March 2025
Background
Auckland Council are seeking feedback on their proposals for Auckland’s Annual Plan 2025/2026 (annual budget). The annual plan is due to take effect on 1 July 2025 and sets out what the Council plans to achieve over the next financial year and how they will fund these plans.
The consultation seeks feedback on the overall plan, destination management and major events and changes to other rates, fees and charges. There are seven areas of council activities, or investment, that the Council have highlighted what they are planning to deliver under; transport, water, built environment, natural environment, community, economic and cultural development, and well-managed local government. The areas of relevance for the Restaurant Association are built environment, community and economic and cultural development.
Survey Questions
Question 1: Overall plan
The proposed Annual Plan 2025/2026 builds on the Council’s Long-term Plan 2024-2034 (LTP). The annual plan focuses on getting on with strengthening the financial and physical resilience of Auckland, while investing where it is needed most to manage growth. In 2025/2026, that includes prioritising investment in:
- transport
- water
- and fairer funding for local communities
It sets out the proposed way to pay for services and investments, including the 5.8 per cent rates increase for the average value residential property which is in line with the LTP, and additional debt to fund $4 billion of capital expenditure.
What is your opinion on our proposed annual plan?
Tell us why
Since 1972, the Restaurant Association has worked to offer advice, help and assistance in every facet of the vibrant and diverse hospitality industry, covering the length and breadth of the country. We’re passionate about our vibrant industry, which is full of interesting, talented and entrepreneurial people. We are supportive of the overall vision for Auckland to create a stunning natural environment, an efficient transport system and development pattern, decent and affordable public services, amenities, and infrastructure, a diverse and dynamic city, and a thriving economy that supports growth and opportunities for all.
For the seven areas of council activities, or investment, that contribute to the vision for Auckland, we mostly support the following actions:
- Facilitate international and domestic events, including musicals, concerts and exhibitions.
- Work with central government on new funding tools for visitor attraction and economic development, including exploring a bed night visitor levy for major events and destination marketing.
- Continue to deliver iconic cultural events such as Pasifika, Diwali and the Lantern Festival.
- Progress a local board led plan for the North Harbour Stadium.
- Boost community safety with initiatives such as safety hubs in the city centre and compliance wardens to fill the gaps in safety across the city.
- Progress city centre works including Te Hā Noa – Victoria Street to maximise the benefits of City Rail Link opening.
- Progress a masterplan to develop the central wharves into a public space, and aligning cruise facilities and ferry services with Port of Auckland Limited operations.
- Continue to regenerate our neighbourhoods in key areas such as Wynyard Quarter, City Centre, Takapuna, Northcote, Henderson, Avondale, Manukau.
Events are a prime opportunity to stimulate our industry, hospitality. With the success of events like the ASB Classic, we want to see more large scale events in Auckland to help strengthen our regional and national tourism and hospitality brand. Events not only bring tourists to the country, but they also importantly bring out locals – something we want to encourage; dependence on tourism can only get us so far, but for many of our businesses locals are their bread and butter.
There is a clear need for infrastructure improvements in Auckland, and infrastructure disruptions across our city impact vital commercial activities. As cities embark on infrastructure projects aimed at long-term improvements, the immediate and severe effects on local businesses, particularly in hospitality, call for a more supportive approach from councils.
There is a critical need for councils to work more collaboratively with businesses impacted by infrastructure developments. Proactive measures from city councils could significantly alleviate the impact of infrastructure changes on local businesses. One effective strategy would involve councils engaging with businesses right from the early planning stages of infrastructure projects and maintaining open lines of communication throughout the construction phase. Knowing the timeline and scope of potential disruptions enables businesses to plan and adjust their strategies effectively.
Additionally, councils could provide financial relief through temporary tax breaks, grants, or subsidies. This financial support would offer businesses struggling with cash flow disruptions a much-needed buffer. Offering incentives to encourage patronage in affected areas could also help sustain business operations during challenging periods.
