Kelvin Davis

After a social media backlash, Tourism Minister Kelvin Davis is defending $10million in grant and loan funding package to AJ Hackett Bungy New Zealand.

Speaking in Queenstown yesterday, Mr Davis said the funding was about saving jobs so the wider community would benefit.

"If we don’t have the backbone of the New Zealand industry there when the borders do open, well, what will visitors do?

"It will diminish our tourism offering."

He was responding to hundreds of social media comments about Wednesday’s announcement that AJ Hackett Bungy, which operates six sites in Queenstown, Auckland and Taupo, would receive a $5.1million grant in the first year and a $5.1million loan in the second year, if required.

The funding will come from the strategic tourism assets protection programme, which is part of the Government’s $400million tourism sector recovery package.

Mr Davis told the Otago Daily Times any business that met the criteria — "big or small, mum-and-dad operations" — were in the running for the money.

Two Queenstown business owners were circumspect when asked about the issue.

Nomad Safaris Queenstown managing director David Gatward-Ferguson said it was a big topic of conversation among business owners in the resort.

While he realised more Queenstown businesses might benefit from the programme in the coming weeks, it was "disappointing" so much money was going to one company.

"It could’ve helped so many small businesses that are struggling."

Watertight Group owner Michael Burgess, who co-owns several resort bars, said he was reluctant to criticise any businesses that received money from the programme because they were simply following a process set down by the Government.

"You can’t save everybody, and I suppose the powers that be have to make decisions about who to support."