Opinion: ‘Dawn of resilience’ – hospitality needs all our support to survive

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Ponsonby’s SPQR is one of several high-profile establishments to have closed their doors this year. Photo / Ella Wilks
THREE KEY FACTS
Steve Armitage is the chief executive of Hospitality New Zealand, which represents hospitality and accommodation operators.
OPINION

The hospitality industry is a cornerstone of New Zealand’s culture and economy, from the
heart of our cities to the serene countryside across the motu.

We have offered a warm welcome, comfort, and unforgettable experiences to locals and visitors alike for generations. Manaakitanga (hospitality) is clearly part of our country’s DNA.
But the economic and social challenges New Zealand is currently facing are putting this cherished tradition under strain. The narrative surrounding the hospitality industry in recent times has been dominated by challenges and hardship.
The regular headlines of hospitality venues closing across the country, many falling victim to the current economic climate or long-standing impacts from the pandemic, are proof of this.
There is no denying that these are some of the toughest conditions our industry has ever faced.
The pressure on people running hospitality businesses is real, and the environment they operate in is intensely competitive. If we don’t support them and tackle the challenges they’re dealing with, we risk losing talented operators.
But as the saying goes, it’s darkest before the dawn.
And there are some faint rays of hope starting to bring some light.
Reserve Bank Governor Adrian Orr used this analogy recently when announcing a reduction in the Official Cash Rate (OCR), a move that will in time provide relief for households and businesses.
It was an announcement that represented a turning of the tide for an industry that has weathered many storms in recent years. A slight turn, granted – but, in unison with the approaching summer high season, a very welcome one.
Hospitality, alongside retail, is a barometer of economic recovery.
When communities are going well, hospitality goes well.
In time, as we lead into the busier summer season, we hope to see more disposable income for households, hopefully leading to increased spending in restaurants, cafes, bars, and accommodation.
The prevailing narrative around hospitality would have casual observers believe it is an industry in demise.
But it’s important to look at the whole picture. While restaurant closures command headlines and column inches, the number of businesses in New Zealand’s wider hospitality industry is as high as it’s ever been. Yes, there are closures – but there are also new venues opening.
Hospitality also remains New Zealand’s seventh largest employer, with more than 170,000 people directly employed. The number of tourism and hospitality job adverts on Seek New Zealand’s platform also rose by 20% in July 2024, compared to the preceding June.
As we look to the future, it is clear that if hospitality is to move beyond the pessimism and capitalise on the glimmers of hope held in improving economic conditions and job opportunities, we need to better support the industry to succeed.
The desire – and understanding of the need – to support from within the hospitality industry is clear.
Hospitality NZ recently welcomed more than 700 people from across industry to Ōtautahi Christchurch for our annual conference and awards. Despite the troubling economic environment, operators from across the country came together to look to the future with renewed focus.
At the conference Tourism and Hospitality Minister Matt Doocey spoke about his commitment to the industry, announcing a hospitality summit in Wellington to better understand the issues we’re grappling with, and to develop a roadmap to set out the way forward as it relates to where the Government can support.
This is an opportunity that the sector must grasp. We need to work together to develop a meaningful set of actions, demonstrating fresh ideas and solutions to elevate our industry and its value to Aotearoa.
But we cannot rely solely on the Government for solutions. We are already taking steps as an industry, making serious investments to support the mental health and wellbeing of our people.
Hospitality is first and foremost about people and connection. It should be no surprise, then, that the number one priority for our industry must be on safeguarding the wellbeing of our people, and creating an environment in which they can thrive.
Happy, healthy operators and staff are the backbone of hospitality, and investing in their wellbeing is investing in our future.
In support of this, Hospitality NZ, the Restaurant Association, and technology company Helmet are working together to strengthen the industry’s ability to support those in mental distress. Co-founded by MasterChef NZ 2015 winner Tim Read, Helmet is designed to improve the ability for people to better support those in their lives who are struggling.
Elsewhere, Lion’s Healthy Hospo initiative has had a significant impact on improving the health and wellbeing of people in our sector. These are just two examples that demonstrate how the hospitality industry is taking the wellbeing of our people seriously.
As we look ahead to brighter days, we urge everyone both within and outside the industry – to rally in support. Whether it’s through adopting innovative business practices, looking out for one another, or supporting local hospitality businesses, every effort contributes to a more resilient and thriving sector.
Together, we can turn this challenging moment into a new dawn of resilience and better times ahead for our hospitality industry.
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