Hospitality Business Magazine

Short sharp lockdown devastating yet necessary

Level 4 lockdowns across New Zealand – including seven days in Auckland and the Coromandel, and three days for the rest of the country, – are more devastating news for the hospitality sector, says Hospitality New Zealand.

Chief Executive Julie White says this is yet another blow for sector businesses that have been hit very hard by lockdowns over the past 17 months.

“This will be another big blow for struggling businesses, though they’re not the only ones, and we know it’s necessary.

“Hospitality New Zealand met with our counterparts in Australia last week, so we know first-hand just how dire things are there as they deal with the Delta variant, and we want to avoid that. So there’s no alternative but to go into Level 4, however much that’s going to hurt.

“We were warned by the Government a Level 4 lockdown would give us the best chance of stopping community spread of Delta, and the consequences of not moving immediately are not worth thinking about.

“Hospitality New Zealand will be supporting our members, and particularly those in Auckland who have struggled through three previous lockdowns, as best we can through the coming days.”

Pay the price

And the announcement of a snap level 4 lockdown is challenging but inevitable says Restaurant Association CEO Marisa Bidois.

“We are feeling for hospitality businesses who once again will pay the highest possible price to protect the nation from an outbreak of the delta variant.

“Lock down is incredibly challenging for the hospitality industry and in respect of a level 4 lock down, gives them no opportunity for revenue.

“Feedback from members, however, shows that there is general support for a focused lock down in one area. However hard this would be for the businesses in that area, discussions with members have shown that they would far rather a short sharp lock down that does the job than months of restricted trading or yo-yoing between alert levels.

“COVID is a reality that we are all living with, and whilst we appreciate the approach that has been taken in New Zealand has given hospitality businesses more opportunity to stay operational, the entire industry has been poised for a return to higher alert levels. Those that have been able to, will have been setting money aside to help them to get through business closure periods.

“Whilst the wage subsidy is appreciated and obviously gives employees certainty, we would like to see more support for business owners by way of targeted fiscal assistance to help them cover their fixed costs.”