Coronavirus Covid 19: ‘Beyond Grim’ – Thousands Cancel Hotel Reservations

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Business

There are 13 new cases of Covid in Auckland and they will all now be quarantined. The 13 cases are all linked to the four initial confirmed cases of the new outbreak in south Auckland. Video / Chris Tarpey

Hotels across New Zealand are seeing thousands of nationwide cancellations due to new Covid-19 restrictions.

With Auckland placed on Alert Level 3 and the rest of New Zealand on Alert Level 2, hoteliers across the country are inundated with leisure and business travelers canceling their accommodations.

New Zealand Hotel Owners Association Executive Director Amy Robens Says Latest
impact on the ailing sector such as “beyond disaster” and the seemingly endless ongoing repercussions.

Auckland is a big market for hoteliers across New Zealand when there are no international tours and cancellations of reservations for recreation and national conferences, even through the end of August, cost several. million dollars to the struggling hotel industry, ”she said.

The association has supported decisive government action to combat community transmission of Covid-19, but urgent financial assistance, including a targeted extension of the wage subsidy, must go beyond Auckland.

Hotels across the country are feeling the full effects of the region’s Level 3 lockdown. “

“Hotels are particularly affected by forced closures because they cannot reopen quickly and profitably in the same way that many other businesses do. Hotels need to generate enough reservations in advance to make their business viable, and as we are losing bookings, many will go back to single digit occupancy rates, ”said Robens.

Amy Robens Executive Director of the NZ Hotel Owners Association.  Photo / Supplied
Amy Robens Executive Director of the NZ Hotel Owners Association. Photo / Supplied

Hotels generally lose money if they are not 70% occupied.

“Accommodation providers believe we have been left out of the government’s $ 400 tourism stimulus package. Now is the time to support the sector by allocating part of the $ 14 billion Covid Response and Stimulus Fund. “

Robens said that at its peak, the hotel industry employed 20,000 people.

“Our workforce has shrunk by more than half and will likely continue to shrink. With record occupancy, low margins and virtually no profit, the situation is more than dire. “

Any extension of the current lockdown status will see the moderate level of business hotels wash out completely.

“We’re at the end of the road,” said Amy Robens.

Hotels in areas such as the west coast of the South Island – particularly South Westland, Bay of Islands and Southland / Fiordland – are particularly struggling and have either been put on hold or are operating with occupancy rates at a low. figure.

The association was launched in August 2019 and represents around 120 hotels in major cities and tourist destinations across the country. Members operate more than 11,000 hotel rooms with an investment value of $ 3.8 billion.


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