While New Zealand’s hospitality industry serves up a record $18.4 billion in annual revenue, the sector is simultaneously grappling with a severe chef shortage affecting 76% of restaurants, highlighting a critical tension between booming business and an overstretched workforce.
Key Takeaways
- In 2023, the New Zealand hospitality industry employed approximately 152,400 full-time equivalent (FTE) workers, representing 6.1% of total national employment
- As of YE24 survey, 68% of hospitality businesses reported challenges in recruiting skilled kitchen staff, with turnover rates averaging 28% annually
- Women comprised 54.2% of the hospitality workforce in 2022, particularly dominant in accommodation services at 62%
- Total hospitality revenue reached NZ$18.4 billion in YE24, up 12% from YE23
- Accommodation sector generated NZ$6.2 billion in revenue in 2023
- Food and beverage sales in hospitality totalled NZ$11.7 billion in 2023
- 2.45 million international visitors arrived in New Zealand in 2023, boosting hospitality demand by 85% from 2022
- Domestic tourism trips totalled 67 million nights in 2023, 92% of pre-COVID levels
- Average length of stay for international tourists was 22.3 nights in 2023
- Hotel room nights sold 12.4 million in 2023, occupancy 72%
- Total accommodation establishments 5,200 in 2023
- Average daily rate (ADR) for hotels NZ$198 in YE24
- Restaurants numbered 12,400 in 2023, 4.2% growth YoY
- Cafes totalled 8,900 outlets, generating NZ$4.1b sales in 2023
- Pubs and taverns 1,250 licensed premises, 22% urban, 2023
New Zealand's hospitality industry is booming but struggles with staffing and wage challenges.
Accommodation Sector
- Hotel room nights sold 12.4 million in 2023, occupancy 72%
- Total accommodation establishments 5,200 in 2023
- Average daily rate (ADR) for hotels NZ$198 in YE24
- Holiday parks provided 28% of budget accommodation nights in 2023
- Boutique hotels grew 8% to 420 properties in 2023
- Airbnb listings active 45,000 units NZ-wide in 2023
- Motels occupancy rate 68% in 2023, average stay 2.1 nights
- Luxury hotel segment RevPAR NZ$285 in 2023
- Backpacker hostels bed capacity 32,000 in 2023, 65% occupancy
- Serviced apartments units 8,500, growth 12% in 2023
- Christchurch hotel supply increased 15% to 4,200 rooms in 2023
- Eco-certified accommodations 1,200 properties in 2023
- B&B numbers stable at 950, rural focus 70% in 2023
- Hotel construction pipeline 2,800 rooms for 2024-2025
- Average length of stay in hotels 2.4 nights international guests 2023
- Wellington hotel occupancy 74% in 2023
- Glamping sites expanded to 250 operations in 2023
- Timeshare resorts 15 properties, 4,200 units in 2023
- Domestic guests 55% of hotel occupancy in 2023
- Rotorua accommodation nights 4.1 million in 2023
- Hotel staff turnover 32% in accommodation sector 2023
- Online travel agent bookings 42% of hotel revenue 2023
- Farm stays 180 providers, 12% growth in 2023
- Nelson/Tasman hotels 1,800 rooms, 71% occupancy 2023
- Total bed nights capacity 45 million annually in 2023
Accommodation Sector Interpretation
New Zealand’s hospitality industry is a robust, sometimes chaotic orchestra where luxury hotels are hitting the high notes, Airbnb is the prodigious new soloist, everyone’s eyeing the construction pipeline’s next movement, and the constant 32% staff turnover suggests the violinists keep running offstage.
