Rural hotels urged to diversify

Hospitality New Zealand national board member and long-time publican John McHugh relaxes outside...
Hospitality New Zealand national board member and long-time publican John McHugh relaxes outside The Railway middle pub in Winton last week. PHOTO: NICOLE SHARP
For rural people throughout Southland the local hotel has always been a gathering point. In recent times the doors have been shut on many of these hubs and in other cases put on the market.

Southern Rural Life reporter NICOLE SHARP catches up with long-time publican and Hospitality New Zealand national board member John McHugh to talk about what is happening with rural hotels.4Passion for pubs . . .

They have been the hub of the town, the meeting point for many, and a place with history.

However, economic pressures are forcing more and more pubs across rural Southland to close or to sit on the market waiting for a buyer, which means the traditional community meeting place is disappearing.

Winton publican of 24 years John McHugh said he had seen many drastic changes in the industry and rural publicans had needed to diversify. Mr McHugh could recall a time as a teenager travelling between Winton and Queenstown when there were seven pubs in rural towns in between the two centres.

''Now there is only one at Garston.''

It showed how the industry had changed, with publicans either having to change their focus or move on, he said.

Early afternoon patrons were no longer retired farmers or agriculture workers coming in for a beer. Instead, with the introduction of pokie machines, they were people coming in to gamble.

''They [retired farmers and agriculture workers] are all long gone and they didn't train up any apprentices,'' he joked.

More people were using rural hotels for a place to grab a coffee or to sit down and have a meal rather than as a place to drink, which had seen pubs branch out into food and accommodation.

''There was the need to diversify and those who didn't felt the pinch,'' he said. Job losses in parts of Southland had also affected small-town hotels.Mr McHugh used Western Southland as an example where the small community of Ohai-Nightcaps once had four hotels operating in a small radius at Ohai, Wreys Bush, Wairio and Nightcaps.

With a decline in population as businesses closed and a change in farming over the years, the Ohai and Wreys Bush pubs had shut. Earlier this month, Wairio Hotel closed its doors, which left Nightcaps as the only pub still in operation.

It was not only Western Southland where farming had changed. There were many dairy conversions throughout Southland which meant people working longer hours.

They had work to do in the morning and evening and were working in between.

''We do not see these people a lot or their workers,'' Mr McHugh said.

This was contrasted with the strength of the shearing industry in Central Southland which saw many hotels used for their accommodation and dining purposes.

Then there was the issue of drink driving, he said.

The Northern Southland town of Lumsden had also lost its two pubs in the past year.

As pubs closed and hotels got further away, people were now choosing to drink at home which had seen liquor sales change, Mr McHugh said.

''Seventy-five percent of alcohol sales in New Zealand are take-home, with only 24% sold on premises. That is why we've had to diversify.''

As laws had been tightened up and new legislation introduced, publicans and duty managers were now under more pressure.

Mr McHugh said some personal accountability needed to be taken by patrons.

''If you were pulled up on the main street speeding, you pay the fine, not the car company.''

Another issue was the use of illegal substances by patrons as that was something publicans had no control over as they did not know what was happening off their premises.

But it did not end there.

The Christchurch earthquake had now seen rural pubs paying a 50% premium on their insurance and the price of alcohol had continued to increase. In addition, smoking had been banned in bars and supermarkets were selling alcohol at a cheaper price, which all decreased on-premises sales, he said.

He said a large number of small-town pubs in Southland were for sale and others had closed.

But it was not all doom and gloom, Mr McHugh said.

He hoped the new ''Around the Mountain'' trail in Northern Southland could do for the small pubs there what the Otago Central Rail Trail had done for small pubs in Central Otago.

Rural pubs might be seen as being on the wane throughout Southland, but there was no better place to go and enjoy a cold beverage and have a laugh on a Friday evening, and Mr McHugh believed they were there to stay.

 

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