Plan for new tax to ‘unleash’ FNQ divides tourism industry

Millions from a proposed tourism tax could cement Cairns as the world’s premier destination but hoteliers have warned any new levy could stifle the region’s pandemic recovery.

MILLIONS generated by a proposed tourism tax has the potential to cement Cairns as the world’s premier tropical destination but hoteliers have warned any new levy could stifle the region’s fragile pandemic recovery.

A long mooted bed tax has been revived this week by the release of a new report by the Queensland Tourism Industry Reference Panel.

Visitors to the Great Barrier Reef already pay a levy to help preserve the World Heritage site. Picture: Tourism and Events Queensland

Recommendations include paid entry to a host of natural assets found throughout the Far North by charging fees for national parks access and a nightly bed charge.

Tourism Tropical North Queensland chair Ken Chapman backed the new plan but was wary of any tax not applied across the board to caravan parks, Airbnb and hotel guests.

“It would have to be on all types of accommodation,” he said.

“It’s a discussion that’s worth having. The difference it would make to destination marketing would be profound.

Welcome Bay, Fitzroy Island. Picture: Tourism Tropical North Queensland.

“We have seen the results when we get adequate funding.”

Reef tourists already pay $7 a head and $3.80 when entering national parks with a tour operator. Previous federal spending to kickstart a Far North pandemic recovery through international marketing had been invaluable, the tourism boss said.

“For every dollar spent on destination marketing we get in excess of $20 of economic benefit,” he said.

A new report has recommended a new Queensland tourism tax. Picture by Sean Davey.

But Queens Court Hotel general manager Zac Sarnecki said any new charge would be a major disincentive for visitors.

“The tourism industry has suffered horribly and we finally have people coming back to the region, the last thing we need is to make it more expensive,” he said.

Mr Sarnecki feared bank and remittance fees could be hidden extra costs to the levy.

Under a proposed tourism tax fees could be charged to access the Daintree National Park. Picture: Tourism Australia

Longtime supporter of the tax Mayor Bob Manning said revenue generated by the levy would “unleash” the Far North as a destination through a tax of about 1 ¾ per cent added to accommodation bills.

“The passenger levy is something that is globally accepted and Australia has dragged the chain,” he said.

“We need to look at this carefully and make a smart decision.”

Manager of major Cairns hotels including the Pullman International, Accor, represented by Pacific CEO Sarah Derry said any decision needed to be “carefully considered”.

“For an industry still recovering from the impact of the pandemic on livelihoods, we would ask those contemplating these measures to carefully consider whether this proposal is in the best interests of our teams, owners and for tourism in Queensland,” she said.

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Originally published as Plan for new tax to ‘unleash’ FNQ divides tourism industry