Tourism firms fume at tax grab

By SIM ON HENDERY

Inbound tourism operators are fuming over the Government's bid to hold on to as much as $100 million of disputed GST payments.

The operators say the Government's decision to change the law in order to let it keep the money - paid by about 25 travel wholesalers - clashes with Tourism Minister Mark Burton's championing of the sector at last night's launch of a strategy for sustainable tourism growth.

Don Gunn, president of the Inbound Tour Operators Council, said the planned retrospective legislation was unfair because it would deny refunds totalling between $80 million and $100 million to around half of the group's 50 members, yet others who had already received refunds would not be asked to pay them back.

"It is money that is owed to us and it is money we use to run our businesses - encouraging people to come to New Zealand," Mr Gunn said.

The Government had said tourism was vital to the economy, yet it was crippling the people bringing the business to New Zealand.

Mr Gunn said council members handled about 50 per cent of tourism arrivals.

Mr Burton said the issue would not take the fizz out of the New Zealand Tourism Strategy 2010, released in Auckland last night, and the inbound industry would not be disadvantaged by the Government's move, because any GST repayments were to be paid back to customers, although Mr Gunn disputed this.

He said the council would make submissions to the finance and expenditure committee, which is hearing submissions on the bill.