Saturday, November 21, 2009

ACC levy increases threaten tourism industry recovery

Tourism operators will face substantial levy increases of between 30% and more than 100% if proposed changes to ACC go ahead, putting significant strain on an industry already trading through difficult times, says Tourism Industry Association Chief Executive Tim Cossar.

In its submission to ACC on its proposed levy increases, TIA has asked for a staged introduction to give tourism businesses more time to manage and adjust to the higher levies.

As an example of the impact the proposed changes will have on the industry, Mr Cossar points to a ski company employing more than 100 staff which will be faced with levy increases in excess of $300,000 annually. He says a snapshot of the industry reveals that sport and physical recreation, amusement and outdoor guiding businesses will face levy increases of around 100%, accommodation, cafes and restaurants more than 80%, and bus transport 63%.

TIA understands the financial difficulties ACC is facing with very high liabilities, but operators need time to adjust to the levy rises, explains Mr Cossar.
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