Will Trans-Tasman bubble give a respite to the NZ economy?

3 min read | April 20, 2021 04:07 PM AEST | By Team Kalkine Media

Summary

  • The AU-NZ travel bubble news came as a respite for many families and tourist operators.
  • Jacinda Ardern had announced that trans-Tasman bubble would begin from 19 April.
  • Travel bubble could give a boost to NZ economy by $1 billion.

April 19 proved to be a happy day as the much-awaited travel bubble began between NZ and Australia. Families and tour operators who intend to begin quarantine-free travel as soon as possible are relieved by the news.

Wellington International Airport had put up huge Welcome Back hoardings, while Air New Zealand Limited (NZX:AIR) had ordered 24,000 bottles of sparkling wine to mark the day. Further, a band repeatedly played the Dave Dobbyn song, while Jetstar served Champagne in the departure lounge before the first plane had departed to Sydney.

Image: Source: Copyright © 2021 Kalkine Media Pty Ltd

Carrie Hurihanganui, Air New Zealand's Chief Operating Officer, reported that the airline had previously operated only 2 to 3 flights a day between Australia and New Zealand. On Monday, there were 30 flights with a total of 5,200 passengers on board. She went on to say that the day was historic, and that people were ecstatic.

ALSO READ: AIA, AIR Shares Move up As Quarantine-Free Trans-Tasman Travel Begins

PM Jacinda Arden had declared the opening of the trans-Tasman bubble on 19 April that would allow people to travel to either country without going through quarantine. However, Ardern cautioned about the risks that came from the travel due to fluid and changeable nature of COVID-19.

DO READ: NZ PM Ardern announces Trans-Tasman bubble. How are airlines preparing for it?

All Australian states and territories are taking part in quarantine-free travel with NZ.  

The bubble could give a $1 billion lift to NZ economy

On 19 April, Ardern stated in the Cabinet press conference that Tourism NZ predictions had revealed that the bubble could bring a $1 billion lift to the NZ economy and marked it as a significant milestone in the economic recovery of NZ.

Source: © Coki | Megapixl.com

NZ plans to follow a risk-based approach with the travel bubble. Many updates on managed isolation (MIQ) facilities will be made in the coming weeks, as more rooms become available due to the bubble. MIQ demand had peaks and troughs and would decline as the winter months progressed.

DO READ: Things you should know about quarantine-free trans-Tasman travel

She added that the government was looking at alternatives for travel bubble with other countries that have combat the virus in the Pacific. Scott Morrison, Australian PM, also stated that Australia was not in a rush to open its borders to other countries.

GOOD READ: Would Kiwi Tourism Sector Benefit From The Much Awaited AU-NZ Travel Bubble?

However, the question that persists is that the travel bubble would provide a real economic benefit for the devastated Australian and NZ tourism industries?

(NOTE: Currency is reported in NZ Dollar unless stated otherwise)


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