GST increase will penalise inbound tour operators
Inbound tour operators are the only exporters to be penalised by the proposed increase in GST as proposed by Prime
Minister John Key in his statement to Parliament yesterday, Inbound Tour Operators Council of New Zealand (ITOC) Paul
Yeo says.
“While applauding the general direction of tax reforms and Mr Key’s acknowledgement of tourism as a key export industry
ITOC is concerned that many of our members will relocate overseas or close down as they will find it increasingly
difficult to compete with offshore tour operators,” Mr Yeo says.
“Unlike other businesses that can zero rate GST for their exported services inbound tour operators are not able to do
so. A tour operator based in Australia can package New Zealand and avoid paying GST on their fees giving them a
significant and unfair price advantage.”
ITOC has raised the issue of competitiveness with the Prime Minister, who is also Minister of Tourism and will do so
again.
“We will be doubly impacted if insufficient notice of any GST increase is given as our prices to overseas buyers are
contractually locked into place up to two years ahead. We’ll simply have to absorb the increase on our charges which
will hit us hard. “
ITOC Background:
The Inbound Tour Operators Council of NZ was founded in 1971. It represents 250 tour operators and suppliers throughout
the country who package, distribute and market New Zealand tourism products and services internationally.
ENDS