Hospitality NZ CEO Julie White said the idea for the festival had been suggested by some of their members as something "new and fun after such a challenging year".
"As an industry we wanted to support this Kaupapa. Wellington is the cultural capital and needs supercharging right now.
"At the end of the day, we are all about manaaki. This is what we do, bring people together."
White said it would also align perfectly with the opening of the transtasman bubble.
"What a brilliant opportunity for our Aussie cousins to come and experience Wellington, where we have more bars, cafes and restaurants per capita than New York.
"It'll attract people from out-of-town, it'll be great for locals, and the transtasman bubble is the cherry on top."
She said revitalising the hospitality sector would have flow-on effects to all local industries.
"It's a little-known fact that 25 per cent of New Zealand's horticulture revenue is generated from sales to New Zealand restaurants and there is a huge focus on showcasing local produce in this festival.
"Venues are also major employers, hiring staff and paying for entertainers.
"When hospitality is doing well, we are all doing well."