Hospitality yet to feel full effect, trust warns

Waitaki's hospitality sector is yet to feel the full impact of the Covid-19 pandemic, and the Oamaru Licensing Trust warns that the fallout will be dramatic.

That is the view of trust general manager Cathy Maaka, who said much like other moteliers, restaurateurs and bar owners in North Otago, the trust had been hit hard by the crisis.

The trust owns the Brydone Hotel, the North Star motel complex, Sports Central Brew House and Liquorland Oamaru.

The latter has been open for the bulk of the lockdown period, on a click-and-collect basis only.

"Basically, there has been no occupancy. We were open for essential services if need be and that has not been a massive requirement at all.

"Like every other motel or accommodation provider in Oamaru, there has been just an incredible, immediate decrease."

Historically, Statistics New Zealand data showed Waitaki's occupancy rates often floated between 70% and 75% on average each year.

There was zero chance a number even close to that would be achieved for the first six months of the year, she said.

"If we hit double-digit occupancy ... I would be surprised.''

Mrs Maaka said industry was essentially in "survival mode'' and feared more businesses in Oamaru may go under, after the announcement last week Portside Restaurant, owned by restaurateur Sally-Ann Donnelly, would not reopen, which the former described as "sad'' and a " loss for the town’'.

"There has been financial collapses like this historically. I have worked in the industry for a long time and I've seen it happen before, but never quite as bad as this. Throughout the industry there will be jobs lost and businesses that fold.

"We are all making decisions to make sure we are here for the long term. I don't think we have seen the worst of the fallout of this, not at all. I think another three to four months is when we are going to see the biggest financial impact.''

She hoped business would "do the best that you can to survive'', even if that meant job losses.

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