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Destination Coromandel staff and trustees would like to acknowledge the challenging time the visitor industry are facing due to the coronavirus. Given the announcement requiring nearly all travellers (excluding those from the Pacific) to self isolate when arriving in New Zealand - The Coromandel tourism industry are receiving an increasing number of cancellations. Destination Coromandel have maintained planned marketing activity since the outbreak of coronavirus. We currently have a domestic campaign encouraging referrals to operators and shoulder season travel.
CANCELLATIONS & COMMUNICATIONS PLAN RECOMMENDATION At this point in time it is important to establish a simple communications plan and as difficult as it is right now, keep long term goals in mind; - Retain the contacts of those cancelling/deferring/postponing - Respond with your reputation and future bookings in mind - Be ready to invite customers to book again when travel conditions allow Your customers will be disappointed that they can no longer visit as planned. It is important to do what you can to maintain your positive reputation, so they’re eager to book again in the future. In many instances your bookings will have been received via Travel Agents. Where possible work with these Travel Agents and Inbound Travel Operators to welcome guests back when appropriate. The Tourism Export Council (TECNZ) have provided this comment with regards to treatment of cancelled bookings. However CEO Lynda Keene reiterates that ultimately it is an individual business decision; We are now entering an unprecedented period in the history of our industry where almost all of our member businesses are facing challenges and setbacks. Many operators will bear the personal cost of what has become both a national and global imperative to close borders and limit movement and TECNZ shares suppliers concern and despair. We encourage all members to reach out and support each other where possible, whether that be commercially through the release of cancellation fees for example, or personally through offering understanding and emotional support. Ultimately, this is a commercial decision suppliers have with an Inbound Tour Operator, and each contract and relationship differs from ITO to ITO. We hope the existing and ongoing relationship suppliers will have with ITOs, has enough value that cancellation fees are waived and not passed down the supply line. It is up to each supplier to decide if they wish to waive the cancellation fee, suggest a credit line for a future booking or another arrangement beneficial to both parties. I know cashflow and fees are short-term issues but when markets rebound strong ITO supplier relationships will be needed to reactivate bookings again for longer term gain. It’s an individual business decision. Tourism Ticker recently shared this video from Princess Cruises that demonstrates the impact that Covid19 is having on this global company and their response to their customers.
DOMESTIC MARKETING Destination Coromandel will continue to monitor this evolving situation. While there is a temptation to run ‘awareness’ activity, encouraging kiwis and locals to explore their own backyard, we are currently maintaining activity planned prior to Covid19. The $1m fund MBIE set up to stimulate domestic travel to regions most affected from a decline of visitors from China (Auckland, Rotorua, Christchurch, Queenstown) has now been paused. There is an expectation that more communications around events and domestic travel will be released early this week. Regional Tourism New Zealand (RTNZ) will keep Destination Coromandel up to date – at which stage we will pass on any new and relevant information. We will continue to consider if paid advertising encouraging travel to the region is appropriate as the situation evolves. Clearly the domestic market is crucial for our region in the final 6 weeks of our 7 month long visitor season. As the off-season begins we plan to introduce our Winter Wellness campaign celebrating all things #goodforyoursoul.
VISITOR SPEND We anticipate a significant drop international visitor spend. Domestic visitor spend will depend on how the Covid19 situation evolves and other variables such as weather. 2019 Domestic Spend March - $31m April - $36m May - $20m 2019 International spend March - $15m April - $9m May - $4m
FURTHER INFORMATION The Tourism Export Council have advised businesses to prepare for the self isolation period to be extended to 30 – 40 days. This would extend the period into the off-season, where international visitor spend from May – September is $3 – $4 million per month. The Government Wage Subsidy and Support Package is said to be revealed early this week. Tourism Industry Aotearoa (TIA) are requesting an urgent update to the Ministry of Health advice for hotels and hotel staff. Please refer to the Ministry of Health for any further official information on Covid19. TIA have information for travellers and advice for tourism operators here We would also recommend you sign up to your local council newsletters (Thames Coromandel and Hauraki) to keep up to date with information regarding business support and event updates.
We appreciate this is an incredibly challenging and frustrating time. Please do not hesitate to contact Destination Coromandel with any queries or concerns. |