Weatherill over-rules Bignell on bed tax
Premier Jay Weatherill has moved to cut off any further talk of a bed tax on hotels. motels and serviced apartments.
“This government will not implement a tax on hotel bed nights,” the Premier and Treasurer told InDaily today.
When asked further if he was ruling out a bed tax in whatever form, a spokesman replied: “Absolutely”.
Weatherill’s statement over-rules his Tourism Minister Leon Bignell’s stated view yesterday that a bed tax should not be ruled out as an option for building tourism in SA.
Responding to InDaily’s exclusive report that he had discussed the bed tax option with tourism industry officials as a means of raising tourism promotion funds, Bignell said:
“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. However, it is important not to rule anything in or out until proponents of ideas have had the chance to put them forward.”
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, which InDaily understands was discussed with industry figures, would have raised almost $500,000 per week – around $25 million per year.
The proposal drew a quick response from the Australian Hotels Association (SA) and its accommodation division, the Tourism Accommodation Association (SA).
General manager of the AHA, Ian Horne said that a broad range of accommodation providers from international 4 and 5 star venues, regional hotels and motels and boutique accommodation operators were against any application of a levy, tax or surcharge that applies to beds, the use of beds or the occupancy of a room.
“It’s another unnecessary cost and administrative burden for accommodation providers,” Horne said.
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“Ask those at the coalface – those who sell beds – and they’ll tell you, no matter how commendable the motivation is, that an additional tax, levy or surcharge is not the answer. Taxes create disincentives, are inequitable and generate resentment ”
Horne said the industry was keen to talk about marketing and promotional strategies to maximise the many millions spent on infrastructure including the Adelaide Oval and Convention Centre expansion but was very concerned the minister would even consider an additional tax rather than building effective, long term strategies.
The AHA and TAA called on the minister to bury, once and for all, any talk of a bed tax, levy or surcharge.
Today, the Premier did just that. It’s dead, buried and cremated.
