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New report shows growth in some regions despite tough first quarter for hospitality industry
New report shows growth in some regions despite tough first quarter for hospitality industry

RNZ News

time5 days ago

  • Business
  • RNZ News

New report shows growth in some regions despite tough first quarter for hospitality industry

Several regions posted standout results including Nelson with a near 17 percent year-on-year increase in revenue, followed by Queenstown-Lakes at 13 percent. Photo: 123RF The hospitality industry has had a tough start to the year, with flat national sales growth, rising operating costs and workforce shortages. The Restaurant Association's Hospitality Industry Report for the first quarter ended March indicates total sales rose just one percent to $4 billion over the year earlier. Sales were also down 5.9 percent on the fourth quarter of 2024, which included the busy festive and function season. "The summer trading period was softer than expected for many operators, and long-standing challenges like high fixed costs, wage pressure and staff shortages continue to weigh heavily," Restaurant Association chief executive Marisa Bidois said. "While inflation may be easing on paper, our members are still feeling significant cost strain on the ground." However, several regions posted standout results including Nelson with a near 17 percent year-on-year increase in revenue, followed by Queenstown-Lakes at 13 percent. On the flip side, Auckland saw marginal growth of just 0.4 percent and other regions, including Marlborough and Hawke's Bay, reported declines. "This data reinforces the fact that a one-size-fits-all recovery approach won't work," Bidois said. "Tailored, regionally responsive strategies are vital." She said staffing also remained a challenge, particularly for senior roles, with 72 percent of businesses reporting difficulty in filling those positions. While entry-level roles were becoming easier to fill, she said workforce shortages and visa processing delays continued to constrain growth for many. In response, she said the Restaurant Association was progressing at pace with the 65-point sector action plan, which had a particular focus on workforce development, business sustainability and long-term competitiveness. "Hospitality businesses aren't standing still - they're adapting, innovating, and working hard to stay viable," she said. "To unlock the next phase of growth, we'll continue working with government and our partners to progress our action plan and ensure the value our sector brings - culturally, socially, and economically - is fully recognised." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.

Hospitality Industry Welcomes $2.6 Million Investment In Regional Events
Hospitality Industry Welcomes $2.6 Million Investment In Regional Events

Scoop

time30-05-2025

  • Business
  • Scoop

Hospitality Industry Welcomes $2.6 Million Investment In Regional Events

Press Release – Restaurant Association of NZ With a year-long outlook and a focus on supporting regional events, the Regional Events Promotion Fund is a positive step towards encouraging domestic tourism and bolstering regions and industry across Aotearoa. The Restaurant Association has welcomed the Government's investment of $2.6 million in 152 events through the second round of funding from the Regional Events Promotion Fund. 'Each of our regions have a unique food and beverage story that is vital to New Zealand's overall appeal as an international destination of choice.' says Marisa Bidois, Chief Executive of the Restaurant Association. 'From Northland's recognition in National Geographic's Best of the World 2025, to Hastings' nomination as a UNESCO city of gastronomy, it is clear that our regions being strong and resilient is a key part of maintaining our tourism brand on the global stage,' says Marisa. With a year-long outlook and a focus on supporting regional events, the Regional Events Promotion Fund is a positive step towards encouraging domestic tourism and bolstering regions and industry across Aotearoa. 'All events play a critical role in attracting visitors to our regions and bringing our town centres to life, however there are a number of investments supporting food and beverage specific events across the country over the coming year, which we are particularly proud to see.' Coupled with the Government's regional tourism boost, the Regional Events Promotion Fund gives regions an opportunity to shine and share their unique stories. 'We look forward to supporting our industry to make the most of these events over the coming year, and to put our regional food and beverage stories front and centre of our tourism offering as a country.' Note: The Restaurant Association is the link between good food, and good business. It supports New Zealand's diverse and creative hospitality businesses to deliver first class experiences to diners. Since its humble beginnings in 1972, it has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry. The organisation now represents, advocates and cheerleads for more than 2500 hospitality businesses within New Zealand. It offers 24/7 advice and assistance on key industry issues, from property lease advice to wellness in the workplace. The Association provides its members with industry-wide accreditation programs which set best practice standards and help them measure how they're tracking. It also works in partnership with the Ministry of Social Development to deliver the Hospostart and Springboard training programmes.

Hospitality Industry Welcomes $2.6 Million Investment In Regional Events
Hospitality Industry Welcomes $2.6 Million Investment In Regional Events

Scoop

time29-05-2025

  • Business
  • Scoop

Hospitality Industry Welcomes $2.6 Million Investment In Regional Events

The Restaurant Association has welcomed the Government's investment of $2.6 million in 152 events through the second round of funding from the Regional Events Promotion Fund. 'Each of our regions have a unique food and beverage story that is vital to New Zealand's overall appeal as an international destination of choice.' says Marisa Bidois, Chief Executive of the Restaurant Association. 'From Northland's recognition in National Geographic's Best of the World 2025, to Hastings' nomination as a UNESCO city of gastronomy, it is clear that our regions being strong and resilient is a key part of maintaining our tourism brand on the global stage,' says Marisa. With a year-long outlook and a focus on supporting regional events, the Regional Events Promotion Fund is a positive step towards encouraging domestic tourism and bolstering regions and industry across Aotearoa. 'All events play a critical role in attracting visitors to our regions and bringing our town centres to life, however there are a number of investments supporting food and beverage specific events across the country over the coming year, which we are particularly proud to see.' Coupled with the Government's regional tourism boost, the Regional Events Promotion Fund gives regions an opportunity to shine and share their unique stories. 'We look forward to supporting our industry to make the most of these events over the coming year, and to put our regional food and beverage stories front and centre of our tourism offering as a country.' Note: The Restaurant Association is the link between good food, and good business. It supports New Zealand's diverse and creative hospitality businesses to deliver first class experiences to diners. Since its humble beginnings in 1972, it has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry. The organisation now represents, advocates and cheerleads for more than 2500 hospitality businesses within New Zealand. It offers 24/7 advice and assistance on key industry issues, from property lease advice to wellness in the workplace. The Association provides its members with industry-wide accreditation programs which set best practice standards and help them measure how they're tracking. It also works in partnership with the Ministry of Social Development to deliver the Hospostart and Springboard training programmes.

