WEBVTT - Quick bite: Are we pricing tourists out of NZ?

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<v Speaker 1>You're listening to a share of these podcast a couple

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<v Speaker 1>of years back, I think when you had the capital

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<v Speaker 1>rays that sort of set yourselves up for all of this.

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<v Speaker 1>Twenty twenty two, you were talking about being app at

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<v Speaker 1>about ninety percent of COVID levels. By now, yes, it's

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<v Speaker 1>right nowhere, nowhere near it.

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<v Speaker 2>I think we're at about eighty eight of pre COVID

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<v Speaker 2>levels eighty seven, but at huge cost. All these rented

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<v Speaker 2>Triple sevens, all these rented engines, a whole bunch of

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<v Speaker 2>new aircraft that we're paying for in terms of depreciation

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<v Speaker 2>and invested capital that aren't doing anything. And so while

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<v Speaker 2>we're close to that level of flying, it's coming at

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<v Speaker 2>a significant cost burden that what we didn't anticipate.

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<v Speaker 1>Be nice to get some tourists too, it would something

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<v Speaker 1>like what I think I read fifty percent or fifty

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<v Speaker 1>five percent levels coming out of China compared with pre

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<v Speaker 1>COVID levels. Obviously that's an industry wide problem, but it's

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<v Speaker 1>it's it's another one of those levers that any Zeland's

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<v Speaker 1>already always been quite keen to so pull and support

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<v Speaker 1>what's going on there.

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<v Speaker 2>At a total country level, I think we're at eighty

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<v Speaker 2>seven eighty eight percent of where we were visitor arrivals

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<v Speaker 2>pre COVID. But within that number, averages are deceiving. So

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<v Speaker 2>within that number, actually the US is ahead of where

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<v Speaker 2>it was pre COVID. It's the exchange rate of US

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<v Speaker 2>tourists coming to New Zealand now. Actually the exchange rates

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<v Speaker 2>amazing for all the reasons why it's tough for a

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<v Speaker 2>key to travel to US at the US at the moment,

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<v Speaker 2>so US is sitting actually well above where we were

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<v Speaker 2>pre COVID. Australia just behind. I think they might be

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<v Speaker 2>ninety two ninety three percent of where they were, but

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<v Speaker 2>they're strong to demand out of Australia. So it's one

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<v Speaker 2>of our best performing markets, as you say or allude

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<v Speaker 2>to the big gap at the moments out of China market.

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<v Speaker 2>So we are I think half all very close to

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<v Speaker 2>half of where we were before.

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<v Speaker 1>I think I've read somewhere it's like over five hundred

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<v Speaker 1>dollars for someone to come here before they've even bought

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<v Speaker 1>the ticket. Right, there's a huge visa cost, and then

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<v Speaker 1>you've got that extra visa levy that's been put on

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<v Speaker 1>for tourism and conservation purposes and instead of pricing ourselves

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<v Speaker 1>out of the.

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<v Speaker 2>I don't think it helps, So I'm not for sure

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<v Speaker 2>it's five hundred dollars, it's four forty one I think

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<v Speaker 2>for the visa.

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<v Speaker 1>And then the hondy on top and then on top.

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<v Speaker 2>So it is expensive us in our Singapore office a

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<v Speaker 2>couple of weeks ago talking to the team up there,

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<v Speaker 2>and there's no doubt it's a friction point compared to

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<v Speaker 2>other countries who have got much lower sort of costs

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<v Speaker 2>of entry. And I think one of the tough things

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<v Speaker 2>with the visa is that it's it's a levy that's

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<v Speaker 2>imposed at the time people are making decisions about where

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<v Speaker 2>they're traveling. It's not like they've arrived in country can't

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<v Speaker 2>do anything commitive, you know. So there's no doubt in

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<v Speaker 2>my mind that it is influencing where people choose to travel.

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<v Speaker 2>We are have become a much higher cost destination than

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<v Speaker 2>we were in the past, still very desirable and we're

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<v Speaker 2>still getting good and bound tourism, but that is a

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<v Speaker 2>friction point.

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<v Speaker 1>I think, how on earth do you sort of keep

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<v Speaker 1>turning up with a smile on your face then when

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<v Speaker 1>it feels this challenge, I mean, you know, Any aircraft

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<v Speaker 1>that sets out without knowing when it's going to land,

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<v Speaker 1>where it's going to land is in some real trouble.

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<v Speaker 2>Where an airline that's been around for eighty five years,

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<v Speaker 2>there's a huge amount of pride in the airline. It

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<v Speaker 2>is an amazing place to work. We've got a lot

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<v Speaker 2>of people on the staff who have been with the

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<v Speaker 2>company for twenty years, like me thirty forty. A lot

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<v Speaker 2>of people on the staff have seen the various ups

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<v Speaker 2>and downs through the years. People are philosophical. I think

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<v Speaker 2>about where we're at in the cycle. We have a

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<v Speaker 2>good plan going forward, great fleet plan, great product, you know,

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<v Speaker 2>the wide body fleet at the moment, it's just starting now.

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<v Speaker 2>We fly the flag offshore lots of different countries, so

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<v Speaker 2>where one of the country's biggest cheerleaders, and people just

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<v Speaker 2>get a thrill out of that. And it doesn't seem

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<v Speaker 2>no matter how tough the situation is. People we just

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<v Speaker 2>get that fulfillment and pride out of representing the country

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<v Speaker 2>as well as we can, and that's what gets people

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<v Speaker 2>or keeps people going. Investing involves the risk you might

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<v Speaker 2>lose the money you start with. We recommend talking to

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<v Speaker 2>a licensed financial advisor We also recommend reading product disclosure

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<v Speaker 2>documents before deciding to invest.