We know that the COVID-19 pandemic has adversely affected businesses, people, and governments in all countries including New Zealand. During the financial year 2019, tourism was the largest foreign exchange earner generating revenue of NZ$ 40.90 billion, while the hotel industry generated NZ$ 3.30 billion in revenue. The lack of international travelers due to closed borders affected the hospitality industry. The number of international tourist arrivals dropped significantly, from 222,079 in May 2019 to 2,189 in May 2020.
During my research, I came across several strategies used by kiwi hotels, which are summarized below to benefit other businesses –
1. Actions for saving their businesses-
Hotel managers took innovative steps. They started searching for new markets on an immediate basis to maintain the occupancy of the hotel. They started searching for long-term guests, waived cancellation fees, explored new markets including the domestic ones, and talked to other hotels to share ideas. Some of them operated as MIQ facilities, while a small percentage closed down on a short-term basis. Similarly, other businesses may explore new avenues, offer incentives, and share ideas.
2. Strategies related to their staff
Staff plays an important role in all service-related industries. Few hotels availed of government wage subsidies and looked after their staff. They also maintained proper communication and kept them informed about the latest developments. Few hotels made their staff redundant and kept in touch to rehire them while several others reduced the work hours to keep everyone employed.
3. Improving operational efficiency
Hotels enhanced operational efficiency and reduced outgoings. They renegotiated their rents, reduced purchases, and preventable expenses such as maintenance of gardens or aquariums. They also reduced staff and closed a section of rooms or floors on a short-term basis.
4. Enhanced health and safety
Strategies related to health and safety were aimed at preventing infection and keeping everyone safe. Hotels used PPE, sanitized surfaces, provided sanitizers, avoided cash transactions, restricted travel, and encouraged staff to work at a single location. Few hotels reduced services including housekeeping and catering services and served food in disposable containers.
5. Prepared crisis management plans
Most hotels had no plans to counter the COVID-19 and started preparing themselves for the subsequent waves. Few hotels believed that they were better prepared for the next wave of COVID-19. When asked about their plans to deal with oncoming waves of COVID-19, few decided to follow the government guidelines, while others decided to maintain a similar approach.
6. Immigration policies
During the COVID-19 pandemic, all industries faced unprecedented staff shortages in New Zealand. Recently. When the New Zealand government announced immigration correction policies, one of the proposals was related to the educational qualifications for work visa holders. Few businesses including ethnic restaurants have voiced their concerns about not being able to sponsor staff with ample work experience but no qualifications.
During this pandemic, all businesses have witnessed tough times, and only those were successful who were ready to accept changes and moved ahead. It would be relevant here to quote British naturalist Charles Darwin who made the term ‘survival of the fittest’ famous in 1869.
Hospitality and other businesses may benefit from the above in dealing with the current crisis. -By Pankaj Jauhri, he is a hospitality professional who researched the impact of the COVID-19 pandemic on the hotel industry in New Zealand. His thesis – ‘Crisis management in response to COVID-19: An exploration of New Zealand hotels’ is the first such research in New Zealand. The reserch details can be found in The Indian News Volume 5 Issue 5.