The Auckland Mayor’s office is offering to replace the controversial targeted rate on commercial accommodation providers but wants the sector to wear the substantial cost for a year.
Tourism Industry Aotearoa, which has coordinated industry opposition to the rate, said it is unacceptable to try and push through an unfair proposal by offering to fix the mess later.
The targeted rate on around 330 Auckland properties from which commercial accommodation is provided has been strongly opposed. It would see a sector that gets nine percent of the visitor spend in Auckland asked to pay 100 percent of the cost of tourism and event promotion carried out by ATEED for the city. Individual properties are facing rate rises of up to 300 percent.
“The sector is willing to make a fair contribution towards the promotion of Auckland,” said TIA chief executive Chris Roberts who said in opposing the unfair rate, there has always been a willingness from accommodation providers to sit down and talk about a better model.
“Drop the targeted rate, which was never fair or sensible, and fund ATEED this year the same way it has always been funded, through general rates. That will allow the Council to sit down with all the interested parties across Auckland and work on a fair and sustainable model to be implemented from next year.”
In a recently released legal opinion, Auckland commercial accommodation providers can’t legally pass the costs of a targeted rate to their guests as a surcharge.
“Now that we have legal advice that leaves the situation in no doubt. Adding a surcharge to cover council rates potentially breaches both the Fair-Trading Act and the Commerce Act.”
