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CO misses out on tourism funding due to growth

The Central App

Rowan Schindler

01 September 2021, 5:45 PM

CO misses out on tourism funding due to growthThe government is offering grants up to $10,000 for tourism operators, but Central Otago businesses are not eligible. Photo: Lightup Cromwell.

Grants of up to $10,000 are now available to tourism operators in Queenstown Lakes and other South Island regions, but Central Otago tourism businesses have missed out for one key reason - local tourism is growing. 


Tourism Minister Stuart Nash announced a further detail on the $20 million tourism support scheme.


Those five named South Island regions were identified in March this year as needing more targeted support given their over-reliance on international tourists.


Businesses in five regions hard hit by the impact COVID-19 can apply for $5,000 for expert one-to-one advice on planning how to get back on their feet, and then $5,000 to help them put those plans into action.


Central Otago businesses, however, have missed out because the local tourism industry has bucked the trend and grown during the COVID-19 pandemic, with New Zealanders finding their love of Central. 


Tourism Central Otago Dyland Rushbrook says there is “nothing in this one for CO businesses, it is focused on the five communities most impacted by the loss of international visitors and still struggling to recover”. 


He says Central Otago can only benefit from its struggling neighbours receiving aid during the pandemic.


“Central Otago isn't one of the identified 5 communities as we weren't heavily reliant on international tourism,” he says. 


“This specific fund is intended to support businesses and communities that have no other options but await border reopenings, or at least change will take a long time to come into effect.


“Central has seen growth in our visitor economy since COVID and our economy is not heavily reliant on any one source of income, ie. international tourism.


“There was a whole load of info that came out in May around TREZ about the package and key support going to those communities most badly hurt.”


Extra funding for Regional Tourism Organisations (RTOs) announced in May has resulted in $1 million additional tourism support for the CODC, see this statement


Stuart Nash says domestic tourism was booming prior to the Delta variant lockdown and the regions to receive funding desperately needed the aid. 


"Agreements have now been put in place with the agencies who will lead the business support programme in Fiordland/Southland District, and Queenstown Lakes, Mackenzie, Westland and Kaikoura Districts," Stuart Nash says.


"Higher alert levels are a reminder that this sector of our economy remains vulnerable to the impacts of the global pandemic, especially remote South Island regions that relied more heavily on foreign tourists than other areas."


"Each lead entity has a team of growth advisors who know their communities, and have the advice, skills and expertise to help local businesses through the application process. 


“The growth advisors will be the central point of contact for businesses."


National MP Jacqui Dean, whose Waitaki seat represents much of Central Otago, says “while I welcome any government funding that supports businesses at this time, this particular announcement does nothing for those businesses in Central Otago that are struggling to survive.


“I’m concerned that the Government is once again picking winners. Just like they did with the strategic tourism assets assistance which mostly benefited the large established tourism companies, it’s the small businesses who have to look on and wonder why they can’t get the support they need.


“Central Otago business owners are under pressure and facing uncertainty – this latest lockdown has taken a toll on them and their families.


“The local business community needs to know that the Government has strategies in place for scenarios like what we’re seeing at the moment. Unfortunately its looks the Government wasn’t fully prepared for an emergence of the Delta variant and has not been able to get its vaccine stocks in order.


“National would set a vaccine target to avoid future lockdowns and the cost that it imposes on every New Zealander.”


Details of eligibility criteria and contact details for lead entities are on the tourism recovery section of the MBIE website.

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