Queenstown in New Zealand is struggling to keep its head above water and its status as an attraction for international tourists is flailing. They have named their price from the government and won’t back down. $278 Million is the price tag attached to the draw card and failing that, the only other option they’ll accept is the permission to accept is a tax referred to as bed tax from foreign visitors. The city is in need of a desperate upgrade to the infrastructure that is vital to providing services to the international visitors.
The Case In A Nutshell
The case, which has been completed and submitted to the council in March in time for the new budget in May, details the request. When running at full capacity it is the residents who bear the brunt of the costs. This equates to each resident paying for 34 tourists to use the roads, water and toilet facilities in the area. The fears have been laid before the Tourism Minister and a desperate plea made. Without help, the infrastructure will disintegrate and the area will no longer attract the international visitors and New Zealand’s reputation will be marred.
Bed Tax Dilemma
The very thought of imposing a bed tax per night on tourists is a daunting one. A tourism levy is on the cards and implementing a bed tax simultaneously will dent the tourist industry considerably. Queensland is in a growth phase that has pushed housing prices and congestion to a maximum. Workers are scarce and the fight is on to find replacements. This is due to the sport in tourism but also the loss of some through high rental prices and cost of living in the area. Queenstown is not resting on their laurels as they await the outcome and are already in the process of selling a majority of its land assets which should amount to around $70 million.