A tourism tax to pay some of the cost of promoting the industry in the Waitaki district has been described in terms ranging from "unfair" to "just a laugh" in submissions to the Waitaki District Council.
Yesterday, the council started hearing verbal submissions on its 2009-19 long-term council community plan, and the tourism rate it proposed from the 2010-11 financial year was a hot topic.
At present, all ratepayers contribute. Under the proposed change, businesses the council thinks benefit from tourism will pay 20% of the promotion costs.
The Waitaki Tourism Association, which represents 70 businesses in the industry, said there had been no public consultation and the proposal was based on an inequitable formula which was flawed.
It was not fair for a narrow group of businesses to fund an initiative which benefited the whole community - all businesses should contribute.
"The promotion of the district to attract visitors, new businesses and new residents is the only way to grow the rating base and spread the fixed costs of community living over a wider base," association chairwoman Sue Berry said.
Waitaki Development Board chairman Peter Robinson said the proposal needed fine-tuning and more consultation, and should be phased in over a number of years.
The Oamaru Moteliers organisation said it "vehemently opposed the ludicrous proposal" at a time when the recession was hitting motel owners' returns.
The Otago Chamber of Commerce supported user pays as a general principle, but it was opposed to the tourism tax in its proposed form.
Kingsgate Brydone Hotel manager Frank Ash did not oppose a tourism tax but the formula used by the council to implement it was flawed.
Under the proposal, the hotel's contribution to tourism would increase from $1307 to $2629.
"We are willing to pay our share and would encourage the council to ensure all ratepayers in the Waitaki district do the same," he said.
The Ahuriri Community Board strongly opposed the tourism tax, which it said would be an unfair impost on commercial businesses.
North Otago Federated Farmers applauded the proposal because the promotion clearly benefited tourist operations and provided no direct benefit to other ratepayers.
"It is an anathema to farmers that the value of their businesses be rated to promote other businesses with no direct benefit in return," Federated Farmers said.
