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Hotel Council Aotearoa (HCA) has welcomed the Government’s review of New Zealand’s $15.7 billion hospitality sector, announced today by Minister for Regulation David Seymour and Minister for Tourism and Hospitality Louise Upston.
HCA strategic director James Doolan says the review could be one of the Ministry for Regulation’s most significant yet, given the sector’s size and importance.
“This review could be the Ministry’s most important yet, given the size and significance of this sector. Hospitality is a cornerstone of New Zealand’s economy. It comprises a diverse mix of businesses – from small owner-operated cafés and food trucks through to large international restaurant and hotel chains. Hospitality is also a critical element of our tourism industry, which is New Zealand’s second-largest export earner. This is a smart move by Ministers Seymour and Upston,” James says.
James says the operating environment for hotels has been particularly difficult since COVID-19 border closures, and rising costs continue to challenge the sector.
“Costs have skyrocketed, so any initiatives by Government that reduce inefficiency and bureaucratic red tape are sure to be a boost for the sector,” he says.
“If New Zealand is serious about improving productivity, we must learn to reward businesses that achieve meaningful scale. Fragmented hospitality regulations struggle to accommodate common hotel management and franchise business models, which leads to unnecessary duplication and inefficiency. Regulation must keep up with technology and the practical realities of how businesses operate in a modern, connected economy. Growth should mean that things get easier, not harder,” he says.
James says licensing processes and related IT systems also need to be flexible enough to accommodate businesses that operate nationally or across multiple regions.
“National and international chains should not be penalised by fragmented and inconsistent licensing regimes,” he says.
“HCA members have at times been forced to deal with bizarre interpretations of longstanding licensing requirements. In some cases, there appears to be little credit given for unblemished track records,” he says.
“Hospitality regulation should be about minimising harm, not creating bureaucracy for its own sake. We are very grateful for this review and pleased to assist in any way we can,” James says.
HCA’s membership includes hotels managed by major global hotel chains, successful regional brands, and independent properties. The organisation says it will work with members to provide feedback and recommendations aimed at improving regulatory efficiency for the benefit of businesses and consumers.