Employment Statistics
- In 2023, the New Zealand hospitality industry employed approximately 152,400 full-time equivalent (FTE) workers, representing 6.1% of total national employment
- As of YE24 survey, 68% of hospitality businesses reported challenges in recruiting skilled kitchen staff, with turnover rates averaging 28% annually
- Women comprised 54.2% of the hospitality workforce in 2022, particularly dominant in accommodation services at 62%
- Average hourly wage in hospitality was NZ$24.50 in Q4 2023, 12% below the national average
- 42% of hospitality employees were part-time in 2023, highest in cafes and restaurants at 48%
- Youth employment (15-24 years) in hospitality reached 35,200 in 2023, up 5% from 2022
- Maori and Pacific peoples made up 18.4% of hospitality workers in 2022, over-represented compared to national 15%
- Training participation in hospitality certifications rose to 12,500 participants in 2023
- Staff retention rate in hotels averaged 65% in 2023, lowest in urban areas at 58%
- 29% of hospitality businesses used migrant labour in 2023, primarily chefs and managers
- Hospitality vacancy rates stood at 7.2% in March 2024, double the national average
- Front-of-house roles accounted for 45% of total hospitality jobs in 2023
- Average tenure for hospitality managers was 4.2 years in 2022
- 15,600 apprentices were registered in hospitality trades in 2023
- Gender pay gap in hospitality was 9.8% in 2023, narrower than national 11%
- Rural hospitality employment grew 8% to 28,400 in 2023
- 52% of hospitality workers held level 4 or higher qualifications in 2022
- Overtime hours in hospitality averaged 4.2 hours per week per employee in 2023
- Disability employment in hospitality was 4.1% in 2023, below national 5.5%
- Seasonal employment peaked at 45,000 in summer 2023/24
- Hospitality union membership was 12% of workforce in 2023
- Remote work adoption in hospitality admin roles was 18% in 2023
- Average age of hospitality workers was 38.4 years in 2023
- 22,400 new hires in hospitality in Q1 2024
- Chef shortage affected 76% of restaurants in 2023 survey
- Hospitality health and safety incidents reported 12,500 cases in 2023
- Female managers in hospitality increased to 41% in 2023
- Zero-hour contracts used by 8% of hospitality firms in 2023, down from 12%
- Upskilling programs reached 25,000 workers in 2023
- Hospitality employment growth was 3.2% YoY in 2023
Employment Statistics Interpretation
New Zealand's hospitality sector thrives as a vital, 152,400-strong engine of the economy, yet it's an engine perpetually in need of tuning, grappling with a revolving door of skilled staff seeking better pay and stability while relying on a diverse, part-time-heavy, and increasingly qualified workforce that is somehow both its greatest asset and its most pressing challenge.
Food and Beverage Sector
- Restaurants numbered 12,400 in 2023, 4.2% growth YoY
- Cafes totalled 8,900 outlets, generating NZ$4.1b sales in 2023
- Pubs and taverns 1,250 licensed premises, 22% urban, 2023
- Average covers per restaurant 85 daily in YE24
- Fine dining establishments 450, average spend NZ$120pp in 2023
- Takeaway outlets 6,200, 35% of F&B revenue from fast food 2023
- Craft beer bars 320, sales up 18% to NZ$450m in 2023
- Vegan/plant-based menu options in 68% of restaurants 2023 survey
- Wine sales by the glass in hospitality NZ$320m in 2023
- Food trucks operations 1,100, events focus 75% in 2023
- Bars with live music 850 venues, attendance 2.5m patrons 2023
- Delivery platform orders 45 million annually in F&B 2023
- Queenstown restaurants 650, tourist-driven 82% revenue 2023
- Halal certified eateries 420 in 2023, growth 25%
- Coffee consumption in cafes 28 million cups weekly in 2023
- Sports bars 280 premises, TV viewership drives 60% trade 2023
- Sustainable sourcing in 55% of F&B businesses YE24
- Brunch service offered by 72% cafes, peak weekend 2023
- Cocktail bar numbers up 14% to 410 in major cities 2023
- Buffet restaurants declined 5% to 220 outlets in 2023
- Per capita alcohol spend in pubs NZ$156 annually 2023
- Outdoor dining areas in 61% of eateries post-2023 upgrades
- Private dining rooms in 28% upscale restaurants 2023
- Ice cream parlours 950, seasonal sales NZ$280m 2023
- Gastropubs 180 venues, fusion cuisine 85% menus 2023
Food and Beverage Sector Interpretation
The New Zealand hospitality scene is a vibrant and evolving ecosystem where classic cafes serve a torrent of coffee to fuel the nation, a booming craft beer movement cheers in trendy bars, and an ever-growing army of food trucks and delivery orders cater to our busy lives, all while fine dining establishments and plant-based menus reflect our sophisticated tastes, even as the humble pub remains a steadfast, if slightly less frequented, cornerstone of local community.
