Another reason not to go to Auckland

Phil Goff and the Auckland City Council have voted for a ‘bed tax’. This is purportedly to get hotels and motels to partially pay for the cost of staging events in Auckland, but it imposes costs on just some accommodation options and will cost everyone who uses them regardless of whether they are visiting Auckland for an organised event or not.

It also makes the cost of doing business in Auckland more expensive.

Perhaps this is a sly way of trying to get the Government to fund their events, given that motels are being state funded to house homeless and hard to accommodate people.

Stuff: Auckland Mayor Goff’s ‘bed tax’ passes 10-7

A controversial ‘bed tax’ will go ahead, with Auckland Council’s Governing Body voting 10-7 in favour of the proposal on Thursday afternoon.

It will see nightly room rates bumped up between $3-$6 for hotels and $1-$3 for motels.

The targeted accommodation rate will see hotels and motels charged extra to partially offset the cost of staging major events in the city.

Goff said it would free up $13.5 million of ratepayer funding which could be used to bolster transport and infrastructure.

He has previously said hotels and motels could pass on the cost to tourists as a surcharge.

“With the targeted rate on accommodation we are asking accommodation providers to meet half of the cost of tourism marketing and events which previously fell totally on Auckland ratepayers,” he said.

“It’s only fair that those who benefit directly from events that promote tourism share in that cost.”

But is it fair to make accommodation providers and visitors who have nothing to do with tourism promotion and events to pay to subsidise the events? No.

It seems to exclude other accommodation providers like holiday rentals, home stays and Airbnb.  Campervans are another popular mode of accommodation that escape the tax.

TIA chief executive Chris Roberts said it was based on bad information and a poor understanding of the workings of the visitor economy.

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.”

He said it could be a “considerable time” before accommodation providers knew how much they would have to pay.

Accommodation providers would be able to apply to the council for a rates remission, taking into account any forward bookings they might have, but there would be no guarantee, he said.

Has the cost of administering all of this been taken into account? It sounds heavily bureaucratic.

It seems to be a poorly and unfairly targeted tax on some accommodation providers.

Is this the best Phil Goff could come up with?

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9 Comments

  1. Trevors_elbow

     /  June 2, 2017

    Phil is a tax and spend guy…. what did you expect? This is the first of a few moves, in my view, he will make to grow the tax Base for ACC…… get ready to be gouged Aucklanders

    Reply
  2. Alan Wilkinson

     /  June 2, 2017

    I hope it is struck down by the courts. Is there a legal challenge being mounted?

    Reply
    • Gezza

       /  June 2, 2017

      Maybe you could start a Givealittle page Al❓With the cost of mortgages & rents up there nobody might be able to afford it? And the best lawyers up there are pretty pricey, so I hear.

      Reply
  3. Once a socialist always a socialist.

    Veering sideways somewhat, it really peeves me that these traditional accommodation models get to shoulder all compliance (theft) costs an dreamed up routing tax govt entities can dream up. The Airbnb and mum and Pop models are making better than a living, without having to put in a single fire or sprinkler.

    Reply
  4. David

     /  June 2, 2017

    I oddly find myself in agreement with Goffs bed tax and I say that as an owner of accomodation up there that will be charged. When there are events on rents can increase hundreds of dollars a night ipso facto the more succesful Ateed is the more money accomodation providers make.
    I think the hospitality sector should in return have input into Ateeds activities if they want us to fund it because like everything connected to Akl council it is wasteful and inefficient. Goff being a Labour man cant get his stupid head around this concept so its the usual half arsed labour job.

    Reply
  5. duperez

     /  June 2, 2017

    A very cunning move by the Auckland Council to pass this just as the Lions tour was starting.
    With three games in the city and high occupancy many of the hotels will be so busy counting the extra money they’re taking they won’t be focused too much on fighting back.

    Reply
  1. Another reason not to go to Auckland – NZ Conservative Coalition

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