"We need to approach this problem": Tourism leaders welcome ACT's bed tax alternative
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ACT's alternative to a bed tax is being welcomed by tourism leaders.
The party's promising one dollar be given to local councils for each guest night in their area, funded through GST and levies already paid by tourists.
It's estimated the dividend would give councils more than $40 million annually.
Hotel Council Aotearoa strategic director James Doolan told Mike Hosking ACT is the first party to acknowledge the fundamental problem operators are facing.
He says a huge amount of tax is collected from tourists and not enough of it goes back to local communities.
Doolan told Hosking $5 billion in tourism GST is collected each year, and while ACT has acknowledged the problem, there are some questions about mechanisms and quantum.
He says the number for Auckland alone should be about $40 million.
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