Douglas mayor Michael Kerr accused Tourism Minister of keeping visitor levy for Olympics

The mayor of an international tourism destination said taking a bed tax off the table is a deal-breaker for his cash-strapped council and accused the State Government of being out of touch with the Far North.

The state government’s opposition to a user-pays tourism levy has several mayors hot under the collar, with one saying the Tourism Minister’s recent comments shows how out of touch Brisbane has become with the Far North.

Last week, Cairns mayor Bob Manning detailed his conversations with Tourism Minister Stirling Hinchcliffe over the proposed bed tax, saying Mr Hinchcliffe had told him: “Bob, we want you to drop it.”

Douglas Shire Mayor Michael Kerr said Mr Hinchcliffe’s direction to drop the matter and levy local businesses through rates “is clearly showing how completely out of touch Brisbane has become with the Far North”.

A vast majority of local governments voted to recommend the levy to the state government at the Local Government Association of Queensland’s annual conference in Cairns last October.

Cairns Regional Council mayor Bob Manning and Douglas Shire Council mayor Michael Kerr want the visitor levy also known as the bed tax to be imposed to visitors and not be a burden to their ratepayers. File Picture: Brendan Radke

“With destinations like Douglas we have fewer than 9000 rateable properties in total and a majority residential,” Mr Kerr said.

“We are already expected to maintain not only the required infrastructure for those residents but also the wants and needs of a multimillion-dollar tourism industry with needs already burdening to our rate payers.”

Mr Kerr said councils were the ones expected to fund local marketing and provide the needed infrastructure such as “fanciful lagoons” and yet currently have no opportunity for direct income themselves for those investments.

Douglas mayor Michael Kerr has accused state Tourism Minister Sterling Hinchliffe’s decision to not support the visitor levy proof of “showing how completely out of touch Brisbane has become with the Far North.” File Picture: Bronwyn Farr.

“There are two things I personally believe are becoming very clear,” he said.

“Whilst councils can’t make their own source incomes other than the standard rates fees and charges, many are now or becoming unsustainable due to the continuing cost shifting from other government levels and remain reliant on grant contributions from the state and federal levels to make ends meet, so are positioned to do as they are told so as not to burn the hands that feeds them.

“And the ongoing costs for the Brisbane Olympic Games continues to be multiplying each time it’s mentioned.

“Either way a predominant majority of councils in Queensland support the allowance for a tourism levy being introduced and it most certainly is not going away and will not be dropped. In fact it’s only just beginning.”

Cassowary Coast Mayor Mark Nolan said while he sympathises with other Far North mayors, he feels being denied a visitor levy will not be a hurdle for businesses in his region. File Picture: Supplied.

Cassowary Coast Regional Council Mayor Mark Nolan said while he supported the visitor levy, he felt solid growth in his area meant businesses could cope with forking out extra if the bed tax did not proceed.

“I fully support Bob Manning on this, he lobbied his fellow mayors and we voted for the resolution,” he said.

“It’s unfair to wider businesses to fund this, as a tourism levy is about paying your fair share.”

Originally published as Douglas mayor Michael Kerr accused Tourism Minister of keeping visitor levy for Olympics