28 Aug 2020

Domestic boost for Coromandel holidays: 'There's lights on and people outside'

From Checkpoint, 5:22 pm on 28 August 2020

With the borders closed for the foreseeable future, holidays have to be taken closer to home.

The Coromandel Peninsula is one of the beneficiaries of that, and has already seen increased traffic from Aucklanders heading for a spell away from the big smoke.

While Auckland's Covid-19 Level 3 limits have been another hiccup for some businesses relying on the passing cars, for others it has provided an unexpected bonus.

On the main drag in Thames, car parks are hard to come by. Business in the town has been booming and Megan Guthrie, the owner of Needles and Pins sewing shop, said Aucklanders who rushed south before lockdown have helped keep sales up.

"There are more [visitors], the night that the government announced the lockdown the traffic on the coast increased exponentially, it woke me up. It was really noticeable," she told Checkpoint.

"And then that morning before 12pm when they were going to put the barricades up there were people here shopping.

"You know the baches that are empty. Now there's cars there and there's lights on and people outside," she said.

Holidaying Aucklanders make up a massive part of the Coromandel economy, and while the latest lockdown has been hard, Andrea Johnson of Tairua's Manaia kitchen and bar said it has been a stunner of a winter

"We have been really busy. Really busy, way up from last year. The weather hasn't been that bad and it's just been really good - a lot of people coming here because they can't go overseas.

"They finish work on a Friday, they get in their car and come and enjoy their holiday homes they really only come to in summertime."

Wage subsidies have gone a long way in helping businesses.

Andrea said it has been a quiet few weeks but they are in a good position to deal with it.

"Morale has been pretty good, better than previous years, because we do get really quiet in winter and everybody has been really enjoying the buzz of more people here in winter and we have all been doing good."

She said it's been good enough that they are surviving Auckland's level 3 lockdown.

"I never open every day, seven days over winter, this year I've been able to. We can cope with this drop in revenue, we're okay, but as soon as we can get back to normal we're looking forward to that."

The manager of Richardson's Real Estate in Tairua, Andrew Gibson, said after the last lockdown lifted, the whole area was humming.

"It was almost like an Easter weekend every weekend, which was great to see."

Many of those visitors don't want to leave again, and if you don't need to be in the office full time anymore, Coromandel is the place to be.

"It's been a great month this month, we were sort of building up to it. it is the best month in the last year for us in Richardson's Tairua, and I would say it's my best August since 2015 when things really started to pick up here after the global financial crisis."

But Gibson is under no illusions about how vulnerable businesses are if Auckland gets shut off again.

"We are doing well and we all support each other - we're very much a community, all our little towns have their own community and support networks. I think we've weathered it quite well but I wouldn't like to see it continue."

That vulnerability is evident on the drive south from Auckland where cafes are shut and closed signs have replaced the hordes of hungry holiday-makers.

"When the highway stops, it's game over for us, we shut the door and go and do something else for a while," Mangatarata's Native Tree Cafe owner Terry Peachey told Checkpoint.

While his business on State Highway 27 is shut until Sunday, he's optimistic about life during Auckland's"Level 2 restrictions.

"I've had the opportunity to take on the lease of another café in the area and it's like a low-investment opportunity, I don't have to put a lot of money into it, but I figure that it'll help us regain the 25 percent loss we've had in turnover. We can probably pick that up plus a little bit more that'll give me the ability to keep all my staff.

"I always try to stay positive, I don't like to listen to the whingers too much."

Thames-Coromandel mayor Sandra Goudie said there has been a definite spending drop-off during Auckland's lockdown, but it could be a lot worse.
 
"About 80 to 87 percent of our visitor market is domestic so we're quite fortunate, but yes, there are certain areas of businesses that rely on the overseas market, they've suffered and we've lost some as a result which is really tragic for us and for them.

"It's a very difficult time for many businesses, and we're just supported that little bit extra by being such a strong domestic market."
 
And while out-of-towners are welcomed on the whole, she said there has been some animosity from locals.

"Sadly there has been on occasion and I think that's completely unwarranted and unnecessary.

"If everybody just focuses on themselves and what they can do… Most people they take it seriously, they act responsibly and they want to do the right thing so I think it's worked pretty well.

"For people that do come from Auckland, they're coming from their home which is their bubble, they hop into their vehicle which is their bubble and they go to another home in our district which is also their home and another bubble. They act responsibly so I don't think they should be treated with disrespect.

"People that come and visit us, we embrace you wholeheartedly."

With Auckland's planned shift to level two, those visitors could be back as soon as Monday, ready to boost business and keep the Coromandel humming.