Most of Queenstown's bars, clubs and restaurants have opted to absorb the 2.5 % GST increase that came into effect at midnight last night - at least until breweries and produce suppliers respond to the increase.
"We're not going to be using the GST change to review our price, not for 2.5% - but that's not to say we won't down the line," Mike Burgess, who co-owns Winnies, the Buffalo Club and the Ballarat Trading Company, said.
Good Group, which owns 10 bars and restaurants affected by the increase including Barmuda, Mini Bar and Skybar, said it would also absorb the increase.
Good Group general manager of operations Sarah Stacey said the transition was largely a matter of keeping the books balanced as the group's bars and restaurants traded through midnight.
Pub On Wharf co-owner and general manager Chris Buckley said most of his alcohol prices would stay the same - at least until the country's two big breweries had reacted to the tax hike.
"We're waiting to see what the breweries do," he said.
Food prices at the pub would stay the same, with the pub maintaining its $20 mains.
However, some menu items, such as steak, might have to be increased to ensure quality once suppliers had been consulted.
Pig and Whistle and Monteiths owner and Guilty co-owner Barry Ellis said those establishments would also absorb the increase.
"We'll review it as and when we see fit, but it's market driven, so we'll see how we go through the summer and into next year," he said.
