Hotel Council Supports Moves To Reduce Hospo Red Tape And Regulatory Inefficiency

Hotel Council Aotearoa (HCA) warmly welcomes today’s announcement by Hon David Seymour, Minister for Regulation, and Hon Louise Upston, Minister for Tourism and Hospitality, regarding the Ministry for Regulation’s review of New Zealand’s $15.7 billion hospitality sector.

HCA Strategic Director James Doolan said:

“This review could be the Ministry’s most important yet, given the size and significance of this sector. Hospitality is a cornerstone of New Zealand’s economy. It comprises a diverse mix of businesses – from small owner-operated cafés and food trucks through to large international restaurant and hotel chains. Hospitality is also a critical element of our tourism industry, which is New Zealand’s second-largest export earner. This is a smart move by Ministers Seymour and Upston.”

“It has been an incredibly difficult operating environment for hotels ever since borders were shut in response to COVID. Costs have skyrocketed, so any initiatives by Government that reduce inefficiency and bureaucratic red tape are sure to be a boost for the sector.”

“If New Zealand is serious about improving productivity, we must learn to reward businesses that achieve meaningful scale. Fragmented hospitality sector regulations struggle to accommodate commonplace hotel management or franchise business models, which leads to unnecessary duplication and inefficiency. Regulation must keep up with technology and the practical realities of how businesses operate in a modern, connected economy. Growth should mean that things get easier, not harder!”

“Licensing processes and relevant IT systems must be flexible enough to handle businesses that operate across different regions or at scale. National and international chains should not be penalised by fragmented and inconsistent licensing regimes.”

“HCA members have at times been forced to deal with bizarre and contradictory interpretations of longstanding licensing requirements. In some cases, there appears to be little credit given for unblemished track records.”

“Hospitality regulation should be about minimising harm, not creating bureaucracy for its own sake. We are very grateful for this review and pleased to assist in any way we can.”

“HCA’s membership includes hotels managed by the major global hotel chains, highly successful regional hotel brands and superb independent properties. We will be working with members to collate feedback and suggestions on how to improve hospitality industry regulation for the ultimate benefit of businesses and consumers alike.”

About HCA

Hotel Council Aotearoa advocates on behalf of New Zealand’s 360 hotels, comprising approximately 36,000 guest rooms in total. Following a partnership with Tourism Industry Aotearoa announced in June 2024, HCA is now “home association” for hotels in New Zealand, with members also having full membership of TIA. HCA and TIA’s combined membership comprise more than 250 hotels.

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