Tourist Taxes Not Well Recieved

June 15, 2012 New Zealand Taxation

Taxes on Tourism in New ZealandThe New Zealand tourism industry has voiced it disapproval of new proposals to levy more taxes on tourists, citing concerns of inefficiency and fairness.

On June 14th Tourism Industry Association New Zealand (TIA) spoke out against a proposal to impose more taxes on local and international tourists in New Zealand.

Last week both the Mayor of Napier Barbara Arnott and the Mayor of Hastings Lawrence Yule suggested that the cities could implement a “bed tax” on tourists who stay at a local hotel or motel. Under the current proposal the tax would be brought in over the span of three years, eventually reaching NZD 1 per night per person.

According to the TIA Chief Executive Martin Snedden, the tax is “lazy” and would impose unfair penalties on tourists choosing to use local commercial accommodation. He added that the tax is not balanced across the tourism industry, saying “…It also doesn’t target other businesses that benefit from visitors such as vineyards, restaurants, bars and cafés, supermarkets and petrol stations.”

The head of the TIA also claimed that the tax would be hard to administer and large hotels will need to hire extra staff just to process the tax and complete all appropriate filing.

Martin Snedden is expected to write to both Mayors, explaining the downfalls of the proposed tax and stating that the TIA does not support the idea.

Photo by katclay