Hospitality New Zealand reported that spending on food services and commercial accommodation in Christchurch increased by 7% in August compared to the same month last year.
Interim chief executive Nick Keene stated that hospitality spending in the city experienced one of the largest increases across the country.
“The number of hospo businesses across accommodation and food services also saw a moderate lift of 1.5% compared to the same time last year—it’s great to see the passion for the industry remains. These stats run somewhat counter to the prevailing narrative that hospo is still struggling,” Keene said.
Keen said venue closures stood out more than in other sectors due to the visibility of shop fronts, but new venues were continually opening.
“Obviously the pressures on tourism and hospitality of the past few years have seen a number of owners exit the industry and some consolidation of business groups. Economic challenges have had a knock-on to business confidence, which leads to churn of ownership—things seem to be settling as we head towards next year, but there is still a ways to go until owners retain their confidence around investment and future growth.”
Business leaders like Jeremy Stevens, president of Hospitality NZ’s Canterbury branch, have indicated that spending is expected to increase next year with the opening of the metro sports centre, which will draw more athletes to the city.
Also, conference bookings at Te Pai and the launch of Christchurch’s new 30,000-seat indoor stadium, Te Kaha, are anticipated to increase accommodation demand and city centre traffic.
Another positive indicator is the $150 million redevelopment of the former Rydges Hotel into a five-star Sheraton, after remaining vacant since the earthquakes.
Most hospitality businesses continue to face pressure from increasing rents, electricity and gas prices, and the rising cost of goods.
Although profits from rising milk and red meat prices were flowing into provincial towns and the city, hospitality businesses remained cautious about increasing menu prices for customers.
Hospitality across the country continued to show varied results, with some parts of the industry performing well. The sector remained cautiously optimistic about gradual improvements heading into next year, hoping for a lift from increased tourism visitor numbers.