The New Zealand Hotel Owners Association (NZHOA) is disappointed with the High Court judgment which allows Auckland Council’s Accommodation Provider Targeted Rate (APTR) to continue.
The judgment follows a judicial review brought by several of the Association’s members, as well as motels and serviced apartments, against the APTR imposed by Auckland Council in July 2017.
“The plaintiffs, who include a number of our members, are now studying the judgment in detail and will make a decision on whether to pursue an appeal or not in the near future,” said NZHOA Executive Director, Amy Robens.
“NZHOA strongly believes targeted rates and bed taxes are both unfair and disproportionate and therefore are not the most effective or efficient method of raising much-needed growth infrastructure funding and attracting visitors here,” she said.
“We’re concerned that the judgement will open the doors for other councils to impose targeted rates on any group of ratepayers they choose and we will be meeting with policy makers to ensure they understand the implications of doing so.”
“Commercial accommodation providers receive less than nine per cent of total visitor spend in Auckland, and only a quarter (26%) of visitor nights are spent in commercial accommodation.”
“NZHOA will continue its work to ensure local and central government understand the critical issues affecting hotel owners across New Zealand,” Amy Robens said.
The Association provides quality industry leadership for the sector through clear and unambiguous representation on a range of issues impacting hotel owners nationwide.
NZHOA has formed to be a peak industry body and a single united voice for hotel owners across New Zealand. Its foundation members include the Scenic Hotels Group, CP Group, Event Hospitality and Millennium & Copthorne Hotels New Zealand, which represent a significant percentage of the total hotel rooms owned and operated in New Zealand.
For more information, please contact:
New Zealand Hotel Owners Association
021 399 544
- Hotel owners have long maintained that targeted rates and bed taxes are ineffective, not good policy and completely disproportionate to the benefit they receive as commercial accommodation providers in relation to tourism spend. (agreed no figures to be verbalised)
- The Productivity Commission also agrees that targeted rates and bed taxes are not an efficient way of raising growth infrastructure.
- Commercial accommodation providers should not be signalled out to foot the entire bill through a targeted rate when so many other businesses and operators also benefit from tourism spend.
- Hotel owners are investing hundreds of millions of dollars into building much needed hotels in an already challenging market. They shouldn’t be inhibited from doing this by targeted rates and taxes which we will continue to strongly oppose.
- Funding for tourism infrastructure is an NZ Inc issue which the government is addressing though its recently announced $6.8 billion tourism infrastructure package.