Coronavirus: Luge and gondola company under pressure from lack of Chinese visitors

New Zealand luge and gondola company Skyline Enterprises is feeling the effects from the lack of Chinese visitors here and in Asia due to the coronavirus outbreak.

Chief executive Geoff McDonald said business in South Korea and Singapore was most affected due to their proximity to China.

Queenstown and Rotorua operations were also feeling the impact due to the China travel ban, but not to the same extent, McDonald said.

The World Health Organisation says Korea has 4812 confirmed coronavirus cases and 28 deaths from the virus.

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However, the Asian operations were still running and there was a sense that after a reduced numbers of visitors, the drop off was beginning to plateau, he said.

"We've been able to continue to operate albeit it's more of a domestic market for us, we're not seeing the same levels of visitation. The locals are just not moving around so much."

McDonald would not quantify the drop in visitor numbers or the financial impact but said the company was focussing on attracting more domestic business through a summer marketing campaign in Korea and Singapore.

McDonald said those markets were likely to be the quickest to recover due to their proximity to China.

Business in New Zealand was ticking over.

"Like everyone else we've lost some of that Chinese business but things are not disastrous for us by any means in both Rotorua and Queenstown," he said.

Other tourism businesses were feeling the pinch too.

Destination Rotorua said a number of businesses had reported cancellations and postponements in recent weeks.

"We don't know yet what the full consequences will be," chief executive Michelle Templar said.

A range of businesses connected to tourism and hospitality were also being affected, including food suppliers, dry cleaners, retail and petrol stations, Templar said.

"Any long term reduction in visitors is felt strongly in Rotorua because of the role that tourism plays in our local economy. It accounts for 14 per cent of our GDP compared with an average of 5 per cent in the rest of New Zealand, and the industry employs 23 per cent of the local population," she said.

Chinese tourism operators in New Zealand were experiencing severe knock on effects from the travel ban, a recent survey showed. As many as 83 per cent reported their current cash flow was sustainable for only three months.

Respondents said tax relief and subsidies for rent and interest payments would help them to survive.

Tourism New Zealand last week announced a $10 million funding package from the Government, to be added to an existing $3m already earmarked for the sector to help alleviate some of the pressure.

In addition, the Government announced $1m package to encourage domestic tourism for areas most affected.

Hotels that were not as severely affected by the absence of Chinese tourists were were taking a wait and see approach.

A Queenstown motel owner who would not be named said they were coping.

"As long as it doesn't stop the rest of the world from travelling [we'll be ok]. But it looks like it could now,"

Travel company Southern World, which operates in New Zealand, Australia and Fiji reported that a "decent" number of bookings had been cancelled, especially to Australia. Director Tim Reid said many of those bookings were cancelled on Tuesday and Wednesday.

Some cancellations were as a result of doctors advising older travellers not to fly for a two weeks but generally people were worried about becoming stranded if they travelled, Reid said.

Business would pick up quickly once the headlines subsided, he said.

That was also the experience after the Chrischurch earthquakes and similar major events, Reid said.