The Albert-Eden Local Board is asking the leaders of the two associations to meet to iron out the differences and discuss co-operation possibilities.
An Auckland Council study, Understanding the Role and Function of the Balmoral Shops, found non-Chinese supported the Chinatown idea.
Mr Holmes was disappointed that the council did not seek the association's views for the study.
"People don't come to Dominion Rd just to experience Chinese culture or Chinese food, they come here for an international experience," he said.
"It should be promoted as a destination of international diversity, where regular markets and ethnic street celebrations can be held."
Mr Holmes said just under 30 per cent of the association's 200 members were Chinese, and the others represented about "40 to 50" other ethnicities.
"For the last couple of years, we have been pushing Dominion Rd as a 'world within a street', because that's what it really is," he said.
Fang Hua, spokesman for the Chinese association, said food was the main reason people came and calling it a Chinese food street or a food hub would make it clearer to customers.
Six in 10 businesses were Chinese owned and operated, compared with just 13 per cent European, 11 per cent other Asian, 9 per cent Indian and 6 per cent others.
"With more than 50 Chinese businesses including restaurants, bookshops, health shops and service shops in this part of Balmoral, we agree with the council that this can be a unique zone for Chinese cuisine and culture," Mr Fang said.
The group was formed last year to represent the predominantly Chinese businesses south of Balmoral Rd because many were reluctant to join mainstream business associations, partly because of language uncertainty.
Albert-Eden Local Board chairman Peter Haynes believed there was plenty of potential for both associations to work together for their mutual benefit. "In my view, the 'world within a street' branding is very compatible with the Balmoral Chinese Business Association's idea of a food hub."
Council researcher Dr Carina Meares said the study was completed last year, before the Balmoral Chinese Business Association was formed.
People were asked "what would you like the precinct to be known for?" and the name "Chinatown" was not used as part of the survey question.
View from the street
Jaa Vongsanarathib, 25
Manager of Ruay Thai Mart, 239 Dominion Rd
"Dominion Rd is multicultural, not just Chinese. It should be Auckland's 'Asian street' or 'international street'."
Vicky Lu, 31
Media executive director, lived in the Dominion Rd area for 20 years
"People can understand the different cultures through food on Dominion Rd. I come here to eat, there's lots of Chinese food varieties but also food from many other cultures. I don't like the idea of this place being called a Chinatown, but a food street is a very suitable name."
Yougeswari Subramaniam, 54
Owner of Santhiya South Indian Restaurant, 1270 Dominion Rd
"Definitely an 'international food street' and not Chinatown. Maybe only the Balmoral part is where there is a cluster of mainly Chinese shops, but the rest of the street is very diverse.
What should we call Dominion Rd?
Auckland's International Precinct - the world within a street
Dominion Rd Business Association (representing businesses north of Balmoral Rd)
Chinese food street or Food hub
Auckland Balmoral Chinese Business Association (representing Chinese Balmoral shop owners)
Chinatown
Non-Chinese shoppers