Bed tax would cost jobs
The accommodation industry has come out strongly against suggestions in NSW that there should be a bed tax and that tourism should be hit with other additional taxes.
Speaking on behalf of its 2000 members, the Accommodation Association of Australia said the industry already pays hundreds of millions of dollars in council rates, payroll tax, taxes on car parks and levies to play music, among numerous other taxes, while the carbon tax and passenger movement charge (departure tax) also have a direct financial impact on accommodation businesses.
"The accommodation industry is strongly opposed to a bed tax in any shape or form," said the Association's Chief Executive Officer, Richard Munro.
"If any level of government – local, state or federal – is considering introducing such a tax, they should be aware that it would be met with fierce resistance from operators of accommodation businesses and the broader tourism industry.
"Our industry already pays millions of dollars in council rates, state taxes and federal taxes every year and having to pay more would be a disaster given businesses in our sector are still recovering from the effects of the global financial crisis, the high Australian dollar and the increasing cost of staff wages.
"If a bed tax was to be introduced, costs to accommodation businesses would skyrocket, making it even more expensive to travel within Australia, therefore domestic tourism would suffer further in the face of stiff competition from places including Indonesia, Thailand and Fiji, to name a few.
"A bed tax would mean job losses in Australia's accommodation industry would be inevitable."
The Association's response follows public comments which have been made by a NSW Government Minister that a bed tax should be an option to fund collection of rubbish and other infrastructure in the northern NSW tourism destination Byron Bay.
"Local government currently rakes in millions of dollars in rates and other charges from the accommodation industry every year which is a more than adequate source of funding for infrastructure," Mr Munro said.
"Related businesses such as retail and restaurants would also suffer as a result of any downturn in the accommodation sector caused by the introduction of such a tax.
"The Accommodation Association has written to the NSW Premier, the NSW Minister who has floated the idea of a bed tax, as well as the NSW Minister for Tourism to formally register the industry's strong opposition to a bed tax of any form."
Source: Accommodation Association of Australia, 4 January 2013