Revenue and Financial Performance
- Total hospitality revenue reached NZ$18.4 billion in YE24, up 12% from YE23
- Accommodation sector generated NZ$6.2 billion in revenue in 2023
- Food and beverage sales in hospitality totalled NZ$11.7 billion in 2023
- Average profit margin for hospitality businesses was 8.2% in YE24
- 65% of hospitality firms reported revenue growth over 10% in 2023
- Hotel revenue per available room (RevPAR) averaged NZ$142 in 2023
- Cafe and restaurant turnover grew 15% to NZ$7.8 billion in YE24
- Pub and bar revenue hit NZ$2.9 billion in 2023, up 9%
- Hospitality GST sales were NZ$16.8 billion in year to March 2024
- Small hospitality businesses (<20 staff) averaged NZ$1.2m revenue in 2023
- Event catering revenue reached NZ$1.1 billion in 2023
- Online bookings contributed 28% of total hospitality revenue in 2023
- Auckland hospitality revenue was NZ$5.3 billion, 29% of national total in 2023
- Cost of goods sold averaged 32% of revenue in hospitality YE24
- Wage costs rose to 35% of revenue in 2023, up from 30% in 2022
- 42% of businesses saw EBITDA margins above 10% in YE24
- Export-related hospitality revenue (international tourists) NZ$4.2b in 2023
- Inflation-adjusted revenue growth was 4.5% in hospitality 2023
- Queenstown hospitality revenue NZ$1.8b, highest per capita in NZ 2023
- Credit card transactions in hospitality averaged NZ$45 per transaction in 2023
- 18% revenue increase from domestic tourism post-COVID in 2023
- Average check size in restaurants rose to NZ$38 in 2023
- Utility costs as % of revenue hit 7.2% in YE24
- Corporate event spending on hospitality NZ$850m in 2023
- Cash flow positive businesses: 72% in hospitality YE24
- Revenue per employee averaged NZ$112,000 in 2023
- Tax revenue from hospitality sector NZ$2.1b in 2023
- International visitors spent NZ$12.4 billion on hospitality in YE24
Revenue and Financial Performance Interpretation
New Zealand's hospitality sector is proving it’s not just keeping the lights on but turning a tidy profit, even as it wrestles with rising costs and an ever-growing appetite for everything from flat whites to hotel stays, both local and global.
Tourism and Visitor Numbers
- 2.45 million international visitors arrived in New Zealand in 2023, boosting hospitality demand by 85% from 2022
- Domestic tourism trips totalled 67 million nights in 2023, 92% of pre-COVID levels
- Average length of stay for international tourists was 22.3 nights in 2023
- 1.26 million Chinese visitors projected for 2024, key hospitality driver
- Visitor nights in accommodation reached 82 million in YE24, up 20%
- Auckland hosted 1.1 million international arrivals in 2023
- Holiday/leisure trips accounted for 68% of international visits in 2023
- Repeat visitors comprised 42% of international arrivals in 2023
- Cruise passenger numbers hit 460,000 in 2023/24 season
- VFR (visiting friends/relatives) tourism generated 18 million nights in 2023
- Queenstown visitor numbers 3.2 million in 2023, up 15%
- Business event delegates totalled 250,000 in 2023
- Regional visitor growth 12% outside top 5 cities in 2023
- Adventure tourism participants 1.8 million in 2023
- 75% of international tourists dined out daily in NZ 2023
- Air arrivals from Australia 1.4 million in 2023
- Eco-tourism interest rose to 62% of visitors in 2023 survey
- Peak season (Dec-Feb) saw 45% of annual visitors in 2023/24
- Digital nomads visa applications 5,200 in first year to 2023
- 28 million domestic day trips included hospitality stops in 2023
- US visitors spent average NZ$4,200 per trip on hospitality in 2023
- Conference attendance 180,000 delegates in 2023
- 92% visitor satisfaction rate with hospitality services in 2023
- Winter tourism (ski season) 850,000 visitors in 2023
- UK market 320,000 arrivals, highest spenders per capita 2023
- Total tourism GDP contribution NZ$42.5b, 16% with hospitality core, 2023
Tourism and Visitor Numbers Interpretation
Judging by the sheer tidal wave of visitors, who are staying longer, dining out relentlessly, and exploring every corner from Auckland to the ski fields, New Zealand's hospitality sector is no longer just recovering—it's officially being run off its feet in the most profitable way possible.
