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Carbon tax decision good for tourism

The Tourism Industry Association represents 2000 businesses and organisations within the tourism industry.
Media Release

Carbon tax decision good for tourism
21 December 2005

Members include airlines, airport companies, and regional tourism organisations, rental car, coach and taxi companies, inbound tour operators, accommodation providers, tourism attractions, researchers, training organisations and tourism services providers.

Tourism is New Zealand’s largest export earner – accounting for 18.5% of this country’s export earnings.

The Tourism Industry Association organises the New Zealand Tourism Conference, TRENZ and the New Zealand Tourism Awards.

Go to The tourism industry is delighted that the Government has listened to business sector concerns about carbon taxes and decided not to impose them, Tourism Industry Association (TIA) spokeswoman Fiona Morris says.

Carbon taxes had the potential to seriously harm tourism which is New Zealand’s largest foreign exchange earner, with international visitor expenditure accounting for $7.4 billion, or 18.5%, of total export earnings.

“We recognise that global warming is a serious issue but carbon taxes are a blunt instrument with which to tackle emission levels. TIA is convinced there are other ways to address global warming that will not have such a damaging effect on New Zealand’s economy,” Morris said.

TIA supported initiatives that would encourage private sector research and investment in renewable energy, improved fuel efficiency and greater availability of alternative fuels. Government assistance was also needed to help tourism businesses adopt those technologies.

TIA also encouraged work on energy efficiency and conservation initiatives.

“We look forward to working with the Government on proposals to cut greenhouse gas emissions and ensuring that New Zealand protects the clean green environment that is such an attraction for our international visitors.”

Key statistics about tourism:

- Tourism is the world's fastest growing industry

- New Zealand tourism arrivals have doubled in size since 1994

- Forecast annual growth is 4.7% on average for at least the next five years

- Tourism is New Zealand's single largest export sector and contributed $7.4 billion dollars to the economy in the year ended March 2004. That is 18.5% of exports

- Tourism directly and indirectly employs 10 percent of the work force. That is one in 10 jobs in New Zealand.

- Tourism represents 9.4% of gross domestic product and generates nearly $500 million in GST returns from international visitors each year. Tourism is the only export sector whose international clients pay GST.


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