Kiwi B&Bs waiting to be paid

Kiwi B&Bs waiting to be paid

A number of New Zealand-based bed and breakfast operators say they are still waiting to be paid by overseas agents (including inbound tour operators and wholesale travel companies), despite accommodating their clients months ago. The Bed & Breakfast Association New Zealand (BBANZ) says Covid-19 has disrupted payments to operators resulting in many overdue debts.

‘Thousands of dollars are outstanding,’ says Donna Brooke, vice president of BBANZ. ‘Covid-19, accounts payable staff shortages and traveller cancellations are the rationale given by some large multinational companies for non-payment. That is non payment for services already provided and services that have already been paid for by the traveller prior to their stay.’

The association says it was a busy summer in New Zealand. ‘Tourism, and most of New Zealand, has reaped the rewards. It’s now autumn and the lack of reassurance from those owing money indicating when, or if, payments can be expected is extremely concerning. The non-payment of overdue invoices has marginalised small businesses, putting many in great financial hardship and a risk of closure. It is unacceptable that some agents have been paid for services provided and are not passing the payment on to the operators who have incurred expenses and have met their contract obligations.

 

 

ProMag