Stadium tax threatens jobs and businesses

Stadium tax threatens jobs and businesses, Hotel Council says

Using a bed tax to fund a new or redeveloped Rugby World Cup stadium has been strongly rejected by New Zealand Hotel Council Chief Executive Officer Mark Oldershaw.

A bed tax will threaten Auckland hotels’ prospects for long-term growth, Mr Oldershaw says. For instance, adding $10 a night to hotel rates will harm their competitiveness compared with nearby regions and other major New Zealand cities.

The alternative for hoteliers would be to absorb a new tax, reducing their profitability. The compliance costs and administrative burden of bed taxes would be cumbersome.

“Such a tax will certainly put jobs at risk and may well force some small operators out of business,” Mr Oldershaw says.

“It is unreasonable to single out the accommodation industry and its guests to fund the stadium. A new stadium will benefit all New Zealanders and should therefore be funded by all New Zealanders.”

The Government has failed to understand how to take advantage of tourism in order to boost local economic development and is instead taking a kneejerk approach.”

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