TIA opposed the Auckland Council targeted rate on commercial accommodation providers. The Council agreed to adopt the targeted rate proposal on 1 June 2017 despite strong opposition.
It is inequitable to target commercial accommodation providers when the benefits of tourism are spread throughout Auckland’s economy.
We are working with our affected members to decide on their next steps.
Read our media release following the Auckland Council vote.
Read this blog - What fair share, Mayor? - by TIA Chief Executive Chris Roberts.
Read a legal opinion that says adding a surcharge to cover council rates potentially breaches both the Fair Trading Act and the Commerce Act.
Our submission and supporting letters
On 27 March we lodged our submission to the Auckland 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 targeted rate 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.
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.
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
TIA convened a working group made up of Auckland hotel representatives to fight the proposed targeted rate.
We also received funding support for this campaign from a wide range of hotels. A very big thank you from TIA to:
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.
- Media release, 28 May: Auckland hotels & motels can’t add surcharge to cover targeted rate costs
- Media release, 23 May: Replacing the targeted rate
- Media release, 7 May: Mayor should stick to the facts
- Media release, 5 May: Targeted rate still unfair
- Media release, 27 March: Auckland Council needs to accept facts and drop targeted rate proposal
- 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.
- Media release, 28 November: Auckland visitor levy unfair & ill conceived