Editorial: Tourist tax goes against grain

Rotorua Mayor Steve Chadwick

As the mayor of a city dependent on tourism, it's not surprising Steve Chadwick was non-committal when asked about a proposal to allow councils to impose a tax on tourists.

The radical suggestion was part of a 10-point plan put forward by Local Government NZ (LGNZ) on the final day of its annual conference in Rotorua yesterday.

LGNZ president Lawrence Yule said the document was designed to spark conversation about how councils could be funded.

He said local government was facing "unprecedented economic and demographic change and increasing community and government expectations".

Point nine of the plan was to "allow councils to levy specific charges and taxes on visitors where economically efficient".

It was a discussion point only so how, when and where such charges or taxes could or would be imposed are all hypothetical at this stage - although presumably LGNZ has thought ahead to how that could work in practice.

In a tourism-centric city such as ours, convincing the industry and the public this was a good plan would surely be an uphill battle.

We pride ourselves on our manaakitanga (hospitality) and while yes, tourism is a business that makes us money, we also want our visitors to have a good time.

Imagine asking them to pay a levy to stay in a motel, or to enter our border, or to eat at a restaurant, or pay even more to go to one of our attractions.

There is enough competition for tourist dollars as it is without a city burdening itself with the reputation of taxing visitors.

It's great that LGNZ is thinking outside the square when looking at how local councils could raise revenue, and there may well be points in the plan that will work for Rotorua Lakes Council. But a tax on tourists?

Maybe I am naive, but that just doesn't seem like a very hospitable thing to do.