Tourism New Zealand’s proposed cancellation of Auckland-based ANZ Sky Tours status as an accredited inbound tour operator for Chinese tourists was quashed by the High Court. Cancellation was a disproportionate response to a commercial dispute between Sky Tours and mainland Chinese travel agent Shanghai Donghu International Travel, Justice Cull ruled.
Donghu complained to Tourism NZ about Sky Tours performance on a nine-day tour commencing early March 2017. Donghu’s allegations that Sky Tours ‘abandoned’ customers and ‘left them without accommodation’ was described by Justice Cull as extravagant language; the incidents complained of had to be viewed in context.
The High Court was told the tour did not start well on day one; alternative accommodation had to be found when the scheduled Greymouth hotel did not have rooms available. During a scheduled stopover in Arrowtown on day two, the tour leader went ahead on the tour bus to check accommodation for the next three nights in Queenstown. The tour bus returned several hours later to pick up the tour party. Donghu complained Sky Tours had ‘abandoned’ its customers. Overnight, Donghu arranged for another operator to transport the tour party on the next day’s scheduled trip to Milford Sound. Sky Tours advised the hotel another operator was now in charge and cancelled its booking for the remaining nights. Tour members baggage was removed from rooms, whilst the tour party was at Milford Sound. Sky Tours did not want to be saddled with the bill; previous late payments from Donghu had damaged Sky Tours creditworthiness with the hotel. Donghu was later to say it intervened in respect of the Milford day trip only and it was intended Sky Tours would then pick up the balance of the tour. Sky Tours said there had been three prior instances of Donghu cancelling tours, leaving Sky Tours with the cost of unused bookings. Donghu complained to Tourism NZ alleging Sky Tours was not fit to be accredited as an in-bound tour operator.
In 1999, an inter-government co-operation agreement between New Zealand and the People’s Republic of China set up rules governing organised tours by Chinese nationals. Tours must be arranged and led by an approved inbound tour operator; each tour party enters New Zealand on a single group visa. Tourism NZ accredits operators for tours within New Zealand and enforces a published code of conduct. There are 37 approved tour operators.
Acting on Donghu’s complaint, Tourism NZ recommended Sky Tours’ accreditation be revoked. This was a disproportionate penalty, Justice Cull ruled. Sky Tour has eighteen years’ experience in the tourism market. There had been no previous complaints to Tourism NZ about Sky Tour; other accredited operators had committed 25 breaches or potential breaches of the code in the previous calendar year. Tourism NZ was ordered to reconsider the facts surrounding Donghu’s complaint and reconsider what penalty (if any) was appropriate.
ANZ Sky Tours Ltd v. Tourism New Zealand – High Court (30.04.19)
19.081