Lakes Business February 2023

Issue 26 – February 2023

Recession? What Recession?

Matias Mautone (left) and Nicolas Karlsson

Photo by Kristel Maroszek

Strong summer before domestic squeeze

It’s a case of ‘make hay while the sun shines’ for Queenstown business ahead of another uncertain year.

Tens of thousands of holidaymakers have flooded into the district for the summer season, bringing much-needed revenue, as the tourism industry and life in general bounces back quicker than expected from years of pandemic restrictions. But the rising interest rates, an attempt to curb inflation, are set to hobble household spending as mortgages roll off fixed terms, heralding a slowdown in economic growth.

Westpac senior economist Satish Ranchhod, in the bank’s latest Economic Bulletin, says he expects the Reserve Bank of New Zealand to hike the official cash rate again this month, potentially by 75 basis points to 5 percent.

Ranchhod tells Lakes Business it appears domestic spending is already beginning to soften. “But I think we’re probably going to see the bulk of it really begin to be felt in the second half of this year,” he says.

“By that point, we will have had an increasing number of households rolling on to the higher rates, and will also have had further strong increases in consumer prices.”

Westpac’s figures don’t include a regional breakdown of the expected squeeze. Ranchhod says the impact will be varied across the country, depending on the economic make-up, and the district’s tourism and hospo-heavy economy could suffer.

“Domestic tourists will be a little more cautious about taking those trips, and probably a little more price conscious,” he says.

Queenstown Lakes could, however, ride the wave somewhat by relying on the return of the overseas tourists in greater numbers.

“On the international side, it’s a bit different. We’re

by Paul Taylor

looking at more of a structural recovery, so we’re actually picking that the number of international tourists is probably going to continue climbing over this year.”

It’s likely to be more gradual than the initial surge from the Australian market when the borders reopened, but the potential return of the highspending Chinese market, now Covid restrictions are being removed, could provide another fillip for the district.

“For Queenstown, you’ve got that combination. The domestic side, probably going to be a little bit softer, but by the end of this year, the international market will hopefully provide a bit of an offset.”

As discretionary spending goes, shop-bought ice creams, burgers and cookies are luxuries that could be the canary in the coalmine signalling the tightening of belts.

The summer queues inside and outside Patagonia, Fergburger and Cookie Time suggest people are still treating themselves, despite increasing mortgages, rents, prices and fears about recession.

Patagonia owner Alex Gimenez estimates his ice cream stores in Queenstown town centre, Arrowtown, Queenstown Airport and Wānaka have been selling around 3000 litres of ice cream a day on busy days, such as New Year’s Day.

“We’ve bounced back much quicker than I expected and some days over the holidays have been back to pre-Covid levels,” Gimenez says.

“On other days, which are not so busy, we’re going through about 2000 litres across the four stores. It is really good but could be even better.”

The Queenstown store, on one of the busiest pedestrian intersections downtown - corner of Rees Street, Marine Parade and The Mall - is open the full 9am to 11pm on weekends, serving coffee and pastries in the mornings. But it doesn’t have enough pastry chefs to match those morning

hours on weekdays.

“We have four but we’re still waiting for a fifth, who is coming in the next few months from overseas.”

Gimenez employs more than 120 staff across his venues and says staffing shortages have eased slightly on a few months ago, but only because more high schoolers are stepping into the roles. He’s more worried about shortened opening hours hurting the town’s reputation, than looking too far ahead to a potential recession.

“The main problem we have is the disappointment of people who have come here on holidays, realising there is no place to eat because some venues are closed two times a week, and others do lunch or dinner.

“That is the shame of being in Queenstown at the moment. I think we are the embarrassment of the nation, to not be able to cater to tourists in the way we should.”

He blames both central and local Government for decisions on immigration and housing.

“It would be simple with the right political decisions because you can’t tell me there are not people who are keen to come here to work.

“And then the other big problem is accommodation. There are too many Airbnbs, so nowhere for staff to live, even when the hotels are not fully booked. It sucks.

“Everyone knows this, so the local government and central government need to do something. We need to be cleverer in the way we manage things.”

Fergburger group GM Stephen Bradly says recession or another significant downturn is also a bridge to cross if and when it happens.

“We can’t predict the future too accurately, if we could, we’d have seen Covid coming. So, for now,

Queenstown waterfront area - Photo by James Allan

it’s just steady as she goes,” Bradley says. The summer has been steady with busy peak days.