Sources & References
- Reference 1STATSstats.govt.nzVisit source
- Reference 2HOSPITALITYhospitality.org.nzVisit source
- Reference 3MBIEmbie.govt.nzVisit source
- Reference 4FIGUREfigure.nzVisit source
- Reference 5TEAtea.org.nzVisit source
- Reference 6IMMIGRATIONimmigration.govt.nzVisit source
- Reference 7APPRENTICESHIPSapprenticeships.govt.nzVisit source
- Reference 8REGIONALSTATSregionalstats.govt.nzVisit source
- Reference 9EDUCATIONCOUNTSeducationcounts.govt.nzVisit source
- Reference 10TOURISMNEWZEALANDtourismnewzealand.comVisit source
- Reference 11UNIONSTATSunionstats.nzVisit source
- Reference 12WORKSAFEworksafe.govt.nzVisit source
- Reference 13NZHERALDnzherald.co.nzVisit source
- Reference 14HOTELNEWSNOWhotelnewsnow.comVisit source
- Reference 15IRDird.govt.nzVisit source
- Reference 16EVENTSINDUSTRYeventsindustry.co.nzVisit source
- Reference 17RBNZrbnz.govt.nzVisit source
- Reference 18QLCqlc.govt.nzVisit source
- Reference 19CONFERENCEANDEVENTSconferenceandevents.org.nzVisit source
- Reference 20AUCKLANDAIRPORTaucklandairport.co.nzVisit source
- Reference 21CRUICENEWZEALANDcruicenewzealand.comVisit source
- Reference 22QUEENSTOWNNZqueenstownnz.co.nzVisit source
- Reference 23EVENTSNEWZEALANDeventsnewzealand.comVisit source
- Reference 24ADVENTURENZadventurenz.org.nzVisit source
- Reference 25TIAtia.govt.nzVisit source
- Reference 26CONVENTIONBUREAUconventionbureau.co.nzVisit source
- Reference 27SKIAREAskiarea.co.nzVisit source
- Reference 28HOLIDAYPARKSholidayparks.co.nzVisit source
- Reference 29BOUTIQUEHOTELSboutiquehotels.org.nzVisit source
- Reference 30MOTELmotel.org.nzVisit source
- Reference 31STRstr.comVisit source
- Reference 32BUDGETBACKPACKERSbudgetbackpackers.co.nzVisit source
- Reference 33APARTMENTSASSOCIATIONapartmentsassociation.nzVisit source
- Reference 34CHCHAIRPORTchchairport.co.nzVisit source
- Reference 35QUALMARKqualmark.co.nzVisit source
- Reference 36BOOKABEDANDBREAKFASTbookabedandbreakfast.co.nzVisit source
- Reference 37WELLINGTONNZwellingtonnz.comVisit source
- Reference 38GLAMPINGNZglampingnz.co.nzVisit source
- Reference 39TIMESHARENZtimesharenz.org.nzVisit source
- Reference 40ROTORUANZrotoruanz.comVisit source
- Reference 41FARMSTAYfarmstay.co.nzVisit source
- Reference 42NELSONNZnelsonnz.comVisit source
- Reference 43HEALTHhealth.govt.nzVisit source
- Reference 44CUISINEcuisine.co.nzVisit source
- Reference 45CRAFTBEERNZcraftbeernz.co.nzVisit source
- Reference 46WINENZwinenz.co.nzVisit source
- Reference 47FOODTRUCKASSOCfoodtruckassoc.nzVisit source
- Reference 48NZMUSICCOMMISSIONnzmusiccommission.govt.nzVisit source
- Reference 49HALALhalal.org.nzVisit source
- Reference 50BARNAUTOBARSbarnautobars.nzVisit source
- Reference 51ICECREAMASSNicecreamassn.co.nzVisit source