No justification for bed tax: academic

An academic says bed taxes are a  "historical hangover" and has criticised Queenstown Mayor Jim Boult’s calls for a law change to enable a local visitor levy.

Dr Anthony Brien, a senior lecturer in business and hotel management at Lincoln University, held a presentation at the Millennium Hotel in Queenstown last week after releasing a statement voicing his concerns.

He believes changing the law to allow a bed tax in Queenstown has "no rational justification" that on its own would provide a solution to infrastructure problems associated with increased tourism.

In a statement addressing Mr Boult’s campaign for a bed tax, Dr Brien said: "Let’s not rush into a decision; let’s take the time to have an informed, unemotive debate and hear all the issues from those involved.

"Rash and potentially regretted decisions can be avoided."

The proposed bed tax was inequitable and there was no research available to suggest the idea was "necessarily appropriate, fit-for-purpose or good for all".

"Many commercial accommodation guests are business people who have much less impact on the infrastructure than tourists, yet are charged a tax which increases their business costs. "In summary, bed taxes are a very imprecise tool to tax tourists for their use of local infrastructure."

Dr Brien warned that Queenstown piloting a bed tax could set a precedent for other councils to follow.

International research showed such taxes were never rescinded and the tax rate only increased over time.

The Queenstown Lakes District Council made a submission to the Government’s proposed international visitor conservation and tourism levy, calling for a law change to enable a bed tax for growth areas with high visitor numbers.

In the submission, Mr Boult said the council would not be able to improve or maintain tourism infrastructure without a local visitor levy.

The proposed bed tax has drawn opposition from business owners in the area, including Villa del Largo co-owner Nik Kiddle, who earlier this month  said he had a list of 47 businesses and associations, representing a total of more than 70 businesses, opposed to the tax.

Hospitality New Zealand Central Otago accommodation sector group chairwoman Bridgit Parker echoed Dr Brien’s objections to the bed tax, labelling it "unfair and inequitable".

Ms Parker said there could be a risk of reducing tourist numbers to the area if a bed tax was implemented.

"A bed tax would likely deter visitors from staying at commercial operators which are already under siege from lower-cost operations, cheaper non-commercial options — such as private houses, apartments, and Airbnb - which may well be bed-tax exempt."

Possible solutions to help pay for Queenstown’s tourism infrastructure included money from the provincial growth fund, the tourism infrastructure fund, a transactional tax on all businesses or the border visitor levy being considered by the Government, Ms Parker said.

joshua.walton@odt.co.nz