“It’s nice to see the queues back. I think it’s the same for everyone, it has been busy, and we’ve just been doing the best we can to manage it with our staff expectations.

“Any little lulls get bumped out by the fact some of us are having to close businesses or stores.”

The iconic venues employ 140 people are present, but a full complement would be around 175.

Queenstown’s still not at pre-Covid levels of busy in general, he says, with the missing Chinese tourists, which accounted for about 20% of business. Across the holidays, accommodation occupancy has sat at around 80% full, although that’s forecast to drop to between 60-70% throughout the rest of January and February.

Vicki Onions, Cookie Time CMO and a co-founder of the recently revamped Bathhouse, says summer has been busy and businesses can finally see some light at the end of the tunnel.

“It’s been really tough for Queenstown,” she says. “We haven’t had customers, we haven’t had income. And then we’ve had customers, and we haven’t had staff. It’s a very different workforce than it was three years ago.

“But I feel, as a business, we are now in a really fortunate position. Tourism feels like it’s switched back on... people are coming back to our beautiful town and I am seeing a greater volume of qualified applicants as well.

“We’re getting to a place where we know there’ll be other challenges, but they won’t be the ones we’ve had up until now.”

Queues are back outside Ferg Burger over summer

Crystal ball gazing

by Sharon Fifield - Acting Chief Executive

Interesting isn’t it, talk of a looming recession when the reality for local businesses right now is that we are leaving so much unmet demand on the table. A bitter pill for many businesses to swallow after years of waiting for demand to return. Forget about the prospect of people losing jobs; we have far more jobs than people willing (and able) to work in them.

Is our inability to meet demand and eroding margins of more concern than a ‘recession’? Maybe.

Construction is busy, and summer visitation is on par with pre-Covid. China has opened up, and we will soon see more pent-up demand here – great for our visitor economy. By all accounts, it seems we are back to business after those stormy Covid years.

Queenstown Business Chamber recently hosted Reserve Bank Economist Paul Conway to share his forecast for the year ahead as part of our Westpac Smarts series. Paul spoke about NZ being a bit of an ‘outlier’ given demand in our economy has remained resilient. Does that make Queenstown an outlier of an outlier?! He also spoke about forecast growth in unemployment and the fact that higher interest rates are needed to meet our inflation and employment objectives. “Forced change in uniquely challenging times”.

I’ve seen media reports advising businesses to ensure they are recession ready by having a buffer in their business. I wonder if that is the same ‘buffer’ you used to survive the pandemic?

Interestingly in the last quarterly Chamber Business confidence survey, a net 20% of local businesses felt confident in their economic outlook, while a net 33% expected conditions in NZ to deteriorate. Maybe that’s because we feel like we have already been through ‘our’ recession. The biggest factor cited as a constraint to growth is the inability to find staff.

This year may be challenging, but we’ve endured and survived a pandemic. A recession is another blip we can take in our stride.

Onto solutions, and where the QT Business Chamber can help. Invest in your people – hold onto them tight. There isn’t a massive influx of labour (with secured accommodation) coming anytime soon to save the day. Adapt to operate with a leaner workforce, adopt tech to streamline where possible, work with other businesses to share some costs or perhaps coordinate opening days for efficiencies? The Queenstown Business Chamber will focus on events and training to help you in this space, with a focus on your people and bottom line to get through this year. This is the time to invest in your business running like a well-oiled machine. All this work on your business will pay big dividends in the long run— recession or not.

On a positive note: another key takeaway I took from Paul’s presentation is that things could be a lot worse, but 2024 is looking much better.

Businesses insights from Mark Quickfall

Mark Quickfall has learned a lot in his 40plus year tourism career, but nothing could’ve prepared him for the events of the past three years. It’s definitely not the first major crisis to have hit the tourism industry while he’s been in the game, but it was definitely the worst by far. Totally Tourism is one of the resort’s great business success stories and as co-owner, with wife Jackie, operating seven lower South Island tourism businesses, Mark has good news for any young business owner who’s made it through the last couple of years.

“We will rebuild our industry, but it will take time,” he says. The trajectory is already on the up. “I’ve had to look back through the past few years and think if I have to write off two years out of 40 in business then that’s not bad going.”

