Industry News

What fair share, Mayor?

With the Auckland Council set to proceed with the controversial commercial accommodation targeted rate, Mayor Phil Goff is saying it is all about paying a “fair share”.

The tourism industry agrees with the Mayor.

However, determining what a fair share is, needs to be based on the facts.

TIA Chief Executive Chris Roberts says the commercial accommodation sector receives just 9% of the total visitor spend in Auckland. [As measured by the Ministry of Business Innovation and Employment].

“The original targeted rate proposal was for 330 commercial property owners to pay the full cost of Council tourism and event promotion. The cost of that promotion is currently shared by every ratepayer in Auckland, residential and commercial.

“The amended proposal has exempted holiday parks, backpackers and some motels, so narrows the number of targeted properties; and only half of the cost of tourism and event promotion will now be met from the targeted rate.

“It is still not the fair share that Mayor Goff repeatedly talks about.

“The small targeted group receives around 7-8% of the total visitor spend in Auckland, and yet is being asked to pay 50% of promotion and event support.”

Mr Roberts says the commercial accommodation sector in Auckland would be happy to pay its “fair share” – but this is not it.

“The Council can push on with this proposal, but it should accept that there is nothing fair about it.

"TIA was asked by its accommodation members in Auckland to support their interests and will continue to do so."