Kelvin Davis
Spokesperson for Tourism

23 December 2010
Media Statement

Tourism industry facing ACC levy increase

The New Zealand accommodation industry is being hit with significant ACC levy increases despite the Minister claiming there was no increase, Labour Tourism spokesperson Kelvin Davis says.

“Motels will be hit with a ten percent increase in ACC levies despite 83 percent of their members or staff not having made an ACC claim in the past year,” Kelvin Davis said.

“Most moteliers are small business owner operators who have been having a hard time during the recession with occupancy rates down. This is news that they definitely didn't need.

“Nick Smith’s claim that there will be no increase in levies was misleading in that the overall take may be the same but individual sectors such as moteliers are facing substantial changes,” Kelvin Davis said.

Kelvin Davis said he supported the call of Motel Association Chief Executive Michael Baines to reassess the changes to the individual sectors and impose a blanket no change policy across all sectors.

“The current ACC regime is the envy of the world but it appears the government prefers to price the system out of reach of businesses so that an inferior private system looks more attractive.”

ENDS

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