Finding workers continues to be extremely challenging for businesses in Queenstown – the most famous resort town of New Zealand, and hundreds of jobs go begging.
As the country reels under ‘critical’ shortage of workers in various sectors, including tourism and hospitality, the Government has now extended the visas of offshore working holiday makers to ease the situation.
This was announced yesterday(31 October) by Immigration Minister Michael Wood who informed 14,400 Working Holiday Visa holders have also arrived in the country since borders reopened.
The Working Holiday Scheme cap has also been doubled with a one-off increase to recognise the spots that were unused last year due to the border restrictions,
New Zealand is set to for a strong summer season with around 145,250 overseas visitors arriving in the four weeks to 26 October.
But whether Queenstown where majority of visitors end up spending their time and money, can withstand the storm of crippling staff shortage that the businesses are currently facing?
NewsViews toured Queenstown last week to get first-hand info on the current worker shortage situation there.
Queenstown appears to be begging for workers. The town has been hit harder than others due to its reliance on migrant workers in the absence of Kiwis either unwilling or unavailable to take up those roles.
Almost every other store front has such signs in Queenstown(Photo: NewsViews)
Hospitality and tourism sector are the worst affected though ski tourism did get extra government support for visas of migrant workers.
While most hospitality and tourism related businesses need extra staff to cope with influx of tourists in the season ahead to remain operational, several others have reduced their working hours. Most businesses are shutting two nights a week, opening at half capacity or not opening for lunch. Some have downed their shutters permanently also.
Restaurants are restricting their hours and days of operating, and often menus, while some hotels have stopped daily cleaning during stays.
Housekeeping services at Heritage Queenstown, for example, are not available daily in most cases, or are made available on every third day of your stay.
The grim reality of the situation is revealed more as one goes around the city and neighbouring areas as almost every second retail shop, restaurant and bar has a “staff wanted” sign in its storefront window.
Cafe of the famous ‘Arrowtown Café and Bakery’, for example, was found closed with a sign on door saying: “Sorry closed today we are short on staff…”
The boutique ‘Taj Indian Kitchen’ with lake views on Beach Street, and ranked #7 of 169 restaurants in Queenstown on Tripadvisor, had ‘temporarily closed” due to ‘shortage of staff.’ But on their website it was clearly announced it had closed permanently.
Many eateries have closed their doors permanently (Photo: NewsViews)
Similar was the case with another Indian eatery, ‘Mirch Masala’ that has closed its doors until further notice” due to staff shortage.
Day to day operations of both the gondola and luge photos areas of Skyline were affected during the week days in the absence of staff. As the advertised position was yet to be filled, the opportunity to get photo taken was available only on weekends.
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Café of ‘High Country Salmon’, 3km south of Twizel, was daily closing ahead of their usual closing hours. Most of cabinets were empty when a loads of visitors entered to savour their famous sushi. They had a front door sign saying “Be kind as we are short staffed and our kitchen might not be cooking ordered meals.”
It’s not just the hospitality sector that is bearing the brunt of workers’ shortage.
Continuing shortage of bus drivers has affected several Orbus routes and buses are running on a reduced timetable since July 2022. For example, service of Route 1 from Sunshine Bay to Remarkables Shops (via Airport ) has been operating half-an-hour service instead of 15 minutes.
Bus Routes 2, 3, 4 and 5 have been operating an hourly service since July this year.
Yesterday, 31st October, 16 trips of Route 1 were cancelled ‘due to driver illness.’
One driver that NewsViews spoke to just shrugged “Who wants to come and work in Queenstown on low wages when accommodation and living costs are going through the roof?”
There were more than 600 jobs on offer in Queenstown at a recruitment event organised by the Ministry of Social Development, Hospitality New Zealand, and Go With Tourism on 27 September, 2022 but only about 100 prospective employees turned up to fill the vacancies.
Hundreds of situation vacant advertisements are currently listed on various online job sites and local newspapers.
Seek, for example, has 742 jobs listed for Queenstown Lakes area and TradeMe has another 348 jobs on offer. At one time, 70% of the jobs advertised were from accommodation and hospitality sector alone.
According to JobFix findings in August, job advertisements this year were up almost four-fold.
According to Economist Benje Patterson’s estimates, people on work visas in Queenstown was down to about 1000 from pre-Covid figure of 3000.
Shortage of workers continues in this town in spite of employers paying high hourly rates – above the national average, to workers to keep businesses open.
Even those who want to be kitchen hands the starting hourly rate is $28. Domino is offering up to $36 per hour for their advertised position of a manager’s role.
On top of high wages, some businesses are trying to entice staff with options such as subsidised rent, free transport, free lunch during work hours, flexible working hours “(perfect for exploring Queenstown)”, guaranteed two days off or offering bonuses, and potential sponsorship for the right applicant, etc.
Skyline Enterprises that operate gondolas is offering “free gondola and luge rides for family and friends, free staff lunches and additional staff benefits” to their potential employees in customer service roles.
High wages erodes business margins which makes many businesses unsustainable, and over a period of time, they collapse.
Southland MP Joseph Mooney reportedly termed the government’s response to the crippling “50-year workforce shortage” as “actually cruel”.
Frustration was clearly reflected in a café owner’s response when NewsViews asked about challenges of recruiting staff.
“It is impossible to recruit any new staff for sole reason there is no one to apply. Repeatedly advertising also has not helped at all. Secondly, everyone is competing for the same employees if there are any available.”
Retention of staff is another huge challenge for employers after they succeed in finding one.
“Workers are often approached clandestinely by rival businesses by offers of higher wages. Result is workers jump ship- they who have no loyalty and their commitment is only in making the extra buck,” another eating place owner retorted.
‘Be kind as we are short staffed…” pleads one shop(Photo: NewsViews)
One reason for this critical shortage of workers particularly felt in Queenstown is lack of rental options in an already tight housing market and high cost of living.
According to Tenancy Tribunal stats, median rent for 1 bedroom apartment in Queenstown is $450pw, and $600 for 2 bedrooms.
But even at this price, hardly any houses are available. Many residents of this town have switched their rental properties to Airbnb to capitalise on the return of visitors in summer ahead.
‘Jogi’ a cab driver who also works for Uber, moved to Queenstown recently from Auckland.
When asked the reasons, he replied, “Competition was more there, but here money is good during tourist season and people are generally very nice.”
Jogi, originally from Panjab(India) acquired his permanent residency nearly eight years back. He believes the lack of accommodation is one reason for migrants not willing to move here.
“I share a room with two others so am able to manage, otherwise it was impossible to survive.”
Queenstown’s construction industry is similarly stuck in a ‘volatile labour market with difficulties attracting new workers as staff leave New Zealand or move to other towns’.
The question currently in everyone’s mind is whether Queenstown will be able to weather the storm of shortage of workers or the extension of visas of offshore working holiday makers will ease the situation in any manner. Time only will tell.
