HCA Strategic Director James Doolan has welcomed the Ministry for Regulation's review of New Zealand's hospitality sector.
Hotel Council Aotearoa (HCA) has welcomed the 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 NZD 15.7 billion hospitality sector.
“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,” said HCA Strategic Director James Doolan.
“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.”
Doolan added that if New Zealand is serious about improving productivity, the sector 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,” he added.
“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.”
Doolan said 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,” he added.
“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.”
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