Queenstown Lakes shoulder season profits down a third for 2024

Queenstown Lakes businesses are feeling the loss of Australian tourists with Chamber of Commerce data showing net profit down 30 percent over the past three months.

Findings from a Queenstown Chamber of Commerce survey released today, show half of the 95 operators surveyed say lack of customers was the biggest deterrent to business growth.

Rising costs are also continuing to squeeze profits, the chamber report says.

However, Queenstown Chamber of Commerce chief executive Sharon Fifield reckons there is light at the end of the tunnel as inflation is going down.

Released yesterday, the Consumer Price Index had inflation at 3.3 percent for the year to July 2024; a 3-year low. 

Finance Minister Nicola Willis yesterday, said that showed the government was turning the economy around. 

"Treasury’s Budget forecasts show an improving outlook for the latter part of this year, with inflation pulling back, interest rates dropping and growth recovering."

Ms Fifield says as soon as the numbers look better, people will feel a little more confident to start spending again.

"It's not surprising customers aren't parting with their hard-earned cash, times are tough at the moment... especially for our key markets of Auckland and Australia."

Whilst she says it has been one of the toughest shoulder seasons, Ms Fifield was not aware of any businesses expected to stop trading.

On the flip side, worker accommodation availability was less of an issue for hiring staff than it was this time last year, more employees are looking for work, and 50 percent of businesses with employees expect wages to rise over the next three months.

As the times are tough, Ms Fified tells businesses to "keep positive".