Councils should target baches and B&Bs – MANZ

Councils should target baches and B&Bs – MANZ

The Thames Coromandel District Council is absolutely correct to target home owners who rent out baches or operate a Bed and Breakfast as they are well overdue for paying their fair share, says the Motel Association of New Zealand (MANZ).

Unregulated and untaxed commercial accommodation providers such as baches and B&Bs have had a sweet run for far too long and its time more Councils followed Thames Coromandel’s lead to bring these freeloaders into line, MANZ Chief Executive Michael Baines says.

“As far as short-term commercial accommodation goes it’s simple. It doesn’t matter if it’s your first, second or third house. If you’re renting it you’re making a profit, therefore you should be treated as a commercial accommodation provider. End of story.”

“We would like to see all Councils follow Thames Coromandel’s example and introduce extra charges for bach-renters and B&Bs,” Mr Baines says.

“These home owners can complain all they like about the fact they pay rates already, their costs are still not a patch on what the likes of Motels are forced to pay. So we have been forced to subsidise these cowboy operators who have no guarantee of safety or quality and are trying to take away our business.”

The growth in homes to rent online through sites such as AirBnB poses a real threat to New Zealand’s legitimate accommodation providers which are an integral part of our tourism industry.

“We cannot afford to start losing commercial accommodation providers, especially at a time when a strong tourism sector is shielding us against the effect of lower dairy prices. If this happens we will cause severe damage to our tourism sector which will have long-term implications,” Mr Baines says.

“Competition in business is a fact of life and we welcome it – as long as we are on a level playing field. This move by Thames Coromandel District Council is a first step in this direction and we’re hoping that other Councils follow suit.”

ENDS

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