“A positive starting point to work collaboratively with the New Zealand Government to address critical challenges facing the hospitality sector “ – this is the agreed outcome of the first Hospitality Summit held at Parliament in Wellington.
Yet it was so much more than that. The closed-door Summit on December 12 was designed to encourage discussion and collaboration and provided an opportunity for key stakeholders to help shape future government policies.
It started with a Memorandum of Understanding [MOU] being signed between two key sector associations – Hospitality New Zealand [HNZ] and the Restaurant Association of New Zealand, [RANZ] – outlining a commitment to work jointly on six key objectives, namely :-
- Advocating for supportive policies
- Promoting training and professional growth opportunities
- Strengthening the industry’s reputation to attract talent
- Addressing skill shortages and rising costs
- Leveraging shared data to guide decision making
- Collaborating on events and initiatives to help the industry thrive.
AND then the Government announced both HNZ and RANZ would receive funding through the Tourism Partnership Fund to develop much needed hospitality and restaurant spending data.
“I’ve heard the message from the sector – the call for better quality data and insights – so they can be confident in their decisions and planning,” said Matt Doocey, the Minister for Hospitality & Tourism, who led the Summit attended by over 50 industry stakeholders, including officials from the Labour, Green and Act parties.
“Government investment, totalling around $3 million will assist essential research including a domestic visitor survey, tourism sentiment survey, new research into tourism volumes and flows, and insights into hospitality and restaurant spending,” said Mr Doocey.
“This Government is focused on growing the economy and boosting the value of exports. As New Zealand’s second -highest export earner, tourism and hospitality have a critical role to play in achieving this goal.
“Strengthening the tourism data system is vital for growth of the sector. As we know, effective management starts with measurement and I’m confident these investments will provide valuable insights which will help to improve decision-making, identifying trends and create opportunities for job growth and sector expansion.”
Both HNZ and RANZ CEO’s, Steve Armitage and Marisa Bidois were upbeat about the first-ever Summit:
“We are encouraged by the progress made and are committed to delivering tangible outcomes for the industry. Our collaborative efforts with Government and other stakeholders will ensure that hospitality continues to play a vital role in New Zealand’s economy and culture,” said Armitage, while Bidois welcomed a roadmap plan for the sector: “The roadmap developed at the Summit is only the beginning. By continuing to work together we can transform these recommendations into actionable solutions that create a thriving future for hospitality in New Zealand.
“This initiative represents a significant opportunity for the hospitality industry to influence real change.”
The Government’s data initiative will provide actionable information regarding workforce trends, consumer behaviour and operational efficiencies, enabling evidence-based advocacy and policy making.
Key Challenges Identified At The Summit
Worker shortages and skills gaps: Immigration policies, such as restrictions on visa terms and high wage thresholds for accredited employer visas, have created barriers to attracting and retaining skilled workers. Adopting the HospoCred programme to expedite the process for accredited employers as well as reviewing and amending immigration policy for skilled overseas workers and expanding industry-led training programs like HospoStart and Te Tupu Tahi would help bridge these gaps.*
Education and training: Make the service sector a career of choice by 2028, by addressing perception issues, promote clear career pathways, and emphasise the skills of our workforce. Standardise e-learning platforms and run campaigns to attract young talent to fostering a culture of learning and growth within the industry.
Regulatory burdens: Hospitality business owners face significant hurdles navigating complex compliance frameworks. Simplifying licensing, employment regulations, and other operational requirements would alleviate these pressures and allow businesses to focus on growth.
Sustainability: As consumer expectations shift towards environmentally responsible practices, the sector faces mounting costs to implement sustainable solutions. Programmes like the Restaurant Association’s Kai Keepers initiative and targeted subsidies for waste reduction and recycling could play a pivotal role.
Data investment: The restaurant sector lacks comprehensive data compared to accommodation, making it challenging for businesses to plan effectively. Providing benchmarking data on costs like food, labour, and overheads, along with tools to interpret spending trends, will support planning and decision-making in this creative industry.
Modernisation: Investments in technology and connectivity would further modernise the industry, making it more resilient in a digital age.
A full report outlining the actions agreed at the Summit will be published in January 2025.
