Hotel operator in favour of bed nationwide bed levy if no alternative options found
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A hotel operator says he is in favour of a nationwide bed levy, if no alternative revenue-generating options are found.
It comes as Auckland's mayor Wayne Brown
asked the government to reconsider its opposition
to a bed night levy.
Brown has long campaigned for a bed tax on visitors to help fund destination marketing and events.
Chief operating officer of Sudima Hotels and Hind Management Les Morgan told
Morning Report
he supported a levy "if no other choice was given to us".
"I think that's the starting point that we want to ensure that all sorts of other options for generating funding for these events is explored," he said.
"We certainly want to be seen to be supportive. We want to be part of the architecture to ensure that it's designed correctly."
Consultation on Auckland Council's annual plan, which included the proposal for a bed night visitor levy, received more than 13,000 pieces of feedback.
Morgan said a levy would become too complicated if it was only introduced in Auckland.
"We have something like 16 regional councils across New Zealand. If every council was to impose a different rate, how would that be.
"If you journey down the country, would you face 5 percent in one town and 10 percent in the other.
"A lot of us sell New Zealand Inc overseas. How are we to explain to a tourist that if arrive here you might pay a different tax?"
Having the levy ringfenced for major events held in New Zealand made sense, Morgan said.
"If you think of New Zealand collectively, there's an opportunity. Auckland alone can't raise enough funds, for instance, to attract a World Cup. But New Zealand can.
"So if there was some framework within that where a percentage of the national pot was put aside to attract these major events,
"I think that makes sense that we work together."
However, he accepted there was some risk of adding further costs on overseas visitors.
"I personally have just come back from a sales trip to China and the Chinese market are are very price sensitive at the moment and so are others.
"Our visitors to our shores already face a lot of levies and taxes. They face the IVL at the border, potentially face visa costs, they face surcharges on the aeroplane tickets, they get here and pay GST. They play fuel tax like we do, alcohol tax like we do."
"Tourism in New Zealand contributes something like $4.1 billion per annum in GST. So there is a lot of tax coming in. The risk is New Zealand is becomes more expensive."
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