Cairns Regional Council backs statewide tourism levy

A proposal to establish a new eight-figure funding pool to upkeep Cairns’ visitor infrastructure and market the destination has been unanimously endorsed by the city’s councillors.

Cairns Regional council deputy mayor Brett Olds has backed a visitor levy to fund the tourism sector. Picture: Brendan Radke

A proposal to establish a new eight-figure funding pool to maintain Cairns’ visitor infrastructure and market the destination has been unanimously endorsed by the city’s councillors.

Cairns Regional Council CEO Ken Gouldthorp has written to the Department of Environment, Tourism, Science and Innovation supporting the establishment of a statewide “opt in” levy which would be used for “sustainable funding” of the tourism industry.

Under the scheme, a visitor levy of 2.5 per cent to each guest night would raise an estimated $16m annually for the council to re-invest in the sector.

The funds could be used to cover expenses such as maintenance of the Cairns Lagoon and promoting the region through advocacy group Tourism Tropical North Queensland, deputy mayor Brett Olds said.

“This would enable legislation so that councils can opt in or out (of the levy scheme),” Mr Olds said recently.

“At a recent LGAQ (Local Government Association of Queensland) conference, 85 per cent of all councils agreed that this is what they want.”

Crystalbrook Riley is among some of Cairns’ best hotels.

Servicing tourists’ needs currently came at a significant cost to Cairns’ ratepayers, Mr Olds said.

“Tourism is a key economic driver for our region … but the resident to visitor ratio in Cairns is four-to-one which is far below the state average of 11-to-one,” he said.

“That means we have 35,000-to-45,000 tourists here on any given night that come here, use our toilets, have showers, they create trash which we don’t mind.

“But it puts a big burden on our infrastructure.”

Other tourism destinations had already imposed similar schemes.

“Having a visitor levy with a modest fee – which Queenstown, New York already does this – it takes that burden off ratepayers,” Mr Olds said.

The Reef Magic pontoon, Remora, on Moore Reef. Photo: Tourism Tropical North Queensland

“Ratepayers right now are paying about $3.8m to fund TTNQ. So, they would get that back (to pay) for footpaths, playgrounds and everything else.

“This is something that benefits ratepayers.”

Division 2 councillor Matthew Tickner supported the initiative.

“It’s a very minimal cost added onto a room night for people visiting our city,” Mr Tickner said.

“But the benefit for ratepayers is significant.”

CBD councillor Rob Pyne agreed.

“It’s an equity thing for me and only fair,” Mr Pyne said.

Maintenance of the Cairns Lagoon costs around $4.2m per year.

Originally published as Cairns Regional Council backs statewide tourism levy