Auckland’s branch of Hospitality New Zealand overview of the past twelve months and looking forward
The past year actually mirrored many of the events of the previous year - with one exception;
a dramatic improvement in business driven by a rebound of international tourism and the
effect of the current economic conditions still not kicking in until around August 2023.
The Hospitality and accommodation sectors in Auckland however continued to face various
challenges that have grown increasingly complex. We have witnessed rising costs in both
capital expenditures and operational expenses, labour shortages (although less than the
previous year still challenge the sector), worsening safety concerns in the inner city
compounded by companies and organisations still remaining to have employees work from
home, and a Mayor whose cost-cutting measures significantly impacted Tataki Auckland
Unlimited’ destination marketing and funding for major events.
On top of this for accommodation in particular, an additional 4500 beds added to the
occupancy base in Auckland (now totalling well over 17,000 bed nights every night to fill) -
not a bad thing for the city, however investment in destination marketing and major events
becoming even more important for us.
This year continued with shifting our attention to the future needs of our members, as well as
addressing other major issues on the horizon. To summarise:
Safety in the CBD: The rise of the crime and disorder in the central city has been a major
issue, the perception of safety for Aucklanders especially point of mind; We have been
active within local government around advisory and also central government attending
meetings with MP’s Mark Mitchel & Chloe Swarbrick with the mindset to reinvigorate the
area and give a feeling of safety back to guests.
Our branch with the assistance of our regional Managers have supported the set up and
running of a successful CBD accord with Police, Health, Licensing and industry fully
engaged. A partnership approach has shown good initial signs, opening up conversations
and allowing frustrations to be aired, there can still be conflict with operators and governing
bodies but through open and honest feedback and a growing relationship with these parties
things are improving.
We successfully implemented a joint security operation on New Years eve in the viaduct
area, with police and Heart of the City, showing how industry can work together with other
associations to get the results needed. We have also hosted a crime prevention &
responsiveness seminar for members with a very good turnout showing there is appetite for
these initiatives.
With the promise of new police on the beat and stations planned to be opened in the CBD it
is with hope the worst of this is now behind us and we have momentum in showing both
Aucklanders and visitors what a safe, vibrant and exciting place Auckland is to visit and stay
again.
Accommodation: Bed taxes/Levy’s and Funding: The Accommodation Providers Targeted
Rate (APTR) although deemed legal by the Supreme Court early last year, Auckland Council
appears not to be looking at it as a tool to derive income for destination spending and major
events - choosing to simply cut the budget for TAU with very limited funding. We have been
working closely with TAU to develop a private sector interim funding (Destination Partnership
Program) which generated $2M in funds for TAU to basically “keep the lights on” in key
markets. This program will continue this year until a centralised funding mechanism is in
place; until then we are working hard on advocacy to ensure the new Tourism and Hospitality
Minister and other related ministries understand the importance of getting this right.
Tataki Auckland Unlimited working relationship: The branch, representing both the hospitality
and accommodation sectors, has established excellent relationships with the TAU team. We
have provided valuable input to their decision-making processes and received helpful
information in return. We have been extensively involved in developing future funding
models in the absence of the Targeted Rate. This work will be invaluable not only for funding
in Auckland but also throughout New Zealand.
Accommodation New Zealand membership: Membership in Auckland has remained similar
to 2023 indicating the importance of being part of the voice representing the industry. As our
complex tourism industry shifts focus to growth mode, membership becomes even more
attractive to both new and established operators.
Looking ahead to 2024/25, we continue to prioritize the growth of Hospitality &
accommodation membership across all sectors in Auckland. We have a remarkable
opportunity to achieve this with the momentum gained from HNZ's advocacy work and
revised long-term strategy bringing new regional managers, better organizational tools, and
a CEO based in Auckland. Moreover, a focus on communication with our members,
recognizing their diverse backgrounds, cultures, languages, and information needs based on
their roles, whether they are owners, leaseholders, ratepayers, business owners, or
employees/managers.
As we embark on another year in our ever-changing industry, it is crucial to emphasize the
importance of focusing on quality, service, and remaining true to our guests and ourselves.
By prioritizing these aspects, we can expect to reap both short-term and long-term benefits.
Over and above working together - across the sector has shown to bring results however we
need to get better at this and communicate what we want as a sector - with a unified voice.
I hope this has given you an insight into our work in Auckland.
Jamie Freeman
Branch President of Auckland - Hospitality New Zealand