Queenstown Lakes to suffer nearly 8000 job losses – report

5th June 2020 By Shannon Williams | shannon@tourismticker.com | @tourismticker

Economic activity will contract by 23.3% in the Queenstown Lakes region resulting in almost 8000 job losses, according to a new report commissioned by the council.

Infometrics’ Economic Impacts of Covid-19 on the Queenstown-Lakes Economy – Early Estimates report said the district’s reliance on international tourism had left it vulnerable, with foreign tourists contributing 63% of all visitor spending and tourism accounting for 64% of all jobs.

International tourist arrivals were expected to fall to zero over the coming 12 months, with recovery to be gradual from 2021. Arrivals were still expected to be well below pre-Covid levels by 2025.

Over the year to March 2021, economic activity in Queenstown Lakes was projected to contract by 23.3%, compared to an 8% decline nationally, Infometrics said.

The largest declines in the district would take place in accommodation and food services, down 66%.

Employment in the district was projected to fall by 25.3% between March 2020 and March 2021, with a total loss of 7,900 jobs. In percentage terms, Queenstown-Lakes would be the second hardest-hit district in the country behind Mackenzie.

Queenstown Lakes’ overall unemployment level was forecast to jump from 1.1% in the March 2020 quarter to 18.5% in March 2021. This would be double the forecast national rate of 9.0% unemployment. Job losses would result in lost earnings of $270m.

“While the report paints a bleak picture, the analysis is based on a “do nothing” scenario and we are already making big steps as a district to improve our future,” said Queenstown Lakes mayor Jim Boult.

“Predicting how and when domestic and international tourists come back to the Queenstown Lakes is a tough game, but we are more hopeful than the research on this front. The projections show that the timing of a trans-Tasman bubble, or the extent to which Kiwis travel down here, could make the difference of nearly 1,000 jobs.”

This could be “even sooner than we hoped” with recent news suggesting the trans-Tasman travel bubble could be operating earlier than expected, said Boult.

He added QLDC was waiting on a final decision on funding applications to the Crown Infrastructure Partners for shovel-ready projects which, if successful, would support more than 1600 jobs.

The Economic Impacts of Covid-19 on the Queenstown-Lakes Economy – Early Estimates report can be downloaded here.