Christchurch Mayor Phil Mauger is predicting a “day of reckoning” for Airbnb operators, saying hundreds of new hotel rooms could reduce demand for short term rentals and push some properties back into the residential market.

His comments come as Christchurch continues to grapple with how residential properties being used as visitor accommodation should be regulated.

Under the Christchurch District Plan, most unhosted visitor accommodation in residential areas outside the airport noise contour can operate without resource consent for up to 60 nights in a 12 month period, with a maximum of eight guests.

More intensive use can require resource consent and may also result in the property attracting business rates.

The issue was brought into sharper focus last month when the Ministry of Business, Innovation and Employment backed Christchurch City Council over a central city apartment being operated as short term accommodation.

MBIE found the Gloucester Street property had undergone a change of use by being offered to transient paying guests and upheld the Council’s notice requiring the owners to obtain the necessary approval or stop using it as visitor accommodation.

Speaking to Chris Lynch Media, Mauger said he had raised wider concerns about short term accommodation regulation with the Government but had received no response.

“Not one thing.”

However, Mauger said he no longer believed further Council intervention would necessarily be required, predicting increased hotel competition would eventually take some of the profitability out of Airbnb properties.

“I’m sure a day of reckoning is coming for Airbnbs.”

Mauger said Christchurch’s shortage of hotel rooms during major events had allowed some short term accommodation operators to charge very high nightly rates.

But significant additional hotel capacity is coming.

The $150 million Sheraton Christchurch is expected to open in mid 2027, adding 240 rooms to the central city accommodation market.

“The more hotels that come online, the less demand there’ll be for Airbnbs.”

Mauger said greater hotel choice would put downward pressure on accommodation prices and could lead some investors to reconsider whether operating properties as short term rentals remained worthwhile.

He said those owners could ultimately sell, returning properties to people wanting permanent homes.

The debate comes as Christchurch attracts growing numbers of visitors for major events. Seven major events held between April and June generated an estimated 133,385 visitor bed nights, according to ChristchurchNZ.

Meanwhile, Orana Wildlife Park should be funded permanently through the council’s next Long Term Plan, he said, as councillors prepare to vote on a proposed $1.2 million lifeline for the park.

“There’s a small number of them that should be line items, and that should be one of them, I feel.”

The council’s Finance and Performance Committee will consider the proposal on Wednesday. Orana needs about $4.1 million this financial year, and its cash reserves are forecast to run out by March 2027. A review by accounting and advisory firm BDO found further cost cutting and commercial growth alone would not solve the park’s underlying financial problems.

Auckland and Wellington provided considerably more support to their zoos, while Christchurch had historically contributed less to Orana, Mauger said. The park had been in slow decline for several years, but its new board and recent reviews had set a clearer path towards financial stability, he said.

“This is just to help them, give them a bit of a leg up until we can do the Long Term Plan and see where we head.” Future tourism levy revenue could also support attractions such as Orana, Mauger said, although any decision would rest with the council.

National recently announced an election policy to distribute part of the International Visitor Levy to councils according to their share of international visitor guest nights. Christchurch is estimated to receive $36.9 million over four years. The funding depends on National being returned to government and would begin from July 2027.

Four sites are being considered for the March 15 National Memorial: Central Ōtākaro, South Ōtākaro, South Rolleston Avenue and Victoria Lake.

Families of the 51 people killed and those injured in the attacks are being asked for their views before the council makes an offer of a site or sites. No preferred location has been selected.

Mauger said considerable work had already gone into identifying the options, and no further locations should be put forward.

“Let the process happen because the staff and the ministry are very good at doing it, and it’s a very sensitive issue.”

NZ Post will close its Sockburn and Cashel Street services as part of wider changes across Christchurch.

Another 21 services in the city will close this year, with a new full service operation on Moorhouse Avenue becoming the main hub for the central city and surrounding areas.

Mauger described the closures as sad, and said they reflected changing customer behaviour as more postal services moved online. Older customers were more likely to value a physical post shop, while younger people increasingly carried out transactions online.

“We want more people in town, and we’ve got to have these services for them.”

Construction of the new activated sludge plant at the Christchurch Wastewater Treatment Plant is advancing. Mauger visited the site at 6am last Friday as crews completed a concrete pour of about 250 cubic metres, with a larger pour expected within the next month.

The council previously said ground improvements involving 1600 stone columns had been completed, and concrete work was scheduled to begin in September. The activated sludge plant is the long term replacement for the fire damaged trickling filters.

“It’s very good to see, and things are coming along very well.”