Auckland Chamber of Commerce head, Michael Barnett, said the proposed targeted rate that around 300 hotels, motels, backpacker's and camping grounds would have to pay was anti-business and failed against numerous tests:
- City hotel and motel rates will increase on average by 150 per cent with some facing hikes of more than 250 percent the industry has advised – a complete failure of the Mayoral promise to keep Auckland rate increases to 2.5 per cent;
- Council is thinking only of the good times. What the situation will be in say 10 years from now is an unknown – “You don’t build a church because you’re full on Easter Sunday.”
- Hotels and motels can decide whether to carry the cost or pass it on – that will be hugely unfair on the many hotel and motel guests who are not ‘tourists’ visiting Auckland attractions or major events – they are here for other reasons, especially business. They will look to stay in places not adding a tourism tax.
- Accommodation accounts for just 10 per cent of Auckland’s $7500 million revenue from tourism last year yet is being asked to pay 100 per cent of the cost – Retail generated 30 per cent, cafes and restaurants 17 per cent transport 16 per cent and tourism activities 13 per cent.
- Tourists already bring in billions of dollars equivalent to 17% of Auckland’s GDP – it is stupid to hit them with an explicit tax for visiting the city
- For domestic tourists, Auckland’s brand is of a city that is hard to get around in – a tourism tax will add another negative to visiting the city.
Instead of taxing an Auckland success story, council’s first step should be to look inside its own organisation for the $28 million it wants to save – that’s where the Auckland story needs to get real, said Mr Barnett.
He called on Auckland Council to withdraw the proposal forthwith, before more damage is done to the Auckland brand.