Accommodation providers fear a proposed "bed tax" could add to Queenstown's reputation as an expensive destination, submissions to the Queenstown Lakes District Council's 10-year-plan warned yesterday.
Motel owner Diane Smith told yesterday's hearing she was concerned the targeted rates increase would enhance the perception of Queenstown as a "rip-off town", quotes she had heard from her guests and from other New Zealanders when she went on holiday.
Mrs Smith, who has been involved with tourism in the resort for over 40 years, said many of her guests were corporate travellers whose companies were tightening budgets.
"Queenstown would lose a lot of money and many of us will struggle to stay viable," she said.
Chamber of Commerce chairman Alistair Porter and chief executive officer Ann Lockhart held similar concerns about the proposal, which would help the council recover costs for items such as infrastructure associated with hosting the 2.8 million visitors to Queenstown each year.
In its written submission, the chamber said "Queenstown is already perceived as an expensive destination both nationally and internationally" and there was a perception "commercial businesses who service tourism can readily absorb additional costs".
Mr Porter told the council the damage done by bad publicity could never be repaired.
Mayor Vanessa van Uden said the proposal was "step one of trying to get some clarity of who is paying what", and the council had already noted the tax might have a negative effect on Queenstown's image.
The tax was a recurring submissions topic throughout the day, with chief executive officer of the Motel Association Michael Baines saying the number of bed nights in Queenstown had been down for the past 12 months and the resort's future depended on visitors.
Ms van Uden suggested Mr Baines ask his members to provide feedback not only when they were contesting an issue, "because at the moment they are very, very silent until an issue comes up".
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