February 2025 Hospo Roundup: Immigration, Tourism Campaigns and a Promising 2025

February 2025 has brought exactly what New Zealand’s hospitality industry has been craving—a real sense of momentum. After years spent navigating staffing nightmares, economic uncertainty, and the slow crawl of post-pandemic recovery, recent announcements have sparked fresh optimism.

Whether it’s game-changing immigration reforms, quirky new tourism campaigns shaking things up across the Tasman, or promising revenue forecasts painting a brighter future, it genuinely feels like our sector is back in the driver’s seat.

Here’s my take on three standout developments that are giving hospitality operators genuine reasons to smile.

1.Immigration Changes

On February 20, the government delivered exactly the kind of news hospitality operators across New Zealand have been eagerly awaiting. Finally, changes to the Accredited Employer Work Visa (AEWV) are set to kick in from March 10, and it feels like a breath of fresh air for an industry that's been battling staffing shortages ever since the pandemic rocked the boat.

Removing the restrictive median wage requirement means hospitality businesses can now pay market-driven wages instead of inflated benchmarks. This adjustment isn't merely administrative; it directly translates into tangible savings for venues, allowing them to invest more effectively in training, upskilling, and ultimately delivering the excellent customer experiences Kiwis and visitors alike have come to expect. Plus, with visas for lower-skilled roles now lasting up to three years—double or even triple previous durations—hospitality venues finally have a shot at retaining international workers long-term. Less turnover, fewer headaches, and more consistent service for customers - that’s a win-win-win.

Interestingly, cooks and similar roles have been unexpectedly upgraded to higher skill levels, something that’s particularly meaningful for ethnic eateries. As someone who's endlessly fascinated by the cultural richness of New Zealand's food scene, I’m thrilled by this. It’ll allow these smaller restaurants to diversify their talent pool and really showcase their unique culinary heritage more authentically—something diners, including myself, can't wait to experience more of.

2. “Everyone Must Go!”

Speaking of big moves, Tourism New Zealand’s bold new marketing campaign, "Everyone Must Go!," rolled out on February 17, making waves on both sides of the Tasman. Its playful, tongue-in-cheek slogan aims to drive an additional 5,000 Australian visitors during the quieter autumn months, nudging tourism back up to around 93% of pre-pandemic levels.

Yes, the slogan has raised a few eyebrows locally—some critics likened it to a retail clearance sale, especially in a time of increased emigration and economic strain. But from the perspective of hospitality operators, including myself, this campaign is precisely the push we need. Even a modest uptick in Aussie tourists can be a lifeline during typically quieter months, turning what would otherwise be challenging times into opportunities for revenue and growth.

What many overlook is how valuable these visitors can be to smaller businesses. Aussies love good value, and the campaign's focus on enticing deals means regional cafes, boutique hotels, and smaller venues could see a welcome boost in bookings. If successful, we could see some real rejuvenation, particularly outside major tourist hubs—a genuine win for local communities.

3. Strong Revenue Projections

Adding to this sense of cautious optimism, ResDiary’s latest report forecasts a healthy 20% revenue surge for hospitality across Australia and New Zealand in 2025. Even better, more than one in four diners intend to eat out more frequently compared to 2024—a sure sign of increased consumer confidence and spending power.

Digging into the data reveals more reason to smile: nearly half of the operators surveyed plan to open new venues this year, a sharp rise from just 26% in 2024. This suggests renewed confidence in the sector, pointing to a vibrant, expanding market that’s ready to innovate and adapt.

However, there’s one significant caveat: no-shows continue to cost our sector a staggering $80 million annually across ANZ. This issue isn't trivial; it directly affects profitability, staffing, and morale. Thankfully, the report suggests straightforward solutions—implementing small deposits, automated reminders, or streamlined online booking systems—to alleviate this issue significantly.

Another insight is that lunch has officially overtaken dinner as the preferred dining-out option, with 65% of diners eating lunch out monthly. Venues looking to capitalize on this trend should consider crafting menus tailored specifically for daytime dining, offering appealing price points or quicker service options that cater to lunchtime patrons.

Lastly, today's diners expect seamless convenience when booking. With nearly 40% preferring direct reservations via restaurant websites, investing in user-friendly online booking systems is no longer just an option—it’s essential for survival and growth.

Taken together, these insights suggest a genuine rebound may finally be on the horizon, especially if businesses proactively tackle lingering challenges like no-shows and embrace new dining habits.

My Take

As someone who’s both run venues and lived the daily reality of hospitality, I find February’s updates incredibly promising. Simplifying immigration processes means better-staffed venues, and the "Everyone Must Go!" campaign, despite mixed reactions, shows a government actively trying to reinvigorate our tourism economy.

With cautious optimism, I'm looking forward to seeing packed cafes, vibrant restaurants, and bustling hotels once again becoming the norm rather than the exception.

After the rocky road of recent years, it finally feels like hospitality’s luck might be changing for the better.

————————————————————

About the Author
Joshua Thomas is the founder of Hospo HR, an experienced hotelier, and an advocate for New Zealand's vibrant hospitality sector. Always immersed in the latest hospitality trends, news, and updates, his passion stems from his lifelong love as a devoted foodie. Connect with Joshua and join his community of over 9,600 hospitality professionals.