A Hospitality NZ representative says a dozen restaurants in the district are likely to scrap outdoor dining as a result of fee increases, but the local council says the increases are fair.

Fees for eateries’ use of public spaces for outdoor dining increased from $100/m2 to $225m2 for the Wānaka lakefront and $70/m2 to $125/m2 for other Wānaka areas when the Outdoor Dining Policy 2024 was adopted in May.

Restaurants in Queenstown also faced increases, varying depending on their location, and other fees associated with outdoor dining like licences.

More than five months after it was signed off, Queenstown Lakes District Council (QLDC) is still being urged to reverse the decision, including by Hospitality NZ head of membership Darelle Jenkins, who said the increases were “blowing budgets out of the water”.

Speaking at last week’s full council meeting, she said she represented 151 member businesses from across the district.

Twelve members intended to remove outdoor dining from their eateries and another 14 were “very concerned” about the impact on business, she told councillors.

Darelle also said the public “wasn’t fully informed” during consultation on the proposed increases, “regardless of what council has said about indicating fees”.

A QLDC spokesperson told the Wānaka App this week that, until May, outdoor dining fees hadn’t been increased since 2005.

Increases were signalled in 2019 but put on hold due to the impact of the pandemic on hospitality businesses and “the assertion that fee changes were not previously communicated is… misleading”, the spokesperson said.

The fees were assessed by an independent valuer and reflect current market rates, they said.

For Wānaka eatery Big Fig, the issue wasn’t that the fees were increased but the sudden, substantial jump.

Co-owner Shaz Lahood said she was sent a bill for outdoor dining fees which was several thousand dollars higher than the previous year and was initially given five days to pay it.

After contacting QLDC, the payment period was extended, but Shaz questioned why the fee had suddenly surged rather than a gradual year-on-year increase, which she said would have been manageable.

“I don’t begrudge paying a fee; I begrudge the size of the hike. If fees haven’t been increased since 2005, why is that?” 

The Wānaka Business Chamber was approached for comment.

PHOTO: Wānaka App