The New Zealand Government has announced measures to reduce regulatory burdens on hospitality businesses, aiming to support operators recovering from challenging market conditions. The announcement was made on Monday morning by Regulation Minister David Seymour and Tourism and Hospitality Minister Louise Upston, following a review conducted by the Ministry for Regulation.
The review examined regulatory challenges faced by the hospitality sector, which has been significantly affected by the Covid-19 pandemic. Seymour described the reforms as an effort to eliminate unnecessary rules that have contributed to business closures within the industry. “Everybody has a favourite cafe, bar or restaurant they wish was still open,” Seymour said, emphasizing the need to enable Kiwi businesses to operate with fewer obstacles.
Feedback from sector representatives highlighted considerable difficulties in navigating the current regulatory environment. One food truck operator, for instance, reported considering relocating to Australia due to New Zealand’s complex and bureaucratic setup process. In contrast to Australia, where the vendor was directed to a single contact with a streamlined pathway to start the business, New Zealand’s process involved interactions with 13 officials across eight central and local government agencies. The vendor described the pathway as “incredibly confusing and complex.”
Recent months have seen several notable hospitality closures, including Harbourside Ocean Bar Grill on the Auckland waterfront and Verona, a cafe and bar on Karangahape Road. The review identified multiple issues within the sector’s regulation, such as redundant requests for the same information—sometimes multiple times to the same regulator—and uncertainty surrounding decision-making timeframes, which were often prolonged.
Alcohol licensing and renewal procedures were singled out as inefficient, sometimes disproportionate to the level of risk involved, and ineffective in certain cases. Additionally, the review found licensing and registration fees to be excessive for some operators, lacking transparency, and in some instances not covering the costs of regulatory authorities.
The Government’s proposed measures aim to address these concerns by streamlining licensing processes, improving clarity and efficiency, and reducing fees where appropriate. The overall goal is to create a more supportive environment for hospitality businesses as they seek to rebuild and grow in a post-pandemic economy.