Cold shoulder for businesses

Autumn proved a difficult season for Queenstown Lakes businesses with some reporting a 30% drop in profits.

The shoulder season has returned with a vengeance according to the results of the Queenstown Business Chamber of Commerce latest quarterly business confidence survey.

Roughly half of the businesses surveyed said over the three months April to June, demand was the biggest factor limiting growth. With tourism numbers down and locals not spending as much as they have in recent years, as the cost of living continues to bite, there were just not enough customers.

"There were no surprises in the survey results, it's what we've all been hearing, business has been tough and it was one of the toughest shoulder seasons in a while," Chamber boss Sharon Fifield says.

Real activity was down 27% and the input costs were up 68% over the last three months.

"Rising costs continue to squeeze any profits, so it's been hard."

 

Fifield says 53% of the 95 businesses who responded to the survey, sent out on 14 June, were Queenstown-based, and downtown business have been hurting the most.

"Access to the CBD plays a big part in that as well. It's difficult to find a park, the traffic is a problem and there are all these terrible roadworks. People are just a bit fed up with it all.

"Once some of the road cones go, that will help, and then we need more, and cheaper parking. We've been pushing the council to really speed up getting parking on the former Queenstown Arts Centre site [off Stanley St], now the old school building has gone out to Country Lane."

She also believes council should soften its approach to ticketing people for minor infringements.

"Council's argument is it helps the flow but there simply aren't enough parks. It really is a problem. We need to locals to fall in love with downtown again, because when they do come in, they have a great experience. So come on council, look after the locals."

Around 20% of businesses reported that finding staff was still a major factor limiting growth, but worker accommodation availability pressures easing in comparison to same time last year

Winter has improved the mood a little, although it appears to have been quieter than previous years, and another snow dump is needed to get the bookings flowing.

And with inflation dropping to 3.3% for the June quarter and banks beginning to drop interest rates, there is some good news.

"There will be a bit of a lag because people will be on fixed interest rates, so it will be a while before they see any benefit. But even just knowing that they're going in the right direction gives customers a lot more confidence in spending."