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Auckland Council’s adoption of a targeted rate on accommodation providers continues to concern the local moteliers who Hibiscus Matters spoke with about the issue back in March (HM March 15).
Although the rate was watered down, and motel owners will pay considerably less than originally proposed (around 40 percent to 20 percent of the sum originally proposed, depending on the type of business), aspects such as the exclusion of the nearby Rodney area, campgrounds, backpackers and bed and breakfast accommodation is viewed as unfair.
The money will cover 50 percent of Auckland Tourism Events & Economic Development’s (ATEED) visitor attraction and events budget, formerly paid for in general rates, freeing up those funds for infrastructure. Moteliers say this is also unfair, as they derive little, if any, benefit from ATEED promotions such as the current Lions tour.
Geoff Schunselaar of Beachcomber Motel in Orewa says he has yet to work out what he will be charged. “I’m waiting, because it’s based on the CV of the property and the CVs are likely to go up soon,” he says. Geoff says he’s not likely to increase his room rates, because his is a seasonal and price-sensitive business.
Whangaparaoa Lodge owner Troy Clarry says he now expects to pay somewhere between $3500–$5000 – a lot less than the $26,000 he would have been up for under the original proposal. However, he says he will have to “suck up the increase” rather than raise his charges, especially considering competition from B & Bs, and Rodney moteliers, who don’t have to pay the targeted rate.
Jan Guthrie of Orewa Motor Lodge says she has already increased room rates to cover the sum she’ll have to pay of around $11,000. “I’m paying 40 percent less than I’d thought, but now they’ve got a foot in the door, what will happen next year and the year after that?” she says.
Auckland councillors John Watson and Wayne Walker voted against the targeted rate, which was passed 11–8 at the meeting on June 1. Cr Watson says they did so largely because of the effects it will have on local businesses.
“The local moteliers don’t receive any actual benefit from ATEED’s tourist promotions which concentrate largely on event promotions in the city,” he says. “Why should they pay for a service they don’t receive any benefit from? No one could answer this at the meeting.”
The rate will apply from July 1.
