Bed tax motion passes at LGAQ conference in Cairns with overwhelming support

Queensland councils have voted on Cairns Mayor Bob Manning’s controversial tourism levy, which could deliver an economic windfall of $176m and 1000 new jobs for FNQ.

Cairns mayor Bob Manning pushed his case for a bed tax before Covid-19 was ever heard of, but the resurgence in tourist numbers since the pandemic’s wind-down made his case all the more pressing.

Tourists throughout 2022 have said they wouldn’t have any issues with forking out an additional $2.50 a night to stay in Cairns, as long as the money was used to support tourism in the Far North.

Council modelling showed the initiative could raise more than $16m annually for destination marketing.

The idea was even endorsed at a previous conference of Queensland councils but was killed by Covid-19.

On Wednesday, Cr Manning got a second round of endorsement at the Local Government Association of Queensland’s annual conference.

“It was a good debate,” Cr Manning said.

Cairns Mayor Bob Manning has had his bed tax motion passed at Wednesday’s LGAQ conference. Picture: Brendan Radke

“A lot of points were raised … but now we need to take stock of where we’re at and how we go forward.

“There’s now discussions to be held with state government, because this gives the tourism industry the greatest level of independence it’s ever had.”

The motion received 30 dissenting votes as other Queensland councillors raised issues of equitable distribution of tax revenues, but Cr Manning rebutted each dissenter and stuck to his practised line that this proposal was a simple one that supported regional tourism bodies that councils could choose to opt in or out from.

“The control of this system will effectively rest with each destination, not the council,” he said.

“The council will help in the collecting of the levy from the accommodation houses, but we simply remit that cash to the regional tourism organisation. That will all be controlled.”

Several councillors raised their voices to support the motion and received applause each time, telegraphing the reality that the motion was never in danger of defeat.

“Bob spoke to me about this and about trying to implement some changes to allow local governments to be able to collect this and spend it in their local government area. I think it is a great idea,” Townsville Mayor Jenny Hill said.

Townsville Mayor Jenny Hill. Picture: Caitlan Charles

“It will also help me in terms of budgets because, to be honest, a lot of my ratepayers don’t want to pay anything for tourism. They think the tourists should pay for it themselves.”

TTNQ CEO Mark Olsen was pleased with the motion’s endorsement.

“Bob Manning’s proposal … is estimated to deliver an economic impact of $176m to support close to 1000 new jobs,” Mr Olsen said.

“When you increase destination marketing, you get results, which is what we saw with the federal government’s $10m investment over the past two years.

“That $10m allowed TTNQ to achieve $300m in campaign-generated direct visitor expenditure.”

Sydney visitors to Cairns Kathryn Warwick, 28, and mum Ann Warwick, 65, said they would be fine paying a bed tax and had become accustomed to the idea while travelling overseas.

Tourists from Sydney Kathryn Warwick and Ann Warwick. Picture: Nuno Avendano

“I’m fine with it, and when you go to other places you pay tourist taxes and a tax before you even step off the plane,” Kathryn said.

“That is assumed when you go to those countries, then that is what you will do. When I went to Fiji, we did the same thing, and in Europe.

“It is a cost you expect to endure, and I wouldn’t have a problem if it was here in Cairns.

“Especially knowing that Cairns, and places like it, have been struggling (through Covid).”

Ann Warwick said the fee wouldn't deter her “at all”.

“I think if you know why it is in place, and you know the extra few dollars is going to help the community, then I think that is fine,” she said.

“I would definitely support it.”

Originally published as Bed tax motion passes at LGAQ conference in Cairns with overwhelming support