FIVE-STAR HOTEL TARIFFS

Press, Volume XCIII, Issue 27920, 17 March 1956, Page 8

FIVE-STAR HOTEL TARIFFS

Tribunal Agrees To

Decontrol

TOURIST DEPARTMENT’S REQUEST GRANTED

(New Zealand Press Association)

WELLINGTON, March 16.

The Price Tribunal has granted an application by the Tourist and Publicity Department for the exemption from price fixation of the charges made for accommodation and meals in certain hotels.

Hotels affected by the decision are those graded five star or higher, and others providing special tourist accommodation. Both licensed and private hotels are covered. r In its decision, released today, the tribunal said: “As the proposal by the department requires an individual application for exemption to be made by each hotel, and as the applicant would be required to give and to observe particular undertakings in order to qualify for exemption from price fixation, the tribunal feels there should be sufficient safeguards against abuse by the individual applicant of the freedom given him to fix his own tariff. “If the tribunal is right in this view, then, a principal objection to the granting of the application disappears. If, however, the tribunal is not right and abuses do creep in, the tribunal has open to it the right and duty under the act of re-instituting price fixation in any case where there is abuse.

“The conclusion of the tribunal in the present matter is that the application be granted except in respect of the appointment of a consultative committee (a committee to examine the individual applications for exemption).

“This means,” said the tribunal, “that favourable consideration for exemption from price fixation of tariffs of individual hotels will be given where: “(a) The tribunal is satisfied that the providing of residential accommodation and accompanying services for guests is a foremost and continuing objective of the appli-

cant; “(b) An undertaking is given by the applicant to comply with conditions which, in general, are in the nature of those stated, but subject to such changes as are applicable to individual cases, and where the tribunal is satisfied

that the undertaking is likely to continue to be observed; “(c) The consequences of the exemption are not foreseen to be such as to require action by the tribunal in performing the functions and duties imposed upon it by the Control of Prices Act, 1947.”

The tribunal recalled that the department had submitted that a consultative committee should be set up to facilitate the examination of the individual applications for exemption. The proposed committee would consist of representatives from the Price Control Division of the Department of Industries and Commerce, the Department of Tourist and Publicity, and the Licensed Victuallers’ Association. The Tourist and Publicity Department submitted the functions of the committee should be, in addition to that recommending exemptions, to review the performances of exempted hotels to ensure that the undertakings given as the basis of exemption were being carried out Commenting on this proposal, the tribunal said: “The question whether a consultative committee is necessary is deferred for consideration in the light of developments which follow the issue of this decision. If it were found desirable to appoint such a committee, its membership and functions could then be considered.” Conditions for Exemption In its submissions, the Tourist and Publicity Department asked for exemption of:— Hotels, licensed and private, of the existing five-star standard and higher, which cater substantially for tourists from overseas; and Hotels, licensed and private, providing accommodation, even if not of five-star standard, which enables tourists to visit recognised scenic and other natural attractions. The criteria of standards specified by the department for tourist hotels in the principal towns were: all bedrooms to be fitted with wall-to-wall

carpets, reading lights, and wash basins with hot and cold water; a reasonable percentage of rooms with private baths and/or showers: a few private suites (not permanently engaged); guest keys to be provided for all bedrooms; cen* tral heating in all rooms used by guests; large and airy lounges: adequate elevator service where appropriate: superior guest service to be available on all floors; prompt and efficient porter and steward service; adequate dining room and room service for liquor and meals (subject to appropriate additional charges); a high standard of general cleanliness throughout the hotel. For hotels in more remote places catering for tourists, and hotels normally included in itineraries as convenient overnight stopping places, the criteria of standards were: accommodation to be of as high a standard as reasonable in relation to the trade normally expected; service of the same approximate standard as already outlined.

All such hotels had to provide the following special services: extended personal services, that is, porters, meals, room service. and s information available continuously: extended meal hours available to guests arriving and departing outside ordinary meal hours: long-term forward bookings. 12 months ahead or longer, to be accepted; flexibility in bookings to be accepted to cope with delays or early arrivals: constant improvements to be made to keep abreast with overseas improvements in standards of accommodation and service; receipt, storage and forwarding of larger items of luggage. The application does not apply to liquor prices.

25 Luxury Hotels Statistics included in the Price Tribunal’s decision showed that there are 25 hotels graded five-star in New Zealand, 53 four star, 220 three star, 201 two star, and 133 one star. There are 428 ungraded hotels. The tribunal said it was opposed to the abolition of price control. “An opinion that the abolition of price control would see the disappearance of accommodation difficulties and the non-appearance of any other related problems is an opinion based on inadequate analysis of the factors bearing on the present position.”, it said. “The objective of a flourishing tourist industry is a desirable one, and is of sufficient importance for service to tourists to rank with the service to traders and other travellers which is expected from public accommodation establishments,” the tribunal stated.

“We all hoped for decontrol, but would have wished it to be complete. However, this move is a start,” said the Canterbury manager of New Zealand Breweries. Ltd. (Mr L. J. Moorhouse), in Christchurch last evening.