Glyn Lewers: Queenstown Mayor on the price increase for alfresco dining

Hospitality owners are getting hit with a large bill for outdoor dining. 

Queenstown District Council's increased its alfresco dining fees after pausing rises during the pandemic. 

One hospitality business has seen their per square-metre cost rise from $160 to $600. 

Queenstown Mayor Glyn Lewers told Mike Hosking that $600 is 30% of the rental rate of the CBD, which is a standard industry practice shared by other cities such as Christchurch.  

He says rates haven’t been increased since 2006, and after pausing the plans for Covid, they’re now picking them back up. 

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Episode Transcript

Speaker 1 (00:00):
Back this morning though, of the business of gouging for
outdoor dining. Numbers are flying all over the place, from
one hundred and sixty dollars a square meter to a
couple of hundred dollars a square meter, and depending on
how you look at the numbers, means they could be paying.
It was claimed yesterday on the program about fifty one
thousand dollars a year, which is a fifteen hundred percent increase.
So what's going on? This is specifically in Queenstown and
the mayors Glenn Lewis, whore Glenn Lewis, who is with us,

(00:21):
Glenn morning, Good morning Mike. Now, I don't want to
get bogged down in a singular story about how many
meters and how many dollars and stuff, But broadly speaking, one,
you charge for outdoor dining. Two you're charging more for
outdoor dining. Is that true?

Speaker 2 (00:35):
Yes, Why we've we've never looked we've never increased rates
since two thousand and six. We looked at it in
twenty nineteen, going from as you say, you won sixty
to six hundred dollars a square meter on the Queenstown
Late Front. We paused it during COVID it's now twenty
twenty four, two years past COVID, and we've picked it

(00:55):
up in implementing it.

Speaker 1 (00:56):
Now, where do you get the six hundred from? Is
that a number pluck from the year now?

Speaker 2 (01:01):
Now it's thirty percent of the retail of the rental
rate of the Queen's Town CBD.

Speaker 1 (01:08):
But that's a number platform the yet that's thirty percent,
sixty percent, it's just a number that you guys come
up with.

Speaker 2 (01:13):
You think, and that's not what we come up with.
It's a standard industry practice. It's the same number that
christ Church uses and that's what we've gone with.

Speaker 1 (01:23):
Ah, that's interesting. So I asked yesterday whether it's variability.
They seem to suggest there was. You're suggesting there's a
bog standard. This is what councils charge around the country
if you want to have tables outdoors.

Speaker 2 (01:33):
That's the advice we've got.

Speaker 1 (01:34):
Yes, right, Is it a money grab?

Speaker 2 (01:38):
No, it's a reflection of the market rates. And look,
this is the Queenstown Lakefront, this is the iconic parist
spot in the country, hosts thirty percent of the international
visitors that using one received. So no, I don't think
it is a prosperant and the individual.

Speaker 1 (01:56):
Is claiming fifty one grand. That once again without going
into too much detail, well, that's a back pay and
numbers were done wrong. Is that right? Roughly?

Speaker 2 (02:04):
Yes, that's increased in an increase in area being charged
as well.

Speaker 1 (02:08):
Okay, So we then come to the cracks of the
problem with is it fair and are you killing business
at a time when business is struggling.

Speaker 2 (02:17):
Look, we've had many outdoor dining businesses come to us
wanting to increase the area even with the increase in rates,
and others that want to take the opportunity to decrease
the area just because it helps manage staff easier. So look,
I don't think we're killing outdoor dining. I think there's
just probably a rare adjustment for some your debt.

Speaker 1 (02:38):
How much do you own Queenstown?

Speaker 2 (02:40):
Geez, we're about seven hundred million. After the ten year plan,
we come to one point two billion. This is the
outcome of a very fast growing region.

Speaker 1 (02:53):
Geez, one point two billion on a rating base of
what does that put you on the edge of credibility?

Speaker 2 (03:00):
I will grow from thirty six thousand rate payer base
to forty two over the ten years. Now, this is
what happens when you've got double the visitor load to
actual residents. We're having to design and build for twice
as many people than what actually lives here.

Speaker 1 (03:17):
What do you pay for debt servicing each year?

Speaker 2 (03:20):
Our average weighted annual interest rate is now five point six.

Speaker 1 (03:27):
But in Doris, what do you pay as a bill?

Speaker 2 (03:30):
Oh? You should be one hundred million to' say.

Speaker 1 (03:33):
Just an interest payment?

Speaker 2 (03:35):
Yep?

Speaker 1 (03:36):
Wow, what's your rating increase? This year?

Speaker 2 (03:39):
It was fifteen point six on average.

Speaker 1 (03:42):
And that's gone down the treat has it of course?

Speaker 2 (03:46):
You know, just imagine how well that's gone down there,
Mi jee.

Speaker 1 (03:51):
I've got the number yesterday. And the reason the inflation
number and the non tradable number was so bad is
because guys like you go around charging people fifteen percent
more each year.

Speaker 2 (04:00):
Yeah. Well, when you break it down, it's insurance, interest
traits and reevaluation and depreciation on assets that we're actually
going already.

Speaker 1 (04:09):
Yeah. Although having said all that, you're one of the lucky.
I think you're one of the lucky regions in the country.
You do have growth, your tourism is back. Things do
seem to be bubbling nicely. And there you're one of
the better places in that sense.

Speaker 2 (04:22):
Oh yeah, look, I'd rather be in my position than
many other councils. I have growth, growth, as is the
challenge I face. Jeez, that's a that's a tough one
for me really, But no, look I realize I'm in
a privileged position.

Speaker 1 (04:36):
You've got any advice for Torri and Wellington.

Speaker 2 (04:41):
You stay out of the media.

Speaker 1 (04:44):
Well, this has gone well for you though, Glenn, hasn't it.

Speaker 2 (04:47):
Oh look, look, Wellington, I think your counselors need to
stay out of the media as well and actually work
as a team. Frankly, but yeah, I don't want to
start training stones.

Speaker 1 (04:58):
I just air hit down, but you just have hit down,
bum up. As the advice world, I'm Glenn appreciate it
pretty much. Glynn Lewis, Queenstown mayor. Hopefully that, hopefully they
answer some sort of questions.

Speaker 2 (05:08):
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