Consumer confidence has improved and the hospitality sector is starting to believe again, but industry experts are controlling their expectations as the summer run-in continues to increase sales.

The Westpac Consumer Confidence Index shows New Zealand up 8.7 points, an improvement on previous scales but still below the long-term average.

With the scale at its highest level in two years, Hospitality New Zealand chief Steve Armitage has confirmed it's exactly what the industry has been hoping for since the dawn of the Covid-19 era.

"Everybody up and down the country's well aware that hospitality business has done it tough in recent times, been through the pandemic and rising cost of living," Armitage told Summer Breakfast.

"This is absolutely what we were hoping for but I'd say we're cautiously optimistic at this point."

Consumer confidence didn't guarantee people would reach into their pockets and purses and spendat the counter, but he said there was a general sense that this summer would be a positive one for most of the country.

"The run-in to Christmas is usually when we see strong business, obviously with Christmas parties and other things; it marks the start to summer so people are more prone to be out and about celebrating things," he said.

"And we've noticed, of course, that international visitors have picked up a wee bit."

However, Armitage understands spending is muted, with people still cautious as they look ahead to 2024 and wonder how things will land in terms of their finances in the new year.

"Bookings are steady but not spectacular," the hospitality chief said.

"I think the domestic side of things is just starting to soften up, as I say that cautiousness is starting to bite, so the increase in internationals is certainly helping out a lot."

Some parts of the country are still looking to bounce back, Armitage said, but a recent Worldline report released in recent months, formerly known as the Pay Mark, noted that spending in restaurants, cafes, fast food establishments, bars and the like had hit $430 million in the first 14 days of December.

This figure was an increase on the previous year, which encourages the sector.

"The other thing to note is some of the costs associated with businesses are starting to ease, which is very welcome for our operators."

Asked what the Government could do to improve the hospitality picture headed into 2024, Armitage believed there had already been morale-boosting actions from Parliament, which showed his sector's needs would be prioritised.

Among the recent moves of the coalition Government was repealing Fair Pay Agreements, which Armitage said was encouraging.

"The increased focus on the regulatory picture is also keenly of interest in our sector," he said.

"Immigration is always going to be a factor, as is training, so there's going to be a few things we'll be interested in but certainly the Fair Pay Agreement being set aside was very welcome."