Local government funding has also been of concern with the targeted rate in Auckland and now the proposed bed tax in Queenstown unsettling our members. We fully support the approach taken by TIA – and now the Productivity Commission – that central government makes an annual calculation equivalent to 20 percent of the GST already collected from international visitors and distributes these funds via a trust to local government to address local tourism-related needs, with the allocation determined by the measured level of visitor impact on each territorial local authority. This is a fair approach rather than targeting any one sector. Freedom camping has continued to be an issue of major concern for our members and many communities around New Zealand. It was good to be invited to join the Minister’s responsible camping working group and take part in addressing many of the issues and encouraging responsible camping. We felt that some of the work undertaken in 2018/2019 summer went beyond managing free camping and ended up promoting it. With more time to plan for the 2019/2020 season we have already seen a
that given it faces a tax burden far greater than other foreign exchange earning industry. The Productivity Commission also confirms that there is no massive funding shortfall when it comes to addressing the visitor sector’s impact, with international tourists already more than paying their fair share by contributing $1.8 billion per annum in GST alone. Not only are targeted rates and bed taxes on accommodation providers disproportionate, but they are also not an effective and efficient way of raising growth infrastructure funding. It’s heartening that the commission supports better use of existing tools and central government funds, believing they should be enough to address tourism funding. NZHOA strongly supports this view. Funding and financing www.accomnews.co.nz
much more inclusive approach where holiday parks and DOC campsites are seen as being part of the responsible camping product. There is still a lot of work to be done, especially around managing the selfcontainment standard and assisting local authorities in developing bylaws which will reflect a national approach to the Freedom Camping Act. As we head towards the peak summer season we are concerned with issues around people and skills. With a drop in the number of visitors travelling on working holiday visas it is increasingly difficult to find staff to fill the gaps over summer. We have worked with others in the industry on providing feedback to Immigration New Zealand on the changes to employer assisted temporary work visas. In many of our popular visitor destinations there is very low unemployment and a real shortage of Kiwis looking for work. Most of our members will address this staff shortage by increasing the hours that they work themselves. It is great to see the government contributing $5.2 million towards people and skills projects through the Go with Tourism project. This will address some of our long-term issues in getting more Kiwis into the tourism
system. However, we will still need to supplement these with other international workers. In writing this it would be remiss of me not to mention the two major tragedies that occurred this year. The terrorist act in Christchurch sent shockwaves throughout the world. New Zealand was judged on our response to this and we should be proud of this. The eruption of Whakaari/White Island was a shocking reminder of the power of nature. Our thoughts have been with families and loved ones of those affected by both tragedies. One of our members lost a brother on Whakaari/White Island and so this is even more significant to our holiday park whanau. It was a great honour and very humbling to be announced the
Ensuring that as a country we are serviced by modern and competitive infrastructure is a NZ Inc problem which needs NZ Inc solutions. growth infrastructure should not fall so heavily on local councils or commercial accommodation providers. Rather it should be the responsibility of central government. Some of the government’s record $7.5 billion budget surplus should be applied to addressing the country’s infrastructure deficit, which includes growth and visitor
related infrastructure. Treasury is undertaking significant work into infrastructure funding and financing looking at new and alternative mechanisms and models to fund infrastructure. This is the solution rather than individual councils looking at uncoordinated ways to increase the tax burden on already heavily taxed businesses. The commission’s report INDUSTRY
winner of the Marsh Tourism Industry Champion award at the New Zealand Tourism Awards. I was in great company with Lisa Lee of China Travel Service and John Barrett of Kapiti Island Nature Tours fellow finalists. We are now heading into summer and the feedback that we are getting from our members is that forward bookings are looking very good. We hope that the weather plays its part in allowing Kiwis and international visitors to enjoy a great summer holiday. Thanks to all of you in the wider industry for your support and friendship over 2019 and we look forward to working with you all in the new decade – roll on 2020. Kia Kaha.
also highlights that the significant implementation, administration and enforcement costs required to introduce bed taxes may not even produce a net benefit. For hotel owners to continue to make further substantial capital investment into New Zealand we need certainty, and it’s gratifying that the Productivity Commission has found the government should be more fairly and systematically distributing existing funding to councils. Ensuring that as a country we are serviced by modern and competitive infrastructure is a NZ Inc problem which needs NZ Inc solutions. We’re looking forward to working with industry and central and local government to progress the Commission’s recommendations. AccomNews - Summer 2020
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