Hospitality, a key sector driving vibrancy, employment, and offering a warm welcome to Tāmaki Makaurau visitors and locals alike, is hopeful but still vulnerable. If we want Auckland to be a city people are proud to live in and excited to visit, it starts with backing the businesses that make it vibrant through business-friendly policies and support.
Auckland Council’s Annual Plan process, combined with Government action on tourism and event funding, is an opportunity to build an environment where hospitality can thrive.
Hospitality is more than food and drink — it’s about community, jobs and opportunity. In the year to March 2024, accommodation and food services in the city employed more than 63,500 staff, or 6.4% of the region’s workforce, in a diverse range of careers, and generated $2.68 billion in GDP.
A thriving hospitality scene benefits everyone. Locals get more options, our streets feel livelier, and nightlife is safer. It adds up to a more attractive, dynamic city for both locals and visitors.
Tourism feeds directly into hospitality: every visitor eats, sleeps, explores, and spends. Events, concerts, and conferences drive the visitor economy and have flow-on effects across hotels, bars, restaurants, and venues.
But how do we fund tourism efficiently? This came to the fore again with the Government’s decision last month to not support Auckland’s bid for the 38th America’s Cup.
While we recognise the pressure on Government to spend responsibly, this was a blow for the hospitality and accommodation sectors. Our industry stood to benefit from hotel bookings and foot traffic in restaurants, bars and cafés — as did marine and technology sectors. Major events encourage inbound travel and drive economic activity well beyond the host city.
Some argued the private sector should pay, despite major private backing already in place. Regardless, the opportunity to host the America’s Cup in Auckland in 2027 has sailed. This does, once again, highlight the urgent need for sustainable event funding. Auckland isn’t alone: councils nationwide face tourism-related costs but have limited revenue options.
Hospitality NZ supports investment in destination marketing and major events. This is critical if Auckland wants to remain competitive. Cutting tourism promotion risks long-term damage to the city’s brand. If Auckland slows visitor attraction now, it could lose events, international conferences, and its reputation – just as the NZ International Convention Centre opens.
The Government has recently ruled out introducing a regional ‘bed tax’, despite continued calls from local leaders and industry advocates. While we respect that decision, Hospitality NZ believes a fair and consistent national levy remains the most effective way to sustainably fund tourism and events.
Localised approaches risk creating unnecessary complexity and inconsistency. A single, nationwide model would avoid this, enabling a “design once, do it right” solution.
When the time comes to revisit funding options, we should be ready with a system that works from day one. Until then, the council must keep the lights on by continuing to fund essential tourism and event attraction via existing means, including general rates.
We also need a more supportive regulatory environment for hospitality. With the City Rail Link and the NZ International Convention Centre opening soon, co-ordination between the council and operators is essential to grow the night-time economy — spending from 6pm to 6am — and offer a vibrant, safe experience for everyone.
The right regulations inspire confidence, attract investment, and create jobs, which is especially crucial post-Covid and in the wake of recession.
Hospitality NZ urges the council to streamline licensing and compliance, ensure fees and regulations are proportionate to risk and business size, support the night-time economy, and collaborate with industry for practical solutions.
Hospitality is ready to grow, but we need partnership. We encourage open dialogue with the council; Auckland Transport has shown a willingness to listen regarding parking changes and the impact they would have had on hospitality if introduced, but there are many other areas we need to work collaboratively on to unlock the potential of hospitality.
Auckland deserves to be a world-class city where locals and visitors thrive, and hospitality is at the heart of that ambition. With local government elections and an Annual Plan under review, now is the time to act. By backing tourism and streamlining regulations, the council can unlock jobs, vibrancy, and long-term resilience for Auckland.
