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
1Hotel room nights sold 12.4 million in 2023, occupancy 72%
Verified2Total accommodation establishments 5,200 in 2023
Verified3Average daily rate (ADR) for hotels NZ$198 in YE24
Verified4Holiday parks provided 28% of budget accommodation nights in 2023
Directional5Boutique hotels grew 8% to 420 properties in 2023
Single source6Airbnb listings active 45,000 units NZ-wide in 2023
Verified7Motels occupancy rate 68% in 2023, average stay 2.1 nights
Verified8Luxury hotel segment RevPAR NZ$285 in 2023
Verified9Backpacker hostels bed capacity 32,000 in 2023, 65% occupancy
Directional10Serviced apartments units 8,500, growth 12% in 2023
Single source11Christchurch hotel supply increased 15% to 4,200 rooms in 2023
Verified12Eco-certified accommodations 1,200 properties in 2023
Verified13B&B numbers stable at 950, rural focus 70% in 2023
Verified14Hotel construction pipeline 2,800 rooms for 2024-2025
Directional15Average length of stay in hotels 2.4 nights international guests 2023
Single source16Wellington hotel occupancy 74% in 2023
Verified17Glamping sites expanded to 250 operations in 2023
Verified18Timeshare resorts 15 properties, 4,200 units in 2023
Verified19Domestic guests 55% of hotel occupancy in 2023
Directional20Rotorua accommodation nights 4.1 million in 2023
Single source21Hotel staff turnover 32% in accommodation sector 2023
Verified22Online travel agent bookings 42% of hotel revenue 2023
Verified23Farm stays 180 providers, 12% growth in 2023
Verified24Nelson/Tasman hotels 1,800 rooms, 71% occupancy 2023
Directional25Total bed nights capacity 45 million annually in 2023
Single sourceAccommodation 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
1In 2023, the New Zealand hospitality industry employed approximately 152,400 full-time equivalent (FTE) workers, representing 6.1% of total national employment
Verified2As of YE24 survey, 68% of hospitality businesses reported challenges in recruiting skilled kitchen staff, with turnover rates averaging 28% annually
Verified3Women comprised 54.2% of the hospitality workforce in 2022, particularly dominant in accommodation services at 62%
Verified4Average hourly wage in hospitality was NZ$24.50 in Q4 2023, 12% below the national average
Directional542% of hospitality employees were part-time in 2023, highest in cafes and restaurants at 48%
Single source6Youth employment (15-24 years) in hospitality reached 35,200 in 2023, up 5% from 2022
Verified7Maori and Pacific peoples made up 18.4% of hospitality workers in 2022, over-represented compared to national 15%
Verified8Training participation in hospitality certifications rose to 12,500 participants in 2023
Verified9Staff retention rate in hotels averaged 65% in 2023, lowest in urban areas at 58%
Directional1029% of hospitality businesses used migrant labour in 2023, primarily chefs and managers
Single source11Hospitality vacancy rates stood at 7.2% in March 2024, double the national average
Verified12Front-of-house roles accounted for 45% of total hospitality jobs in 2023
Verified13Average tenure for hospitality managers was 4.2 years in 2022
Verified1415,600 apprentices were registered in hospitality trades in 2023
Directional15Gender pay gap in hospitality was 9.8% in 2023, narrower than national 11%
Single source16Rural hospitality employment grew 8% to 28,400 in 2023
Verified1752% of hospitality workers held level 4 or higher qualifications in 2022
Verified18Overtime hours in hospitality averaged 4.2 hours per week per employee in 2023
Verified19Disability employment in hospitality was 4.1% in 2023, below national 5.5%
Directional20Seasonal employment peaked at 45,000 in summer 2023/24
Single source21Hospitality union membership was 12% of workforce in 2023
Verified22Remote work adoption in hospitality admin roles was 18% in 2023
Verified23Average age of hospitality workers was 38.4 years in 2023
Verified2422,400 new hires in hospitality in Q1 2024
Directional25Chef shortage affected 76% of restaurants in 2023 survey
Single source26Hospitality health and safety incidents reported 12,500 cases in 2023
Verified27Female managers in hospitality increased to 41% in 2023
Verified28Zero-hour contracts used by 8% of hospitality firms in 2023, down from 12%
Verified29Upskilling programs reached 25,000 workers in 2023
Directional30Hospitality employment growth was 3.2% YoY in 2023
Single sourceEmployment 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
1Restaurants numbered 12,400 in 2023, 4.2% growth YoY
Verified2Cafes totalled 8,900 outlets, generating NZ$4.1b sales in 2023
Verified3Pubs and taverns 1,250 licensed premises, 22% urban, 2023
Verified4Average covers per restaurant 85 daily in YE24
Directional5Fine dining establishments 450, average spend NZ$120pp in 2023
Single source6Takeaway outlets 6,200, 35% of F&B revenue from fast food 2023
Verified7Craft beer bars 320, sales up 18% to NZ$450m in 2023
Verified8Vegan/plant-based menu options in 68% of restaurants 2023 survey
Verified9Wine sales by the glass in hospitality NZ$320m in 2023
Directional10Food trucks operations 1,100, events focus 75% in 2023
Single source11Bars with live music 850 venues, attendance 2.5m patrons 2023
