Posts Tagged ‘tourism’
NZx: May 29th – a taxing question
Naumai
If you’re are linked into tourism, in any form, you will be aware that there are a number of key issues facing the industry ahead of increasing visitor numbers. There have been many calls for increased funding for the sector, both at national and regional levels, to address infrastructure and conservation related issues arising from tourism.
Good summaries of the issue can be found here and here.
Currently international tourism remains New Zealand’s largest export earner and it was responsible for a fifth of earnings from all exports of goods and services. Tourism accounted for 5.6 per cent of gross domestic product (GDP) and directly employs 230,793 people or 8.4 percent of the workforce. Currently the Government receives $1.5b in GST from international visitors, with a further $1.8b collected from domestic visitors.
The tourism leaders report (2016) suggests a National Tourism Infrastructure Levy be created comprising of a 2% national bed levy across the accommodation sector and a $5 increase to the border levy which would raise $65 million per annum from the industry.
Treasury’s view on any new tax is not supportive suggesting “that (there is no evidence) a border or bed tax meets the burden of proof for departing from BBLR (broad-base low-rate) principles”.
The latest in a myriad of comments on the tax issue come from Minister of Tourism, Kelvin Davis, who while at TRENZ, was forthright in saying the future is in a “levy on international visitors”.
Of course whichever side of the debate you support, the issue becomes more complex with TLA’s pushing and in some cases implementing “bed” tax. Currently Auckland, Wellington, Queenstown , Dunedin and Hawkes Bay are all pushing for, discussing, or in Auckland’s case legislating for, such a tax.
At the time of writing Rakiura/Stewart Island is the only destination to use a similar mechanism (visitor levy fee) although other entities such as Milford Sound Development Authority include a levy in all passenger cruise fees.
The key ingredient missing in the discussion is the major risk of an uncoordinated approach to fixing both infrastructure and conservation based issues. We have previously discussed the risks to tourism of uncoordinated approaches to sustainability and a social license to operate.
One thing a visitor (international or domestic) does not need is an arrival levy/tax and then varying provincial “bed” taxes – none of which are either consistent, efficient to administer or designed to solve the myriad of different issues specific to different places that make up New Zealand/Aotearoa.
Ka kite ano
NZx January 27th: Northland / Te Tai Tokerau
Naumai
Northland /Te Tai Tokerau is a fantastic place. There are many icons to visit here; Tane Mahuta, Russell, Waitangi, Cape Reinga or any beach with golden sands, pohutakawa and sparking blue sea.
A recent visit to Northland enabled us to spend some time exploring both the icons and the back roads.
The icons are all there, service was mostly good but some of the infrastructure was looking decidedly tired and away from the icons – empty. Most of the tourism entities were either staffed by Caucasian or international transients. While hyped up with great marketing the cultural interaction was limited, oversold and didn’t address many of the basics of great visitor experiences.
Beyond the icons it wasn’t to hard to find another story. Hints of elitism, exclusion and then poverty and well… another world one which most New Zealanders aren’t aware of..
It’s sometimes useful to look beyond our initial impressions, and to reflect on how tourism could provide a positive contribution to all in it’s community.
Ka kite ano
Tane Mahuta – a Northland / Te Tai Tokerau icon
NZx October 14th : Crunch summer ahead
Naumai
All the indications are that this will be a crunch summer for tourism in New Zealand.
Reports suggest many accommodation providers are full, attractions run the risk of turning people away and transport providers (particularly rental providers) have invested in new stock.
The likelihood is that international visitors will be here in increasing numbers, particularly in iconic locations. Will that create a problem with New Zealand domestic visitors seeking the relatively uncrowded experience they have been accustomed too?
Ship Cove/Meretoto in Queen Charlotte Sound is a case in point. Easily accessible by scheduled boat services, private vessel and some international cruise ships, the iconic site maybe under threat from sheer numbers this summer. The track (and it certainly isn’t of a great standard) is often quiet but from November to March that changes. At any one time the narrow track can be full of visitors, both domestic and international, throughout the day. At what stage is the visitor experience compromised?
Solutions to this “nice to have” problem are complex. Tourism New Zealand is moving to focus marketing efforts on the shoulder season, the conversation around taxing international visitors is gaining momentum and both traditional media and social media are focusing on the opportunities.
Ka kite ano
Ship Cove / Meretoto, Marlborough Sounds