The Shoulder Season A daily read on New Zealand tourism

The Holidays Act is gone, and tourism payroll has two years to catch up

A red commuter train running beside a green hillside in Wellington
Photo by Joao Marcelo Martins on Unsplash

It’s Friday, and the single biggest thing to land on the visitor economy this week was not a tourism announcement at all. Here’s what’s moving.

Parliament repeals the Holidays Act, and the clock starts for every seasonal employer

The Employment Leave Bill passed its third reading on Wednesday evening, repealing the Holidays Act 2003 in full and replacing it with the Employment Leave Act 2026. The core change is a unit change: annual and sick leave will accrue in hours, in proportion to an employee’s standard hours, rather than in weeks and days that then have to be converted back into money. Leave of all five types is available from day one. Employees can cash up a quarter of their annual leave balance a year. Itemised pay statements showing pay and leave become mandatory, with infringement penalties up to $20,000. The Act commences two years after Royal assent, and employers get a further year after that to bring employment agreements into line. Until then the old rules apply in full, including the obligation to fix historical underpayments.

The piece that matters most in this industry is the casual provision. Casual and additional hours will no longer accrue leave at all. Instead they attract a 12.5 percent leave compensation payment on those hours. Tourism and hospitality run on exactly that shape of work: shoulder-season guides picking up a day here and there, ski field staff on a winter contract, kitchen and front-of-house on rosters that move week to week, drivers and cleaners called in when a ship is in. Workplace Relations Minister Brooke van Velden’s argument is that this removes the conversions nobody could do reliably. Labour’s Phil Twyford argued it buys administrative efficiency for employers at the cost of part-time and casual workers, and the Public Service Association put more than 200,000 workers in the group it thinks will be worse off, particularly people earning overtime and penal rates.

Two years sounds generous and is not. Most small and medium operators do not run payroll themselves, they run whatever their provider supports, and providers rebuild in a queue. The operators who get through this cleanly will be the ones who ask their payroll provider this quarter when its Employment Leave Act build lands and what it needs from them, rather than the ones who find out in mid-2028. The other half of the job is the remediation still owed under the old Act, which the new law keeps alive in its own schedule. The scale of that backlog elsewhere in the economy is instructive: Health New Zealand alone carries $2.2 billion of it.

Source: RNZ · MBIE, Holidays Act reform · Employment New Zealand · 1News · News Wire

Stat of the day

12.5%

The leave compensation payment that will replace leave accrual on casual and additional hours once the Employment Leave Act 2026 commences. For a workforce built on variable rosters, this is the change to model first. (Employment Leave Act 2026)

MEETINGS books $170 million, up 55 percent on last year

Business Events Industry Aotearoa has reported the results from MEETINGS 2026, held at the New Zealand International Convention Centre in Auckland on 17 and 18 June. Projected business from the two days came to NZ$170 million, a 55 percent lift on 2025. Attendance hit a record 1,600, with more than 700 qualified buyers, up 20 percent, and over 260 exhibitors representing 19 regions. Chief executive Lisa Hopkins said the result reinforces the momentum being felt across the sector. The 30th MEETINGS runs on 29 and 30 June 2027 at the same venue.

The number worth pulling apart is the gap between the buyer count and the value. Buyers rose 20 percent while projected business rose 55 percent, and a similar share of buyers placed business as last year. That is not more people buying, it is the same proportion buying considerably bigger. Conference and incentive business is moving back up the size range, which is the part of the recovery that actually fills regional beds midweek in May and September.

It also puts the NZICC into the frame properly for the first time. Auckland spent the best part of a decade with a convention centre it could not use, and the pipeline effect of a large-format venue does not show up in the year it opens. It shows up two and three years out, in the bids that only became possible once the room existed. Regions should read the 19-region exhibitor number as the honest measure of whether that pipeline reaches past the isthmus.

Source: Inside Tourism · Conference & Meetings World · BEIA

The Northland expressway is signed, and it opens in 2033

The Government has signed a public-private partnership to build the Warkworth to Te Hana section of the Northland Expressway, the first stretch of the corridor. The Northway consortium takes it on: Acciona Concesiones, Aberdeen Investments and Global Sustainable Infrastructure, with Acciona Construction New Zealand, Downer New Zealand and AECOM. It is 26 kilometres of four-lane road with three grade-separated interchanges, 15 bridges, two underpasses and twin tunnels through Kraack Hill. Net present value is $3.649 billion, which Transport Minister Chris Bishop says is $251 million below the public sector comparator, with an expected $1.60 of wider economic benefit per dollar. Mobilisation and early works start next month. Main construction starts in November 2027. The road opens in 2033 and is fully complete in 2034.

