Tax credits for N.I. tourists?

Press, 29 June 1982, Page 22

Tax credits for N.I. tourists?

By

LES BLOXHAM.

travel editor Tax credits as an incentive to North Islanders to spend a holiday in the South Island have been recommended in a comprehensive review of New Zealand's tourism industry. The review, commissioned by the National Travel Association two years ago. and titled “Strategic Analysis of Tourism and New Zealand." was undertaken by Professor B. D. Henshali, head of the department of management studies of the University of Auckland. The final working paper in the series was presented in Wellington yesterday. It revealed the sorry plight of South Island tourism. The report said that the number of arrivals at Christchurch Airport had remained static from 1976 to 1981 (94,976 to 94.647). The corresponding market share of all New Zealand international air traffic had declined from 25.3 per cent to 20.8 per cent. The average hotel room occupancy rate dropped from 61 per cent to 44 per cent in the same period, the report said. Rooms available increased 16.5 per cent, but sales decreased 16 per cent. Australian bed nights (the

number of beds occupied by Australian visitors) fell by nearly a third, from 3.316.000 to 2.364.000 between 1976 and 1981. "We conclude that the South Island has suffered markedly from the downturn in Australian arrivals, and that a North Island domestic incentive might be desirable." the report said. It recommended that all North Island residents spending holidays in the South Island in the 1983-84 financial year receive a tax credit not exceeding $5OO. on receipts of up to $lOOO for air fares, hotels, rental cars, and other facilities. The report also recommended a billion dollar target for international tourism revenue by 1990 (the Reserve Bank’s rceipts for the last financial year were $3OO million); the establishment oi task forces to promote domestic and Tasman tourism; and an injection of $2 million for promotion research, and development. The report suggested that the money be raised by imposing a §1 levy on all visitors leaving New Zealand, and the remission of the domestic air travel and fuel taxes. Air New Zealand should change its marketing policies to put greater emphasis on inbound tourism, it said.