New Zealand’s current ‘stand down system’ for close contacts of people with COVID-19 is scaring Kiwis away from their workplaces and from socialising.
And according to Hospitality NZ (HNZ), the situation is having massive financial impact and there is no government support in sight to soften the blow.
The organisation says it is receiving reports from all over New Zealand that two weeks into the ‘Red’ traffic light setting has already decimated business for cafes, restaurants, bars, nightclubs and accommodation.
HNZ CEO, Julie White said that turnover for hospitality nationally is down 25 percent, in Auckland turnover in the CBD is down at least 50 percent on just the week before the move to the ‘Red’ setting, and 20 percent down for hospitality in suburban areas.
Accommodation operators, she said, are also experiencing a rush of cancellations. Compared to the same period last year accommodation operators’ occupancies are down 27.5 percent.
“The Omicron response is scaring people into a kind of voluntary lockdown. People are not going into work, and they’re not going out,” she said.
“Our city centres are emptying out, and even suburban centres are quieter,” she said, adding the situation will get much worse because thousands of workplaces are changing to prevent the close contact stand-down rules devastating their operations.
“Workplaces are calculating that the stand-down period will disrupt staffing and force cuts to services, production and operations. It will be impossible to find new staff, especially at short notice,” she said.
“So, they’re voluntarily abandoning workplaces and counselling staff to avoid risks such as meeting in public places.”
Hospitality NZ believes the effect will be worse than lockdown, because this time there is no wage subsidy or resurgence payment to cover staff or small costs.
Mike Parker-Brown is a UK-trained and qualified journalist and an award-winning travel communicator with more than 30 years experience.
Since 2002, Mike has worked as a freelance writer and PR consultant providing his services to major organisations in Australia and internationally in the tourism, aviation, hospitality, recruitment and export marketing sectors.
