Tourism operator pans bed-tax plan

By Sue Fea
Copyright 2001 The Southland Times Company Limited
Article date: September 18, 2001
 

QUEENSTOWN -- Introducing a bed or tourist tax would be one way for the new Queenstown Lakes District Council to get "off side with the accommodation industry," Queenstown hotelier Carl Braddock said yesterday.

Proposed legislation changes could allow local bodies to introduce a bed tax to help fund rapid population and tourism growth. The tax would make it easier to rate accommodation properties based on bed numbers.

Past proposals by the council to introduce bed, tourist or departure taxes had been met with strong opposition from operators.

Mr Braddock said anxious accommodation operators had been meeting about the issue since it arose again in the news media over the past week.

"We've been talking about it constantly. We're fearful this will be an additional tax." However, council chief executive Duncan Field said a bed tax would not provide the council with a "sudden windfall." It was just a more flexible way of reallocating the rates dollar.

Mr Braddock said operators believed there was already a mechanism in place to rate the accommodation industry -- the district's existing differential rating system.

"A bed tax targets only the accommodation sector whereas the existing differential system captures the whole tourism industry," Mr Braddock said.

In the wake of the United States terrorist attacks and Australia's Ansett crisis it would add "yet another deterrent" to a holiday in Queenstown.

"Domestic New Zealand travellers already see Queenstown as a place where they're always dipping into their pockets. This would just heighten that perception." The council would make a submission to the select committee considering the draft legislation, which was before the Government.
 

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