The 1 June decision by Auckland Council to proceed with the targeted rate on commercial accommodation providers is extremely disappointing, the tourism industry says.
Tourism Industry Aotearoa and Hospitality New Zealand say most, if not all, of the councillors recognise the unfairness of the proposal but a majority still decided to vote for the measure.
TIA Chief Executive Chris Roberts says the targeted rate proposal was based on bad information and a poor understanding of how the visitor economy works. There are also unanswered questions over whether it meets relevant legislation.
“There is an alternative approach to the targeted rate. The commercial accommodation sector has repeatedly offered to work with the Council to find a fair and sustainable way to make an appropriate contribution to the city’s visitor and event promotion activities. That offer still stands,” Mr Roberts says.
HNZ Chief Executive Vicki Lee says the targeted rate will have a devastating impact on Auckland’s commercial accommodation sector and the wider tourism industry.
“An unbudgeted cost increase of this magnitude would create serious challenges for any business, and Auckland’s motels and hotels are no exception,” Ms Lee says.
TIA and HNZ will work with their affected members to decide on their next steps.