Hospitality operators in Tauranga and Mount Maunganui have labelled cost increases as unfair amid new council regulations.
The Tauranga City Council has introduced new local regulations that will impose on-street dining fees for all cafes, bars and restaurants in the Tauranga and Mount Maunganui region. Many local operators have voiced their opposition, stating it as an unfair move, especially as so many are already struggling to keep their doors open.
On 24 March 2025, Mayor Mahe Drysdale and councillors voted to introduce a flat fee of NZD 100 per square metre (plus GST) per annum for all four alfresco zones.
A 50 percent discount will apply from 1 July 2025 to 30 June 2026, which will mean that businesses will pay NZD 50 per square metre (plus GST) per annum during that time.
One cafe owner said this was just another expense that would make businesses even less profitable than they are already.
Another hospitality business owner wanted to know why the council wanted to introduce fees for operators when it has brought significant benefits to the area.
Businesses in some parts of the CBD have had to fork out for fees since 2013. Fees were also introduced to support council upgrades on Wharf Street. However, some have been left scratching their heads as to why they will have to pay for a new tax when there hasn’t been any major council investment into the CBD streatscape for almost 30 years.
Licence-to-occupy fees are a commonly used method for councils to manage the use of public land for commercial gain. A spokesperson for Tauranga City Council said that businesses that no longer wanted to apply and pay for a permit to use the space could remove their tables and chairs.
The council also said it would work with businesses to reduce the footprint of their outdoor dining areas if they wanted to pay less.
The spokesperson also mentioned that the public spaces in the Tauranga and Mount Maunganui region are provided and maintained at the expense of ratepayers, so it would be fair and reasonable to suggest that businesses benefitting from commercial use of the space should contribute to their upkeep.
More news here.
