ILT Paints a Grim Picture of 2022 Until Border Opens Up Further
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There is a chance the new Langlands Hotel could sit in downtown Invercargill like a brand new unopened present, once it is fully finished mid-2022.
The Invercargill Licensing Trust is looking at the possibility of hibernating some of its businesses if Omicron hits hard and large staff numbers have to isolate, and also if levels of demand continue to drop.
Both the Ascot Park and Kelvin Hotels were both down 70% and until border restrictions eased further to allow more international visitors in, there would be no point opening up the brand new Langlands, chief executive Chris Ramsay said.
There would be no financial implications in keeping a hotel closed, it was more of a time issue, “but obviously we want to realise a return on our investment as soon as possible,” he said.
The ILT has little confidence in demand increasing across its accommodation sector until the border reopening plan is less restrictive, and believes more Government support is needed to ensure its returns to the community are protected.
The resurgence package is capped at $24,000 and does very little to help a large-scale employer like the ILT, that has a $350,000 wage bill every week.
Chris said a return of the wage subsidy is what’s required in this industry.
“The only confidence we have at the moment is that when we get back to normal, unrestricted trading conditions, we perform very well.
“We know we’re in the eye of the storm at the moment, waiting for the full impact of Covid to hit. We have no better idea than anyone of how long this will last.”
REPORT ON GRANTS ALLOCATED
We can advise that since our last Open Board meeting held 27 January 2022, the following grants have been approved by the ILT:
- Invercargill Hockey Association A total grant to a level of $6,000 will be provided to assist with the Junior/Development Programmes, and admin support.
- Invercargill Repertory Society Inc A total grant to a level of $9,375 will be provided to assist with operating and running costs for Repertory House and upcoming productions.
- Lighthouse Southland Inc A total grant to a level of $3,750 will be provided to assist with operating costs, specifically rent at 59 Gala Street and new employee costs.
- Rape and Abuse Support Centre Southland A total grant to a level of $3,750 will be provided to assist with wages for admin/reception and operating costs.
- Royal NZ Plunket Trust A total grant to a level of $3,750 will be provided to assist with the Teddy Bear’s Picnic 2022, operating costs and child restraint checks and installs.
- Squash Southland Inc A total grant to a level of $15,000 will be provided to assist with operating costs including wages.
- Tuturu Charitable Trust A total grant to a level of $5,000 will be provided to assist with 2022 Matariki Festival, specifically lighting and audio costs.