FOR IMMEDIATE RELEASE

2 July 2012

Motel Association of New Zealand applauds councils saying no to bed tax idea

The move by councils in key tourist regions to shy away from introducing a bed tax has been congratulated by the Motel Association of New Zealand (MANZ),

Queenstown Lakes District Council has moved away from the idea, while the Hawke’s Bay Regional Council has opposed a call by some local mayors to institute a bed tax.

MANZ Chief Executive Michael Baines congratulated the two regions on their positions, saying the way to achieve economic growth across New Zealand is to support and invest in small businesses such as motels, not tax them.

“A bed tax would do nothing to encourage investment in our tourism sector, so it is pleasing to see councils realising they need to work with motel-owners to stimulate the regional economies,” Mr Baines says.

The fact that Auckland is still contemplating a bed tax remains a concern for the tourism industry in our largest city, Mr Baines says.

“A bed tax is a bureaucratic nightmare, with potential loopholes across all types of accommodation from cruise ships to campervans. It is neither fair, not justified, and we would call on Auckland to follow the lead of other councils and change their stance,” Mr Baines says.

Overseas example shows that a tax of this type is difficult to administer, costing a large amount to enforce relative to the revenue gained. But the fact that some councils have investigated the proposition indicates a worrying attitude to the small businesses which form the backbone of New Zealand’s economy.

“Small businesses are crucial to our economic health. Politicians from both central and local government should be examining ways to encourage growth and investment in small businesses, rather than thinking of ways to wring more tax dollars out of them,” Mr Baines says.

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