3 Jun 2020

South Island hotels sacking staff and going into liquidation

From Morning Report, 6:51 am on 3 June 2020

Hotels in the South Island are sacking staff and going into liquidation as a lack of business takes its toll.

The Methven Resort Hotel, first opened in the Canterbury region in 1985, was placed into the control of liquidators on Friday.

Yesterday, the Milford Sound gateway of Te Anau was hit by news that about 60 jobs are being cut at two hotels in the town.

A staff member who wants to remain anonymous told RNZ that the job losses were announced on 14 May and will affect Distinction Te Anau and the Distinction Luxmore.

The chain's owner Geoffrey Thomson declined to comment.

Southland District councillor Ebel Kremer, who lives in Te Anau, told reporter Anan Zaki that most of the town's income comes from overseas.