Now tourists may have to pay ‘bed tax’ in Auckland hotels. Tourists visiting New Zealand and staying in any of the hotels in Auckland may have to pay slightly extra tax from July this year because a controversial “bed tax” for Auckland hotels and motels has been passed by Auckland councillors.
This decision has been taken by the local Auckland City Council as its committee passed the vote yesterday (1st June) in favour of introducing a so-called ‘bed tax’ for hotels and motels.
In Auckland City, Now nightly room rates would go up between $3 – $6 for hotels, and $1 – $3 for motels.
Though this new ‘bed tax’ is to be paid by accommodation providers yet it is very likely they will pass on this extra cost to tourists as most owners would not be able to absorb the additional burden of this tax.
Through this controversial ‘bed tax’, Auckland’s new Mayor, Phil Goff aims to raise approx.$13.5 million which he wishes to use to improve infra structure of the city instead of asking local residents to pay higher house rates.
Backpackers, camping grounds and areas on the fringe of the city have however, been exempted from this new bed rate.
The tourism and hospitality sector operators, however, have slammed this new bed tax proposal. Many motel owners, for example, believe that it unfairly disadvantages them and they would have to pay thousands of dollars extra every year.
This Auckland decision to levy ‘bed tax’ may have a rippling effect as local councils of other cities may also start implementing it in their regions. As this is a local issue, the national government is not interfering in this decision.
Final decision on this new bed charge will be taken later this month after it is confirmed by the full governing body of the Council.
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