Budget 2026 has been announced and includes a range of investments, savings initiatives and policy changes that may have implications for hospitality, tourism and small businesses over the coming years.
There are no major direct support packages for hospitality in this year’s Budget, however several announcements are still relevant for our sector — particularly around workforce development, consumer confidence, infrastructure and energy transition.
Treasury forecasts released alongside the Budget show the Government’s expectation that economic conditions are to improve gradually through 2026, including lower interest rates flowing more broadly through the economy. Forecasts are never guaranteed outcomes however, but any easing in household financial pressure could support consumer confidence and discretionary spending over time. We are also conscious that global uncertainty — including ongoing geopolitical tensions and fuel market volatility — can continue to affect operating costs and consumer confidence very quickly.
The Restaurant Association’s priorities remain consistent:
- Tourism marketing: continuing to invest in promoting New Zealand’s food and beverage story as part of our international tourism offering.
- Immigration settings: progressing practical immigration settings that recognise hospitality workforce shortages and provide clearer pathways for workers.
- Workforce development: supporting industry-led training and vocational pathways that reflect the operational needs of hospitality businesses.
- Reducing complexity: improving regulatory systems and reducing unnecessary compliance pressure for operators already managing tight margins.
In Budget 2026
Industry-led vocational training
The Budget includes funding for the new Industry Skills Boards to develop new industry-led secondary school subjects focused on vocational pathways and workforce readiness. We will stay close to this and our hope would be that this strengthens awareness of hospitality careers earlier, and creates stronger pathways into hospitality, tourism and apprenticeships over time.
Gas Transition Loan Guarantee Scheme
A proposed Gas Transition Loan Guarantee Scheme is intended to support businesses by helping reduce financing barriers for transition investments. While details are still emerging, this could be relevant for hospitality businesses investing in energy upgrades or longer-term transition planning.
Infrastructure and tourism flow-on effects
The Budget also continues investment across infrastructure, tourism facilities and regional upgrades, which can have important long-term flow-on benefits for hospitality businesses, particularly in regional centres.
Hospitality businesses benefit when visitor numbers increase, visitor infrastructure improves, or regional economic activity grows. At the same time, many operators also experience the disruption that can come with infrastructure projects, including reduced foot traffic, access challenges and prolonged construction impacts.
The Restaurant Association will continue working through the detail of Budget 2026 initiatives and advocating for practical settings that support hospitality businesses to invest, employ, train and grow sustainably.
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