Auckland Harbour (Photo Credit: Camilla Rutherford)
New Zealand, June 02, 2017:
Travellers to New Zealand and staying in any of the accommodations in Auckland may have to pay slightly more nightly rate from July this year.
This decision has been taken by the local Auckland City Council as its committee passed the vote yesterday (1st June) in favour of introducing a so-called 'bed tax' for hotels and motels.
As a result, nightly room rates would go up between $3 - $6 for hotels, and $1 - $3 for motels.
Though this new ‘bed tax’ is to be paid by accommodation providers yet it is very likely they will pass on this extra cost to tourists as most owners would not be able to absorb the additional burden of this tax.
Through this controversial ‘bed tax’, Auckland’s new Mayor, Phil Goff aims to raise approx.$13.5 million which he wishes to use to improve infra structure of the city instead of asking local residents to pay higher house rates.
Backpackers, camping grounds and areas on the fringe of the city have however, been exempted from this new bed rate.
The tourism and hospitality sector operators, however, believe that it will affect tourism in this country as they are the ones who would have to pay more. Most accommodation owners, for example, would have difficulty paying these extra rates every year themselves.
This Auckland decision to levy ‘bed tax’ may have a rippling effect as local councils of other cities may also start implementing it in their regions. As this is a local issue, the national government is not interfering in this decision.
Final decision on this new bed charge will be taken later this month after it is confirmed by the full governing body of the Council.
---------
Gurbir Singh is a New Zealand-based feature writer & journalist. He can be contacted at : gurbir@journalist.com