Government ministers visited Queenstown yesterday to speak to businesses about the financial impact on the town.
In a joint press conference, Queenstown Lakes Mayor Jim Boult said the resort would be the hardest-hit place in New Zealand because of its dependence on tourism.
"My parents lived through World War 2. I suspect this is going to be our time, similar to that - obviously without the bloodshed -but the financial impact will be along those lines."
Economic Development Minister Phil Twyford said the Government would support Queenstown to rebuild and look at ways to diversify the resort’s economy.
"I would welcome proposals from the community here and I will do everything I can to support good plans."
Asked if GST relief for small businesses had been considered, the minister said no.
"The Government has just announced a $12.1 billion support package that is heavily weighted to support small business."
He said this included wage subsidies, which could be used to pay workers on temporary visas.
Start-Up Queenstown Lakes’ Olivia Wensley later said she was disappointed by the lack of GST relief.
She said businesses had experienced a 30% drop in trade and "needed support yesterday".
"I think that is something that [the Government] could be doing immediately to stop the haemorrhaging, while they get their ducks in a row and actually address wage packages."
A new survey of 89 businesses by the Otago Regional Business Partner Network found almost 80% of Queenstown-Lake businesses had experienced reduced demand, 65% had staff suffering from anxiety and more than 50% had cashflow challenges.
- By Matthew McKew
