Look at a levy to unlock growth
LAST year, more than 2.9 million people from Australia and the world visited Cairns. To put that in perspective, that’s more than 17 visitors for every one Cairns resident.
These visitors already make a significant contribution to the Cairns economy, eating in restaurants and spending in shops. But at present, the bill for building and maintaining the infrastructure needed to attract and accommodate visitors is largely paid for by local ratepayers.
As tourism continues to grow, it is vital that visitors contribute more directly to the local infrastructure they use.
Airbnb believes a visitor or accommodation levy is the best solution. We have long advocated for broad-based visitor levies, and believe they are a fair, proven and sustainable way to raise revenue for communities.
As the Cairns Post has noted, a visitor levy could raise millions a year to help the economy and community. Visitor levies are fair because those who earn the most, pay the most. If a hotel or Airbnb listing hosts more people or charges more, the council would receive more revenue.
They are also fairer because they broaden the tax base to include the millions of visitors who stay in Cairns rather than simply increasing the burden on ratepayers or businesses.
Evidence and experience shows visitor levies, if designed and delivered correctly, work. Airbnb has partnered with more than 400 jurisdictions globally to collect and remit taxes, and raised more than $US1 billion in revenue for local communities.
Unlike clunky and complicated targeted rates, visitor levies are generally easier and cheaper to implement, which means more money can be invested into the local area.
As with any new policy idea, there will be doubters and doomsayers. There will be those who argue that visitor levies will be bad for tourism and the broader economy.
To those, we would say look at the continued popularity of destinations like Paris, Rome or Amsterdam, which all have visitor levies. Furthermore, rather than hurt tourism a new levy could actually grow it.
A new visitor levy could help fund additional marketing campaigns or invest in new infrastructure, which improves the visitor experience and boosts Cairns’ competitiveness as a tourist destination.
Well-designed tourism taxes are a win-win. They can raise more money for vital services and infrastructure without burdening taxpayers or sacrificing the health of the industry.
Rather than force councils to turn to more regressive options, serious consideration should be given to allowing councils to introduce sensible visitor levies.