The Restaurant Association of New Zealand and Hospitality New Zealand are looking at joining forces to form one national organisation.
Both have acknowledged that continuing to operate separately is becoming increasingly difficult, and the question now is whether combining their resources would better serve the wider hospitality industry.
A joint steering group has been appointed to investigate the options, with its work expected to be completed by mid-2027. The investigation has the support of the Ministry of Business, Innovation and Employment (MBIE).
There is a lot of common ground between the two organisations. They deal with many of the same government agencies, face similar issues, and provide services to businesses that often have much in common. Combining resources could reduce costs, improve member services, and give the industry a stronger voice when dealing with Government.
Of course, hotels have different needs from restaurants and cafés. Accommodation is a capital-intensive business, with investment decisions often made years in advance. A combined organisation would need to ensure those interests were not lost while representing the wider hospitality sector.
The timing is interesting, with New Zealand's general election on 7 November and political parties putting forward policies that could have a direct impact on hospitality.
Tourism funding is one area worth watching. National has proposed directing more International Visitor Levy funding towards councils, while ACT wants to return $1 per visitor guest night to councils from existing revenue. The Greens support allowing councils to introduce accommodation levies, including higher charges for short-term rentals.
For hotel operators, the question is where that money goes and who benefits. Additional costs are difficult to justify if they do not result in better infrastructure, destination marketing, or services that support tourism.
Employment and immigration policies will also matter. Hotels need skilled staff, and changes to employment conditions, minimum wages, and visa settings can have a considerable impact on operating costs. Taxation, business investment, and rising property costs are equally important, particularly for operators considering refurbishment or new developments.
There is no shortage of issues for the hospitality industry to raise with the next Government. Perhaps this is where a combined association could make a real difference, provided the interests of hotels and accommodation providers remain well represented.
Whether the two organisations ultimately amalgamate will be decided through the process now underway. In the meantime, both have an opportunity to show how working together can benefit their members.
With an election approaching, the industry needs clear answers from political parties about their plans for tourism, employment, and business investment. It also needs a strong voice to ensure those policies reflect what it actually takes to run a hospitality business in New Zealand.
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