16 April 2020
Media: NZME (Rotorua Daily Post and BOP Times)
Topic: COVID-19 impact on hotels
Enquiry
I am writing a story about the impacts of Covid-19 on hotels in Rotorua.
Tourism Industry Aotearoa Rotorua chair Blair Chambers said hotels in Rotorua employ about 1000 workers and are the biggest employer in the city. He says they are also the biggest ratepayers and its revenues are about 60 per cent gone and unfortunately there will job losses. The NZ Hotel Association says it could take 18 months to recover or years to recover. I just have a few questions.
How could the councils post-covid-19 recovery plan help hotels?
And in regards to rate relief or other possible deferrals what can hotels do if they are struggling to pay their rates?
Plus would the council support or does it have any initiatives in place post Covid-19 to try and attract more Kiwis to holiday in Rotorua once they can safely travel?
Response
The reporter was referred to Rotorua Economic Development as they are providing support and guidance to businesses in Rotorua.
The reporter was also referred to Council's announcement regarding the rates deferral option, the deferral has a focus on the key sectors listed but as they have always done, ratepayers can contact council to discuss their individual circumstances. Link to that item is here: https://www.rotorualakescouncil.nz/our-council/news/Pages/default.aspx?newsItem=8557
From Rotorua Economic Development:
The pandemic is affecting a huge number of local businesses and the impact has been hardest felt here in the tourism, hospitality, forestry and manufacturing sectors. Infometrics data shows that in 2019, tourism accounted for 22.7% of employment in Rotorua and the accommodation & food services sector employed 10.8% of the region's workforce. So that's a good indicator of where the impact on jobs is likely to be the greatest.
As Rotorua's Economic Development Agency, the team at Destination Rotorua is focused on cushioning the economic and social impacts of the virus in Rotorua by working with iwi, local businesses, Rotorua Lakes Council and Central Government to position Rotorua for recovery.
Our team of business development experts continues to respond to daily calls and emails from local businesses seeking advice on accessing the Government's support package. We're also providing free training programmes for the tourism and hospitality industries and connecting directly with as many operators as possible to check in with them and get a feel for how they are managing through this process and the support they will need post-lockdown. That might include help with product development in response to a changing visitor market, and collaborative marketing campaigns to inspire more local and domestic travel and experiences.
The messaging within our marketing programmes will be aligned to the Government's lockdown requirements and we are currently working on campaigns for local and domestic travel. We're fortunate to have a strong industry partnership in Rotorua through the Rotorua Tourism Investment Partnership, so we'll continue to align our marketing programmes and product development to the new view of the world that we're facing together.
It's also important to remember that New Zealanders spend approximately $10b each year on overseas travel. Some of that spend will now make its way into the domestic market, which creates an opportunity for Rotorua to enhance our position as a favoured domestic holiday destination.
________________________________________________________________________________________
Media: Local Democracy Reporter
Topic: Pay cuts
Enquiry
Could you please clarify for me how it would work if the executive leadership team were to have pay cuts due to Covid-19? That is, who would make that decision and how?
And
If the council has received correspondence from the public suggesting pay cuts / salary donations for elected members and ELT?
Could I please also have a comment from the chief executive on:
Yesterday the PM announced she and Cabinet, along with public sector leaders would take pay cuts of 20 per cent. Additionally, as I'm sure you know, Wellington City Council has also opted for 10 per cent pay cuts for the mayor, councillors and ELT.
Do you support or oppose the idea for pay cuts to ELT? Why / why not?
If so, how much?
Is this something that you are open to, personally?
If so, how much?
Have you volunteered to have a pay cut? If so, how much?
Response
From CE Geoff Williams:
I fundamentally do not support a call to cut pays for the executive team. I am very fortunate to have around me an extremely committed, dedicated and hardworking executive team who are now working even harder as a result of the current situation. This is already a very challenging and difficult time for everybody, including our staff, and to expect them to take a pay cut now, simply because they work in local government, is immoral in my view.
At the moment, in addition to business-as-usual work including the provision of essential community services, we have stood up an Emergency Operations Centre, facilitating a local economic recovery plan and working on an upcoming annual plan. These are all being overseen by the executive team, along with looking closely at costs and we will continue to be under pressure as an organisation.
If any individual wants to donate part of their salary at this time - or any time for that matter - to a worthy cause of their choosing, that would be their personal decision. I know our executive team already contribute in substantial ways to our community outside of work and that they will continue to do so.
All staff, including the executive team, have employment contracts that define their roles, responsibilities and expectations and I can't unilaterally decide to reduce people's pay. It would require mutual agreement and a formal process that would trigger consideration of a range of matters like redundancy, change in work and workload, conditions and so on.
In terms of my own situation, as part of contract negotiations following my re-appointment to the CE role I have agreed to no change to pay and conditions. I fully understand the need for our organisation to be run as efficiently and effectively as possible to deliver what is asked of us and we are looking closely at costs as we work on the next annual plan.
*Regarding the question about whether we've received correspondence from the public suggesting pay cuts/salary donations for elected members and ELT. The organisation has, as far as Geoff is aware, received one email of that nature from a member of the public.
