The industry shared valuable contributions to the Shaping the Future of Hospitality: Your Voice, Your Impact survey conducted in October 2024, with over 800 responses, reflecting a diverse range of insights from across the sector, received.
Key Findings
Current State of the Industry
- 42% of respondents rated the current state of the hospitality sector as poor, while 40% considered it fair. Only 16% felt it was in a good state, highlighting significant challenges faced across a range of areas.
Top performing areas
- The areas of business that were identified as performing well at the moment were customer experience (79%), brand reputation (63%), and operational efficiency (43%).
Challenges Faced
- The primary challenges business are currently facing include:
- Increased cost of goods (59%)
- Reduced customer spending (51%)
- Wage costs (42%)
- Difficulty finding and retaining staff (25%)
Regulatory Burden
- 57% of business felt that the currently regulatory environment either supported their business only somewhat, or not very well. The regulatory burden is most heavily felt in*:
- Employment Law: 34% of respondents indicated that employment regulations are not very supportive, with rising employment costs being a significant concern.
- Immigration Regulations: 35% reported that immigration processes are burdensome, with lengthy wait times impacting hiring.
- Licensing and Compliance: 45% noted high costs associated with licensing, which adds pressure to operational budgets.
- Local Council Regulations: 33% expressed frustration with inconsistent standards across regions, complicating compliance efforts.
- Financial Compliance: 42% highlighted rising costs related to insurance and taxes as a major burden.
*Note these areas do not add to 100% as respondents were asked to select up to three areas.
Expectations from Government:
- Respondents expressed a desire for*:
- Simplified compliance processes (59%)
- Lower fees associated with licensing (51%)
- Fairer labour laws (46%)
*Note these areas do not add to 100% as respondents were asked to select up to two areas.
Next Steps
We will be holding a Hospitality Summit at Parliament on December 12, where these findings will inform a piece of work aimed at delivering the industry’s expectations and experiences to the government for the future. Thank you to everyone that took the time to contribute to this valuable mahi. Together, we can shape a brighter future for hospitality in New Zealand.