The Press

Tourism eyes bigger slice of $2.8b tax take

- AMANDA CROPP

The tourism industry says the Government can afford to be more generous with the $2.8 billion in GST it has collected from visitors’ wallets.

Statistics New Zealand put total domestic and internatio­nal tourism spending at an all-time high of $34.7b for the year to March.

Tourism Industry Aotearoa chief Chris Roberts said the GST from overseas visitors alone had increased massively by more than 20 per cent to $1.1b, and the Government needed to invest that windfall in better infrastruc­ture.

‘‘Nobody is making more money from the tourism boom than Bill English and Treasury.’’

He pointed out that visitors further contribute­d to government coffers through the border clearance levy and petrol tax.

Added to that was the income taxes paid by the 188,000 people directly employed in tourism, and the taxes paid by the thousands of companies servicing visitors.

‘‘Our biggest tourism business, Air New Zealand, paid the Government $460 million in taxes and dividends this year,’’ Roberts said.

The Government needed to fund infrastruc­ture to support the continued rise in visitor numbers, which had grown almost 40 per cent since 2010.

‘‘The private sector is doing its bit, with hundreds of millions of dollars being spent on upgraded and new accommodat­ion, attraction­s and activities. However, some regions with small population­s, along with a few tourism hot-spots, face major challenges and capital constraint­s.‘‘

The Ministry of Business, Innovation and Employment said the first round of grants from its $12m fund for tourism infrastruc­ture, such as public toilets, would be made ‘‘soon’’.

But Roberts said the facilities fund was ‘‘just scratching the surface’’ and could be significan­tly expanded to deliver real long-term benefits for the whole country.

Lincoln University professor of tourism David Simmons agreed and said it was important the right infrastruc­ture was there to accommodat­e visitor growth. ‘‘It’s a fickle industry and you only need an outbreak of giardia somewhere to put people off through improper waste management.’’

 ?? PHOTO: ALDEN WILLIAMS/FAIRFAX NZ ?? Internatio­nal tourists pumped $14.5 billion into the economy in the year to March.
PHOTO: ALDEN WILLIAMS/FAIRFAX NZ Internatio­nal tourists pumped $14.5 billion into the economy in the year to March.

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