“If you’re young and still in business and managed to hang in there you can definitely be proud you’ve made it to this point,” says Mark. “You can look forward to a fantastic future with some wonderful opportunities.”

At 21, working as bar manager at Skyline Restaurant during a 1979 visit to Queenstown Mark had no intention of staying here. He certainly didn’t envisage becoming the boss of the entire company and chairman of the Skyline Enterprises Board some 35 years later, or chairman of Destination Queenstown.

However, the lure of a job as a jetboat driver for Shotover Jet in the early days of adventure tourism was too good to turn down and within two years Mark had started his own jetboat

by Sue Fea

and adventure company, Pro Jet Adventures. His point of difference was combo offerings, teaming up with helicopter and other adventure operators. A strong relationship with Don Spary, in what was originally Alpine Helicopters now The Helicopter Line, opened major business doors into tourism aviation, which is still a huge part of Totally Tourism. By 1992 Mark had joined Tourism Holdings Ltd and in 1999, took the opportunity to purchase some of its Southern Lakes operations, forming Totally Tourism. While skilled at navigating the rapids of the Shotover River during those early jetboating days, those waters were gentle in comparison to tumultuous tourism shocks like the 1987 sharemarket crash, the SARS pandemic and the 9/11 terrorist attacks. “There have been plenty of bumps in the road, but nobody was prepared for something like Covid with tourism taking a massive hit. Our international borders had never been closed before.” Tourism was “decimated” with Totally Tourism’s business dropping to an all-time low. “We lost 90 percent of our income overnight. Everyone’s been in survival mode for the past 30 months.”

While business is definitely better now – even the West Coast starting to hum again, Mark sympathises with hospitality and accommodation operators, now facing massive staff shortages. “One of our tenants on the West Coast has three Franz Josef eateries but can only have one open due to staff shortages, despite high demand.”

Employing some 200 people across the company

– The Helicopter Line, Glacier Helicopters, Mitre Peak Cruises, Milford Sound Scenic Flights, Harris Mountains Heli-Ski, Challenge Rafting and Alpine Guides, Mark’s thankful he’s managed to retain all their core staff. It’s been tough on staff across the board, but Mark says their stoicism and commitment to the survival strategy has been impressive. Every effort was made to support teams with mentoring, mental health counselling and team building. “Fortunately, we planned for scaling back up with borders reopening and are appropriately staffed.”

The government needs to “pull all levers” to fast-track visas for overseas workers, and while environmental sustainability is a huge focus for his and other tourism companies, Mark says financial sustainability needs to be forefront first to keep businesses afloat. As chairman of Destination Milford Sound – a strong voice for Piopiotahi Milford Sound tourism operators, Milford Sound operators are already investing in sustainability. Working with DOC, Milford flightseeing operators have already moved to larger, quieter aircraft with improved technology and are now working towards electric aircraft for the future. “It will come but it’s a journey.

To any would-be tourism operators, Mark says balance in business is vital. “You also need to be agile and flexible and be prepared, have a plan five to 10 years out, but know that what’s ahead is not always what you’ve planned for.”

Mark Quickfall says everyone’s been in survival mode for the past 30 months.

New bistro Odd Saint delivering vibrant experience

The fabulous food, divine drinks and thoughtful service Future Hospitality Group is known for are front and centre at its latest Queenstown venue. The unusually-named ‘Odd Saint’, in homage to its location alongside St Peter’s Church in the heart of town, arose in a spot that housed a much-loved locals café run by previous owners for 15 years.

Group owners James Ace and Bert Haines always loved the location and were looking for the opportunity to add a daytime venue with a range of diversity and opportunities for staff growth and development to their primarily eveningfocused businesses.

The fully renovated premises opened midDecember on Earl Street, in a sunny north-facing spot surrounded by the trees and botanicals gracing adjacent gardens.

Odd Saint embodies a unique spin on standard brunch spots. The eclectic menu delivers ‘global soul food’, inspired by the worldly travels of coowners Matt and Jamie Tobin.

Brave and cheeky

“We’re long-term locals who love hospo and eat and drink out a lot,” says James. “Queenstown has plenty of great cafés but we felt there was an opportunity to push the boundaries somewhat. “We decided to be a little bit brave, a little bit cheeky and brought a menu to the table that’s a little bit odd!”

