Tourism operators oppose transfer of promotion costs

Waitaki tourism operators are opposed to paying more towards promoting their industry.

Most of about 80 people who attended a public meeting in Oamaru last night were hostile to a proposal by the Waitaki District Council for a tourism rate on businesses which directly benefit from visitors to the district.

The rate, being considered as part of the council's draft long-term council community plan (LTCCP), has yet to be approved by the council for public consultation starting March 13.

The council's financial services manager Paul Hope said 12% of the cost of tourism promotion and running the i-Site visitors' centre was paid by the central Oamaru business rating district, with the rest spread over the district's ratepayers.

The proposed tourism rate would not collect more money but transfer 20% of the existing cost of tourism promotion and the visitor centre to businesses which directly benefit.

The businesses included those with liquor licences (excluding sports and some other clubs), licensed food premises, visitor accommodation requiring resource consent, visitor accommodation accommodating five or more guests and those selling petroleum products.

The new rate would lower the contribution made by other ratepayers to tourism, he said.

The meeting was called by the Waitaki Tourism Association to inform members and others about the proposal, and encourage them to make submissions, which will close on April 22.

That was echoed by Waitaki Mayor Alex Familton and other councillors.

"We want your feedback and input," Mr Familton said, pointing out that no final decision had been made on the tourism rate.

Association president Sue Berry said members had "shown a little bit of concern" about the proposal.

Omru Blue souvenir shop owner Rob McLean found the proposal "abhorrent" and described it as a "tourism tax".

Others said the proposed rate did not cover all those who benefited from tourism.

Kingsgate Hotel Brydone general manager Frank Ash reflected the views of many when he said everyone benefited.

The hotel employed 35 people, who spent wages at other businesses, used local services such as laundries and suppliers and bought food such as meat, eggs and milk.

He pointed out the timing was terrible, with tourist activity decreasing.

Mr Ash, along with others, also questioned what research the council had done on the tourism rate.

Mr Hope said it was based on one introduced by the Hurunui District Council.

 

 

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