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Hospitality feeling the hit

The Central App

Mayor Tim Cadogan - Opinion

19 February 2022, 5:24 PM

Hospitality feeling the hit

There is sadly little doubt that the Omicron outbreak we are now experiencing is going to hit hospitality hardest, as has happened at every turn on the long road we are travelling. 


I was in Glenorchy over Waitangi weekend and had a coffee on the last day of operations for the Glenorchy Café. 


Over the road, the Glenorchy Lodge was already closed up. 


That’s two out of four of the hamlets hospitality businesses shut as a direct result of the effects of Covid.

 

Central Otago businesses have hurt too, but there are some things to be positive about. 


In particular is the news released last week that Central Otago came out on top of the list of regions recording growth in visitor spend for the year ending December 2021.


The region recorded a massive 19.3% growth in spending. 


That is a big number and even more impressive when it is compared to the national average of just 4%.


Spend on retail was the most significant proportion of visitor spend in the region at 65%, with hospitality up 25%. 

 

It needs to be remembered that these figures don’t include money that comes from bookings made elsewhere. 


So, for instance, if a visitor in Queenstown books a day on one of our bike trails through a Queenstown agency, the money spent on bike hire and transfers won’t show up in our figures.

 

It's all very well talking about percentages, but the actual dollar amounts are more compelling. 


The dollar value of tourism to our local economy for the year was $124m. 


That is a lot of jobs and livelihoods in our region, and this at a time of no foreign visitors.

 

Our operators and Tourism Central Otago deserve great praise for this achievement, but we can all pat ourselves on the back a wee bit. 


One of the things that bring people to Central is that we are “real”, that they meet real Central Otago people, experience unique Central Otago experiences and take home treasured Central Otago memories. 


We all play our little part in that.

 

It is not all plain sailing though and the next few weeks are going to be tough for the hospitality and tourism sectors, but these figures show a very bright future ahead.