Marketing and promotional initiatives play a crucial role as well. By partnering with local business associations, councils can help launch campaigns that highlight that businesses remain operational despite nearby construction. Hosting events, providing promotions, and enhancing signage could dispel the notion that construction areas are inaccessible, thereby attracting customers who might otherwise avoid the area.
Improving access and signage around construction sites is another critical measure. Clear, well-placed signage directing customers to alternative routes and entrances can significantly ease the access challenges posed by construction, helping to maintain or even increase foot traffic. Temporary parking solutions or shuttle services could also be offered to mitigate the inconvenience caused by ongoing construction works.
Finally, establishing a robust feedback loop where businesses can promptly report issues and receive quick responses can dramatically improve the situation. This mechanism allows councils to address problems as they arise, preventing them from escalating and further affecting the businesses.
We have long advocated for the implementation of comprehensive safety measures to protect our member’s establishments, staff and customers so we are pleased to hear that Council will be boosting community safety with initiatives such as safety hubs in the city centre and compliance wardens to fill the gaps in safety across the city. Many of our members believe that the lack of adequate police resources – particularly in Auckland’s city centre – has emboldened criminals, creating an environment where illegal activities can flourish unchecked. This under-resourcing has led to a perceived decline in law enforcement presence and response, exacerbating the issue.
Question 2: Destination management and major events
Attracting visitors and securing, promoting and delivering major events are vital to Auckland being a dynamic and exciting city. In the Long-term Plan 2024-2034, Council said they would continue to fund cultural festivals and other significant community events. However, without a bed night visitor levy, there will be a $7 million budget shortfall for funding of major events that are expected to attract visitor expenditure, such as the ASB Classic, Auckland Marathon and Auckland Writers Festival, from the 2025/2026 financial year.
Council continue to advocate to central government to introduce this levy. A bed night visitor levy of 2.5 per cent to 3 per cent paid by those in short-stay accommodation, would raise around $27 million each year to fund even more destination management, marketing and major events activities in Auckland.
A bed night visitor levy requires central government legislative change and they have yet to agree to introduce this legislation.
Do you support a bed night visitor levy paid by those in short-stay commercial accommodation, to fund destination management, marketing and major events activities?
Tell us why
As mentioned in our answer to the previous question, the Restaurant Association has long advocated the importance of attracting visitors and securing, promoting, and delivering major events, as well as the need for adequate funding to deliver these events. While we agree that event attraction and destination marketing need more funding, we do not think a bed night visitor levy paid by those in short-stay commercial accommodation is the best way to fund this investment.
The Restaurant Association is not against the idea of a bed night visitor levy, however, if it was to be implemented, it should be applied to all of New Zealand. There needs to be an end to the three-way tourism funding deadlock between industry, central government and local government.
The $7 million budget shortfall that is said to occur if a bed night visitor levy is not put in place can simply be funded through re-prioritising Council spending and investment. The amount of funding that Auckland Council currently provides for event attraction is a very small amount of their total revenue. The Restaurant Association believes that the economic benefits of investing in major events attraction should be enough of an incentive to reprioritise spending and investment.
Question 3: Changes to other rates, fees and charges
Would you like to comment on this or the other rates, fees and charges proposals? (Please be clear which proposal you are talking about).
The Restaurant Association would like to provide feedback on the proposed overall rates increase of 6.8% for business properties. We do not believe that lower growth in the value of business properties compared to non-business properties is an adequate reason to increase business rates by a higher percentage than residential rates.
Further, we believe that as the number of non-business properties grows (and we believe this is happening at a faster rate than the growth in number of business properties), it will not be feasible to retain the 31 percent share of rates paid by business properties. The Council should review this share of rates, and create a formula that enables a fair calculation of rate share and setting of rates, based on the proportion of business to non-business properties across the city.
Question 4: Local board priorities
Which local board(s) would you like to provide feedback on?