State cash continues to prop up tourism businesses

The Government has dealt out $3.9 billion in subsidies since the Delta outbreak began and tourism and travel operators are keen users.

Measures like the wage subsidy allowed businesses to keep functioning, said a number of operators, but things were still tough.

Figures available via Work and Income show that businesses in Waikato, for example, are continuing to access the Resurgence Support Payment – originally created as a one-off, but now a three weekly subsidy – along with the Wage Subsidy Scheme which has operated on a regular roll over since recommencing in August.

However, some totals paled by comparison with the big names such as Air New Zealand which applied for $25,840,332 in wage subsidies in August for 7,330 employees.

Auckland-based Sky City Management, which operates casinos in Hamilton and Queenstown, as well as Auckland, received $2,745,808.60 as a wage subsidy extension for 2219 employees.

Queenstown-based NZSki, which operates a number of larger ski areas in the South Island, applied for $3,175,128 for 1,052 employees and Cardrona Alpine Resort got $1,864,456 for 861 employees.

Ruapehu Alpine Lifts, which runs the Whakapapa and Tūroa fields, applied for $1,771,242 for 548 staff. The two North Island ski fields generally draw heavily on clientele from Auckland.

Other businesses which run activities featuring in a list of top 10 family-friendly spring activities in the Waikato such as go-kart racing and skydiving were also recipients – Hampton Downs receiving $143,478 for 33 workers, Skydive Taupō $11,716 for 10 employees and Go Skydive NZ $18,745.60 for four employees

The Raglan Surfing School was given $5858 in the resurgence wage subsidy for five employees and Raglan Rock $22,298 in wage subsidies for seven workers while Rotorua’s Polynesian Spa received $247,100 in August wage subsidies to help remunerate 58.

The third round of the resurgence payment which helps businesses with fixed costs, like rent, while the country is at Alert Level 2 or above, opened for applications last week.

It includes a core per business rate of $1500, plus $400 per employee, up to a total of 50 full-time equivalents (FTEs) – a maximum payment of $21,500. Businesses with more than 50 FTEs can still apply but cannot get more than the maximum payment.

Those applying must experience at least a 30 per cent decline in revenue over seven days (starting on or after 1 October for the latest payment) as a result of being at Alert Level 2 or higher.

Minister of Revenue David Parker has said the scheme will be available until the whole country returns to Alert Level 1 for one month.

The fourth round of the wage subsidy, which recommenced in August, remains open for applications until October 14. (Confusingly the rollovers are all called August – so Wage Subsidy August 2021 #4 covers October 1-14.)

It is for all businesses and self-employed people who have, or predict, at least a 40 per cent decline in their revenue and meet certain eligibility criteria.

If successful, applicants must wait before applying for a subsequent round.

Credit: Stuff.co.nz