Majority of Kiwi hospo business owners preparing for insolvency – survey

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More than half (58%) of hospitality owners have told a survey last week they are preparing for insolvency within the next three months, and Hospitality NZ says the growing Omicron case numbers could affect the viability of even more businesses.

Hospitality NZ’s survey of 400 members at the start of February reveals that business is at least as bad as any other time during the Covid-19 response.

It conducted another survey over the weekend, answered by over 600 members, which shows that half the industry has recorded a loss in turnover of 40% or more since the shift to Red.

Hospitality NZ CEO Julie White says the only thing that will save half of hospitality is Government financial assistance by the end of this month.

“We’ve got through two hard years – but its unlikely many will make it through the next two or three months of Omicron.

“The survey was conducted before the burst in Omicron cases. It’s probable that Omicron will affect customer numbers, and that will make more businesses review their viability.

“The response to Omicron is devastating; the “Red” settings have suppressed socialising as much as under Level 3, but this time there’s no financial support.

“Orange was bearable and there was even some excitement but the shift to Red killed it.

“People are not going out, our cities are empty, and our members are rapidly running out of options.

“The Government must re-evaluate the situation and grant immediate support based on the quantitative loss of revenue, not their perception of lesser public health restrictions.”

Hospitality NZ believes that the effects of staff isolation periods will bring some otherwise sound businesses to a quick end.

“Many businesses could be closed for many weeks by staff stand-downs. That will be too much to bear.”

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