Auckland Targeted Rate – Trumpesque politics in the South Pacific!
15/05/2017
Auckland Targeted Rate – Trumpesque politics in the South Pacific!
The Backpacker Youth and Adventure Tourism Association (BYATA) that represents major backpacker networks throughout New Zealand still opposes the new draft version of the Auckland Targeted Rate despite the exclusion of this sector from the rate increases.
When a segment of the industry has just been given a reprieve and still protests on behalf of the competition, you know there’s a problem!
Fundamentally BYATA’s submission opposed the Rate not on the basis of a specific segment of the accommodation sector being targeted but on the fact that this is a poorly constructed Targeted Rate based on extraordinarily uneducated assumptions.
No matter how this is sliced and diced among the accommodation sector the fact is Auckland Council are asking 100% of their targeted rating funds from a sector that gains less than 9% of the benefit – at best.
Statements in the media that accommodation providers are making unprecedented profits are out and out lies. This is Trump-esque in nature, but Aucklanders aren’t falling for the Mayor’s bullying
According to MBIE accommodation earnings in Auckland for the year ending Feb 2016 was $791M and for the year ending Feb 2017 it was $698M. That’s a 12% decline in revenue.
Unless Mayor Goff has access to the financial statements of each and every accommodation provider in the city, then he has no more idea than you or I. All he sees is an industry maximising its revenues as best it can in a globally and regionally competitive market. What he doesn’t acknowledge is that same industry having to implement extensive upgrades and investments just to catch up from years of depressed markets.
The whole Targeted Rate campaign has been built on untruths, distorted facts and public consultation documents that harbour clear biases. It is no surprise there was strong support from the ratepayer base for the Targeted Rate because, for the average ratepayer, the way this has been positioned makes it a no brainer.
The truth however – and it is ironic that Mayor Goff wants the industry to be honest and open – is that this council has not consulted openly with the industry, it does not understand the industry or how it works, and the latest iteration of the proposal demonstrates it has completely missed the point of the submissions made to it.
That point being - take your time! Understand exactly how the industry works and what the real world implications will be! Consult properly, openly and without a predetermined outcome already in mind.
Mayor Goff needs to act like a real leader. A leader that can take it on the chin and recognise when a bad decision is being made. A strong leader who can back down with confidence and establish a structure of consultation that considers the implications of all ratepayers.
The test for Mayor Goff’s leadership is not whether this Targeted Rate passes. It’s whether he does what is right and fair.
The current fiasco is salvageable but he needs to act quickly. Pushing through a bad tax that is being restructured on the fly does Mayor Goff, Auckland and New Zealand a disservice.
There are bigger issues to deal with. This is a distraction the city does not need. It has commercial considerations Auckland does not need and most importantly - it is grossly unfair.
Background information about the Backpacker Youth and Adventure Tourism Association (BYATA).
BYATA is an incorporated society created to advocate for and support the growth of the Backpacker, Youth and Adventure Tourism sector in New Zealand.
BYATA has 65 members. Some operate within Auckland City while others operate throughout New Zealand. All are affected by visitor perceptions of Auckland as the primary gateway to New Zealand.
The backpacker market is highly price sensitive and transient and we fully expect this market to seek out alternative locations or revert to freedom camping options if prices become too high.
International youth (18-29 year olds) arrivals into New Zealand for the year ending December 2016 equated to 400,000 people. 261,000 had Auckland as their port of arrival. Average spend of the youth market is $3,600 and the total annual holiday spend is $1.6billion nationally.
That equates to a $240million GST tax take annually which we believe central government should share with local government to ease the burden of increased arrivals and support continued business growth.
For further questions or clarification please contact either
Darelle Jenkins BYATA Board - Advocacy Group email: darelle.jenkins@stayatbase.com ph: 022 6834 249
Brian Westwood BYATA Chair (overseas until 15 May) email: brian.westwood@yha.co.nz ph: 021320751
