However, the economic support package announced alongside it is providing a glimmer of hope.
Finance Minister Grant Robertson yesterday announced alongside a Level 4 lockdown, in which all non-essential businesses must close, the Government would almost double how much it spent on its wage subsidy scheme, from $5.1billion to $9.3billion, and had opened it up to all companies in New Zealand.
Rent increases will be frozen and the Government has hinted at "significant measures" to help mortgage holders as the economic impacts of the Covid-19 outbreak continue to worsen.
- What you need to know
- Essential services that can stay open
- Reassurance from southern councils
- Lockdown creates new tourist trap
Queenstown Chamber of Commerce CEO Anna Mickell said the lockdown would be "completely and utterly devastating" for many businesses.
"For some businesses it will be the end — people are scrambling," she said.
Of particular concern were migrant workers, who faced an uncertain future.
"We’re really concerned — in Queenstown we are desperately looking for feedback from the Government in regards to our migrant communities."
Her advice for businesses was to think for some time before they made decisions.
"Sit down, take some deep breaths, don’t rush too fast, take a day or two.
"There’s still a lot of information missing at the moment, so get that before you make any rash decisions."
Destination Fiordland manager Madeleine Peacock said the announcement was a "death blow" to any current tourism activity.
"But it is absolutely necessary to ensure that as a country we can survive and in time go on to thrive.
"Now is not a time for planning beyond the next month, but rather to look after ourselves and each other."
There would be a time for tourism again.
"People by nature are travellers, explorers and adventurers, and New Zealand, and particularly Fiordland, is a dream destination."
Great South chief executive Graham Budd said people were in the Government’s hands — "my advice is follow their directives and do the right thing".
"Further support was offered today by the Government, so take time to see what you are eligible for.
"We will continue to provide support to businesses as they navigate this time."
Lake Wanaka Tourism general manager James Helmore said the agency would be contacting businesses to see what help they needed and what it could do to advocate for them.
"We have been trying to distil down information so we can circulate it and make right decisions about what is best for them given the high degree of uncertainty."
Otago Southland Employers Association (OSEA) chief executive Virginia Nicholls said the support package offered by the Government was positive, and would be welcomed by businesses, but the association was looking forward to receiving more detail.
"We are pleased to see more clarification, with the inclusion of self-employed, registered charities, non-government organisations, incorporated societies and post-settlement governance entities.
"The temporary support for mortgage holders and a business finance guarantee scheme will be welcomed.
"Many small business owners are backed by mortgages on the family home to support their business.
"We are awaiting more details in the next couple of days."
Businesses seeking assistance should visit the Ministry of Social Development website or phone OSEA lawyers for further clarification, she said.
Otago Chamber of Commerce chief executive Dougal McGowan said it had been hoped it would not come to a nationwide lockdown, but it was essential.
"We’re still working on the details of what this means for business and this will get clearer as the weeks go on.
"It was great to see an extension made so larger businesses could be well looked after. We’re still looking at what it means for small and medium businesses."
Eighty-four businesses had contacted the chamber in a 24-hour period, and he encouraged businesses to continue to do so.
"It’s rent and food and income on the line — people’s livelihoods are at risk."
Clutha Licensing Trust general manager Mike Curtis said yesterday the trust would follow Government guidelines in response to the alert level change.
The trust ran five hotels, restaurants and bottle stores, and a separate Liquorland store in Balclutha employed about 90 staff, he said.
"Our bottle stores have been inundated with customers today, and will close end of trade Wednesday.
"We made the decision to close all our other facilities this evening, but we will pay staff for a full week this week.
"Thereafter they will receive 80% of wages supported by the Government subsidy, and have the option of topping that up with annual leave.
"We value our staff and want to retain them for the resumption of normal service as we leave the current shutdown."
The facts
What it means for businesses
- All non-essential businesses must close, such as pools, bars, cafes and restaurants.
- By tomorrow, all businesses which provide takeaway services must close their doors.
- All indoor and outdoor events cannot proceed.
- People must work from home so contact with others is limited.
Government support package
- All rent increases will be frozen.
- An increase in the wage subsidy scheme, from $5.1billion to $9.3billion.
- The package is extended to all businesses, and the $150,000 cap on support has been removed.
- Now includes self-employed, registered charities, non-government organisations, incorporated societies and post-settlement governance entities.
- Also includes businesses which are less than a year old along with high- growth firms.
- Wage support scheme has been capped at 12 weeks.
- Significant temporary support for mortgage holders agreed on, and a business finance guarantee scheme for those affected.
- Cabinet sought to extend no-cause terminations.
— Reporting by Emma Perry, Laura Smith, Kerrie Waterworth and Richard Davison