That fun and playful nature translates to dishes such as Clau’s spiced granola, current crowd favourite Duck fried rice, Hoosier chicken or a classic Earl Street ‘fry up’.

Their whimsical drinks list highlights the best of local wines and beers accompanied by delicious international drops and reimagined cocktails.

The sunny patio is a crowd favourite for an early morning brew, or an afternoon tipple. Each cocktail is a creative play on Odd Saint’s name and location, inspiring drinks like Bibiana’s cure, the Odd Saint crowd pleasing Bloody Mary, and Rosa’s cup, a perfectly light and refreshing Spritz with a surprising twist of thyme.

A custom bright yellow La Marzocco spins its magic with coffee from Auckland roasters eighthirty and New Zealand-owned Webster’s loose leaf teas are on the menu along with daily baked treats.

Executive chef Matt Tobin’s inspiration comes not only from his travels but his Midwest US background, delivering what he calls a “finer diner” menu with an elevated twist.

Vibrant by design

The fitout designed by Studio Collective creates a light and bright bistro style interior paired with a vibrant and welcoming aesthetic. Lush outdoor garden seating is perfect for long afternoon tipples in the sun, and it’s also fur-baby friendly.

Studio Collective’s creative director Jennifer Warring says the space caters for a quick ‘drop in’ for brunch, a long lunch or trading into the evening, which is the medium-to-long-term plan.

“Odd Saint has a vintage vibe with a mid-century modern allure seen in elements like the burnt red finger tiles forming the curved bar top and frosted, brass globe pendants highlighting the bar and servery,” she says.

Career opportunities

The melting pot of dishes and flavours is only matched by the 15-strong food-centric personalities on staff who delight in delivering friendly and uniquely personalised service. Co-owner and Executive chef Matt Tobin, whose

background includes a French culinary school and previous senior roles in Queenstown, says he’s “fully invested long-term” in the business after initially joining the team as head chef at sister restaurant Margo’s.

“Thanks to James and Bert I was given the opportunity to add value to the business from day one, and to see how the business ran as well as the kitchen.

“Becoming a co-owner of Odd Saint is a lifelong goal achieved and I couldn’t be more excited for the future.”

Staff members Sara (Assistant Manager) and Anton (Head Chef) have been integral to the opening and development of Odd Saint and Matt says they’ve gone “above and beyond” with their passion and team mentoring.

The venue’s open from 8am to 3pm (days and times may vary).

Business growth

Future Hospitality Group is a progressive and innovative business delivering world-class entertainment experiences. Odd Saint was the third venue it opened last year alongside cocktail bar Little Mez and Scandinavian-inspired ice lounge Queenstown Ice Bar.

Last year it won the Excellence in People and Culture award at the 2022 Hospitality NZ Awards and lakeside bar Little Blackwood won New Zealand’s Best Bar. It also operates Minus 5° ICE Bar and Mexican-inspired restaurant Margo’s. oddsaint.co.nz

Spicing up the Kiwi sausage with some South American sizzle - Zamora

When a couple of passionate, meat loving South Americans got chatting while working at Sofitel Queenstown in 2007, little did they know they’d soon be preaching meat to Kiwis and leading the charge.

Nicolas Karlsson, from Argentina, and Matias Mautone, from Uruguay, launched their business, Zamora, in Queenstown in 2010, after noticing a gap in the market for specialised cured and smoked meats.

While they’d landed in a country renowned for its meat exports, Nic and Matias believed it was time to spice up the good old Kiwi meat offering with some South American flavour.

“I was 25 when I arrived here in 2005. We’d both worked in hospitality in Argentina. It surprised me that all we saw in a meat-eating nation like New Zealand were Hellers sausages at the supermarket,” says Nic. “That in such a great barbecuing nation they’d put a lot of tomato sauce on a sausage to make it good and add flavour. There was nothing homemade and we thought we could do it better.”

In 2018 Zamora Meats won the Great Sausage Competition of NZ’s ‘Best Traditional Sausage in NZ’ – a gold medal, for its mild, tasty breakfast sausage – pork and sage, now iconic on many local café breakfast menus. Then in 2019 their amazing cured meats took out gold for ‘Best Spicy Salami’.

