Pillow fight: Snedden says Goff and hotels both have it wrong over rate

Rugby World Cup and tourism supremo Martin Snedden says Auckland mayor Phil Goff and the hotel sector have both got it wrong in the battle over a targeted rate.

While the rate, targeting just one part of the tourism sector, was ''indefensible'', he says the hotel sector may have shot itself in the foot by ''gouging'' at peak times such as the recent World Masters Games and upcoming Lions tour.

Snedden was chief executive of Rugby NZ 2011, headed the forerunner to Tourism Industry Aotearoa and was recently a director of the Masters Games.

Speaking at Auckland Airport's International Travel Summit today he said hotel prices had increased up to two or three times during last month's World Masters Games.

"We only had one major issue and that was the pricing of hotels. In our view there was some pretty heavy gouging going on,'' said Snedden.

"Phil Goff has seized on this issue of price gouging during the games as some sort of defence for his otherwise indefensible initiative around the accommodation tax.''

Snedden, who is now involved in a project on the future of cricket for New Zealand Cricket, said hotels had given Goff an opening with their ''pathetic'' pricing.

Visitors to the city found solutions, staying in Airbnbs and other private accommodation.

Rugby World Cup and tourism supremo Martin Snedden was chief executive of Rugby NZ 2011, headed the forerunner to Tourism Industry Aotearoa and was recently a director of the Masters Games. Photo / NZPA

Snedden said although accommodation figures may show that rooms in April were booked at the same levels as last year - around 88 per cent - it was a missed opportunity by hoteliers.

"Instead the industry should be saying 'we threw away 12 per cent' and impacted on the reputation of New Zealand.

And speaking on the sidelines of the summit Snedden said Goff - who has watered down his original rates proposal - also had it wrong.

"I think he's failed early on to understand the benefits of tourism and the basic fact most hotels are not owned by most hotel agencies themselves but landlords.''

Snedden also said he was disappointed there were no very large events in this country following the Lions tour.

"'There is absolutely nothing on the horizon - there are agencies that exist whose part of their brief is to procure this stuff - they can seek the assistance of those who know something about this but as far as I'm aware there have not been a lot of external conversations.''