New Zealand’s 2023 Budget Disappointing The Hospitality Sector

Hospitality New Zealand, Budget 2023, Small Business,

Hospitality New Zealand has responded to the announcement of the 2023 Budget. The chief executive of Hospitality New Zealand, Julie White, shared that the budget does not do enough to support small businesses and contains little acknowledgement of the current economic and environmental impact on business.

White stated that while there were helpful moves within the budget, overall, it disappointed the hospitality sector. 

“The sector will welcome the additional $17.6 million, over five years, of funding for the Major Events Fund to support the ongoing attraction of major events to Aotearoa,” said White. 

“This is essential for us to attract big events and adds immense vibrancy to our main centres, driving tourism and economic spending.”

White continued, sharing that there was support for the Tourism ITP funding announcement for its importance on great workplaces and staff training. Furthermore, White said that operators’ voices needed to be heard in this process, and therefore Hospitality New Zealand was looking forward to contributing to the development of the ITP. 

Businesses in those areas will welcome the funding for ongoing recovery from the North Island weather events to help the affected regions get back on their feet. However, there was little for most New Zealand businesses in the 2023 Budget in the face of a cost crisis. 

While some sectors may have received support, small businesses will continue to struggle without tangible support for the workforce and costs. 

“Despite big increases in wages across the economy, that has not translated to increased productivity.  Funding for the Tourism Industry Transformation Plan is unlikely to influence productivity in the tourism sector.”