However, accolades are not what they’re seeking, says Matias. “That’s not why we do it. It’s because we’re passionate about our product.” It was that passion that kept them pursuing their dream, despite the economic tide raging around them. There were plenty of naysayers trying to put them off when they decided to launch a new Queenstown business in the thick of the global financial crisis, but they pushed through. However, the lockdowns and restrictions, and losing staff during Covid, was far more difficult than those early years, says Matias. “That was more like an adventure for us back then. We had part-time jobs but we weren’t drawing any money out of the business those first three years. Everything we earned was re-invested.”

by Sue Fea

Starting out in a small deli-style meat and salad sandwich bar in Industrial Place, the business quickly expanded into a butchery, as well. It’s now the site of their butchery house.

By 2017 their homemade sausages had become so popular that they were being invited to do catering in people’s homes, cooking South American barbecues.

In 2018, they opened their Meat Preachers licensed restaurant at Five Mile’s Queenstown Central. With seating for 27 indoors and 25 outdoors, the offering combines classic South American charcoal barbecued, slow grilled meats cooked and smoked on embers, with quicker, on the go sandwich options.

“We reckon we do the best slow cooked, smoked brisket in town,” says Nic, proudly. They’re now selling their sausages in supermarkets all over the South Island and Auckland, with Criollo – a classic South American beef and pork option, most popular, followed closely by the Chilli Chorizo.

The Milan-style venison salami, and Coppa – a dried, cured pork ribeye sausage, have tastebuds drooling, with Zamora’s cured streaky bacon popular on local breakfast café menus.

Hardly surprising then that Nic and Matias, with what is now just a team of six, turn out 4000 sausage packs a week to supermarkets around the country. Probably another 300 to 400 kilos head to local hotels, restaurants, bars and cafés, and the likes of Real Journeys.

They value those longstanding relationships and say residents’ support has kept them afloat these past three years. One of the greatest challenges was transporting and

distributing their product around the country. Qualified Kiwi butchers, producing consistent, quality product has been paramount to their success.

“Queenstown grew exponentially so we used that to our advantage,” says Nic.

They’ve been a colourful and tasty attraction at local Farmer’s Markets for 12 years, letting their quality product speak for itself.

It’s paid off. Nic and Matias have just clocked a record December and are enjoying a summer boom. “We had an absolutely crazy December with about 20 percent more in sales than last year, it’s been the best summer ever.” says Matias. They sold some 10,000 packs of sausages.

Next in their sights are Tauranga and Wellington. Nic and Matias advise any new business owner to stick with it. “If your numbers are firm and sustainable, and you have a passion, then go for it. Believe in your product and yourself as well.”

Matias Mautone (left) and Nicolas Karlsson (right).

Photo by Kristel Maroszek

Recession? What Recession?

While the economic tidal wave is threatening to dump on the other side of the world, down under in Queenstown everyone’s still swimming at the beach. A recession is forecast, but it hasn’t yet hit. However, those in the know locally say that while Queenstown is well positioned to hopefully take less of a hit than some places, it’s time to get our life jackets on.

Queenstown Lakes District Council economic development manager Peter Harris says tourism has bounced back faster than most predicted, which is really positive. However, having to reduce services due to the workforce crisis while our streets are humming with overseas tourists has been painful for businesses. The rental accommodation shortage has only accentuated the problem.

Initiatives are underway but it’s a challenge, says Peter. “I really feel for those operators having to close some days. It must be heartbreaking. You have to look after your staff. They’re like gold.” Even if working holiday visas could be turned around any faster, the challenge is still helping those workers find accommodation.

There are lots of uncertainties remaining postCovid and good employers are coping well to plan around so many unknowns, says Peter.

by Sue Fea

Fewer homes are being rented long-term, whether that be because Airbnb is a more favourable option, remote workers are moving in, or semi-retired homeowners are retiring, he says. Overseas resorts like Telluride in the US are also grappling with how to restrict Airbnb. While Queenstown’s reliance on tourism became blatantly obvious after Covid, there’s been a heavier push for diversification into other industries. Initiatives include Mainland Angel Investors – a southern South Island co-operative of angel investors seeking to invest in and support start-ups, tech entrepreneur Roger Sharpe’s Whakatipu Hangarau Trust dedicated to growing the tech industry, and Queenstown Resort College’s new Machine Learning Fundamentals AI tech course. The new Research and Innovation Centre at Remarkables Park, well underway, will also attract new business.

“There are a growing number of innovative nontourism businesses here that have been operating under the radar,” says Peter.

