EXCLUSIVE: State Govt considers bed tax on hotels
The State Government is considering a bed tax on hotels to raise money for tourism promotion.
InDaily understands the proposed tax of $2 per bed per day has been mooted in discussions between Tourism Minister Leon Bignell, hotel operators and tourism industry representatives.
The bed tax proposal was openly discussed earlier this week at the Adelaide Convention Bureau’s industry conference in Adelaide, DestinationSA.
Responding to queries from InDaily, Bignell confirmed it was an option up for discussion, although he had concerns about its legality under current tax laws.
“I want to explore a whole host of ways we can lift tourism numbers to our city. As for the specifics of a bed tax, I don’t think it is possible under the GST rules,” Bignell said.
“However, it is important not to rule anything in or out until proponents of ideas have had the chance to put them forward.
You might like
“I will be sitting down with hotel operators at the end of the month to hear what suggestions they have for increasing visitors to Adelaide.”
Hotel operators at DestinationSA were opposed to the idea.
Representatives from two major chains told InDaily they would be opposed to a levy on beds.
South Australia has more than 34,000 bed spaces in hotels, motels and serviced apartments (with 15 or more beds), official statistics show.
A tax of $2 per day would raise almost $500,000 per week – around $25 million per year.
Bed taxes have been applied and proposed in the past.
Stay informed, daily
In the mid-1980s the Northern Territory applied a bed tax with all funds raised going to toruism promotion.
The tax was lifted when the GST was introduced in 2000.
In 2011 the Byron Bay Shire Council in New South Wales proposed a tax.
The council said in 2011 that it would “allow tourist visitors to make a contribution towards the upkeep of roads, parks and toilets through a bed tax would be a great start”.
The region’s peak tourism body opposed the idea and it sank.
Earlier this year local government officials in Wollongong proposed a bed tax and again it was opposed by the local tourism body.
Bignell said he was examining ways to promote tourism opportunities arising from the redevelopment of Adelaide Oval.
“We are already doing a great deal of work around filling rooms, particularly through the AFL’s move to Adelaide Oval next year,” he said.
“Football at the Adelaide Oval is going to be a real game changer for tourism in South Australia because it will help change outsiders’ views of Adelaide.
“We have asked the AFL to host its October meeting of all their clubs marketing and consumer managers here in Adelaide.
“During their two days here we will show them around Adelaide Oval, take them on tours of some of our hotels and give them an experience in McLaren Vale, the Adelaide Hills or the Barossa Valley.”
Is a bed tax a good idea? Send letters to [email protected], including your full name. The editor reserves the right to edit letters.
