Pillow fight over bed tax
GOLD Coast business and civic leaders have called for tourists to pay a bed tax to stop major events such as the Gold Coast 600 facing a funding cut from the State Government.
Main Beach Progress Association vice-president Georgie Brown says the city should consider a surcharge if key annual events are at risk at next month’s state budget.
Incensed by comments from Tourism Minister Kate Jones this week that the Government faced a $188 million budget shortfall, MsBrown said showpiece attractions such as the V8s, Australian University Games and Australian Ladies Masters were the “lifeblood” of the area.
“It seems to be very shortsighted to cut funding for tourism, especially when our dollar is sitting so well in the exchange rate for overseas tourists,” Ms Brown said.
“Events such as V8s don’t just bring in financial opportunities to the community, but money feeds back into the Government.
“The issue of a bed tax is somewhat contentious in an area that relies so heavily on tourism.
“A major portion of monies raised would need to be put back into the communities to upgrade local facilities and to assist with tourist-oriented and local events.”
Main Beach councillor Lex Bell said a bed tax could be used to promote the Gold Coast and help build crucial infrastructure.
“There is reluctance within council to increase taxes to include tourists because we do not want to kill the goose that lays the golden egg but at the same time the tourism infra- structure must be paid for,” Cr Bell said.
“The tourism industry is growing fast at a rate of around 8 per cent in the past year and I think we should shelter it and encourage this growth.
“It is about finding a model that is not an impost on either ratepayers or the industry.”
Last year, Mayor Tom Tate called for a $15 million bed tax to help promote the city.
But the bed tax would face fierce opposition from major holiday highrise operators who warn the increased cost could make the Gold Coast uncompetitive.
Surfers Paradise Chamber of Commerce president Peter Yared, who also runs Hotel Grand, said the concept was “ludicrous” and would lead to hotel closures.
“At the moment hotels operating on the Gold Coast have struggled to get any rate relief in the past eight years,” he said.
“You can’t make hotels pay exorbitant council fees and then slap a bed tax on top.
“It will just make businesses less profitable and even cause some to close.”