Bed tax, housing crisis key topics at Local Government Association of Queensland conference in Cairns

Introducing a multimillion-dollar bed tax for tourists will be one of the hot topics as the LGAQ conference kicks off in Cairns. What industry insiders are saying.

HOSPITALITY operators are warning a proposed multimillion-dollar bed tax for tourists could “give the wrong impression”, as the idea sits atop the agenda at this week’s Local Government Association of Queensland’s annual conference in Cairns.

But others in the hospo and tourism industries are broadly supportive of the concept and its potential benefits.

The three-day LGAQ forum kicked off at the Cairns Convention Centre on Monday and brings mayors, councillors and administrators together for a full program of events and speakers centred around the theme of “liveability”.

Cairns Regional Council Mayor Bob Manning is seeking support for a proposal to charge a 2.5 per cent levy on short-term accommodation, with the scheme hoped to be adopted statewide.

Cairns Mayor Bob Manning at Crystalbrook Flynn on the Cairns Esplanade. Picture: Brendan Radke

The plan has the potential to raise more than $16m annually for destination marketing and tourism industry development, and is supported by 76 of the 77 councils in the state.

Cassowary Coast Regional Council was the only one to not back the idea when it was first pitched prior to the global pandemic.

The proposed tax has had a mixed response among some tourism operators, especially in Port Douglas, which has enjoyed a tourism boom this year.

St Crispin’s cafe owner Karen Jackson said “slapping another cost” on visitors could be perceived the wrong way, despite expecting to cost less than a cup of coffee.

“I think it gives the wrong impression,” she said.

“It’s not about the dollar value.

Nikkaya Williams and Cafe Fresq Port Douglas owner Aoife Conway. PIC: Gizelle Ghidella.

“I think tourism is not going to be as easy next year, I think Port Douglas and Queensland has become very expensive and it’s just slapping another cost.

“And with places like Bali opening up, which is a lot cheaper destination, I don’t think these busy times will last like everyone thinks.”

Cafe Fresq owner Aoife Conway supported the idea “as long as the money was used wisely.”
“I guess it’s like going in to buy a pie and using your bank card, and getting charged a small fee,” she said.
“I don’t think it would make much difference to whether people come here or not.”

Tourism Tropical North Queensland chief executive officer, Mark Olsen, said he welcomed the support from local government for an increased investment in destination marketing.

Tourism Tropical North Queensland chief executive Mark Olsen speaking at the reopening of Doubletree Hilton. Picture: Bronwyn Farr.

“Tropical North Queensland increased its market share in visitor nights and visitor spend within the state and was the only region to exceed our pre-Covid domestic visitor spend by more than $700 million.

“This success was a direct result of the increased funding. We need a sustainable long-term funding source to benefit the region into the future.”

Mr Olsen said the tax was estimated to deliver an economic impact of $176m to support close to 1000 new jobs “and improve the liveability of Tropical North Queensland.”

It comes as LGAQ president and Sunshine Coast Council Mayor Mark Jamieson – who will speak at the forum’s gala opening in Cairns tonight – also hopes recommendations from a review into the functions of the Office of the independent Assessor are pushed through.

LGAQ president and Sunshine Coast Coast Council Mayor Mark Jamieson. Picture: Patrick Woods.

A 12-month inquiry by the State Development and Regional Industries Committee heard “harrowing examples” of how some mayors and councillors “right to freedom of political expression” had been impinged by those using the complaints system within local government’s integrity body as a “political weapon”.

“All that we have ever wanted to see is that the local government integrity body is operating as it should and not using mayors and councillors as guinea pigs,” he said.

“Mayors and councillors should not fear being reprimanded, penalised or having their reputations irreparably damaged for speaking out on issues of importance to their local communities.

“Or for moderating their social media sites to protect themselves from racial abuse, or for helping the local pastor access a spare set of keys to conduct a Sunday church service.”

Youth crime and the state’s rental crisis will be two other major motions debated on Wednesday.

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Originally published as Bed tax, housing crisis key topics at Local Government Association of Queensland conference in Cairns