Price wars between Queenstown bars are "out of control" because compulsory 4am closing has forced some owners to aggressively push for earlier customers with street touts, happy hours and drink discounts, Tardis Ltd director Scott Stevens says.
He was commenting yesterday during the Liquor Licensing Authority review of the Queenstown Lakes District Council's restriction of 24-hour liquor licences to 4am.
The hearing was held a year after the controversial policy was introduced.
Mr Stevens said the Cow Lane bar had lost a quarter of its revenue between October 2008 and June 2009.
The bar's trading hours were cut back to 4am in September 2008 when its licence came up for renewal.
Twenty-eight percent of Tardis' turnover used to be between 4am and 6am, Mr Stevens said.
Also, 3am to 4am used to be busier because it was a "wind-up" hour instead of a "wind-down" hour.
Since the introduction of 4am closing, bars were pushed into competing for backpackers, who he believed tended to consume cheap alcohol in their rooms, then hit the town.
The bar's focus was catering for residents, about half of whom worked in the hospitality industry and did not finish work until midnight or later, he said.
Speaking on behalf of the Local Alcohol Working Party, which represents almost 30 licensees in the district, Good Group Ltd chief executive Russell Gray urged the licensing authority to instruct the council to return to a 24-hour licence policy.
All working party members supported a liquor ban in the Queenstown central business district and were prepared to financially support the introduction of security cameras in the area.
The working party backed the return of community guides, who could work from 11pm to 5am.
Alcohol Advisory Council of New Zealand strategy and research manager Dr Andrew Hearn supported confirmation of the council's closing policy.
Dr Hearn said a full year or two of all bars closed by 4am was needed to evaluate fully the effect.
Research indicated extended opening hours were linked to instances of alcohol-related harm.
Alac was open to supporting further research on the effects of 4am closing.
Health promoter Ann Fowler said Public Health South wanted on-licence trading hours shortened to an undetermined time, but earlier than 4am.
Christchurch research consultant Dr Helen Gibson, who interviewed at random 50 central Queenstown business owners and managers by telephone, on behalf of Lakes Environmental, told the hearing those interviewed said they had not been affected generally by the introduction of 4am closing.
Business owners wanted licences reduced to 2am.
However, "some" bars could revert to 24-hour licences under strict controls.
Security cameras at strategic locations, more public toilets and lighting, a liquor ban, more visible presence of police or community guides were issues raised in the interviews, Dr Gibson said.
Former Curbing Alcohol-Related Violence project manager Merv Aoake told the hearing he and the four community guides regularly saw people urinating and vomiting in public, and large numbers migrating between bars and congregating outside food outlets, on Thursdays to Saturdays between 9pm and 4am.
Most people were clearly impaired by alcohol, but peak times varied greatly, he said.
The hearing, chaired by Judge Edward Unwin, continues today.
