The Prime Minister announced today $11 million to go towards helping tourism operators impacted by coronavirus disruption.
Of the package, $10m will go to Tourism NZ to diversify marketing in other countries and $1m will go to domestic marketing around New Zealand of areas particularly impacted, including Auckland, Rotorua, Christchurch and Queenstown.
Jacinda Ardern said it was still too early to know the overall economic impact of the virus, but Treasury expected a negative but temporary impact on GDP. She said Treasury expects economic activity to pick up in the second half of 2020.
The virus has had multiple economic and trade implications on New Zealand, with the Prime Minister last week outlining the negative impact it has had on forestry, education and tourism.
Ms Ardern said at the time small businesses were particularly dependent on tourism from China.
Earlier this month, the start of the Chinese travel ban triggered a drop on the New Zealand share market.
The restrictions prevent foreign nationals travelling from, or transiting through, mainland China to New Zealand.
A number of factors, including coronavirus, are leading to job cuts or reduced hours.
Tourism New Zealand chief executive Stephen England-Hall said the financial fallout from the coronavirus could cost the New Zealand economy tens of millions of dollars every week.
"This ban, once it's fully in place and fully effective, you're talking in the order of magnitude of sort of $50- to $75 million a week of economic impact, and that's just for tourism," Mr England-Hall said at the time.
Around 400,000 Chinese visitors come to New Zealand every year, injecting billions of dollars into the economy.
The coronavirus outbreak in China is causing our Aotearoa’s crayfish to be locked out.
On TVNZ1's Q+A with Jack Tame yesterday, economist Rodney Jones said he was anticipating "quite a severe economic shock" for New Zealand in the fallout.
"We’re looking at a longer disruption," Mr Jones said. "If this lasts into March, which is possible, then we’re looking at quite a severe economic shock.
"Unless it resolves quickly in the next week... we have a problem."
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