January 2025 Hospo Roundup: Big Wins, New Rules & Cat Cafes
Let’s be real—most of us in hospo have been run off our feet lately.
Between managing the summer onslaught and fielding staff shortages, it’s easy to miss the headlines that matter most to our industry.
So here’s a quick catch-up on January’s biggest talking points. Grab a seat, top up your flat white, and let’s dig in.
1. Visa Rule Changes: Finally, a Bit Less Red Tape
If you’re like me, you’ve probably lost track of how many times we’ve had to shuffle worker visas, comply with wage thresholds, or complete obscure online modules. Well, as of January 27, 2025, there’s a glimmer of hope:
No More Mandatory Online Training: Employers no longer have to make staff complete Employment New Zealand’s online modules—so that’s fewer boxes to tick and no more “We’ll pay you to stare at a screen” nonsense.
Looking Ahead to March
Farewell, Wage Thresholds: The mandated wage level for AEWV roles gets axed altogether, though you’ve still gotta pay the going market rate. This is a game-changer!
Experience Requirement Down: You only need 2 years’ experience for an AEWV, instead of 3. Finally, some breathing space for us when hiring promising up-and-comers.
Longer AEWV for Lower-Skilled Roles: Three years now, instead of two. Big help when you want to keep good staff around for that extra year.
Bringing the Whānau: Earning at least NZ$55,844 means your overseas workers can bring their kids along—makes life (and staff retention) a heck of a lot easier.
All in all, it’s a (partial) victory dance for the hospitality sector in New Zealand. Less fuss, more flexibility, and hopefully smoother sailing to get the right people into the right roles—especially during those peak mania months.
2. Meet Our New Tourism & Hospitality Minister: Louise Upston
We’ve had a bit of a ministerial shuffle, and in walks Louise Upston to take over Tourism & Hospitality duties from Matt Doocey. She’s been the MP for Taupō since 2008, holds an MBA from Waikato, and has dabbled in various top-level roles—Corrections, Education, Land Info... the woman’s definitely no stranger to getting stuck in.
Industry Anticipation
Hospitality NZ and Restaurant Association of New Zealand gave a hearty nod, acknowledging her predecessor’s successes (like that big Hospitality Summit in December 2024) and hoping Louise can continue the momentum.
Keep an eye on the Tourism Industry Transformation Plan (ITP), which is all about building a more sustainable, regenerative, and fair tourism sector. They’re in the middle of the “Better Work” phase, so we might see new policies aimed at improving hospo job conditions.
She’s also got that Innovation Programme for Tourism Recovery (with $54 million up for grabs), plus Tourism New Zealand’s 2024–2028 Strategy to manage. It’s a big to-do list, but if she can keep the foot on the pedal, we might see more targeted support for workforce development and the tourism infrastructure altogether.
If you ask me, any minister who’s up for tackling staff shortages and championing a stronger hospo workforce is aces in my book. Let’s see what she can whip up for 2025.
3. B&B Bonanza: Small-Scale Stays Still Winning Big
$12 Million Added: In 2023–24, the hosted Bed & Breakfast sector injected over $12 million into New Zealand’s economy.
2–3 Guest Rooms: On average, each B&B runs just 2–3 rooms. So that’s a pretty hefty contribution from small-scale operators.
$305 a Night: Typical room rates run around $305, though some go as high as $1,300—perfect for those seeking a lavish weekend escape.
71% International Bookings: The Netherlands (16%), Germany (12%), the UK (11%), the USA (8%), and Australia (6%) top the list, proving that Kiwi charm knows no borders.
60% Seeing Higher Occupancy: Compared to last year, a majority of B&Bs report boosted occupancy, which spells optimism for 2025 and beyond.
Global Market Projections
The global B&B market is pegged to reach $5.99 billion by 2025, with a 3.4% CAGR through 2029.
Kiwi B&Bs are well-positioned, especially as travelers chase more authentic, personal experiences—like your homemade jams or the warm chat over breakfast.
Between the local numbers and global forecasts, it’s clear that the personal, hosted approach is nailing it right now. It’s all about that “home away from home” factor—something bigger hotels can’t always replicate.
4. Credit Card Fee Caps: Because Every Cent Counts
Ever felt that sting when you check your merchant fees statement each month? The Commerce Commission hears you. As of January 14, 2025, they’ve laid down new interchange fee caps:
In-Person Domestic Transactions: 0.2%
In-Person Foreign Transactions: 0.6%
Online Domestic: 0.4%
Online Foreign: 1.15%
That’s expected to save businesses a whopping $260 million each year—yes, million. If your average small hospitality business was paying 1.2–1.5% before, this can be a genuine game-changer:
Lower surcharges: From about 2% down to around 0.7–1%.