For the visitor economy, the honest framing is a decade of patience for a real prize. Northland’s problem has never been the product. It is that the Bay of Islands sits a nervous three hours from Auckland Airport on a road that turns a coach schedule into a guess, which is why so much Northland inventory is sold as a long day trip rather than the two and three nights the region needs. Seven to ten minutes of time saving per vehicle understates it, because the value is not the average, it is removing the days when the average does not apply.

The nearer-term effect is about a thousand heavy vehicles a day coming off the main streets of the towns on the current route. Wellsford, Warkworth and Te Hana have been coach stops and coffee stops because they are on the highway, not because anyone chose them. Bypassed towns can do well out of it, but only the ones that start planning for it now rather than in 2032.

Source: Beehive · NZTA, Northland Expressway

Christchurch’s council company rejects the DP World bid for Lyttelton

Christchurch City Holdings has rejected the Tōnui Consortium’s unsolicited proposal to take a majority interest in a long-term lease of Lyttelton Port Company’s operating entity. The consortium pairs Dubai-based DP World with three Ngāi Tahu rūnanga, Ngāti Wheke, Ngāi Tūāhuriri and Te Taumutu, and lodged the proposal in June. Chair Bryan Pearson said the assessment was that the proposal, as presented, does not meet the threshold for ongoing consideration. CCHL pointed to the port’s improving operational and financial performance, the council’s 2026/27 letter of expectation opposing a lease, and its direction to retain a directly employed workforce. Community opposition was substantial, with a petition drawing close to 1,200 signatures. DP World has responded by raising governance concerns of its own.

Lyttelton is not a freight-only story. It is the South Island’s principal cruise port and the gateway for every ship day that lands passengers into Christchurch, Akaroa, Arthur’s Pass and the wider Canterbury day-trip market, and its berth capacity and turnaround performance set the ceiling on how much of that business the region can take. Ownership and operating model determine what gets invested and when.

What the decision does not settle is the $800 million Te Awaparahi Bay expansion, which unions have called to pause while the ownership question is live. That is the project that actually decides Lyttelton’s capacity into the 2030s, and it is now back with a board that has just declined outside capital and committed to funding growth itself.

Source: RNZ · Otago Daily Times · NZ Herald

Two Waipara wineries land on 50 Best Discovery

Black Estate and Greystone have both been listed on 50 Best Discovery, the global guide run by the organisation behind the World’s 50 Best Restaurants, which covers restaurants, bars, hotels and visitor experiences. Black Estate’s listing covers its organic and biodynamic vineyards, restaurant and accommodation. Greystone’s covers its wines, restaurant and sustainable winegrowing. Black Estate co-owner Penelope Naish called it an acknowledgement of the premium offerings in the valley. North Canterbury Wine Region chair Matt Barbour said recognition like this helps lift Waipara Valley’s international profile.

Waipara has an unusual problem for a wine region: it is 45 minutes from a city of 400,000 and an international airport, on the road to Kaikōura and Hanmer, and still gets sold offshore as a stop rather than a destination. It has roughly a fifth of Marlborough’s name recognition and none of Central Otago’s scenery premium. A listing on a guide that international agents and high-end FIT planners actually read is worth more to a region in that position than to one already on the itinerary.

The transferable point is that these listings are applied for and curated, not stumbled into. Regions with a handful of genuinely world-standard cellar doors and lodges but no international listing presence are leaving free positioning on the table, and it costs a submission rather than a campaign.

Source: Inside Tourism · 50 Best Discovery

TAANZ subsidises qualifications for travel sellers

The Travel Agents’ Association of New Zealand has launched a co-funded training programme with ServiceIQ, giving member businesses subsidised access to the New Zealand Certificate in Travel for corporate and retail, Te Haeata New Zealand Certificate in Business Events, and a new Experienced Consultant Award. That last one is the interesting piece: a fast-track assessment pathway for long-serving consultants who have never held a formal qualification, leading to an NZQA-recognised one. Chief executive Julie White framed it around skilled people being critical to the traveller experience. Businesses enrol directly through ServiceIQ.

Recognition of prior learning is the right instrument for a trade that lost a generation of staff after 2020 and rebuilt with people who learned on the job. The workforce problem in travel retail is not that experienced consultants lack skill, it is that the skill is undocumented, which makes it invisible in hiring, in immigration settings and in anything that requires a qualification level on a form.

Source: Inside Tourism · ServiceIQ · TAANZ

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