Things are challenging, but whether it’s a recession or not, Peter’s not prepared to predict the impact on our local economy. So many economic, political and weather events affect us, but we have a strong, established visitor brand and people aspire to live here, he says. “These act

as something of a buffer.”

“Many people are working to make our economy more resilient. As we collaborate more it boosts the positive impact each group is making.”

A draft diversification plan’s being written by MartinJenkins Consultants and opinions have been canvassed far and wide. It aims to identify opportunities most likely to accelerate diversification and encourage groups to work together on these.

“We have some amazing business people creating niche industries like Geoff and Justine Ross of Hawea Station, Nadia Lim at Royalburn, Alex Worker of Impossible Foods, and Desiree and Ash Whitacker of Cardrona Distillery. There are also groups working to enhance the environment, including Mana Tahuna, and Wai Wanaka. With traditionally six out of 10 people employed directly in tourism locally we need to diversify the economic pie. However, it’s a long game as US economic development specialist Roger Lee, from Bend, Oregon, told a local forum here in November. “He calls it a 40-year overnight success story,” says Peter.

The new Research and Innovation Centre will attract new business

Investment opportunities to support local emerging businesses

Early-stage funding for businesses in the lower South Island is a problem that Mainland Angel Investors (MAI) is helping solve. It works to connect fledgling businesses with investors – and its next pitch evening is in mid-February.

MAI operates in Queenstown, Wanaka, Invercargill and Dunedin. “Our club brings together a diverse group of individuals with a passion for investing in startups and seeing our region thrive,” Network manager Peter Ramsay says. “As a member, you’ll have access to exclusive local and national early-stage investment opportunities where we can assist with the entire investment process. On top of that, we provide a platform for members to network with like-minded individuals and gain valuable insight and advice from experienced investors.”

The club prides itself on the foundations it had put in place over the last 18 month to ensure the right investment opportunities are being presented to its members. “One of the key benefits of being a member of MAI is our thorough screening and due diligence process. This helps provide confidence when members are looking to diversify their investment portfolio” Peter says.

Anyone that’s interested in supporting startups can attend the events – you don’t need to have big bucks in your bank account, the minimum check size that can be accepted is just $5,000. “A lot of people have that misconception of, ‘I have to have hundreds of thousands, if not millions, sitting in the bank to be able to invest,’ whereas it’s really

Opportunity knocks

by Sue Fea

not the case. The beauty of having an angel group is that with so many people in our network, multiple $5,000 cheques really add up.”

It’s not just about money either – investors often have experience in growing businesses and can offer sound advice. The investor’s role in the company will vary depending on different factors. “You could be more of a hands-off investor, where you’re more so just looking at it from an investment perspective – where you just put some cash into the company and watch it grow,” says Peter. There’s also the possibility to be a little more hands on, to help scale a company. “If there’s an investor that has quite a bit of experience within certain industries, they might look to take up a governance role on an opportunities board. There are quite a few ways people can get involved.”

One of the businesses that has received funding through Mainland Angels is Loaded Reports, a Queenstown business that offers hospitality management software. It allows businesses to manage their revenue, labour, and cost of goods in real time from one software hub. Mainland Angels are seeing interest grow in becoming an investor, too.

The next investment night will run on 15 February at Mountain Club, Beach St., Queenstown and is open to anyone whether you’re looking to invest or are just curious. You can RSVP by scanning the QR code.

Former Startup Queenstown Lakes ceo Olivia Wensley is establishing a venture capital (VC) firm from Queenstown focusing on investment in high value tech companies and says there’s already huge interest. “I’m in constant contact with Silicon Valley VCs and talent who want to relocate or invest venture capital here,” she says. “I recently hosted an American VC here, who has a fund worth more than $US3 billion. He sees New Zealand as providing some great opportunities. This message is reverberating through Silicon Valley.”

While we’re coming into a down cycle and tech stocks have plummeted, Olivia sees that as the best time to invest. With major tech redundancies overseas those entrepreneurs are spilling out into their own start-ups. It’s the perfect time to attract talent here, she says.

“New Zealand’s tech sector is just getting started. We’re seeing some great international success stories. I’m not concerned about downturns or recessions. Whenever there’s danger there are always opportunities.”

