MEDIA RELEASE
1 February 2022
Omicron scare “worse than lockdown”
The stand down system for close contacts of people with Covid19 is scaring Kiwis away from their workplaces and from socialising, and there’s no Government assistance to soften the massive financial impact.
Hospitality NZ says it is receiving reports from all over New Zealand that two weeks into the ‘Red’ setting has already decimated business for cafes, restaurants, bars, nightclubs and accommodation.
Hospitality NZ CEO Julie White says that turnover for hospitality nationally is down 25%, in Auckland turnover in the CBD is down at least 50% on just the week before the move to the Red setting, and 20% down for hospitality in suburban areas. Accommodation operators are also experiencing a rush of cancellations. Compared to the same period last year accommodation operators’ occupancies are down 27.5%.
“The Omicron response is scaring people into a kind of voluntary lockdown. People are not going into work, and they’re not going out. Our city centres are emptying out, and even suburban centres are quieter.”
She says the situation will get much worse because thousands of workplaces are changing to prevent the close contact stand-down rules devastating their operations.
“Workplaces are calculating that the stand-down period will disrupt staffing and force cuts to services, production and operations. It will be impossible to find new staff, especially at short notice. So they’re voluntarily abandoning workplaces and counselling staff to avoid risks such as meeting in public places.”
Hospitality NZ believes the effect will be worse than lockdown, because this time there is no wage subsidy or resurgence payment to cover staff or small costs.
ENDS
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Hospitality New Zealand National Call Centre 0800 500 503
Hospitality New Zealand is Aotearoa’s leading nationwide hospitality industry association covering commercial accommodation and food and beverage businesses. It is a not-for-profit organisation that supports over 3,000 members. To find out more visit www.hospitality.org.nz, or connect on Twitter, Facebook, Instagram or LinkedIn.