Mayor plays down tourist tax

Vanessa van Uden.
Vanessa van Uden.
Councillors should explore all options to fund the proposed $50 million convention centre, including an increase on commercial rates and an appeal to central government, Queenstown Lakes Mayor Vanessa van Uden says.

Talk of a ''tourist tax'' to pay for the facility flared yesterday and was met with caution by some Queenstown tourism leaders, but the district's re-elected mayor told the Otago Daily Times such talk was ''a storm in a tea cup''.

Asking what people thought about a visitor levy as an option for funding the centre was clearly stated in community consultation from the beginning, Ms van Uden said.

There were many discussions to be had ''and we're not going to start charging $5 a head tomorrow,'' she said, in reference to the $5-a-head visitor levy on Stewart Island.

The island's levy was easier to collect because there were only two ways to arrive - by sea or air - and there were small numbers of visitors, the mayor said.

''I firmly believe the rates differential system, in place for years [in Queenstown Lakes], covers a lot of those extra costs.

''I think a lot of our residential ratepayers don't actually understand how the accommodation sector is paying a lump more than residential ratepayers already and that goes to cover a lot of the infrastructure costs.

''For something that's extra, like a convention centre, it's something worth looking at, but there's a lot of fish-hooks in it and we go in understanding we've got to deal with those fish-hooks, but [we're] not saying it's a no-go because of those fish-hooks.''

Ms van Uden said the council was focused on ensuring the cost of the centre had ''the most minimal impact possible'' on residential ratepayers.

Ms van Uden said central government playing a part has always been one of those options.

A draft letter to Prime Minister John Key was waiting for her review and was the first step in seeking the Government's financial support. How much the council would ask for would come later.

Destination Queenstown chairman Mark Quickfall said the multiplying factor of the proposed centre to the resort needed to be reconfirmed first.

Queenstown will always be challenged with a small ratepayer base having to fund infrastructure for visitors, not only a convention centre, he said.

''Before introducing a tourist tax, all funding options need to be considered and only if we are truly confident the shortfall will be off set by the benefits.''

Queenstown Airport Corporation chief executive Scot Paterson said yesterday an airport tax had been dismissed by the Government as not being in the country's best interest.

''There's a risk and it's counterproductive,'' Mr Paterson said.

''We pay $2.7 million per year dividend and I think the council are looking for another $3.2 million, the number I believe [is] in the consultation document.''

Introducing an airport tax would require a change in legislation and would not be attractive to passengers or airlines, which might decide flights were not viable, or divert services away from Queenstown, he said.

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