Bed tax plan ‘grossly unfair’

Queenstown accommodation providers are rallying against a proposed bed tax and a council referendum they consider a farce.

Queenstown Lakes District Council mayor Jim Boult has proposed a levy of between 5 and

10 per cent on short-term accommodation to cover tourismrelated costs of infrastructure.

A non-binding referendum on June 5 will test community support for the levy.

Boult hopes to raise between

$25 million and $40m each year but details of how it will be administered are yet to be released.

Accommodation providers, including high-end hotel operators, backpackers and motels, are concerned the tax will hurt their businesses as well as the wider tourism industry.

Lakes District Tax Equity Group organiser Nik Kiddle told about 30 providers yesterday the tax was grossly unfair and inequitable, and the referendum was a ‘‘farce’’.

‘‘This referendum is going to deliver an overwhelming result in favour of the visitor levy, as long as most people voting for it don’t think they’re going to have to pay.’’

The council’s suggestion accommodation providers could pass on the charge was ‘‘misleading and naive’’.

The increased tariffs would have to be advertised, administration would be expensive and it could put people off visiting the town or push them to nearby towns like Cromwell for their overnight stay.

Imperium Group manager James Cavanagh, who includes the exclusive Eichardts and The Spire hotels in his offerings, said New Zealand was an expensive place to visit.

‘‘Queenstown is even more expensive. If we’re going to put the price up again then it becomes prohibitive and puts more barriers in place for people coming here.’’

Providers said they were also fighting increased wages and working visa administration costs.

Kiddle said the council had not consulted with the industry on the proposal and had declined a request for background reports and records. That decision was appealed to the Ombudsman.