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National | Business

Hospitality industry suffering: 'Why isn't anyone fighting for us?'

Players in the hospitality sector say they are the forgotten industry. Despite contributing $6 billion GDP (gross domestic product), they are yet to see any government assistance and are losing $40 million a day in revenue.

"We're the ones that are wondering why we've been left on the side and why we're not having anyone fight for us?," Kapura CEO Jamie Williams says.

"Through this Covid-19 process we're feeling like the forgotten industry to be honest," Paul Retimanu says, owner Karaka Cafe in Wellington.

“Unfortunately for hospitality, we haven’t received anything, other than the wage subsidy. Whilst that is helpful, it only covers a third of our costs.”

During the lockdown, revenue was down to zero and it is still a grim picture with level 2 just around the corner.

"We've had to adjust the way we do things, the way we operate, and sometimes that takes a heavier burden on our families," Hinewai Ormsby of Napier Māori Tours says.

Retimanu says, "Our business model is going to have to change, we have to change our mindset. A week ago, we had to pretty much open a brand new business."

The sector is not hopeful that there will be any relief in this year's budget.

"We would really like someone at the government to step up and either put us out of our misery, and tell us we're not going to get any support because we are part of the public health risk, or look at an on-going subsidy," Williams says.

Ormsby says, "I'd like to see a continuation of support in terms of loans, possibly marketing support."

Pre-Covid the sector had 170,000 employees but post-Covid could see a 40 percent unemployment rate.

"There is no sign at the moment that there's anything coming the hospitality sector's way and that's pretty disappointing," Williams says.

Cabinet is set to make a decision this Monday on whether New Zealand is ready to move to level 2 or not.