Eruptions cost $10m, so far

Ruapehu Bulletin, Volume 14, Issue 644, 9 July 1996, Page 1

Eruptions cost $10m, so far

The eruptions of 1995 and 1996 cost the local economy, excluding the ski areas, a total of $ 10.3m according to a survey by the Ruapehu District Council marketing unit. Flowing from that, employment was also hit hard. The figures are estimates from a selection of questions of a survey undertaken by the marketing unit to indicate the economic impact of the Mount Ruapehu eruptions in 1995 and 1996. Marketing manager Bruce Rollinson said businesses were asked to complete a questionnaire

relating to the two eruptions and how it impacted on their operations. The response rate to the survey is considered significant enough to provide a "best estimate" of the impact on the local economy. The 1 995 figures reflect the periods (25 September 1995 — mid-November 1995). The 1996 figures represent an estimation from operators after the June 1996 eruption as to the likely outeome for 1996, based on the information they had as at 28 June 1996. These estimates relate to the accommodation,

tourism acti vity and retail businesses in the Ruapehu District (Waiouru, Raetihi, National Park, Whakapapa V illage, T aumarunui , Ohakune) . They don't include the losses that the ski areas suffered. The estimated loss of business turnover because of the 1995 eruption was $6,292,000, while the reduction in permanent staff because of the eruption was 235. Thanks to the 1996 eruption, the estimated loss of business turnover is $3,990,500. The number of employees businesses delayed taking on because

of the eruption is estimated at 372 The annual visitor spend in the Ruapehu District for the period 1 2 months prior to the 1995 eruption was $29,500,000, said Mr Rollinson. Ruapehu Alpine Lifts general manager Dave Mazey said at a recent meeting that the eruptions impacted more in financial terms on the off-moun-tain commercial activity than the ski fields. This was because while the ski areas could claim on their loss of profits insurance, off-mountain operators were not generally covered by insurance.