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New Zealand: 100 per cent Pure rip-off

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  • Davo36
    Fanatical
    • Sep 2007
    • 8450

    #1

    New Zealand: 100 per cent Pure rip-off

    I thought this was an interesting article:

    Peter Bills: New Zealand: 100 per cent Pure rip-off





    Peter Bills. Photo / Marty Melville



    Rip off New Zealand?
    Guys, just 14 months out from the 2011 Rugby World Cup, you are sleep-walking into acquiring such an unwanted reputation worldwide.
    The price of ordinary, everyday articles and living costs horrify me in this country. I've been here, admired the place, loved the people since 1975. I wasn't even put off by my first ever weekend in New Zealand - 17cm of rain in 24 hours and sitting shin-deep in water at Eden Park as the All Blacks aqua-planed past Scotland in that infamous 1975 test.
    But what I see today is of far, far greater concern. This place is becoming one of the most expensive I visit, one giant rip-off. And most of you seem unaware of it.
    It's not as if I live a hermit's life in some sweet little English village where nothing has changed since the war. I spend much time in France; have been to Rome, Venice, Paris, Dublin, London, New York, San Francisco, Augusta, Johannesburg, Cape Town and Sydney so far this year. You'd have to admit, however grudgingly, that gives me some licence to compare this country with others.
    [

    What I find here amazes me. So much so that I don't know how most ordinary folk manage to balance their budgets. True, petrol is much cheaper than in Britain. But in just about every other field, hotels, car hire, restaurant food, wine, clothes or whatever, you're the victims of massive overcharging.
    Of course, it's always difficult to compare like with like when speaking of different countries but this is an overall impression from someone from Europe.
    I sat down for a simple lunch at a restaurant on Auckland's waterfront last week. The sun was shining, the setting fabulous. A glass of splendid New Zealand sauvignon blanc was a delight - until we saw the price. $28 for two ordinary sized glasses? You don't pay that in Paris or London, unless you go somewhere like the George V in Paris or London's Ivy restaurant.
    Now let's be fair. The NZ dollar has appreciated significantly against the pound over the course of the past 12-18 months. When I last visited NZ it was $2.40 to £1. Today, it is around $2.04. But does that explain a growing number of instances where an overseas visitor felt totally ripped off?
    And there is growing evidence that it is chiefly the cities of this country who are leading this "grab what you can, make a killing" attitude towards visitors. If that is indeed the case, then it is the country areas, the less populated centres, who will suffer most.
    Take car hire. Am I the only visitor to New Zealand who has ever decided that it would be better to drive from Auckland to Wellington and stop for a couple of nights somewhere to see the North Island? It hardly struck me as a revolutionary idea, yet this set me up as a target for just about every major hire car firm in Auckland.
    Hertz demanded an outrageous $300 drop-off fee if I wanted to leave the car in Wellington. Yet isn't that what 90 per cent of visitors would do if they were touring, especially going on to the South Island? Companies such as Avis, Europcar and others were demanding only slightly smaller amounts. Some didn't even have a drop facility in Wellington.
    Only Ace Rental Cars charged for the hire, no drop off. They are based in Parnell. Go there, save yourself a fortune and snub the big rip-off merchants. Because the fact is, if you hire a car almost anywhere in Europe, there is no drop-off fee. They understand tourists want to drive from A to B and then leave their car. Why rob them for the privilege?
    Parking in one city centre carpark in Wellington this week was $9 an hour, $39 for four hours. In Monte Carlo, the first hour's parking at public carparks is, er, free.
    Then there are the hotels. This weekend in Wellington at the InterContinental, a king room costs $410. Now it is rugby test weekend and it has club facilities but even so. £205 a room? You might pay that in New York or London but not in most European capitals. And just imagine what on earth such a room will cost on the weekend of October 8/9 next year when Wellington hosts two of the Rugby World Cup quarter-finals.
    The capital city costs a fortune and it's not just an Englishman who thinks so. In the winter of 2008, in the company of several visiting South African writers, we sat down in a harbourside restaurant. When the menus arrived, we were so horrified by the prices we all got up and walked out. It was daylight robbery.
    Last week, at Kermadec in Auckland, one main lunch dish was $33. In the evening, entrees were $25, mains around $42 with desserts $18. The wines were equally expensive. In a Takapuna restaurant, also last week, a bottle of Stoneleigh pinot noir cost $48. I could take you to a dozen restaurants in Nice where you'd drink a perfectly good French wine for nothing near that amount.
    Even in glitzy Monte Carlo, at one elegant beachside restaurant, a glass of rose wine costs less than $6. And that is in one of the best locations on the Cote d'Azur. The fact is, you just don't have to spend such vast amounts as New Zealand hostelries are charging, even in outstanding restaurants across Europe.
    The cost of New Zealand wine bewilders me in restaurants. In supermarkets you can buy a good bottle of your outstanding sauvignon blanc for as little as $12.99. But dare to order it in a restaurant and it soars to anything between $40 and $60. That's a 400 per cent mark up, or more.
    Then there are clothes. One New Zealand store last week had a merino wool wrap-over cardigan for $498. In Rodd & Gunn in Queen St, wool sweaters were offered at $235. True, there was a discount which made them $180, around £90. But you'd barely pay that in Paris. No wonder the place was empty.
    In another store, a pair of New Zealand-made socks cost $35. Far cheaper in Europe and even less expensive in America. In New York in April, I bought four top-quality cotton shirts for US$99 ($130). In Wellington this week, one specialist shirt shop was offering three shirts for $300.
    Yet it isn't like this everywhere in New Zealand. I hired a room at the Boulevard Waters Motor Lodge overlooking Lake Taupo this week and stayed two nights. The setting, right on the waterfront, was spectacular, matched only by the views. $158 a night did not strike me as robbery for such a comfortable room and fantastic setting, with your own private terrace overlooking the lake.
    In Taupo for lunch, the Fusion cafe served an enormous bowl of delicious seafood chowder with two slices of focaccia. It was a meal in itself and superb quality. The cost? $10.50. Great value, and it shone like a beacon on a dark night in terms of the many examples of overcharging I've encountered on this trip.
    Does any of this matter? After all, it's only tourists who might get fleeced and they won't be back every year. And the Rugby World Cup which is being held here next year might be the last time it is hosted exclusively by New Zealand. So hey guys, grab what you can in hiked up profits, make a fortune and smile all the way to the bank. Right? No, wrong, dead wrong.
    New Zealanders will be dumb if they even think of such a philosophy. The World Cup ought to be an event that showcases the whole country to visitors from every corner of the globe. They should go home extolling the virtues of this land. Think long term, six or even 16 years of profits on the back of that scenario, not a money grab operation spanning six weeks which will persuade many visitors never to return.
    Already, the word is getting out in an international sense that New Zealand is getting expensive. The fact is, you just can't afford to allow that image to take root. You're too far away from the rest of the world to afford such a scenario. In Paris, Rome, London or New York they can get away with that purely due to population numbers in those parts of the world. It is very different here. International travellers are not fools; fewer will come if New Zealand is known as too expensive.
    Learn from the example of South Africa which has just hosted the soccer World Cup. Some locals believed they'd make such a killing.
    They spent thousands transforming facilities in their homes so they could charge visitors astronomical rental fees. Airlines elevated the cost of domestic flights to another stratosphere; hotel prices were eye-watering.
    The result? Many private South Africans didn't get any visitors at all. Some would-be landlords are now crying they are close to financial ruin.
    In case you hadn't noticed it down here, there is a major recession ravaging the Western world, especially Britain, Europe and the US. Budgets have been slashed, overseas trips heavily curtailed. The moment the word gets out internationally that New Zealand has become one big rip-off, your tourism industry is in serious trouble.
    The rush to profit might seem a Valhalla but long term it could be the ruination of not just your business but a great many others.
    * Peter Bills is an international writer for Independent News & Media.

