Paul Guerra warns Airbnb tax will be a tourism killer

Victorian business boss Paul Guerra has warned Melbourne will become “less attractive as a tourism destination” if the Andrews government introduces a short stay rentals tax.

Victorian business boss Paul Guerra has warned tourists “won’t choose Victoria” before booking a holiday in Melbourne if the Andrews government introduces an Airbnb tax.

Victorian Chamber of Commerce and Industry boss Paul Guerra said the government’s looming short stay rentals tax will drive visitors to holiday in other Australian states.

“They won’t choose Victoria. It’s pretty much that simple. They’ll go and stay in other states,” he told the Herald Sun on Friday.

“If you’re paying extra in Victoria than New South Wales or South Australia, you’re going to go across the border, you’re not going to stay in Victoria.

“And if you think about towns like Echuca, Wodonga, Yarrawonga, on one side of the river I’m going to be paying less than the other side of the river.

Victorian Chamber of Commerce chief executive Paul Guerra. Picture: Jake Nowakowski

Mr Guerra said he would only support the levy if other state’s also came on board.

“It has to be national,” he said.

“If Victoria goes it alone, then we’re less attractive as a tourism destination than any other state.

“And the reality is the per cent of the Victorian tourists in regional Victoria are Victorians themselves. So we’re now starting to put Victorian at a disadvantage and Victorians at a disadvantage who want a holiday in our state.”

Mr Guerra’s comments come amid speculation the tax hike will be at 7.5 per cent.

That amount would raise the cost of a short stay rental in metropolitan Melbourne by about $17 a night.

As previously revealed by the Herald Sun, Airbnb backed the charge for all short-term accommodation, alongside a new code of conduct and a register of properties on the market.

The proposal is expected to be part of a suite of reforms expected to be announced next week to address the housing crisis, with revenue from the new tax channelled into affordable housing.

Mr Guerra has warned tourists won’t choose to holiday in Victoria if the Andrews government introduces an Airbnb tax.

Mr Guerra said after the Andrews government’s pull out from the Commonwealth Games, disincentivizing tourism was the wrong idea.

“What we need right now is to be encouraging people back to Victoria, not giving them reasons to choose other states,” he said.

Mr Guerra noted how “aggressive” South Australia had been in trying to drive business owners to cross the border.

“Victoria has a good tourism offer, but you’d argue other states from a weather perspective and a natural beauty perspective, have a better offer in that regard,” he said.

“We attract them around events, but if we give people reasons not to come, people will look at options and that’s not what we want right now.”

Originally published as Paul Guerra warns Airbnb tax will be a tourism killer