Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


‘Tourism taxes’ disastrous for Auckland – TIA

Media Release

‘Tourism taxes’ disastrous for Auckland – TIA

10 November 2006

A new Rugby World Cup stadium promises to transform Auckland – into an unaffordable, uncompetitive visitor destination, the Tourism Industry Association New Zealand (TIA) says.

“The tourism industry is not opposed to a new national stadium and has an open mind as to its location. However, we are vehemently opposed to the use of bed and airport taxes to pay for that stadium,” TIA Chief Executive Fiona Luhrs says.

The Government has said today it will develop funding mechanisms that will enable local and regional councils to raise revenue without recourse to rates. TIA believes this refers to taxes on visitors, which have already been proposed as a mechanism to help fund a new or redeveloped stadium.

Such taxes would mean people visiting Auckland, whether on business or holiday, would end up paying for a stadium used predominantly by Aucklanders. In the case of airport taxes, the authorities would be requiring people passing through Auckland International Airport to pay for the stadium, Ms Luhrs says.

“This would mean, for instance, that a couple visiting Auckland for an event like the U2 concert later this month would contribute to the stadium, whether or not they want to. If the bed tax was $10 a head per night, that would immediately add $40 to their two-night stay,” Ms Luhrs says.

“A family of four staying in an Auckland motel for a week – while a child receives treatment at Starship Children’s Hospital, for instance – would find themselves paying an extra $280.”

Bed taxes will lead to a reduction in overnight visits, impose costs on individual tourism operators and put the margins of some businesses beyond the point of viability, she says.

They will reduce the competitiveness of the tourism economy. Bed taxes are also the kind of punitive costs that undermine the reputation of New Zealand as a 100% pure destination.

“Today’s announcement follows the release of the latest commercial accommodation statistics which show the trend for guest nights is flat. For Auckland, the figures are even worse. For the year to September, Auckland suffered the biggest drop in guest nights in the country – down 199,000 or four percent. Forcing Auckland accommodation providers to increase their rates or absorb the new levy will do nothing to improve those statistics.”

TIA has sought meetings with Rugby World Cup Minister Trevor Mallard, Finance Minister Michael Cullen and Tourism Minister Damien O’Connor to discuss the proposals but all three have declined to meet the tourism industry, Ms Luhrs says.

“I only hope Mr O’Connor will offer to pay his airport tax when he travels to China tomorrow,” she says. “We encourage the Government to make the right decisions on this critical issue for the New Zealand tourism industry.”

TIA will continue to lobby vigorously against all proposals to tax visitors in order to fund a new stadium.

Visit to read what TIA Members are saying about this issue.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Commerce Commission: Appeals Record $2.25m Fine In Vodafone FibreX Case

The Commerce Commission has filed an appeal in the High Court against a record $2.25 million fine imposed on Vodafone NZ Limited (Vodafone) for its offending under the Fair Trading Act during its FibreX advertising campaign. While the sentence imposed in the Auckland District Court on April 14 was the largest-ever fine under the Fair Trading Act, the Commission will argue that it is manifestly inadequate... More>>

All District Health Boards: Historic Pay Equity Settlement

An historic agreement has been ratified that addresses a long-standing undervaluation of a workforce that is critical to the smooth running of our hospitals and the delivery of healthcare... More>>

MPI: Dry Autumn In Waikato And South Auckland Leads To Drought Classification Drought conditions affecting the primary sector in the Waikato and South Auckland were today classified as a medium-scale adverse event, enabling a package of support for farmers and growers... More>>

Barfoot & Thompson: Rents Up By Around 3% In Most Areas

The average weekly rent paid for homes in most areas of Auckland has risen by around 3 percent year-on-year. The figures for end March from more than 16,000 properties... More>>

DoC: Smeagol The ‘Gravel Maggot’ Leaves Its Rare Mark On The Remote West Coast
An extremely rare species of sea slug or ‘gravel maggot’ has been detected for the first time on a remote beach in South Westland... More>>

Immigration: Annual Net Migration Loss Of 7,300

The provisional net loss of 7,300 people in the year ended March 2022 was the lowest net migration for a March year since 2012, Stats NZ said today... More>>