    Source
    Last edited by donna; 18-07-2010, 01:58 PM. Reason: removed advertisement
    Squadly dinky do!
  • lissie
    Addicted
    • Dec 2003
    • 606

    #2
    I think he should try Australian prices - in Perth you can pay A$15 for a BEER LOL. I know the exchange rate is in our favour but I would like to find out where you can pay $6 for a glass of wine in central London - when I lived there there was a huge differential between tourist area prices and "normal" prices - what he describes sounds similar. Why would I pay that price for the Inter continental when the Quest around the corner (literally) is usually below $150? Rod and Gun - does someone actually shop there? Nowhere I know - I am in the market for a good quality merino jumper at the moment - around $220 in Dwights Wgtn if you want one. Not cheap - but my last one is over 10 years old so I think a reasonable price
    Lis:

    Helping NZ authors get their books published

    Comment

    • essence
      Fanatical
      • May 2004
      • 3578

      #3
      Slightly off topic but Lissie, if you want a good merino jacket/jersey, take a drive to Otaki (probably an hour for you??).

      There are Bendon, Pumpkin Patch, Kumfs, Icebreaker, Kia Kaha, and Kathmandu outlet shops. Also Hunting & Fishing which is having a great sale (or was?).

      Obviously being outlet shops, one can't always get the right size/style/colour but when you do, you can literally save hundreds $'s on one item.

      I know Icebreaker had a sale on last week.

      There's also a Kathmandu outlet shop near The Warehouse Lyall Bay or I believe there's one in Petone (?), if that's closer.

      If you've got the money, a trip to Otaki is well worth the time/effort.

      Come to think of it, isn't it still the school holidays?? Sales may still be on up there.
      Patience is a virtue.

