Pleas for help from the tourism industry will be met at this Thursday's Budget where a response and recovery package is to be released, Tourism Minister Kelvin Davis said today.
It came after tourism leaders and operators told the Covid-19 select committee of hardship during the pandemic that has decimated the industry.
Calls for an extension of the wage subsidy were consistent throughout the committee.
Chief Executive of NZ Māori Tourism Pania Tyson-Nathan said "no one is looking for handouts", however she added many tourism operators were struggling to obtain loans from banks despite moves from Government.
In March, the Government announced the Business Finance Guarantee Scheme that sees Government carry 80 per cent of the credit risk, with the other 20 per cent to be carried by the banks.
Stuff reported only 174 loans have been approved by banks as of May 9.
"We need the wage subsidy. We need support there," Ms Tyson-Nathan said.
Andrew Crawford of Sounds Air said he could not find one bank to entertain the loan scheme, calling it a "complete non starter".
He was blunt when asked if Sounds Air would survive when the wage subsidy ends, answering, "no".
"The damage’s been done. The money has been chewed up."
Prime Minister Jacinda Ardern announced the Government's Small Business Cashflow Loan Scheme had begun taking applications today, alongside a total of $10.7 billion paid in the wage subsidy scheme so far.
The wage subsidy pays a lump sum for 12 weeks where employers must keep their employee on.
The committee also heard from Haka Tourism Group's Eve Lawrence, who said there was "no doubt" an extension was needed on the wage subsidy.
"Not only does the 12 week cap need to be lifted for specific industry and extended to potentially 26 weeks if not further... we also believe the revenue threshold needs to be raised.
"If we were still trading with a revenue loss of about 30 per cent right now, Haka Tourism Group would be over the moon. Even with some pivoting we’re trading with around 80 per cent revenue loss. Early March it was more like 95."
She suggested New Zealand mirror Australia and offer a subsidy for impacted businesses for six months.
Ms Lawrence said commercial rents was another issue, saying commercial rent reductions needed to be on the agenda for Government.
"There’s a real chance, us along with many other businesses, just won’t survive Covid-19."
National MP Hamish Walker asked about clarity over the opening up the trans-Tasman bubble, saying many operators in Queenstown were telling him they can survive until August or September, but after that "they simply can't hang on".
"We need this trans-Tasman bubble," Ms Lawrence said.
The Tourism Minister said he could "confirm on Budget day we will be announcing further assistance for the tourism sector and this will include a tourism response and recovery package".
National MPs Todd McClay and Michael Woodhouse pushed Mr Davis on why the package could not be released ahead of the Budget, to give businesses clarity over whether they could keep staff.
"Any response had to be timely and considered," Mr Davis said. "Decisions get made at Cabinet and we cant go preempting those decisions."
When asked about the calls the extend the wage subsidy, Mr Davis said "we just have to be real in the first instance".
"Under Level 2 the recovery can begin, domestic tourism can start. We will not be able to save every business and every job.
"The wage subsidy and other business support were just there to soften the blow and give people time to think about what that means for their particular business."
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