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


Hospitality NZ Response to Productivity Commission Report

12 DECEMBER 2019

“Visitors are already paying their fair share, contributing $1.7 billion annually in the form of GST. Tourists already pay for the costs they create that support the tourism and hospitality industry.” said Hospitality New Zealand Chief Executive, Julie White.

Following the release on Thursday 12 December 2019 by the Productivity Commission of the “Local Government Funding and Financing” Final Report, Hospitality New Zealand are particularly pleased with the Commission’s recommendation that Central Government funding for tourism should be distributed more efficiently and fairly to councils.

Hospitality New Zealand (Hospitality NZ) supports the Productivity Commission’s final report recommendations laid out in Chapter 10: Responding to Tourism Pressure (page 257); the Commission acknowledges that there is no massive funding shortfall when it comes to addressing the visitor sector’s impact as international visitors are already contributing and paying for most of the costs they create.

The Commission took on board Hospitality NZ’s recommendations against an accommodation levy / bed tax. The report’s findings concluded against councils introducing an accommodation levy suggesting that it would have significant challenges, including unlikely raise enough revenue in some areas and incurring significant implementation costs.

Hospitality NZ have and continues to argue that a narrow-based tax, which is applied solely to the commercial accommodation sector unfairly places the burden and risk on to one sector and is not a sustainable solution.

Hospitality NZ’s original submission in August 2019 stated, “The figures from Statistics NZ quoted in the Draft Report suggest that accommodation services are receiving on average less than ten per cent (10%) of total visitor spend (7.7%), far below the significant share of over 30 per cent (30%) received by retail services.

White added: “Hospitality NZ strongly agrees with the Commission’s recommendation that more councils should explore the option to require peer-to-peer accommodation providers to pay business rates, or some proportion of them. The Report also recommends the introduction of a national register of providers, which is something that Hospitality NZ has long recommended.

Central Government has a duty to regulate the peer-to-peer accommodation providers as we have a duty of care for all visitors and these properties should be treated on a level playing field.”

CEO Hospitality NZ Julie White said, “We’re pleased the findings of the Report suggest common-sense applies when considering how the acknowledged short-fall of local government funding for some Councils in managing peak season and provision of infrastructure services for visitors (and residents) can be funded. An accommodation levy is not the answer for all Councils. We’re encouraged that other tools or mechanisms to assist Councils with providing a quality (and safe) provision of services for visitors and customers have been suggested in the Report.”

“We would like to acknowledge the work and commitment of the inquiry team for the work they have undertaken into local government funding and finance and their willingness to engage with industry, taking on board Hospitality NZ recommendations and for their detailed and considered approach.” Julie White said.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Science Media Centre: Funding For R&D In New Zealand – Expert Reaction

Research, Science and Innovation Minister Dr Megan Woods has today announced $401.3 million funding for research and development through Budget 2020 and the COVID Response and Recovery Fund. The fund includes $150 million for an R&D loan scheme, ... More>>


Maritime NZ: NZ Joins Global Initiative Keeping Ports Open And Freight Moving

New Zealand has joined an international port authorities’ global initiative for safe and efficient movement of goods and shipping during the COVID-19 crisis. World-wide, 56 port authorities have agreed how they will work together facilitating maritime ... More>>


National: National Backs Businesses With $10k JobStart

National will provide a $10,000 cash payment to businesses that hire additional staff as part of our commitment to keeping New Zealanders in jobs, National Party Leader Todd Muller and Finance spokesperson Paul Goldsmith have announced. Our JobStart ... More>>


DIY Law: Government Exempts Some Home Improvements From Costly Consents

Homeowners, builders and DIYers will soon have an easier time making basic home improvements as the Government scraps the need for consents for low-risk building work such as sleep-outs, sheds and carports – allowing the construction sector ... More>>


Media Awards: The New Zealand Herald Named Newspaper Of The Year, Website Of The Year At Voyager Media Awards

The New Zealand Herald has been labelled a “powerhouse news operation” as it claims the two biggest prizes – Newspaper of the Year and Website of the Year – along with many individual awards at the 2020 Voyager Media Awards Website of the ... More>>


ASB Bank: ASB Takes The Lead Again With New Low Home Loan Interest Rate

ASB has moved again to support its customers, cutting a number of home loan rates, including the two-year special rate to a new low of 2.69% p.a. Craig Sims, ASB executive general manager Retail Banking says the reduced rate will be welcome news for many ... More>>


Nathan Hoturoa Gray: The Problems With Testing And Case Statistics For Covid-19

To begin to understand disease transmission in a country requires adequate testing of your population with properly vetted, accurate tests. As the world struggles to find what 'adequate percentage' of the population is necessary, (estimates predict ... More>>


RNZ: Fletcher Building To Lay Off 1000 Staff In New Zealand

The construction company will cut around 10 percent of its workforce as it struggles with the fallout from Covid-19. More>>


Can Pay, Won't Pay: Cashflow Moves Urged

Government Ministers are asking significant private enterprises to adopt prompt payment practices in line with the state sector, as a way to improve cashflow for small businesses. More>>


Gordon Campbell: On Why We Should Legally Protect The Right To Work From Home

For understandable reasons, the media messaging around Level Two has been all about “freedom” and “celebration”, but this is not necessarily going to be a universal experience. When it comes to workplace relations, Level Two is just as likely to ... More>>


New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>


Science Media Centre: Understanding 5G Concerns – Expert Q&A

Recent attacks on cell phone towers have brought concerns over the rollout of 5G technology into sharp relief.
While scientific research has consistently shown that the technology does not adversely affect human health, public concerns about its impact have spread around the world, fueled in part by growing misinformation online. The SMC asked experts to comment... More>>


Trade: Record Monthly Surplus As Imports Dive

Imports in April 2020 had their biggest fall since October 2009, resulting in a monthly trade surplus of $1.3 billion, Stats NZ said today. “This is the largest monthly trade surplus on record and the annual goods trade deficit is the lowest ... More>>


Media Blues: Stuff Chief Executive Buys Company For $1

Stuff chief executive Sinead Boucher has purchased Stuff from its Australian owners Nine Entertainment for $1.
The chief executive was returning the company to New Zealand ownership, with the sale is expected to be completed by 31 May.
"Our plan is to transition the ownership of Stuff to give staff a direct stake in the business as shareholders," Boucher said in a statement.... More>>


RNZ: Bar Reopening Night 'much, Much Quieter'

Pubs and bars are reporting a sluggish first day back after the lockdown, with the fear of going out, or perhaps the joy of staying home, thought to be a reason for the low numbers. More>>


Stats NZ: New Zealand’s Population Passes 5 Million

New Zealand's resident population provisionally reached 5 million in March 2020, Stats NZ said today. More>>

NIWA: Seven Weeks Of Clearing The Air Provides Huge Benefits: Scientist

Seven weeks of lockdown has provided evidence of how pollution can vanish overnight with benefits for the environment and individuals, says NIWA air quality scientist Dr Ian Longley. Dr Longley has been monitoring air quality in Auckland, Wellington ... More>>


Government: Milestone In Cash Flow Support To SMEs

A significant package of tax reforms will be pushed through all stages in Parliament today to throw a cash flow lifeline to small businesses. More>>