Chch Hospitality Group wants action on Convention Centre

Christchurch Hospitality Group wants action on location of Convention Centre & Stadium

CHI is calling for a decision to be made, without further delay, on the location of the new convention centre and stadium.

The group is becoming increasingly frustrated by the lack of a decision on the placement of major facilities, let alone a start on the construction process and asks that a firm deadline is set, and announced, for these decisions. Despite being identified as the number one priority in submissions on the draft city plan by all the main tourism organisations along with many others, CHI are disappointed that a decision on the site has still not been reached.

The group had been reassured by the statements in the plan about the importance of these amenities however would now like to see this rhetoric backed up by action.

CHI is grateful the City Council listened to their concerns regarding height limits for hotels and have allowed for a special zone around the convention centre. The group also appreciates that proposed parking restrictions have been lifted. Members are concerned however that proposed noise restrictions could affect the viability of restaurants, particularly those with open-air dining areas.

Hotel developers and restaurant operators are awaiting announcements on the final locations so they in turn can make their own plans regarding location. A large convention centre generates millions of dollars each year for the local economy as well as helping sustain retail, hospitality, and accommodation, along with activity and transport operators over the quieter winter months.

The lead time for convention business is generally 3-5 years so the sooner an announcement is made about where, when and how large, the quicker events can be attracted. Large scale events will be a vital boost as the city struggles to get back on its feet.

CHI (Christchurch Hospitality Inc) is an organisation formed after the February 2011 earthquakes to represent the combined Christchurch memberships of the Restaurant Association, Hospitality NZ and NZ Hotel Council. Together these organisations, at the time of the February quake, consisted of 381 businesses with a combined turnover of $459 million and employed over 7,000 staff.

70% of the large hotels are still not able to operate and 25% of the restaurants are not operating. Many of the others have transferred their operations to the suburbs, and some even further afield to other cities. Some of those who have managed to reopen are in temporary facilities which in reality are uneconomic and unsustainable. Most of the smaller operators who had insurance, are about to see their insurance indemnity period expire.

Increased insurance premiums have been estimated to add $5 to the cost of each hotel room sold and $2 to each restaurant meal. Increased excesses mean businesses wanting to put something aside to cover future excess charges will need to factor this into their selling prices as well.

Group spokesman Max Bremner stated “there is a rocky road ahead for many hospitality businesses, however a decision in the very near future on the location of key facilities would at least allow operators the opportunity to begin planning”.

ENDS

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