15 Oct 2025

High hopes hospitality review will ease 'frustrations' for operators

12:46 pm on 15 October 2025
Closeup of an assortment of delicious chocolate desserts sitting with drinks on a serving counter in a bakery

Photo: 123RF

The hospitality industry is hoping a ministerial review of regulations will reduce costs and make it easier for businesses to thrive and grow.

Regulation Minister David Seymour and Tourism and Hospitality Minister Louise Upston said they would conduct a sector review of the $15.7 billion industry, which employs 145,000 people at restaurants, bars, cafes, market food stalls, food trucks, catering businesses and hotels. The review will exclude gambling.

Regulations Minister David Seymour announced a review of hospitality sector rules alongside Hospitality Minister Louise Upston, 15 October 2025.

Ministers Louise Upston and David Seymour at Astoria cafe in Wellington to announce review of regulations in the hospitality sector today. Photo: RNZ / Russell Palmer

Hospitality NZ head of communications and advocacy Sam MacKinnon said the industry had been calling for a comprehensive review of the various regulations which fell under the 13 different ministerial portfolios, as well as local government bylaws.

"That's part of why we've been so keen on having this regulation review . . . to be able to piece all of those things together and understand how the different pieces of regulation interact."

The services sector, which includes hospitality, restaurant bars and other consumer-facing services industries had been trading below historical averages for a prolonged period of time, with the latest BNZ BusinessNZ Performance of Services Index (PSI) recording 19 consecutive months of contraction.

"Across our membership, we hear regularly around the frustrations around the rules and regulations that our operators face, and that does place the strain on their ability to make investment in employment decisions and I guess grow their business and therefore grow the sector as a whole," MacKinnon said.

"We need to make sure that we have the opportunity to thrive as a sector to be able to support export growth and the tourism sector."

It was unclear whether inconsistent regulations around Easter trading restrictions would be included in the overall review. These have been a long-standing issue for bars, restaurants and retail outlets located outside of tourist hotspots.

"I'm not sure I'd put Easter trading at the top, top of the list. It's certainly one aspect," MacKinnon said.

"I think for us, we hear regularly around challenges around the liquor licensing regime, and so that would be a key focus for us.

"We're also dealing with things across food safety and immigration and some of the consumer affairs stuff like the (paywave) surcharge ban. . . workforce and vocational education.

"There's a whole range of things in there that we need to have looked at in terms of how do we set the future of the industry up for success."

The review is expected to take six months, with a focus on inconsistent requirements, complex rules, unnecessary regulations, and cutting red tape that adds cost.

The ministers are seeking feedback and directing interested parties here.

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