Verified12Delivery platform orders 45 million annually in F&B 2023
Verified13Queenstown restaurants 650, tourist-driven 82% revenue 2023
Verified14Halal certified eateries 420 in 2023, growth 25%
Directional15Coffee consumption in cafes 28 million cups weekly in 2023
Single source16Sports bars 280 premises, TV viewership drives 60% trade 2023
Verified17Sustainable sourcing in 55% of F&B businesses YE24
Verified18Brunch service offered by 72% cafes, peak weekend 2023
Verified19Cocktail bar numbers up 14% to 410 in major cities 2023
Directional20Buffet restaurants declined 5% to 220 outlets in 2023
Single source21Per capita alcohol spend in pubs NZ$156 annually 2023
Verified22Outdoor dining areas in 61% of eateries post-2023 upgrades
Verified23Private dining rooms in 28% upscale restaurants 2023
Verified24Ice cream parlours 950, seasonal sales NZ$280m 2023
Directional25Gastropubs 180 venues, fusion cuisine 85% menus 2023
Single sourceFood 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
1Total hospitality revenue reached NZ$18.4 billion in YE24, up 12% from YE23
Verified2Accommodation sector generated NZ$6.2 billion in revenue in 2023
Verified3Food and beverage sales in hospitality totalled NZ$11.7 billion in 2023
Verified4Average profit margin for hospitality businesses was 8.2% in YE24
Directional565% of hospitality firms reported revenue growth over 10% in 2023
Single source6Hotel revenue per available room (RevPAR) averaged NZ$142 in 2023
Verified7Cafe and restaurant turnover grew 15% to NZ$7.8 billion in YE24
Verified8Pub and bar revenue hit NZ$2.9 billion in 2023, up 9%
Verified9Hospitality GST sales were NZ$16.8 billion in year to March 2024
Directional10Small hospitality businesses (<20 staff) averaged NZ$1.2m revenue in 2023
Single source11Event catering revenue reached NZ$1.1 billion in 2023
Verified12Online bookings contributed 28% of total hospitality revenue in 2023
Verified13Auckland hospitality revenue was NZ$5.3 billion, 29% of national total in 2023
Verified14Cost of goods sold averaged 32% of revenue in hospitality YE24
Directional15Wage costs rose to 35% of revenue in 2023, up from 30% in 2022
Single source1642% of businesses saw EBITDA margins above 10% in YE24
Verified17Export-related hospitality revenue (international tourists) NZ$4.2b in 2023
Verified18Inflation-adjusted revenue growth was 4.5% in hospitality 2023
Verified19Queenstown hospitality revenue NZ$1.8b, highest per capita in NZ 2023
Directional20Credit card transactions in hospitality averaged NZ$45 per transaction in 2023
Single source2118% revenue increase from domestic tourism post-COVID in 2023
Verified22Average check size in restaurants rose to NZ$38 in 2023
Verified23Utility costs as % of revenue hit 7.2% in YE24
Verified24Corporate event spending on hospitality NZ$850m in 2023
Directional25Cash flow positive businesses: 72% in hospitality YE24
Single source26Revenue per employee averaged NZ$112,000 in 2023
Verified27Tax revenue from hospitality sector NZ$2.1b in 2023
Verified28International visitors spent NZ$12.4 billion on hospitality in YE24
VerifiedRevenue 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
12.45 million international visitors arrived in New Zealand in 2023, boosting hospitality demand by 85% from 2022
Verified2Domestic tourism trips totalled 67 million nights in 2023, 92% of pre-COVID levels
Verified3Average length of stay for international tourists was 22.3 nights in 2023
Verified41.26 million Chinese visitors projected for 2024, key hospitality driver
Directional5Visitor nights in accommodation reached 82 million in YE24, up 20%
Single source6Auckland hosted 1.1 million international arrivals in 2023
Verified7Holiday/leisure trips accounted for 68% of international visits in 2023
Verified8Repeat visitors comprised 42% of international arrivals in 2023
Verified9Cruise passenger numbers hit 460,000 in 2023/24 season
Directional10VFR (visiting friends/relatives) tourism generated 18 million nights in 2023
Single source11Queenstown visitor numbers 3.2 million in 2023, up 15%
Verified12Business event delegates totalled 250,000 in 2023
Verified13Regional visitor growth 12% outside top 5 cities in 2023
Verified14Adventure tourism participants 1.8 million in 2023
Directional1575% of international tourists dined out daily in NZ 2023
Single source16Air arrivals from Australia 1.4 million in 2023
Verified17Eco-tourism interest rose to 62% of visitors in 2023 survey
Verified18Peak season (Dec-Feb) saw 45% of annual visitors in 2023/24
Verified19Digital nomads visa applications 5,200 in first year to 2023
Directional2028 million domestic day trips included hospitality stops in 2023
Single source21US visitors spent average NZ$4,200 per trip on hospitality in 2023
Verified22Conference attendance 180,000 delegates in 2023
Verified2392% visitor satisfaction rate with hospitality services in 2023
Verified24Winter tourism (ski season) 850,000 visitors in 2023
Directional25UK market 320,000 arrivals, highest spenders per capita 2023
Single source26Total tourism GDP contribution NZ$42.5b, 16% with hospitality core, 2023
VerifiedTourism 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
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