Olivia Wensley, who is establishing a venture capital firm from Queenstown

Post-Covid not normal for Queenstown Businesses

by Jess Allen

There is no ‘new normal’ for Queenstown businesses, however there is a sentiment that things are not normal. Staffing and accommodation shortages, a change in customer attitudes and expectations, and the rising cost of living are all putting pressure on local business and forcing them to change the way they operate. So, how does 2023 compare to pre-Covid times?

Shaun Kelly is the Managing Director at Absoloot Hostel QT on Beach Street. There were times when the borders were closed that the hostel was running at just 25% occupancy, and at one stage the business went into a bit of a hibernation. Things are starting to look a little better these days – the hostel has been lucky enough to have retained a lot of staff over Covid, which was one of Shaun’s priorities when navigating the pandemic. Practices have changed slightly for them since 2020 and some efficiencies have been made –they’ve worked hard to improve their product, service, and staff – which may be the silver lining of the pandemic.

“Any good business should continually look and strive for efficiencies in process and productivity – this was tested to the limit during the last couple of years in particular. Labour limitations have meant that job descriptions needed to have fluidity. While staff have been able to assume similar roles to pre-Covid, both their and our expectations have needed to change.

“We’re very lucky that we’ve managed to get to a point where we are basically fully-staffed for the first time since 2019, and ultimately as we’ve all seen, the one thing most businesses are affected by now is the labour shortage. This would be one of the primary issues businesses would like to see return to some sort of normality. This is ultimately a bigger issue we all face, and is particularly centred around the limitations on housing currently. There needs to be a dedicated effort from all parties – government, business and community – to find opportunities to resolve this,” says Shaun.

Both Shaun and Ellen Murphy, Group Operations Manager for Wolf Hospitality Group, agree that customer attitudes and expectations have

changed since the pandemic, and that staffing and housing issues are one of the biggest concerns for Queenstown businesses at the moment.

Wolf Hospitality Group has several establishments in Queenstown including The London, Boardwalk and The Crown. The businesses are currently operating at reduced hours in some of their venues, have fewer menu items available, and have limits on how many customers they’re able to bring in. One of their biggest issues is the lack of staff currently in Queenstown.

“All of our venues differ but The Crown, for example, is largely an order-at-the-bar venue, which allows us to serve a large number of people in a short space of time,” says Ellen.

“We have adopted that in other places at times, that we’ve needed to, but we would absolutely love to go back to being able to offer full table service in those venues that it suits. For the most part, we’re still managing to do that, but to do that we’re having to take fewer people. It’s a kind of balancing act, really – we still want to be able to provide good service, but it’s hard to do that when we’re operating under the same conditions as Covid.

“Queenstown’s a transient town, so you train somebody for six months and they move on to the next seasonal town. I’d say experienced staff is the issue – you can train anybody to do certain aspects of the job or certain roles within the company, but finding experienced people – that goes for the kitchen and front-of-house – that’s where our challenges lie. In the last couple of weeks we’ve seen a large number of backpackers come through, which is awesome, however most are quite young and inexperienced, so while we may look to have a significant number of people on shift, most of them are very new.”

While there’s certainly no quick fix to the issues local businesses are facing, and no one solution, it is apparent that staffing and housing are causing huge problems for many. Some businesses have reported that the government’s accredited employer visa seems like a bit of a money grab and has muddied the path to long-term residency. Unless you’re on a skills-shortage list (which many hospitality staff, including chefs, are not) it is harder for people to stay here, and so the problem continues.

We’re very lucky that we’ve managed to get to a point where we are basically fully-staffed for the first time since 2019 says Shaun Kelly of Absoloot Hostel

Shaun Kelly, Managing Director at Absoloot Hostel QT on Beach Street.

5 minutes with Marco

Dingemans at Start up Queenstown Lakes

by Jess Allen

Startup Queenstown Lakes’ business coach Marco Dingemans has recently stepped into the newly-created role of General Manager. Startup Queenstown Lakes (SQL) helps local entrepreneurs launch, run, and scale their businesses through courses and workshops.

Marco’s diverse background has led him to his current role and owning his own Pilates studio on Glenda Drive – growing up in the Netherlands before moving to London for ten years, he has a background in marketing and is excited to hit the ground running in 2023.

“The role will be new – the role before was the CEO position, which was held by Olivia Wensley, who found another job. I was already working as a business coach and in talking to the other team members and the board, I expressed interest in taking up the role as General Manager, and also wanted to do this part time because I also run my own business. It’s a combination of General Manager and Coach.