Implementation by July 1, 2025: So keep an eye on your merchant services contract.
Applies to Foreign & Commercial Cards: Which used to be unregulated. So if you get a lot of overseas tourists paying with fancy gold cards, your transaction fees should drop too.
And who knows—maybe fewer fees means you can finally invest in that top-of-the-line espresso machine. Your caffeine-addicted customers will thank you.
5. Auckland’s Cat Café Craze: Paws & Purrs for the Win
No, you didn’t read that wrong. A new ranking pegged Auckland at number two globally for cat lovers, based on the presence of cat cafés, adoption initiatives, and general feline fervor. The city apparently sports about 0.3 cat cafés per capita, which is impressive when you consider how many coffee spots we already have.
Purrs and Beans: Operating since 2015. They set the standard for sipping a latte while patting a snoozing kitty.
Furry Friends in Mairangi Bay: Part café, part adoption center. Perfect if you like your cappuccino with a side of “Aww, can I keep him?”
Wellbeing & Regulations
The SPCA keeps a close watch, ensuring cats have off-limits areas to de-stress.
Auckland Council audits them under Food Control Plans, so your coffee’s safe and your feline hosts are well looked after.
Tourists and locals are lapping it up—turns out combining caffeine and furry cuteness is a winning formula. If your place is near a cat café, prepare for the foot traffic (and possible cat-petting envy).
6. Tourism Data Partnership Fund: Numbers Nerds, Rejoice
Launched on January 21, 2025, this Tourism Data Partnership Fund aims to gather serious intel on spending patterns, visitor flows, and more. Co-sponsored by Hospitality NZ and Restaurant Association of New Zealand backing:
Detailed Transaction Data: So you’ll know if visitors are splurging on fancy degustations or takeaways.
Behavioral Insights: Are they hopping from Auckland to Queenstown, or do they prefer smaller regional gems like Taranaki or the Catlins?
First Reports by Q3 2025: That means you could have real-time (or close to it) data to make better staffing and inventory decisions.
Privacy Concerns
Yes, they’re talking anonymized, aggregated stats. So you’re not going to see “John Smith from Sydney spent $240 on mussels in Coromandel.” But you will see overall patterns and big-picture numbers that can help plan your marketing or decide whether that new dessert special is worth it.
If you’re a data geek (or just want to run your venue more efficiently), keep your eyes peeled for these updates. Could be a goldmine of info in a sector that traditionally runs on gut feel and guesswork.
7. Hotel Occupancy & Revenue: Slow Yet Steady Climb
While B&Bs bask in the limelight, hotels are also ticking along—some better than others:
71% Occupancy in January 2025: Up from 64% a year ago, though still below pre-pandemic highs of 79%.
RevPAR +9%: From December 2023 to January 2024 year-on-year. Not mind-blowing, but a decent bump considering the rollercoaster we’ve been on.
Regional Disparities: Auckland and Wellington took hits in 2024 (RevPAR down over 14%), partly thanks to an oversupply of rooms and the delayed NZICC. Meanwhile, Nelson and Marlborough are killing it—likely due to improved conference bookings and that sweet, sweet vineyard business.
Domestic vs. International: Kiwi travelers were down 11% in June 2024, but overseas visitor arrivals are climbing back, hitting 88% of pre-COVID levels. China at 86%, Australia at 90%. That’s encouraging if your business thrives on global tourists.
With expanded AEWV changes just around the corner, hotels might finally get some relief on the staffing front. After all, a surge in visitors is only good news if you’ve got enough hands on deck to serve them.
(Source)
Final Nibbles
That’s your January 2025 hospo scoop in a nutshell. With credit card fees going down and B&Bs booking out, there sure is a buzz in the air—kind of like that first whiff of freshly roasted beans in the morning.
If you’ve got questions about how any of these changes might play out in your business—or you’re keen to recruit new talent without wading through endless red tape—sing out. We like staying at the forefront of all the updates at Hospo HR, track industry trends, remaining committed to hooking you up with the best people and the best insights, so you can focus on making your customers smile.
So, here’s to 2025, whānau—let’s keep the creative menus flowing, the service top-notch, and the recruitment headaches minimal. Feel free to reach out to our recruitment team to chat, plan, or just vent about your quest to find the perfect sous chef.
We’re here for all of it.
Until next time, keep the coffee hot, the cats cuddly, and the Kiwi spirit alive.
Written by Joshua Thomas, your faithful conduit for all things Kiwi hospo & founder of Hospo HR—New Zealand’s top ranked hospitality recruitment agency that never quits until the right candidate’s found.
