“STATE OF DESPAIR”

Press, Volume XCVIII, Issue 28869, 14 April 1959, Page 17

“STATE OF DESPAIR”

N.Z. Hotel Industry (New Zealand Press Association) AUCKLAND. April 13. The hotel industry in New Zealand was in a state of despair, the general manager of Dominion Breweries, Ltd. (Mr C. F. Coutts) said at a meeting of the Auckland branch of the New Zealand Travel and Holidays Associations. Unless the industry got some assistance soon the position would be chaotic in three months, he said. Mr Coutts, the licensed trade representative on the branch, said he doubted whether any hotel was making any sort of profit and some had suffered substantial losses.

Some hotels were considering closing and others wanted to close temporarily under section 7 of the Licensing Act, 1917, which meant that the licence could be suspended until a more favourable time.

Mr Coutts said that some hotels wanted to change their premises into shops and offices.

Since the Budget there had been a 15 per cent, to 20 per cent, drop in the demand for accommodation. This was because of the reduction in purchasing power and with the import restrictions there had been less travelling by salesmen and businessmen, he said.

“There seems to be an attempt to impose prohibition in spite of the national vote for continuance,” said Mr Coutts. “This is being achieved to a greater degree today than before by taxing the industry out of business.”

Mr Coutts’s remarks were made as a preliminary to a report on the hotel trade in Auckland which he is preparing for the branch.