Despite the Prime Minister’s recent pre-Budget speech, which highlighted the challenge of securing the country’s future in a volatile world, Nicola Waldren, General Manager of the Restaurant Association, said there was room for growth.
There was a strong focus on economic resilience, productivity, growth and business confidence. Those are themes that resonate strongly for hospitality as we navigate another complex operating environment.
After a rollercoaster start to the year, this year’s Budget comes at a time when trading conditions remain mixed across the country, and many businesses are continuing to balance rising costs with understandably cautious consumer spending. Ongoing global uncertainty has also once again highlighted how quickly operating conditions can shift.
In this environment, the ability to plan and invest with confidence becomes increasingly important. Hospitality businesses need the right settings to support long-term growth, workforce development and productivity. There are several areas where targeted investment could make a real difference for hospitality businesses over the next 12 months.
One of the most important areas to focus on is workforce development. Hospitality has always been an industry built on people, practical skills, and adaptability. Some of the most effective programmes are those designed closely alongside industry itself, where training reflects the real operational needs of hospitality businesses.
Continued investment in industry-led training initiatives and workforce development programmes would help create more work-ready employees, strengthen career pathways, and support businesses to build long-term workforce capability across the sector.
Across our industry, businesses continue to invest in retention, leadership development and skills development for their teams despite managing tight margins and rising operating costs, recognising these areas are critical to building productive and sustainable businesses.
Productivity in hospitality is not simply about doing more with fewer people. It is about building businesses with strong systems, skilled teams, good leadership and the ability to adapt quickly to changing conditions. Practical support for leadership development, technology and productivity tools could have a meaningful impact for many hospitality businesses, particularly smaller operators without large internal resources.
Tourism and events investment also remain important. The industry has already seen the positive impact that targeted tourism initiatives and major events can have, particularly in regional centres where increased visitation flows directly through to local hospitality businesses. We have appreciated the Government’s investment in hospitality as part of the Tourism Boost initiative, as well as support for Michelin’s arrival in New Zealand. Maintaining momentum in this area will be important, particularly in a highly competitive global tourism environment where New Zealand remains a long-haul destination competing for visitor attention and spending.
There is also an opportunity to continue investing in and promoting New Zealand’s food and hospitality story as part of our wider tourism offering. Culinary tourism has become an increasingly important part of the visitor experience, and every region has its own identity to showcase, from local produce and wineries to cafés, restaurants and unique hospitality experiences. Better coordination and investment in promoting those regional experiences can strengthen tourism, support local economies, and further reinforce New Zealand’s distinct hospitality offering internationally.
Alongside investment in our workforce development and productivity, practical improvements to the operating environment also remain important for hospitality businesses. The Hospitality Sector Review currently underway through the Ministry for Regulation is a positive step, particularly given the complexity many operators navigate across employment, immigration, food safety and local government requirements. In practice, the efficiency and consistency of government systems can be just as important as new policy initiatives. Whether it is navigating regulatory requirements, accessing support programmes, or better coordination across government agencies, reducing unnecessary complexity can help ease pressure and support operators already managing significant operational pressure.
As an industry, we understand we are operating within a wider economic environment shaped by uncertainty and ongoing cost pressures. But if growth, productivity and resilience are priorities for New Zealand over the coming years, then hospitality must be part of that conversation too. The opportunity now is to create settings that allow businesses not just to navigate uncertainty, but to invest, innovate and grow confidently within it.
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