Accommodation industry strongly opposes bed tax

The accommodation industry is strongly opposed to the introduction of a bed tax on hotels and other accommodation businesses in South Australia.

Speaking on behalf of the industry, the Accommodation Association of Australia said suggestions that such a tax is being considered are disturbing, given it would hurt tourism, not benefit it.

“It’s disappointing to hear there have been suggestions of a bed tax on accommodation operators in SA,” said the association’s chief executive officer, Richard Munro. “The accommodation industry in SA is facing many challenges – the most recent ABS statistics showed a drop in occupancy of more than 3% and a sizeable drop in revenue per available room compared to the same time last year.

“A bed tax would make things even tougher for accommodation businesses and with our industry being a major employer in SA, it would result in significant job losses. That’s why the AAA is opposed to the introduction of a bed tax and is promising to fight any proposals to introduce such an impost.”

With the next state election in SA due early next year, the association is calling on both major parties to abandon any thoughts of pursuing a bed tax. “The association will today be writing to both the government and the opposition calling on them to ensure that a bed tax is not part of the policy platforms that they will take to the state election,” Mr Munro said.

“Operators of accommodation businesses have in the past and will continue to voluntarily contribute funds towards cooperative marketing efforts, but the industry does not support mandatory payments in the form of a bed tax.”

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