Former Mayor and member for Mulgrave backs tourism tax revisit

Former Cairns mayor and newly-minted member for Mulgrave Terry James has backed revisiting the idea of a tourism levy.

LNP candidate for Mulgrave Terry James participates in a Q&A session at the 2024 Meet the Candidates: State Election Forum Lunch, hosted by the Cairns Chamber of Commerce and Tourism Tropical North Queensland at the Pullman Reef Hotel Casino. Picture: Brendan Radke

Former Cairns mayor and newly-minted member for Mulgrave Terry James has backed revisiting the idea of a tourism levy.

During his time in leading and as part of Cairns Regional Council Mr James was a supporter of former Mayor Bob Manning’s push for a tourism levy that would see tourists pay a 2.5 per cent surcharge on accommodation to go back into the funding of destination marketing.

Mr James said it was early days for the new state government but he was more than happy to revisit the subject with cabinet.

“It was definitely something I believed in and think can work, but it would be up to cabinet to consider it,” he said.

Mr James said there was a lot of work going on behind the scenes as the new government addressed its priorities.

“Obviously crime is a big one across the board and addressing that helps make our destination more marketable,” he said.

“That is the main focus but I am looking forward to the new challenges, we have a strong team up here and we are keen to work together on these issues.”

Minister for Tourism Andrew Powell said the government was working with communities to pave the way forward for the industry and didn’t take the tourism tax option off the table.

“We are currently consulting with communities the length and breadth of Queensland as we develop a 20 Year Tourism Plan for our great state,” he said.

Minister for Tourism Andrew Powell MP, DestintationQ tourism event at The Star Brisbane. Picture: Liam Kidston

“If councils want to raise these issues, this is the perfect opportunity, and we will consider any proposals brought forward.

“It is important to note that Queensland’s tourism market is very diverse, and what may work in one destination, may not in another.”

Division 9 councillor and Deputy Mayor Brett Olds this week said a tourism levy would take the burden away from ratepayers.

“In this case instead of councils forking out ratepayer money to support groups like Tourism Tropical North Queensland, we can have that back in our pockets to be used on other needs across the region,” he said.

Cairns mayor Bob Manning (left) with other Queensland mayors at the Local Government Association of Queensland annual conference in Cairns. Picture: TWITTER

A previous push for a tourism levy in 2022 led by Mr Manning received resounding support from local councils who voted for the recommendation to the state government at the Local Government Association of Queensland’s annual conference held in Cairns that year.

But it was sunk by the then-Palaszczuk government, which had pledged to introduce no new taxes, with former Tourism minister Stirling Hinchcliffe saying: “The government would not be supporting a tourism levy but it was up to the tourism industry to continue the conversation”.

Mr Manning hit back at the decision at the time arguing local governments were not asking the Queensland Government to introduce a tax.

“The request is simply for a legislative change to empower local governments to opt-in to charge a visitor levy to sustain their local tourism industry,” he said.

In 2023 Mr Manning revealed Mr Hinchcliffe told him to “drop it” and “forget about the levy”.

Council modelling in 2022 showed a levy could raise more than $16m annually for destination marketing.

Originally published as Former Mayor and member for Mulgrave backs tourism tax revisit