With 30% feeling pressure from rental prices and almost a quarter (23%) saying their mortgage is creating pressure on their budget, a further cut in the Official Cash Rate (OCR) is unlikely last week brings significant additional spending in the country. as Christmas approaches.

MYOB data also showed Northland is the third-largest holiday destination for Kiwis’ domestic travel this summer.

Among those surveyed in the Northland, the estimated average spending on food and drink for the holiday season is $541, and the budget for gifts is $223 on average.

The Far North Business Association is cautiously optimistic about the summer and festive season and its president, Josh Kirby, said it hoped the reduction in interest rates and the reopening of State Highway 1 above Mangamuka Gorge could benefit various industries.

“For example, a reduction could influence the decision to travel north this summer, potentially increasing visitor numbers to Te Hiku, which would be great for accommodation providers, hospitality, retailers and tourism operators. “

He added that the reopening of the Mangamuka Gorge later this month also made the decision to head north much easier.

“We are aware that our main road into town has been closed for over two years and will soon be reopened on December 20, just in time for Christmas. Our business community is therefore busy preparing to welcome additional visitors.

He echoed comments from North Chamber CEO Leah McKerrow on the importance of buying local, saying: “The community has been very supportive of local businesses, choosing to spend locally whenever they can. The community responds well to late night shopping events, local market stalls, and various fun events in the area. Additionally, with more frequent events planned in our public square, we anticipate positive summer trade in Kaitāia.

McKerrow said for many businesses the business environment was very challenging, particularly for the retail and hospitality sector, while encouraging residents to shop locally.

“I really encourage people in Northland to support local shops, restaurants, cafes, tourism operators and entertainment venues as much as possible, as much as they can spend over the Christmas and summer period. Their vitality is essential to our Te Tai Tokerau community. Our local business associations work hard to attract people to their business districts with community-oriented events and decorations to encourage visitors and, therefore, spending.

She said they expect it will still be some time before lower interest rates are reflected in consumer spending.

“Most households have fixed-term mortgages, so I think it will be well after Christmas before we see a material impact. And falling interest rates don’t have a significant impact on those without a mortgage. Job losses have obviously increased, and the fear of further downsizing and business closures remains… but also remember that Christmas is about people and not about the stress that might affect them during of the new year.”

Far North resident Alesha Norman said the current economic situation would allow her and her whanau to have an easier Christmas.

“For our whanau, it’s about spending time together, that’s what matters most. We party with Whanau, have kai together and keep things simple.

“It’s about remembering where Christmas comes from and what it’s really about.”

Yolisa Tswanya is deputy news director at the Northern Advocate based in Whangarei.