Business representatives are urging the Queenstown Lakes District Council to reconsider its outdoor dining policy, as the price increases are "blowing the budget" for many.
Earlier this year, the council opened consultation on the policy, but according to Hospitality New Zealand chief executive Steve Armitage, the fees associated with the updated policy were not shared until it was finalised.
He said outdoor dining charges ranged from $600 per square metre in The Mall to $250 per sqm in other parts of the town centre. Furthermore, the council would be charging a licence-to-occupy application fee of $450 for each establishment with an existing licence.
Arrowtown Promotion and Business Association manager Nicky Busst said one of her members, who had multiple locations, was faced with a $1500 bill just for renewals.
"How is that acceptable when an existing [licence] is already in place and nothing will be changing?"
That was particularly important given many businesses were not able to serve diners outdoors between May and September, yet would be charged for the full year.
Hospitality NZ head of membership Darelle Jenkins, of Queenstown, contended because the council did not share its proposed fee schedule, the public consultation was not fully informed.
"Submitters didn’t have a clear idea as to what extent fees would increase and therefore couldn’t endorse or object with full knowledge."
The new owner of one business was allegedly completely unaware of the "dramatic" increase in outdoor dining fees and would have "dramatically reduced" their purchase offer had they known.
"This increase is blowing the budget out of the water, as no-one would expect to budget for an increase [of up to] 275%."
Another lakefront operator was facing a $51,000 annual fee for outdoor dining, while a pop-up food vendor, right outside their area, was operating "without paying", Ms Jenkins said.
There were also significant bottom-line implications for businesses, which would need to earn more, in a challenging economy, to cover the increases.
Instead, 37.5% of Queenstown members surveyed would be removing their outdoor dining, and another 43.8% were "concerned about viability", she said.
Queenstown Business Chamber of Commerce chief executive Sharon Fifield said the chamber was also alarmed.
"Many businesses are now reconsidering their outdoor seating options, which could further diminish the vibrancy of our CBD.
"In these challenging economic times, we ask for a pause on fee increases to allow for consultation."