Tax Changes Positive For Hospo, Kiwisaver Changes Raise Concern
Tax Changes Positive For Hospo, Kiwisaver Changes Raise Concern

Scoop

time22-05-2025

  • Business
  • Scoop

Tax Changes Positive For Hospo, Kiwisaver Changes Raise Concern

The Restaurant Association is welcoming the Government's Investment Boost tax incentive, announced as part of Budget 2025. 'We have been pushing for changes around tax deductibility for investment in assets — particularly for small businesses — so today's announcement is a positive step,' says Marisa Bidois, CEO of the Restaurant Association. 'So many of our businesses in the hospitality industry are small and micro enterprises, many of whom just need a bit of support to enable them to invest in and grow their business.' 'Investing in something as simple as a new oven, or technology to automate your systems and increase productivity is a game changer for a small business.' 'Being able to write off 20% of the cost of such an asset — on top of normal depreciation — is an excellent step toward supporting our businesses to grow, however the challenge that remains for many in our industry is securing the cash required to make these investments.' The Restaurant Association is also pleased to see that the Minister for Tourism and Hospitality will be responsible for $190 million of revenue from the International Visitor Conservation and Tourism Levy in the 2025/26 financial year. 'We supported an increase to the levy, knowing that increased levy revenue would increase the amount that could be invested in growing tourism - which is crucial to supporting our industry' says Marisa. 'With just over $130 million allocated for the promotion of New Zealand to key markets as a visitor and business destination in the coming year, we're keen to ensure that a portion of this is allocated to promoting our national and regional food stories.' 'We know that food and beverage tourism is becoming increasingly popular, and we want to ensure New Zealand makes the most of this opportunity.' The Restaurant Association says members have raised questions about the Government's changes to Kiwisaver. 'So many young people enter the hospitality industry as their first job, we have no doubt that the majority of 16 and 17 year olds who are in work are employed in service industries like ours.' says Marisa. 'While the Government cuts how much it contributes to Kiwisaver, our businesses will be filling that gap by paying a larger contribution — and to more people.' The Restaurant Association will be working through the details of these changes, and other initiatives announced in the Budget, to ensure the hospitality industry is able to continue on a path to recovery.

Supporting Hospitality As An Economic Driver And Global Attraction Crucial For Budget 2025
Supporting Hospitality As An Economic Driver And Global Attraction Crucial For Budget 2025

Scoop

time20-05-2025

  • Business
  • Scoop

Supporting Hospitality As An Economic Driver And Global Attraction Crucial For Budget 2025

The Restaurant Association will be looking for signs that Budget 2025 is providing targeted support for hospitality, empowering our sector to drive economic growth and positioning New Zealand as a beacon for international visitors. 'Aotearoa has earned a reputation on the international stage for its culinary excellence and diversity,' says Marisa Bidois, CEO of the Restaurant Association. 'Our food and beverage story is a crucial part of New Zealand's tourism offering – but our businesses need targeted action that allows them to focus on providing the hospitality for which they are globally renowned." The Restaurant Association's budget priorities for 2025 focus on three key areas: Tourism marketing: allocating a portion of the annual international tourism marketing budget to highlighting food and beverage tourism. Immigration reset: policy changes must be progressed quickly, to create a system that recognises the unique skills required in hospitality and provides clear pathways for workers to enter and grow within the sector. Workforce development: building a highly skilled domestic workforce is essential. The Association wants to see greater support for training programs developed and delivered by industry experts. 'The ever-changing regulatory environment has added to the pressure our industry has faced in recent years, and we've appreciated working closely with Ministers to identify how our regulatory environment can be simplified - without sacrificing quality or safety.' Marisa adds. 'Anything the Government can do to make doing business easier will be a win. A one-size-fits-all approach doesn't work for a sector as diverse as ours.' Bidois also acknowledged the Government's recent investments in tourism, events and other targeted funding announced by the Minister for Tourism and Hospitality. 'We applaud the Government's commitment to growing tourism through initiatives like the Tourism Boost package,' Marisa says. 'We want to see this momentum continue and grow, ensuring that New Zealand's hospitality and tourism sectors can once again become leading contributors to our economy.' Note: The Restaurant Association is the link between good food, and good business. It supports New Zealand's diverse and creative hospitality businesses to deliver first class experiences to diners. Since its humble beginnings in 1972, it has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry. The organisation now represents, advocates and cheerleads for more than 2500 hospitality businesses within New Zealand. It offers 24/7 advice and assistance on key industry issues, from property lease advice to wellness in the workplace. The Association provides its members with industry-wide accreditation programs which set best practice standards and help them measure how they're tracking. It also works in partnership with the Ministry of Social Development to deliver the Hospostart and Springboard training programmes.

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