TIA is vigorously opposing a proposed new targeted rate for Auckland which unfairly targets accommodation providers and fails to take account of the economic benefits tourism brings.
It is inequitable to target commercial accommodation providers when the benefits of tourism are spread throughout Auckland’s economy.
TIA has convened a working group made up of Auckland hotel representatives to fight the proposed targeted rate.
Our submission and supporting letters
On 27 March we lodged our submission to the council opposing the rate, together with supporting information for a variety of stakeholders. Key messages in our submission included:
- Commercial accommodation providers in Auckland are willing to pay their fair share towards tourism promotion.
- There is, however, no justification for the proposed targeted rate solely on commercial accommodation providers. It is poorly designed and based on incorrect information. The targeted rate is not the appropriate funding tool for Auckland Council’s purposes.
- There has been very limited information sharing with the affected sector, few alternative funding streams considered, and no examination of the current level and effectiveness of the spending of Auckland Tourism, Events and Economic Development (ATEED).
The proposal is part of the Auckland Council's 2017/2018 Annual Plan (also known as the Annual Budget). Read more.
Facts before Council
On Monday 20 March 2017, TIA CEO Chris Roberts led off the industry response to the proposed accommodation targeted rate at the Auckland Council’s oral hearing on Monday.
This was the one formal opportunity to speak to the proposed Auckland Annual Plan and Budget and the tourism and accommodation industries turned out in force.
Of the 17 submitters appearing before the Council, nine were there to speak specifically against the proposed targeted rate on commercial accommodation providers. TIA was joined by Hospitality NZ, Holiday Parks Association, BYATA, The Property Council, a hotel owner, two hotel developers, a motelier, and a backpacker operator.
The presentation Chris gave to the Council can be found here. On 27 March TIA lodged a comprehensive written submission and supporting documents, which along with dozens of other submissions is opposing the misguided proposal.
Chris says: “We are confident that the facts support our case. This is a poorly designed, unfair and hugely damaging proposal that must be rejected. And this is not just an Auckland issue. If it goes ahead, other councils around the country will be lining up to implement funding schemes that are just as crazy."
Campaign funding supporters
A very big thank you from TIA to this campaign's funding supporters:
Jet Park Hotel
Marsden Asset Management
Quality Hotel Parnell
Russell Property Group
Scenic Hotel Group
The Langham, Auckland
Waipuna Hotel and Conference Centre
Thanks also to other funding supporters.
- Read the TIA Chief Executive's blog - Auckland's appalling targeted accommodation rate
- TIA facilitated a meeting in January 2017 for senior TIA hotel executives and owners with Auckland Mayor Phil Goff to find out more about his proposed targeted rate on accommodation providers.
- Download our 28 November 2016 media release – Auckland visitor levy unfair & ill conceived