Industry welcomes hospitality red tape review
The Ministry for Regulation’s review will examine how rules and licensing systems affect businesses from small cafés and food trucks to large hotel groups.
New Zealand’s hospitality and accommodation leaders have welcomed the Government’s announcement of a major review aimed at cutting red tape and improving regulatory efficiency across the $15.7 billion hospitality sector.
The Ministry for Regulation’s review, announced by Minister for Regulation Hon David Seymour and Minister for Tourism and Hospitality Hon Louise Upston, will examine how rules and licensing systems affect businesses from small cafés and food trucks to large hotel groups.
The review comes amid growing concern that outdated and inconsistent regulations are stifling investment, innovation and productivity in one of New Zealand’s most important industries.
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Hotel Council applauds “smart move”
Hotel Council Aotearoa (HCA) Strategic Director James Doolan described the review as potentially the Ministry’s most significant to date.
“Hospitality is a cornerstone of New Zealand’s economy,” he said. “It includes a diverse mix of businesses—from owner-operated cafés to international hotel chains—and is a critical part of tourism, our second-largest export earner. This is a smart move by Ministers Seymour and Upston.”
Doolan said hotels had faced immense challenges since COVID-19 border closures, with rising costs compounding operational pressures.
“Any initiatives that reduce inefficiency and bureaucratic red tape will be a boost for the sector,” he said. “If New Zealand is serious about improving productivity, regulation must evolve with technology and the realities of modern business models.”
He emphasised the need for licensing processes that accommodate large and multi-site operators.
“National and international hotel groups should not be penalised by fragmented or inconsistent licensing regimes,” Doolan said. “Growth should make things easier, not harder.”
HCA will work with its members—spanning major global hotel brands, regional operators and independents—to compile feedback and recommendations for the Ministry.
Hospitality NZ and Restaurant Association welcome focus
Hospitality New Zealand (Hospitality NZ) and the Restaurant Association of New Zealand have also welcomed the review, saying it represents long-awaited recognition of the compliance pressures facing hospitality businesses.
Hospitality NZ Interim Chief Executive Nick Keene said the move acknowledges “the significant regulatory and compliance pressures” operators face daily.
“Across our membership, the rules and regulations place a strain on investment and employment decisions and limit the sector’s ability to grow,” he said.
Restaurant Association Chief Executive Marisa Bidois said the review reflected years of advocacy.
“This is something we’ve been calling for since the 2024 Hospitality Summit,” she said. “We finally have an opportunity to address the red tape holding our industry back and to shape a regulatory environment that supports future growth.”
Both associations said they look forward to collaborating with Ministers Seymour and Upston and the Ministry for Regulation team to ensure the review delivers practical reforms that support operators, employees and customers alike.
United call for smarter, simpler rules
Together, New Zealand’s hospitality leaders are urging policymakers to ensure the review leads to streamlined, nationally consistent frameworks that reward scale, improve productivity and enhance the customer experience.
As Doolan summed up:
“Hospitality regulation should be about minimising harm—not creating bureaucracy for its own sake.”
