A survey of Wanaka businesses indicates business confidence is expected to deteriorate over the next three months and many businesses are largely operating at some form of reduced capacity with plans to cut back further still.

More than half (56.25 per cent) of the 112 Wanaka survey respondents said their businesses would deteriorate in the next three months, and district-wide this figure increased to a whopping 77.68 per cent. 

The sentiment was the same across all sectors, the survey found.

“The statistics have largely reinforced the anecdotal evidence we already have and it is good to have some statistics to back things up,” Ignite Wanaka executive officer Naomi Linsday said. 

The number of businesses operating at less than 25 per cent, between 25-50 per cent and 51-75 per cent of their pre-Covid capacity, was between 21 and 23 per cent for each category.

This time last year Wanaka’s CBD was a ghost town with businesses closed during lockdown.

“This trend increases when just tourism businesses (accommodation, hospitality, retail, tourism operators and activities) are taken into account,” the report said. 

Fewer than 20 per cent (17.91 per cent) of Wanaka tourism businesses expected to be between 76-100 per cent capacity and more tourism businesses were operating at a lower level than the overall business economy.

Tourism minister Stuart Nash recently told Radio New Zealand news programme Checkpoint Kiwis were travelling and spending money in tourism hotspots but “obviously the increase in domestic spend has not made up for the international spend.”

The survey results indicated it wasn’t all bad news however. Almost 30 per cent (27.68 per cent) of Wanaka businesses said they are operating at 76-100 per cent, with little impact on their business since Covid-19 hit, and Naomi said Wanaka had a more diverse economy than just tourism which was enabling some sectors to perform to a reasonable standard despite border closures.

Most Wanaka respondents (86.61 per cent) also said their business was able to continue trading for the next three months if the borders remain closed to international visitors. 

“This figure drops, only slightly, to 77.61% when taking into account just tourism businesses, which gives us some confidence that businesses are staying positive about the next few months ahead,” the report said.

District-wide that figure is slightly lower, at 84.39 per cent.

Unsurprisingly, 67.86 per cent of Wanaka respondents said demand or number of customers was the single most limiting factor to growing their business, which rose to 89.55 for tourism businesses.

The Southern Lakes Business Confidence Survey was conducted by Ignite Wanaka in conjunction with Queenstown Chamber of Commerce and supported by Lake Wanaka Tourism, Destination Queenstown and the QLDC’s Economic Development arm.

It “helps inform discussions with ministers, MPs and other stakeholders to paint a picture of our unique economy,” Naomi said.

The next survey will be circulated the week commencing May 3.

PHOTO: Wanaka App