New Zealand Hospitality Industry Undergoes Sector Review for Regulatory Improvements

The hospitality industry employs 145,000 people and is key for New Zealand’s economic growth. The Ministry for Regulation will conduct a sector review into the $15.7 billion industry to fix what matters for hospitality operators and their patrons, Regulation Minister David Seymour and Tourism and Hospitality Minister Louise Upston say.

The Ministry for Regulation is in a unique position to address regulatory costs that make it harder for Kiwis to get affordable services. Because these regulations are imposed by so many departments, it takes one ministry with a mandate for cutting red tape and fixing things, Mr Seymour says.

For the purposes of this Review, regulation that applies to restaurants, bars, cafes, food stalls at markets, food trucks, catering businesses, and hotels is in scope. The gambling regulatory system is out of scope.

Hospitality is a sector which was hit hard by Covid. Red tape and dumb rules make it hard for the industry to bounce back. Every Kiwi has a café or bar they wish was still open, Mr Seymour says.

Inconsistent requirements cost owners valuable time and money. For example, some business owners might be required to get resource consents on top of alcohol licenses, so that customers can enjoy a cold beer in sun. In other areas of the country just an alcohol license is required.

In a hotel with an alcohol license, a guest can purchase a glass of wine in the bar but they cannot take the glass to their room. It just doesn’t make sense. That same guest can purchase a bottle of wine from the supermarket to drink in their room.

Local councils put disproportionate costs on small food truck owners to operate at events. We heard frustration at extensive council paperwork requirements, inspections, and various fees totalling over $900, for one event.

New Zealand’s hospitality industry has been facing many challenges and complex rules and unnecessary regulations are making it even more difficult for one of our biggest earning industries to reach its full potential, Louise Upston says.

This review will improve hospitality rules so they’re working as they should – cutting red tape, keeping costs down, managing risks, and making compliance easier.

We need to give our business owners the best chance at success. The current regulations act as a significant barrier for new businesses to open. Existing businesses are also struggling with these rules and regulations.

I look forward to working to get hospitality back on the table.

We want to hear about red tape getting in the way. I encourage anyone with a red tape issue in these areas to have their say here https://www.regulation.govt.nz/regulatory-reviews/hospitality-sector-review/ The review is expected to take six months and will report back to responsible Minister’s with recommendations.