Latest / Best of Business / Kristy Phillips: Hospitality NZ CEO on the number of businesses closing their doors over the last year

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Kristy Phillips: Hospitality NZ CEO on the number of businesses closing their doors over the last year · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks be follow
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  Speaker 2: All Right, things are looking a little grim in the
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  Speaker 2: hospitality sector. We've just had another bar in Ponsib closed.
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  Speaker 2: This is a bar that famously refuse pink entry into
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  Speaker 2: their bar anyway, has been revealed now the company failures
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  Speaker 2: in the hospitality sector have jumped forty nine percent in
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  Speaker 2: just a year. Of course, the cost of living means
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  Speaker 2: going out for dinner has gone from a weekly activity
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  Speaker 2: to a monthly one or even further maybe, but other
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  Speaker 2: factors are at play. Chief Executive of Hospitality New Zealand
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  Speaker 2: Christy Phillips joins us afternoon to here Christy crew, is
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  Speaker 2: it all down to the cost of living crisis?
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  Speaker 3: Well, the latest impact on hospitality is cost of living
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  Speaker 3: in the fuel crisis. There have been compounding impacts on
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  Speaker 3: the sector over several years. Liquidations now can be the
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  Speaker 3: result of years of hanging on and just try and
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  Speaker 3: wait for those trading conditions to improve.
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  Speaker 2: I noticed that our idea is actually, as some of
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  Speaker 2: the is the entity that is closing down the most
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  Speaker 2: of the hospitality businesses. That is because the hospitality businesses
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  Speaker 2: actually stop playing tax as their last resort, isn't it.
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  Speaker 3: Oh, look, this is the long tail of those COVID
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  Speaker 3: impacts that we've highlighted previously. Many in the sector have
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  Speaker 3: just never had the opportunity to rebuild their finances and
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  Speaker 3: their reserves properly before the next impact has arrived.
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  Speaker 2: What areas are being hit the hardest.
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  Speaker 3: Oh, performance around the country. I think we can really
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  Speaker 3: say it's just a mixed bag. There's some regions that
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  Speaker 3: are doing well, some suburbs that are doing better than others.
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  Speaker 3: While there's been some high profile closures, there's also been
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  Speaker 3: used going reasonably well and potentially opening, and has been
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  Speaker 3: news that have closed. It's just such an uneven picture.
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  Speaker 2: And can we turn this downward trend around? Oh?
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  Speaker 3: Absolutely. I mean, if there's a challenge still out there
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  Speaker 3: with that cost of living and hospitality, businesses are seeing
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  Speaker 3: their costs increasing faster than ever. But you know, we're
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  Speaker 3: looking to the government for some targeted measures really support
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  Speaker 3: that sociability and the viability of the venues, such as
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  Speaker 3: lying the excise text on kidber. Really we're just aiming
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  Speaker 3: for some pragmatic solutions that give the sector and the
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  Speaker 3: public some confidence.
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  Speaker 2: Christy Phillips, I thank you for your turn today, Chief
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  Speaker 2: Executive of Hospitality New Zealand.
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