Tourism companies grappling with a wave of cancellations due to the bursting of the Trans-Tasman bubble should receive wage subsidies, says the Mayor of Queenstown Lakes District.

Since the opening of the Trans-Tasman bubble in April, tourism companies, especially in New Zealand’s Alpine regions, have been looking forward to a flood of Australian tourists who take advantage of their school holidays at the end of June at the start of the ski season.

But on Saturday night, their hopes were dashed when the New Zealand government announced, amid a worsening Covid-19 outbreak in Australia, that all quarantine-free travel to Australia was suspended until midnight Tuesday.

Paul Anderson, CEO of NZSki, said that during the Australian and New Zealand school holidays, between 4,000 and 6,000 visitors per day are expected to his Queenstown ski resorts, but now the aim is to have around half that number.

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* Trans Tasman Travel: Will There Be Room in the Inn if the Bubble Bursts?
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NZSki operates The Remarkables, Coronet Peak and Mt Hutt ski areas.

When quarantine-free travel from New South Wales to New Zealand was paused last week, there were many cancellations.

NZSki operates The Remarkables, Coronet Peak and Mt Hutt ski areas.  It is grappling with a spate of cancellations due to the Covid-19 outbreak in Australia.

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NZSki operates The Remarkables, Coronet Peak and Mt Hutt ski areas. It is grappling with a spate of cancellations due to the Covid-19 outbreak in Australia.

“We’re seeing the same thing this week. We’re gutted, but we understand what needs to happen, ”he said.

Before the break, bookings for the coming week were strong and almost fully booked for snow sports lessons, he said.

Are your travel plans affected? Contact john.anthony@stuff.co.nz

It was prepared for breaks during the season, but that came at an unfortunate time, not just for NZSki but the entire community, which was in need of a school break after a tough year, he said.

“It’s a real blow to have one during our busiest time of the season.”

The more breaks there were during the season, the harder it would be for business without government support, he said.

Queenstown Lakes District Mayor Jim Boult says the region must play the hand that was dealt it.

Kavida Herath / stuff

Queenstown Lakes District Mayor Jim Boult says the region must play the hand that was dealt it.

Queenstown Lakes District Mayor Jim Boult said the absence of Australian visitors would affect operators across the region, not just accommodation providers and ski resorts.

He said he hoped the government would give the operators a wage subsidy. as recently offered to Wellington companies affected by the region that is in alert level 2.

A hotelier texted Boult on Monday morning that it was fully booked before the break for Thursday.

“As of this morning he is 35 percent booked and falling,” said Boult.

That corresponds to a decrease in daily sales of about $ 120,000, he said.

“I’m pretty sure that this is a common image in all accommodations.”

Since the bubble was announced in April, the region has been hanging for this time of year, he said.

He was hopeful but not optimistic that the ban would be lifted after three days.

“I would love it if it only took three days, but given what is currently going on in Australia, you’d take a bold bet if you thought it was going to end on short notice.”

He said he had no objection to the travel break.

“The situation in Australia seems pretty serious so the New Zealand government is doing the right thing.”

Queenstown was well supported by local tourists, and he encouraged them to take advantage of the absence of Australian tourists.

“You will certainly not push for a place on the slopes.”

He encouraged Australians who couldn’t manage to postpone their trip until later in the season instead of abandoning it altogether.

A spokeswoman for Tourism Secretary Stuart Nash did not say whether there would be support for tourism companies that lost revenue due to the travel break.

Prime Minister Jacinda Ardern told RNZ on Monday morning that there was no government support for companies affected by the change in status of the travel bubble with Australia.

“There is nothing to do with changes in the Trans-Tasman Agreement,” she said.

“Unfortunately, that’s not something that our support agreements specifically cover.”

Chris Roberts, CEO of Aotearoa's tourism industry, says reopening the bubble may be considered state-to-state.

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Chris Roberts, CEO of Aotearoa’s tourism industry, says reopening the bubble may be considered state-to-state.

Chris Roberts, CEO of Tourism Industry Aotearoa, said the first real influx of international vacationers in 18 months will start over the weekend and continue over the next two weeks.

“These were the fortnight that the Alpine regions were really looking forward to and instead they were all busy canceling all bookings.”

He said it was unlikely that circumstances would have improved enough to lift the ban after three days.

“It is sheer bad luck that it happened at the worst possible time.”

This time of year is the only opportunity to capture the Australian tourists planning to take advantage of the school holidays and the opening of the ski season, he said.

“Once that window is gone, they won’t come back at a later date.

“This is your only chance to come here for a winter vacation.”

The expected economic boost, especially for the South Island, has now been lost, he said.

In general, full cancellations for Covid-related disruptions are possible across the industry and customers will be reimbursed, he said.

“Everything that was received in advance now flows back in the other direction.”