Waitomo Job cuts: 'If the caves go, we all go'

The iconic Waitomo Caves attraction will be the hardest hit by Covid-19 job losses proposed by Tourism Holdings.

And residents fear the fallout on surrounding businesses will be devastating.

Tourism Holdings Ltd told the New Zealand stock exchange on Tuesday that it was consulting staff over 140 job losses from its Waitomo Caves, Kiwi Experience and group support operations.

THL chief executive Grant Webster​ confirmed more than half its Discover Waitomo team, including those at the Glowworm Caves, Blackwater Rafting, Waitomo Homestead restaurant, Ruakuri and Aranui Cave tours, would lose their jobs.

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He did not want to confirm the exact number of jobs going.

"We want to work with our local hapū and other partners to see what else we can do, and we have selection criteria to work through."

Pre-coronavirus, about 90 per cent of Waitomo area's 650,000 annual visitors were international tourists.

Social distancing rules had halted black water rafting trips and cave tour groups had to be reduced from 50 people to just 10.

In Waitomo village, The General Store co-owner Kim Davis​ said all their businesses relied on the Waitomo Caves to survive.

The general store, another restaurant and pub, the i-SITE, the Top 10 Holiday park across the road all existed because of the caves, Davis said.

"Tourism is the only reason we are here - if the caves weren't here why would anybody come here?"

Most of those employed at the caves were local, Davis said.

"It's such a tight-knit area King Country, talk to anyone here and they've either worked for the caves or the meatworks at some point."

Waitomo i-SITE manager Sharon Church​ agreed.

"This is going to affect everybody.

The i-SITE was a busy hub with a museum attached, and in summer there were queues out the door, Church said.

Covid-19 might affect their own business with restructures, she said. 

Discover Waitomo Commercial Manager Christine Mans​ said having to cut jobs was a "tragedy"

"For a lot of those people this is their lifeblood, this is the hapū [Ruapuha Uekaha​]and DOC's cave."

Glowworm cave guides, blackwater rafting guides, as well as Homestead catering staff were affected, she said through tears.

"I feel very deeply for the people affected by this, and I know them all."

Mans was "absolutely hopeful" this would be the last round of job cuts, but it all came down to demand.

Travel restrictions provided domestic tourists with "a once in a lifetime opportunity" to view the caves with smaller groups. 

Waitomo District Mayor John Robertson​ said he saw job cuts coming.

"This is the devastating impact of Covid-19 on the tourism market." 

The cuts would "really hurt" people all over the region, including at Waitomo Village, and in Te Kūiti.

"This is right at home in our community," Robertson said. 

He hoped jobs lost from Waitomo caves could be diverted to the Department of Conservation, since they were given about $1.1 billion for job recovery in the budget. 

DOC owns about 40 per cent of land in Waitomo, Robertson said.

People working in Waitomo Caves would suit DOC jobs because they love the environment and are fit, Robertson said.

Webster said the decision to cut jobs was "horrendous".

He also hoped DOC could employ staff displaced from the company.

He hoped all Discover Waitomo tours would begin again once more restrictions eased.  Also the company had recently brought in discounted rates for domestic tourists.

The Covid-19 restrictions had a major impact on THL's global business, with 100 staff already laid off in the US.

Wage subsidies in New Zealand and Australia had delayed the need to down size until now, and THL would ramp up operations as demand increased. 

THL launched a campaign on Monday to "get New Zealand moving" by offering discounted rates on campervan rentals.

The demand for campervans exceeded expectations and helped save jobs in that area of the business.

New Zealand and Australia's response to Covid-19 had been well-received which could lead to a swift recovery for the backpacker market. 

"If you talk to large travel agents that promote that kind of travel in the UK and Europe, they are very upbeat about the opportunities when borders reopen."

THL has operations in Australia, the United Kingdom, United States and Australia and last year reported a profit after tax of $29.8 million, a 52 per cent drop from 2018.