‘Bed tax’ option not popular

Wellington City council has moved to widen a proposed bed tax, as it looks for ways to fund economic and tourism growth in the city while keeping rates down.

The proposed tax was met with a backlash by accommodation providers last week, who accused the council of double dipping. Mayor Justin Lester said it was needed to ease infrastructure costs for locals.Tourism Industry Aotearoa said it would deter investors from building new hotels and motels.

At a council meeting this week councillor Simon Marsh made an amendment, suggesting the council look at ways including other ways the tourism industry could find the money.

He said he had been approached by the hotel industry, which felt the council had narrowed down its options in passing on costs created by more visitors coming into the city.

“There may be a better way of doing this, hence this amendment, and I hope the industry will form a working party which we will support to investigate a broader range of possibilities.”

“The accommodation industry felt it was an easy target,” Marsh said.