"It's especially bad since it was Māori Language Week. It to me shows that they have no cultural sensitivity."
A university spokesman said college management approved the request of a group of Māori students to hold a party, and the students chose the event name and theme themselves.
The party was advertised on the college's private Facebook page, the spokesman said.
No concerns were raised about the party at the time.
"As the event was led by a group of Māori students, Arana management believed it
appropriate for them to determine the use of their own language."
The college and the university were not aware of any complaints made about the event.
Party organisers said in a statement the event was not a celebration of Māori Language Week but rather a "classic Kiwi shed party".
"We understand the controversy of the word used and want to apologise to anyone who is offended by this."
It was not their intention for this to come across negatively or to perpetuate stereotypes, the statement said.
"We do not associate this word to being [or] acting Māori, but rather as a descriptor for a dress code that can apply to anyone.
"This was a way for us to feel more at home as the party environment in Dunedin is very different to what we are used to."