Hon John Luxton National Tourism Spokesperson

4 December 2001

Rate Changes will Knock NZ Tourism Confidence

Government amendments introduced this week to the Local Government (Rating) Bill will knock New Zealand tourism industry confidence, said Hon John Luxton, National's Tourism Spokesperson.

"With tourism facing uncertain times, the Labour/Alliance Government's move to levy a new tourism tax on hotel rooms, motel units, boarding houses, guest houses and home stay rooms and on holiday cabins, is a major blow to the NZ tourism industry, as some councils will use new provisions to shift rating costs onto tourism operators.

"The Government's move will allow targeted rating of tourism accommodation up to a limit of 30 percent of total rates revenue.

"Last week, the Minister of Tourism, while in Japan, promised to spend $2 million more on promoting an increase in Japanese tourist numbers, whilst the Minister of Local Government in New Zealand, was looking to increase the costs of the NZ Tourism Industry, making it more difficult to remain viable in this highly competitive and important sector of the NZ economy", said Mr Luxton.

Ends

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