How does the 2024 Budget Affect Hospitality NZ?

Jun 05, 2024

Hospitality New Zealand (HospoNZ) has responded positively to the government's latest budget, praising its focus on fiscal responsibility while highlighting measures that could indirectly benefit the hospitality sector.

"We understand the government's priority to manage finances prudently," acknowledged Steve Armitage, Chief Executive of HospoNZ. "While we weren't expecting a hospitality-specific package, we welcome the budget's emphasis on tax reduction, improved public safety, and infrastructure investment, all of which have the potential to positively impact our industry."

Armitage elaborated on the potential benefits. Tax cuts, he suggested, could boost business confidence within the hospitality sector while also putting more money in people's pockets, potentially increasing discretionary spending on eating out. Additionally, the significant investment in law and order, including additional police officers, directly addresses concerns raised by HospoNZ members, particularly those in urban areas, regarding public safety. This could create a more welcoming environment for both staff and customers.

The budget's focus on regional infrastructure development was also applauded by HospoNZ. The Regional Infrastructure Fund (RIF), aimed at bolstering regional economies through infrastructure projects, is seen as a positive step. Recent extreme weather events, like Cyclone Gabrielle, highlighted the vulnerability of infrastructure and its impact on hospitality businesses and supply chains. Investing in a more resilient infrastructure network is a welcome development for the industry's long-term well-being.

While acknowledging the positive aspects, Armitage stressed the need for further analysis. "We will continue to delve deeper into the budget details to fully understand the impact on hospitality, accommodation, and related industries," he stated.

Looking ahead, HospoNZ expressed a desire to maintain a constructive dialogue with the Minister of Tourism and Hospitality. "The positive working relationship we've established is valuable," Armitage noted. "We are optimistic that future budgets within this government's term will include specific programs that directly support and strengthen the hospitality industry."