Mayor Tom Tate plans to introduce ‘bed tax’ for Gold Coast tourists

Gold Coast mayor Tom Tate says he is working on a case to introduce a ‘bed tax’ for tourists, meaning the price of your Glitter Strip holiday could rise.

Mayor Tom Tate is considering to introduce ‘bed tax’ for Gold Coast tourists.

Gold Coast mayor Tom Tate says he is working on a case to introduce a ‘bed tax’ for tourists, meaning the price of your Glitter Strip holiday could rise.

On Thursday, Mr Tate said the ‘bed tax’ would be for tourists staying in hotels and Airbnbs on the Gold Coast and could cost up to five per cent of the room’s rate.

He said the money raised would go towards the City’s tourism infrastructure if the levy was approved by the State Government.

“I think when you check into a room, tourists should pay a bed tax,” Mr Tate said.

“You go to Vegas, Singapore, Dubai and you get additional room tax.

“It would raise funds to build tourism infrastructure for the city.”

Tourism Minister Andrew Powell said he and Premier David Crisafulli had “repeatedly ruled out a statewide tourism tax”.

However he said requests from councils for local bed taxes were being considered.

“As part of our community consultation, a number of councils have sought the ability to apply their own levy,” Mr Powell said.

“These requests are being considered through the finalisation of the Crisafulli Government’s 20 Year Tourism Plan.”

Queensland Environment Minister Andrew Powell. Picture: Dan Peled / NewsWire

Gold Coast Mayor Tom Tate working to introduce ‘bed tax’. Picture: Nigel Hallett.

Mr Tate said he had been liaising with Cairns mayor Amy Eden who was “driving” the idea.

“(It would) give us the extra revenue to raise the room’s rates for tourists to help pay (for the City’s tourism infrastructure),” he said.

“They are here and using our infrastructure so I think they might as well contribute to that.”

Mr Tate said there were five cities that had signed the letter, including Cairns.

“Brisbane will probably have a close look,” he added.

“It doesn’t hurt to ask if we can do it and then we will model it to see what impact it will have on our tourists.

“If it doesn’t deter tourists to come here, it will be good revenue.”

Mr Tate said he wasn’t asking hotels to decrease rates, but to add the three to five per cent on top of the costs.

“Just say it’s a city tax,” he said.

“We are happy to cop tourists being upset with me.”

Mr Tate said the ‘bed tax’ would “definitely be in place”, if approved, before the 2032 Olympics.

It comes less than two weeks after it was announced the Gold Coast will get a new indoor stadium for the 2032 Olympics.

Artist impression of the proposed Gold Coast Arena boutique stadium at Carey Park, Southport. Picture: Supplied by Gold Coast City Council

The 12,000 to 15,000 seat stadium at Carey Park in Southport could cost up to $350 million. According to the state government’s 2032 Delivery Plan it will be “fully funded by the City of the Gold Coast”.

When asked if the ‘bed tax’ could fund the new arena, Mr Tate said: “If the State Government provide approval for the concept to proceed, work would then be undertaken on the logistics of how it would be collected and allocated.”

Mr Tate also mentioned the money could go toward the upkeep of the dive site at the Southport Seaway, maintenance on exercise areas, or a new “marvellous” addition to The Spit.

Queensland Hotels Association chief executive Bernie Hogan said he did not support the move to introduce a “self-defeating tariff”.

“I’m not certain how the mayor thinks increasing the cost of something makes it more attractive,” he said.

Queensland Hotels Association CEO Bernie Hogan. Picture: NCA NewsWire / Dan Peled

“Three to five per cent can be the difference between a tour group staying at one place to another.

“What happens when somebody discounts? It becomes an incentive to undercut each other which sends businesses broke.”

Mr Hogan said the cost should be spread across the tourism industry and not “just on the accommodation sector”.

“It is a vital sector on the Gold Coast and it is being loaded up to basically put money into consolidated revenue.”

Experience Gold Coast CEO John Warn said they supported the “exploration” of a ‘bed tax’ which could help boost the economy in the tourism capital of Australia.

“Last year, the Gold Coast welcomed 13 million visitors who contributed $8.1 billion to the Gold Coast economy, demonstrating the significant role tourism plays within our city and across our state,” Mr Warn said.

“Accommodation levies have been applied throughout the world with more than 80 per cent of the top 45 countries operating with a levy.

Experience Gold Coast CEO John Warn. Picture Glenn Hampson

“Continued investment in the sector, particularly across infrastructure, is important to remain competitive on the global scale.

“Experience Gold Coast supports the exploration of initiatives that contribute to a more sustainable funding model that benefits our city and drives more visitation and expenditure.”

In January, Ms Eden said a charge of 2.5 per cent could raise up to $19 million for the Cairns council.

Sunshine Coast Mayor Rosanna Natoli said she knew the idea of a ‘bed tax’ had been raised with the tourism minister.

“But that’s as much as I know,” she said.

Ms Natoli said she would have to see more detail and information regarding a bed tax before backing it.

“That’s not something I’m entertaining right at this moment,” she said.

“That’s for Tom to be rallying with there and I’d be interested to see what his reasoning is.”

Follow @CrysalFoxJour1