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Business groups in the South are frustrated and surprised the Labour Party wants to add a new public holiday and would prefer more focus on a Covid-19 recovery.
The Labour Party says it will make Matariki a public holiday if elected and it would be on a Friday or a Monday during the lunar cycle Matariki celebrations fall on, from 2022.
Matariki is the Maori New Year and begins with the rising of the Matariki star cluster.
In 2020 Matariki was celebrated during the week of July 13.
Labour would convene a group of experts to help decide the exact date for what would be this country’s 12th public holiday.
Otago Chamber of Commerce chief executive Dougal McGowan described the proposal as a big surprise.
"... really, we’d like to see some pretty strong plans put in place for a recovery and the biggest news [yesterday] is we’re contemplating another public holiday."
It would put a cost on already struggling businesses, he said.
"For some they’ll be closed, and for some they’ll have to pay a higher rate and time in lieu."
Mr McGowan supported the idea of swapping another holiday for a new Matariki day.
"We’ve got quite a few public holidays."
The Otago Southland Employers Association was also supportive of removing another public holiday to make room for Matariki, which it described as having "important cultural significance".
But association chief executive Virginia Nicholls also lamented the extra costs another public holiday would put on businesses.
Queenstown Lakes Mayor Jim Boult said he had a clear view on what long weekends meant for his part of the country.
"[They] are fabulous for our economy.
"The whole district fills up. Lots of people come here and we have money to spend. Certainly it works well for us."
Additional cost for businesses would be outweighed by increases in turnover with more people coming in from out of town, Mr Boult said.
Labour leader Jacinda Ardern said a Matariki public holiday was what New Zealanders wanted.
“As I’ve travelled around New Zealand I’ve heard the calls for Matariki to become a public holiday. It’s time has come."
Ms Ardern said the holiday would provide what many sectors needed.
“Matariki will be a distinctly New Zealand holiday and a time for reflection, celebration and to look to the future as we take increasing pride in our unique national identity."
She said New Zealand did not have as many statutory holidays as other OECD countries.
Deputy Labour leader Kelvin Davis said a Matariki holiday would give Maori a chance to share its traditions and history with the rest of New Zealand.
“None of our current public holidays recognise Maori culture and tradition.
"Making Matariki a public holiday is another step forward in our partnership as a people and a further recognition of te ao Maori in our public life."