Tourism operators in Auckland are expressing concern about a slower-than-expected winter season and urging the government to consider a bed tax to help fund major events.
International tourism is back to pre-pandemic numbers, but domestic tourism is lagging, with a 2.8% drop in domestic spending in December compared to the year before.
Sudima Hotels chief operating officer Les Morgan said the winter season in Auckland outside of Covid was the worst it had been in three decades.
“This winter looks slightly better, but no material change.”
Repeated delays in the opening of the new Convention Centre has contributed to low visitor numbers, he said.
“You also have corporates and businesses feeling the pinch, and they’re not travelling, and of course regular Kiwis aren’t travelling, so domestic leisure business has been very poor.”
Tātaki Auckland Unlimited director Annie Dundas said events give people a reason to travel.
“We’re spending a lot of time building that, funding is a challenge.”
She said a solution was needed.
“That could be a bed tax, it could be something in the order of a small percentage of a bed night that goes into a funding pot that allows us to fund our major events programme and promote the city.”
Auckland Council has previously agreed to consult the public on a proposed bed tax.
The council would require Government approval to implement this new charge, but Auckland Mayor Wayne Brown said this would not stop the council asking residents what they thought about it.
“We should continue it closely with our industry leaders to advocate to central government. Industry support is there for this, and I’m keen to keep working with them on a mutually beneficial solution.”
Tourism Minister Louise Upston acknowledged there were funding challenges, saying the bed tax was “not off the cards” but was not a priority for the next couple of months.
“What I think is important is we look at a solution that works over the long haul, so I’m getting advice on that.”
