Tourism and hospitality get research funding as Holidays Act resets

Tourism and hospitality are getting funding from minister Matt Doocey to gain a better understanding of the industry's inner-workings. Photo / NZME

The tourism and hospitality sector is set to gain a better understanding of its inner workings thanks to a $3 million investment into research by the Government.

However, reforms to the Holidays Act have taken a hit as the Government revealed it has decided to start again, right as seasonal work gets under way.

Minister for Tourism and Hospitality Matt Doocey said the investment, which will come from the Tourism Data Partnership Fund, would help fill critical gaps in the sector’s data.

It will facilitate a new domestic visitor survey, a tourism sentiment survey, new research into tourism volumes and flows, and insights into hospitality and restaurant spending.

“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,” Doocey said.

“As we know, effective management starts with measurement and I’m confident these investments will provide valuable insights which help to improve decision-making, identify trends and create opportunities for job growth and sector expansion.”

Doocey confirmed the Restaurant Association of New Zealand, working in partnership with Hospitality NZ, would work on a $50,000 data project at the inaugural Hospitality Summit which took place in Wellington on Thursday.

The two groups have entered a Memorandum of Understanding (MOU) to ensure the work is completed.

Tourism and Hospitality Minister Matt Doocey has announced a new series of funding to help fill critical gaps in the sector's data. Photo / Samuel Rillstone, RNZ

According to the Restaurant Association, there are very limited insights into the contribution of tourism to the hospitality and restaurant sector, despite its significant economic role.

The research will cover a range of topics, including a micro-level breakdown of domestic versus international spending.

It will clarify the size of the hospitality and restaurant tourism market, both internationally and domestically, alongside customer demographics, loyalty and the frequency of visits.

The research will break down tourism spending relative to local spending, including domestic tourism, and explore the impact of trends and cultural tourism in tourism-dependent regions.

Restaurant Association chief executive Marisa Bidois believes the initiative represents a significant opportunity to influence real change in the sector.

“For our businesses to have the opportunity to have their voices heard, it’s something we’ve been working towards for a very long time,” Bidois said.

“It will be really great to be able to dive down into that micro level for hospitality to just understand where that spend is going and where it is in the regions.”

The research will help businesses tailor their offerings to align more effectively with customer preferences and market demands, improving their competitiveness and ability to make informed decisions.

Bidois expects to be able to share the first insights by mid-next year and will be an ongoing, live set of data for the industry to access.

She acknowledged that while it isn’t the silver bullet, it will certainly help the industry make actionable decisions.

Hospitality NZ chief executive Steve Armitage said that data is critically important to every sector.

“There’s some recognition that hospitality is slightly distinct. There is a symbiotic relationship between hospitality and tourism, but hospitality does have some unique elements to itself,” Armitage said.

“Every tourist is experiencing our hospitality, but not everybody experiencing hospitality is a tourist.”

Marisa Bidois, chief executive of the Restaurant Association, and Steve Armitage, chief executive of Hospitality NZ, attended the inaugural Hospitality Summit in Wellington.

Holidays Act no vacation

As reported by BusinessDesk, the Government is starting over again on Holidays Act reform, but Workplace Relations and Safety Minister Brooke van Velden insists changes will still be delivered before the 2026 election.

“The Government recently conducted targeted consultation on an exposure draft bill which built on work that had started under the previous Government. The feedback I have seen indicates that the draft bill is not going to solve the issues of the act,” Van Velden said in a statement released on Friday morning.

Van Velden was expected to deliver a speech at the Employers and Manufacturers Association (EMA) on Friday outlining her reasons for the decision and summarising other changes to employment laws the Government had proposed this year.

Particularly to highlight that 70% of technical experts on the law and 67% of employers had said “more significant change to the annual leave provisions” was needed.

Bidois and Armitage said the announcement was welcome news, as both groups are keen advocates for an hours-accrued model.

“We did a lot of work in gathering feedback for this latest review and this is something that came out very strongly,” Bidois said.

“We’ve seen large government agencies mess up the Holidays Act, and it’s been a known issue for many of our businesses across the board. So I think the sooner it can be addressed the better.”

Armitage reiterated his support for the change in direction and said it was a positive sign when ministers are listening to feedback.

“Simplicity needs to be prioritised in order to improve workability and reduce compliance costs,” Armitage said.

Armitage and Bidois also acknowledged the ongoing pressures for the industry regarding immigration and the workforce, a clear focus area during the first Hospitality Summit.

“I think being very clearly expressed in the room to immigration officials was around what feels like a repeated incident, where we get to this point in the year and the sector is crying out for staff,” Armitage added.

“We’re hoping that through a dialogue between us and immigration officials and obviously through the Minister of Immigration, we can start to have a system that anticipates demand and allows for a little bit of recognition for those that have worked with the system effectively.”

Tom Raynel is a multimedia business journalist for the Herald, covering small business and retail.