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Accommodation Industry Strongly Opposes Bed Tax Proposal

February 28, 2014 Association No Comments Email Email

The accommodation industry has criticised a proposal by the Gold Coast Mayor that a tax on visitors to the city should be introduced.

The Chief Executive Officer of the Accommodation Association of Australia, Richard Munro, said introducing a tourist levy or bed tax would have a severe negative impact on the industry.

“The accommodation industry is strongly opposed to a bed tax,” Mr Munro said.

“It would impose an unnecessary cost burden on visitors resulting in consumers re-considering whether or not to travel to what is an iconic tourism region.

“The end result is lower visitor numbers and less revenue for major tourism businesses, including hotels, motels and other accommodation businesses.

“The accommodation industry is pleased that the Queensland Minister for Tourism has stated publicly that the Government doesn’t support the proposal.”

Mr Munro said existing arrangements in many parts of Australia where accommodation businesses voluntarily contribute to cooperative marketing initiatives are already working well and that the industry does not support the imposition of compulsory bed taxes or visitor levies.

“The Gold Coast Mayor needs reminding that major accommodation businesses on the Gold Coast pay millions of dollars in rates every year,” Mr Munro said.

“But under his proposal, even as little as a few extra dollars a night would more than likely result in a drop of thousands of visitors to the Gold Coast.

“The Mayor should be rolling out the welcome mat for tourists – not hitting them with a new tax.”

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