Businesses that have a more diversified profile of domestic and international visitors have performed more strongly over the summer, according to a report by Tourism Central Otago.

Central Otago District Council head of destination Anthony Longman noted in his report that some tourism operations reported declines in numbers as domestic travel demand had softened.

This was due to high interest rates, inflation and political uncertainty, but those with a focus on attracting higher spending markets like the United States, did much better.

The Gate manager in Cromwell Glen Christiansen also spoke to the council yesterday about the challenges they were starting to face, despite a strong summer period.

Having just completed a $2million investment into a new restaurant and reception area, occupancy rates and revenue was up 10 per cent this summer, but only now just back to pre-Covid levels.

Their biggest “battle” currently was in food and beverage which he described as a very tough industry - particularly with the cost of living crisis where people were tightening their belts.

The price of butter was “through the roof” and it was no longer affordable to put blue cod on the menu.  

This year was also the first time he’d had to constantly look at changing the menu regularly rather than seasonally.

Employing 100 staff, he said it was increasingly difficult to find appropriate and experienced staff, and was reliant on transient workers, and then put them through training.

But, having to pay immigrant workers $31.66 as a starting rate was also no longer affordable and he recently had the difficult task of laying off four staff, “because our business just can’t manage that.”

“That’s been the worst part of my career, having to deliver that news.”

Finding accommodation was another battle, and most local businesses were not in a position to be able to afford buying property to house staff.

The Gate was fortunate in that it recently purchased a six-bedroom house for staff, which would make a huge difference, he said.

Over the past eight weeks there had been an increase in the number of organisations wanting sponsorship from The Gate, such as free conference facilities, but that also wasn’t sustainable for the business.

“We take our corporate responsibilities very seriously, so unfortunately we’re having to say no quite a bit.”