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Home / Business / Companies / Tourism

Tourism industry against pillow tax

Newstalk ZB
7 May, 2017 11:08 PMQuick Read

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Auckland Mayor Phil Goff wants to introduce a targeted rate on accommodation providers. Photo / Greg Bowker

Auckland Mayor Phil Goff wants to introduce a targeted rate on accommodation providers. Photo / Greg Bowker

The tourism industry remains adamant a hotel and motel levy isn't the way to fund Auckland Council's tourism body.

Mayor Phil Goff wants to introduce a targeted rate on accommodation providers to fund the Auckland Tourism, Events and Economic Development agency. He says hotels and motels hike their prices during major events like last month's World Masters Games, and should contribute to the agency which sponsors them. Goff's now proposing a smaller levy for non-hotel providers, slashing the levy revenue from almost $28 million to less than $18m.

Tourism Industry Aotearoa chief executive Chris Roberts says the new proposal isn't any fairer than the original proposal.

He says on an average night, only 16 per cent of Auckland visitors are staying in hotels, of the 26 per cent who are staying at accommodation providers.Roberts claims any suggestion hotels hiked prices during the Masters Games is untrue.

He says the guests who stayed in hotels during the Masters Games just replaced other types of guests, and hotels had about the same number of guests as they did at the same time last year.

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Both proposals will be put to councillors this month, before the council passes its final budget next month.

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