Concern for future of Wellington's hospitality industry amid public sector job cuts, financial pressures

  • 19/06/2024

Mass jobs cuts in the public sector, combined with the cost of living and high interest rates, has brought tough times for Wellington's hospitality industry. 

Over 6000 people have lost their jobs in the public sector this year and many of them live in the Capital. 

So, without those incomes being spent in the city's economy, there's real concern for Wellington's hospitality future. 

Hospitality New Zealand head of delivery Matt Padernal told AM on Wednesday morning that businesses were struggling with "the perfect storm" of challenges - high cost of living, interest rates, food prices, recession, job cuts and construction reducing foot traffic. 

"As we enter into the slower winter season I suppose businesses are usually normally quieter and in Wellington our members are constantly telling us that their sales are lower," he said. 

"We've definitely seen a few businesses go under, I don't have the exact numbers, but you know sales in Wellington were about 5.53 percent lower in the first part of this year compared to the same time last year. 

"We understand that these are challenging times, but we urge people to go out and support your favourite establishment if you can and even try a new place if there's that one you've been burning [to go to] and you've got the opportunity to do it because our members, and in particular operators, would truly value your support during this time." 

However, there were some Wellington businesses "thriving" in the city at the moment, which Padernal put down to events including a recent Wellington Phoenix game. 

Looking around the country, though, the pain is not limited to the Capital. 

Padernal said Queenstown, for example, has been "praying for good snow" to bring visitors to the region. 

"I was down there two weeks ago and it's probably the quietest I've seen Queenstown for a very long time."