Opinion: Disappointing policy is struggling to get support

It's disappointing to see Auckland Mayor Phil Goff plans to water down a controversial targeted rate on hotels and other accommodation providers. Photo / File

It's disappointing to see Auckland mayor Phil Goff plans to water down a controversial targeted rate on hotels and other accommodation providers.

The New Zealand Herald has reported Goff is struggling to get the numbers to pass the targeted rate in its current form and faces the humiliating prospect of losing a key plank in his first budget.

Goff wants to raise $27.8 million to fund tourism and events promotion, but it is doubtful he has the numbers to pass the rate, dubbed the "pillow tax" and vehemently opposed by the hotel and hospitality industries.

Goff has conceded the targeted rate was "not over the line yet" and that camping grounds, backpackers and motels on the fringes of the city which did not gain much from marketing and events could be excluded from the targeted rate.

It's disappointing the plan has failed to gain traction because it seemed to be a fairer way of raising money for events and tourism promotion.

The idea has already found favour in other countries, including across Europe, Britain and the United States, so why wouldn't it work here?

The argument from the tourism sector is that the wider economy benefits from visitor spending.

However, some sectors benefit more than others so why shouldn't they be expected to pay more for marketing and promotion that they stand to benefit from the most?

Many centres that are hotspots for tourism are also grappling with the complicated growing pains associated with increasing populations. The costs of this often fall on ratepayers.

I had hoped that of the idea gained support in Auckland; other councils might be willing to consider it but, sadly for ratepayers, that's looking increasingly unlikely.