General consensus from community and business commentators shows a cautious but positive outlook for most businesses in the south.

While the biggest problem identified by businesses is lack of clarity and surety regarding the lifting of COVID-19 alert levels and what is allowed during each level, there is confidence that with the right support, the south will come back to healthy trading levels again.

Southland’s Regional Development Agency, Great South, chief executive Graham Budd, said his organisation had been in constant in contact with businesses throughout the region through surveys and also by direct contact and indications were that 87% of businesses would be viable at Level 3, with tourism being the exception.

Not unsurprisingly, some areas have been hit harder that others. In the tourism sector Fiordland (which takes in Te Anau and Milford Sound) the visitor split was an approximate 85% international to 15% domestic, while in the rest of Southland the percentages were almost exactly the reverse.

Clutha-Southland MP Hamish Walker has asked the New Zealand government to view businesses in Fiordland as needing special assistance after the double whammy hits from flooding in February and the ongoing border closures to international tourists at about the same time.

In letter to the Minister of Finance Grant Robertson, Mr Walker says “the area was already feeling the impacts of Coronavirus prior to the flooding, as tourist numbers had begun to decline. When the flooding hit, it made a bad situation even worse and as a result, redundancies began in the community. At the time I was made aware of one business which has laid off 17 staff, another restructuring up to 100 staff and another who has laid off 10 staff. While in the scheme of things happening today this may appear minor, it was only the beginning for Fiordland. Nearly all operators in Milford have now made large staff cuts.”

He suggests in the letter that Fiordland’s situation is unique. In what was already a disastrous situation after a one in a 100-year flood, the lockdown resulted in a complete shut off of tourism in the area….. “I encourage you to give businesses some indication of whether there will be any further assistance from the Government after the 12-week wage subsidy to help struggling businesses.”

Mr Walker also asked the minister what specific support was available for other members of the community including visa-holding migrants.

The Southland App has asked the minister for comment.

Fiordland Community Board chairwoman Sarah Greaney said the efforts by Great South were making a positive impact on business confidence, however in the Fiordland region there were bound to be some closures and job redundancies, due to the region’s dependence on international tourism.

Locally, Mrs Greaney said the Fiordland Community Board was looking at projects to stimulate employment, especially in roading and replacing community-owned infrastructure. She said they would also be encouraging Kiwis to employ Kiwis.

Destination Fiordland manager Madeleine Peacock also acknowledged the special circumstances facing Fiordland businesses.

However, Ms Peacock said there was a general optimism among her members and, once New Zealanders were able to travel again, Destination Fiordland would be working closely with Southland District Council, Great South and Fiordland Community Board to encourage locals to visit the spectacular region, which was right of the doorstep for people in the south. 

Perceptions of overcrowding and highly priced accommodation and activities of the past meant most businesses were now facing the prospect of changing their focus and were looking at changes to their products and pricing. 

She was aware that some companies were already working towards offering special packages and locals’ deals to entice visitors to the area. She mentioned that day trips were easily managed from most parts of Southland and the idea of weekend breaks, stress-free mini breaks and family celebrations/gatherings from nearby regions were being bandied about as marketing options.

Looking at the international market, Ms Peacock said New Zealand may potentially become a more exclusive international destination and the pandemic had created a great opportunity to reinvent and reimagine the industry.

Mr Budd indicated there was some real optimism for the domestic market to come back quite quickly, however while reintroducing domestic air travel was under review, at this stage it was not looking likely to resume until at least until Level One – making travel from further afield, from places such as Auckland, more challenging. 

In the meantime, the focus was on attracting the visitors from nearer regions of Southland, Otago and Canterbury.

Air freight into and out of the south was another challenge for exporters and Great South was working on a solution to restart air freight flights from Invercargill airport.

He fully supported the suggestion of an Australian/New Zealand bubble as having huge advantages for both countries.

Great South has coordinated a range of support information, agencies and contacts based on the needs identified in data gathered from surveying businesses in the South.

Links to the complete range of support and contacts can be found on the Great South website.