Chamber spokesman Miles Wilson told the draft annual plan submissions hearing it was "unprecedented" for the Chamber of Commerce to make a submission on the council's draft annual plan, but this year it was warranted.
"In previous times, we've said we recognise expenditure, that it's a good time to be investing in community projects. Really, our position is [to] let you guys get on and do that.
"However, in times of adversity, we're coming to you... this is a bit of a wake-up call."
Mr Wilson said many small and medium-sized businesses in the district were already struggling, with some redoing their budgets "with a starting point of zero" each month, while others were considering laying off staff.
The proposed rates rise would hit businesses hard and it was time for the council to perhaps look at what it needed versus what it wanted, cutting out unnecessary costs.
Mr Wilson said he was not opposed to Destination Queenstown's request, which would ultimately push the proposed rates even higher for the district's commercial sector.
"In times of adversity, sometimes it's important to be aggressive," he saidAdversity provided the opportunities to get ahead of the competition.
Destination Queenstown chief executive David Kennedy said the organisation already received $1.8 million funding annually, but was asking the council, on behalf of its strategic review board, for the additional $1 million.
The funding, which had the agreement of members of Destination Queenstown - those in the accommodation, retail, service and adventure tourism sectors - would be used for marketing on Australia's east coast - Sydney, Brisbane and Melbourne.
Mr Kennedy said Australia was one of Queenstown's biggest growth markets, but funding DQ already received was not sufficient for effective marketing across the Tasman.
Increasingly, Queenstown was competing with other centres in New Zealand which were able to gain more funding and use that leverage with Tourism New Zealand for greater exposure, something DQ could not afford to do.
It was proposed 80% of the additional funding would go to leveraging joint venture consumer marketing, for example partnering with Air New Zealand or Tourism New Zealand, and conference promotions in Australia, 10% would go to staff resources to manage the Australian market and the remaining 10% would be used to increase DQ's domestic shoulder season campaigns.
The resulting funding, if approved, would mean an increase in commercial and accommodation rates. The estimated DQ promotion levy increase was 54.71% .
For a business with a capital value of $1 million, it would rise from $832.60 to $1288.13, with a total overall rates increase of 10.45%, from $4359.89 to $4815.42.
For a business with a capital value of $5 million, the DQ levy would go from $4163.02 to an estimated $6440.63, with the total rates increasing by an estimated 12.672%, from $18,047.46 to $20,325.07.
Thelevy for a business with a capital value of $10 million would go from $8,326.03 to about $12,881.25, the total rates increasing from $40,328.04 to about $44,883.26.
DQ board member Peter Newbold said, as a business owner, he looked at the targeted rates rise as a business investment.
"It's giving me far more mileage. That's how people should [look] at it. That [percentage] of money can take me further... than other initiatives."
The district council will head to Wanaka today to hear more submissions on the plan.
