Page 25 - Tropic Magazine Issue 17

TROPIC • TOURISM

What next for tourism?

Tropic dives into the big issues facing our tourism industry, with a three-page special report
highlighting a range of challenges. We look at Cairns Regional Council’s bed tax proposal, calls for a
rethink of our city’s branding and how to market positive messages about the Great Barrier Reef.

Taxing tourists

SPECIAL REPORT
A proposal for a Cairns visitor
levy to fund the region’s
promotion as a tourism
destination gains momentum.

Words Renee Cluff
Cairns Regional Council is pushing ahead home stretch. “We’ve done a lot of work restaurant, Craig Squire. “I’ve been calling
with its plan to charge tourists 1.5% to 2% on this,” he said. But hurdles remain. out for it for years because we’re under-
of the cost of their nightly room rate, the One of the major stumbling blocks will funded for marketing,” he said. “State
proceeds of which would be funnelled be opposition from accommodation Government money is spread pretty
directly to the region’s major tourism providers. Nicholas Henderson, the thin across the regions and we just don’t
marketing body. All accommodation General Manager of Holiday Inn Cairns have the coin that other similar tourist
types are included in the proposal, Harbourside, is treating the idea with destinations, such as in south-east Asia
from hostel rooms, to resorts and even caution. “While we are supportive of any and the Gold Coast do. That means we
Airbnb’s. initiatives that promote Tropical North don’t have the proper financial resources
Mayor Bob Manning told Tropic while Queensland as a destination, there must to promote the region competitively.”
the initiative would significantly boost be full consultation with industry before
the region’s tourism marketing budget, any tax is implemented, to make sure it is
visitors themselves wouldn’t really notice properly designed and does not harm the Airbnb backs bed tax
the extra cost. “If you’ve got to pay an industry,” he said. “We would advocate Home-sharing platform Airbnb
extra $1.50 tourism levy, it’s just a gold for a flat rate rather than a percentage has welcomed the push for a
coin donation but when you’ve got say of a room rate so that full-service hotels bed tax in Cairns. There are more
three million visitors a year, you’ve got are not made disproportionately more than 2,000 Airbnb operators in
them staying an average of four or five expensive than their competitors. There is the region. Head of Public Policy
nights. They’re paying $100-$150 a room also often a significant cost to businesses for Australia and New Zealand,
per night, so it adds up,” he said. “The who have to collect, audit and account Brent Thomas, told Tropic a
money will be collected monthly from for such taxes, and that cost is often far tourism levy in Australia is long
the accommodation houses, paid to the beyond the value of the actual tax itself.” overdue.
Council and then passed through to What could also knock the idea on the “Evidence and experience
TTNQ in total.” head is its implementation, which the shows that tourism levies, when
While such an initiative is common Council is seeking legal advice on. If such designed and implemented
overseas, Cr Manning said it would be the a levy needs State Government approval, correctly, work.
first levy of its kind in Australia. “There there’s next to no chance it will progress, “We’re proud to have partnered
are some Councils which add a levy onto with both the Palaszczuk Government with hundreds of governments
their rates, so it picks up every ratepayer,” and the LNP Opposition stating they worldwide and collected more
he said. “Our intention of this levy is to won’t be supporting any new taxes if than USD$1 billion in revenue,
catch the tourists, the people who are elected and would be open to more
visiting here and using our resources.” next year. However, there is support detailed discussions with Cairns
While the Mayor wouldn’t commit to a within the local tourism industry, Regional Council.”
timeline, he said the proposal is in the including from the owner of Ochre

Bed taxes around the world
per person, per night
KYOTO, JAPAN NEW YORK,
Up to AUD$8 UNITED STATES
14.75% of room rate plus
PARIS, FRANCE flat fee of $5/day
Up to AUD$6
KUALA LUMPUR,
MALAYSIA
ROME, ITALY Flat fee of AUD$3.50
Up to AUD$11

25 • tropicnow.com.au