$500m travel voucher system could boost Covid-19 tracer app use

Thursday, 19 November 2020

Christchurch-based tourism researcher Anthony Gardiner, seen here on a trip to Kathmandu just before the pandemic struck, lost his job with an outbound travel company as a result of Covid. 'I was there returning as a high paying tourist [using] private drivers and guides etc.. after visiting as a budget backpacker in my twenties, which speaks to the lifetime value that needs to be considered when we talk about our backpackers.'

Giving every Kiwi a $100 e-voucher to spend via the Covid-19 contact tracer app is being touted as a way to revive tourism and help prevent further lockdowns.

Getting the Government to invest $500m in travel vouchers is one of the recommendations Otago University MBA student Anthony Gardiner makes in a research paper looking at how to deal with the pandemic’s impact on tourism.

He said distributing vouchers to redeem on tourism attractions, accommodation and transport via the Covid cell phone app would encourage its use, and cost about 1 per cent of the Government’s $50b Covid response and recovery budget.

“I saw recently that the level three lockdown in Auckland cost the New Zealand economy $440m for one week.”

About a third of visitors who responded to researcher Anthony Gardiner’s survey did one “big ticket” experience on each trip and worked other free things around that. Gardiner said there would be a multiplier effect that spread the money from travel vouchers more widely through the community.

Rotorua Canopy Tours zipline trips across native forest are attracting more New Zealanders from areas such as Canterbury, and general manager Paul Buttons says they are employing an extra 10 staff over the next couple of weeks.

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“If we can spend a maximum of $500m minimising the risk of that happening again, that's money well spent from the health point of view, let alone the effect it is going to have on the tourism industry.”

Gardiner surveyed about 80 domestic travellers and 35 per cent said lack of time off was the main reason they did not travel domestically more often, and a similar proportion said cost of accommodation, transport and experiences were a deterrent.

“A big chunk of them planned their holiday, generally three or four days, around one big ticket item. That might be a helicopter ride over Franz Josef [Glacier], and if they get a significant discount on that particular aspect of their holiday, they don’t mind spending hundreds of dollars on petrol, accommodation and food while they are away.”

Tourism Minister Stuart Nash this week confirmed the idea of a travel card loaded with cash for Kiwis to spend domestically on tourism was under consideration, but he said a lot of work was needed before making a commitment and cost would be a factor.

Similar initiatives have already been tried in Japan, Iceland, Tasmania, Thailand and the UK with billions of dollars in discounts and vouchers given to consumers to stimulate business.

Gardiner said New Zealanders travel habits were very different to international tourists who took longer holidays and spent more, and the industry had to adapt accordingly.

Seventeen per cent of the Kiwis who responded to his survey did only free things such as bush walks and visits to museums, while more than half opted for a mix of cheaper and expensive experiences.

Rotorua Canopy Tours general manager Paul Button said that since May they had noticed a big upswing in visitors from areas such as Canterbury, Wellington and Hawkes Bay compared with last year, but the travel card would certainly help over the shoulder season and weekdays when they were heavily reliant on overseas visitors.

“We have to soak up demand when they are there and the extra money keeps us going through the rest of the year.

“Some weeks last year we only took 15 Kiwis in an entire week.

New Zealanders also tended to be “last minute” bookers compared with internationals.

“We’re 600 per cent down on forward bookings for the busy two weeks over Christmas.”

Tourism Industry Aotearoa (TIA) has previously championed the idea of a $200 per person travel card available for use outside weekends and holidays in February and March.

A recent TIA survey of 318 operators found almost half had developed new products for the domestic market, but 65 per cent said “lumpy” demand was a big problem, with busy weekends and quiet weekdays causing major staffing headaches because people wanted consistent full time work.