      Comment

      • drelly
        Fanatical
        • Jan 2004
        • 5838

        #4
        I thought this was a rubbish "nothing" article of selected extremes. You can go anywhere and pay far more than you need to.

        Glass of wine - normally around $8 not $14
        Hertz have always charged far more than a cheaper alternative
        Hotels rooms at full retail are always double what you need to pay (Wotif!)
        Wine in restaurants here is normally around double full retail (not supermarket sub-cost price) but in the UK it's 4-5x normal retail.
        Who the hell pays $35 for socks?
        You can find me at: Energise Web Design

        Comment

        • Keithw
          Fanatical
          • Oct 2008
          • 1410

          #5
          Clearly he hadn't found the $2 shop, or the Wharehouse,
          nor visited the local food halls as opposed to high end restaurants
          selective extremes as you say

          That's not to say that things arent too expensive here, cos they are.
          But how we ever transform this low wage economy without prices increasing, I dont know.

          Price gouging is about supply & demand, works the same in any market, & with tourists, in certain locations / activities it is a captive market- i experienced exactly the same in Europe recently.
          Go where the locals go & you find the competitive prices.
          Go to the tourist spots & gaming is rife - whatever the country
          Last edited by Keithw; 16-07-2010, 12:02 PM.
          Food.Gems.ILS

          Comment

          • NovInvestor
            Addicted
            • Jul 2010
            • 983

            #6
            Yeah where has this dude been? All fancy restaurants and expensive shops, no wonder he feels rip-off!

            Juicy rentals is by far the cheapest, and can be done online, I guess this guy didn't google car rental huh...

            And merino stuff, yeah they are expensive, so what does he expect?

            Restaurant prices? try somewhere cheaper, like chinese/thai/japanese food

            Comment

            • Davo36
              Fanatical
              • Sep 2007
              • 8450

              #7
              Yeah I thought it was interesting but I don't necessarily agree with him.

              I think there are expensive places in NZ (try buying a beer at Auckland's Viaduct) but there are plenty of reasonably priced places too.

              However, perception is reality. If NZ gets a reputation as an expensive place to go then that could hurt tourism I guess.
              Squadly dinky do!

              Comment

              • Realist
                Addicted
                • Jun 2010
                • 758

                #8
                Yes, perception is reality.

                He makes Europeans look like a whingeing bunch of anti-capitalists!

                Comment

                • graemeh
                  Addicted
                  • Sep 2003
                  • 921

                  #9
                  He's a whingeing pom. Just picking the extremes to make a story.

                  Comment

                  • One
                    Fanatical
                    • Sep 2007
                    • 1255

                    #10
                    OK, so why are the extremes that extreme? Are they better quality or just ripping people off? Me, I don't think it's ok if places in tourist areas rip people off.

                    I care about NZ becoming rich and I'm a bit worried about what price hikes might do to our reputation during the RWC.

                    Comment

                    • Realist
                      Addicted
                      • Jun 2010
                      • 758

                      #11
                      If they are charging too much, they have their supply-demand curve all wrong so won't stay in business long anyway - I wouldn't worry about it too much.

                      Comment

                      • Shalodge
                        Addicted
                        • Mar 2008
                        • 934

                        #12
                        Supply and demand curve?? There's the price people pay because they are there and committed (but wont come back) and there's the price people pay because they were happy and came back.

                        This is a monoply situation .. we are holding the only world rugby cup next year and if you visit you have got to eat and sleep somewhere!

                        That article makes some good points...Taxpayers are underwriting the world cup and are expected a wider spinoff that benefits everyone not just the hospitality industry. That wont happen if greedy operators milk the occasion without a thought for the future.

                        Comment

                        • Realist
                          Addicted
                          • Jun 2010
                          • 758

                          #13
                          Let the consumers decide, there's nothing to stop them walking out, if they have money to save face - then it can't be that bad...it is not a monopoly situation, they can always go down the road and buy Macca's if they're that poor. Hotels etc that charge too much will just lower their rents when they get the message that no one is reserving, that is how capitalism works my friend.

                          Comment

                          • eri
                            Fanatical
                            • Sep 2008
                            • 7621

                            #14
                            i had always avoided macdonalds when on tour as a way of supporting local eateries

                            then once at a famous tourist spot i order chicken and chips and got wet soggy fries and chicken that had been so long under the heat lamp is was waaaay past it's throw out date

                            i wished i had instead bought the "known quantity" from the maccas next door

                            the fact that i would never buy from the local shop in the tourist trap didn't worry them at all as i and most other customers that day would never visit the area again

                            leaving it to market forces does not work in many situations
                            have you defeated them?
                            your demons

                            Comment

                            • Realist
                              Addicted
                              • Jun 2010
                              • 758

                              #15
                              The great thing about NZ is we have tightly regulated food standards

                              Market forces work, but you know...it takes a while for crap businesses to vaporise their equity, use up all available lines of credit etc..

                              You should've got your money back, (never return it )

                              Comment

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