and that's the unfortunate reality that there's just not enough money to go around to achieve that.

"But this is about a community, and this community down there just won't survive unless there's some support, and when we come out of this situation we'll have international tourists back again and if that community's not there to host them it's going to have a big impact on the whole country, not just our community."

Milne said the Fox and Franz Josef glacier area (Glacier Country) are in "an exceptional situation" where 80 per cent of the area relies on international tourism. That's unlike cities such as Auckland, which while it's been hit hard by border closures, work in other non-tourism industries is  on offer.

Milne said while 85 per cent of people have made an attempt to try something different, many people were having to leave the area for jobs.

The Tourism Minister says he is being brutally honest with operators when visiting the West Coast this week.

Nearly a quarter of the population has already left the community and that number is expected to increase.

"When you're that far away and you rely entirely on international tourism it's bloody hard."

With a permanent population of only 1100, every 10 jobs lost is basically one per cent of the population.

About 16 per cent of businesses have already closed, and that number is expected to jump to 67 per cent without Government support.

About 64 per cent of jobs have gone, with that number jumping to 87 per cent by August.

Milne said he understood that the Tourism Minister had the whole country to think of, but said his region was "an exception".

"This part of the region is unique and perhaps Te Anau's [in Otago] in a similar position and maybe there's conversations going on there, I don't know, but Glacier Country is unique in that 80 per cent of its business is gone and the community is on the brink," he said.

Hikers on Franz Josef Glacier.

Nash admitted "things are really dire" for the area, but said the Government "hasn't sat back on it's hands and done nothing", touting the wage subsidy scheme, loan options for businesses and work opportunities within the Department of Conservation.

"We have done a lot on the Coast, but look, I'm not going to underplay how dire it is in Glacier Country."

Nash did say he was presenting a package to Finance Minister Grant Robertson today, but wouldn't reveal its specific details or even promise it would make it to Cabinet.

He did say it "involved quite a lot of money", though, and would be directed at regions with a 50 per cent or higher reliance on international tourism.

"We've already given $8.6 million in snap grants and loans, substantial to some companies, that we would hope would just keep them alive and surviving, or at least allow them to hibernate until the international tourist market opens - but you're right, the high end helicopter rides where people are paying $300 or $400 to go up onto Franz Josef Glacier - Kiwis aren't doing that," Nash said.

"But it is really expensive to keep that sort of business open until the borders open, it really is.

"It is tough and there are no international tourists and we're not likely to see international tourists in this country until 2022, except Australians, and if we can get that Australian bubble open then I think that will help tourist businesses survive, but they're certainly not going to be in the level of profitability they were pre-Covid." 

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