“I see it as looking after the business and with the team looking after our entrepreneurs. Helping people to find out if they want to be an entrepreneur, because that’s also what we do, as well as running activities, organising workshops, and continuing my coaching role – sitting down, talking with entrepreneurs, talking about struggles and wins, and taking steps forward and showing them the way,” says Marco.

As a business owner himself, Marco can relate to those he helps, and has some pretty strong insights into starting a business around the Whakatipu. At the moment SQL are running a new programme called Summer Spark Up, which is a short course of three workshops to give individuals the basics of what they could or should do to bring their business ideas to life. Expanding and building on the current entrepreneur ecosystem that has formed in Queenstown is one of the biggest things on the agenda for Marco and SQL this year.

“Any economy is thriving on also having entrepreneurs, and that is really fun to build and grow. It will help to diversify the economy in Queenstown – the ecosystem has already been built, so we’re just building on from there. The community will see more of that from us this year.”

Queenstown’s Ziptrek Ecotours is the second-best adventure in NZ according to an article by National Geographic UK. The 450-metre cable climb beside Wānaka’s beautiful Twin Falls takes the top spot, while bungy jumping (in Auckland?!) and skydiving (in Taupō?!) also make the list. So, just come to Queenstown Lakes and do it all. The article, by travel writer Justin Meneguzzi, highlights Ziptrek’s eco creds. It’s Queenstown’s first carbon-neutral tourism business, after planting more than 6000 natives on Bob’s Peak, although we hear Destination Queenstown has plans for a few more.

It’s a long way off but Snow Machine organisers have announced they plan to return in 2023 for five days of ‘adventure, shredding, après, parties and an absolutely monster music line up’ (their words, not mine). The festival brought 5000 to town last year, including some disposable-income Aussies, and a fair bit of chaotic energy, filling a lull towards the end of the ski season after the school holidays. It also had the stage near town, which meant some custom for hospo premises, as well as bringing the beats (my words!) to Remarks and Coronet. The dates this year are 5 September to 10 September.

Hospo industry veteran Glenn Peat has been drafted into take charge at the Ignite Wānaka Chamber of Commerce. He’ll balance the part-time role with his existing position as group general manager for Taco Medic International, working alongside Ignite administration and events coordinator Rachelle Blatch. That’s a double change for the Lakes Chambers, with Ruth Stokes moving on from Queenstown late last year. Longserving Destination Queenstown business development director Kiran Nambiar has also found a new job, with Kiwi inbound travel firm Anzcro.

Business & Banter could get you called into HR these days. But that doesn’t mean a good-natured chortle with colleagues and other business folk is out of the question. Queenstown Chamber’s often funny, always inspiring, Business & Banter lunch returns next month. Award-winning journalist and mental health advocate Jehan Casinader will be MCing, with panelists WRC Rally Driver Haydon Paddon, Spaceworks CEO Lizzi Whaley, tech commentator, futurist & CEO Paul Spain, and 2Degrees Chief Business Officer Andrew Fairgray. If you don’t have a ticket already, you’re possibly too slow.

Electric vehicles comprised 10% of global sales in 2022 with 7.8 million EVs sold, up 68% over 2021 - didn’t help Elon, of course, who set a record for the biggest loss of personal fortune ever, losing a reported US$200 billion over 14 months, thanks to buying Twitter and Tesla shares tanking. He still has about $130bn left, so not quite on his uppers just yet.

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Feeling a bit like Jacinda and want to jack it all in after returning from your hols? There’s probably another job, a better job, out there waiting for you, if our Jobfix numbers tell the tale of the tape. In December, there were 523 on offer, including 413 in F&B, 77 in retail, services and sales, one in Government, seven in finance, RE and admin and 25 in construction, utilities and transport. Back in 2018, there were 808 jobs up for grabs in December, with the sector proportions similar.

Queenstown Lakes’ house prices finished last year 5.9% higher on average - great news for home owners but not for anyone trying to accommodate staff or get on the ladder. The average value hit $1.7 million in December. That marks three years of consecutive growth, after a 3.1% rise in 2020 and a whopping 27.2% in 2021. Queenstown Lakes was one of only three places in NZ to record positive growth in the last quarter, alongside Marlborough and Nelson city, according to the QV House Price Index.