Price of boom in tourism is a tax

Curiously, as the tourism industry was criticising a “bed tax” proposal from the Auckland mayor this week, it was about to make a similar proposal for the whole country.

A report commissioned by the chief executives of Air New Zealand, Auckland Airport, Christchurch Airport and Tourism Holdings has a 2 per cent levy on accommodation and a $5 border levy.

They want a fund for such things as campervan parks and sanitation facilities in places that lack enough public revenue to provide these amenities on the scale needed.

Aucklanders might need to concede the case for a national levy is probably better than that advanced by Phil Goff which would finance the Auckland Tourism, Events and Economic Development agency.

ATEED needs to sponsor events that may not appeal to all citizens and its task would be less controversial if it was not spending ratepayers’ money.

But Auckland does have the scale to fend for itself. Small centres such as Te Anau do not.

Yet it is these places in the more remote and scenic corners that carry the greatest appeal for overseas travellers.

Auckland and Christchurch are mainly gateways to these delights, which their airport companies recognise by their endorsement of the Tourism Infrastructure Report.

As Tourism Minister, John Key also sounds open to the proposal, which envisages a contribution from government coffers to match $65 million expected from an accommodation levy and extra border charge. He wants to talk to the industry and local government about the “best mix” of funding sources.

Tourists are always a soft target for taxation. They cannot vote.

And those who pay for tours up front probably do not notice levies and taxes imposed by the host country. At least we hope they do not. They might not feel like guests if they know they are being charged for public facilities.

And the destination can lose some of its charm. But tourism is booming. Our beauty spots need to cope with it and it is in the national interest to ensure they can.