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Aussies see red over bed tax

 

Copyright 1996 Venture Asia Publishing Pte Ltd.
Reprinted with permission
Article date: August 2, 1996
 

A call to impose a bed tax on Australian hotels will be fiercely resisted, says Tourism Council Australia (TCA).

The call has come from the social services lobby in Australia prior to an upcoming Federal Budget.

Said TCA national manager Scott Morrison, "The introduction of this type of tax - aimed only at tourism and related businesses - is discriminatory."

Morrison said the tourism industry could not afford additional taxes or charges. To introduce a bed tax would severely stunt the growth of the industry.

He added, "Research by TCA shows the effects of a 10 per cent bed tax on the Sydney four and five star hotel market would result in an increase of 15 per cent in room rates, a fall of seven percentage points in occupancy rates and a loss of jobs in the vicinity of three per cent."
 

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