NEW TARIFFS FOR HOTELS ARE FIXED

Grey River Argus, 3 May 1949, Page 4

NEW TARIFFS FOR HOTELS ARE FIXED

Price Tritonal Grades Them P.A. WELLINGTON, May 2 The decision of the Price Tribunal on the application of the New Zealand United Licensed Victuallers’ Association for authority to increase the accommodation tariffs in licensed hotels was issued to-day. The decision states that the examination of the data submitted revealed that, in general, the bar side of the industry was carrying losses suffered on the house side, but increases necessary to recover house losses would be fantastically high, and would bring about anomalies. It was also probable that such increases would never be obtained from the public, and would result in inordinately high profits for many hotels that were not primarily concerned with giving a good accommodation sendee. The Price Control Division recommended that the solution to the problem was in discrimination in tariff revision in favour of those hotels that are more concerned with the accommodation aspect. Accordingly, the houses in the three top grades—the luxury, five star and four star service are entitled to more favourable tariff revision than all of the other houses. The average tariff in each of the three grade should be increased by an amount that would extinguish the_ house losses. The division pointed out that this (does not mean the extinguishing of house losses in any particular hotel but that the adjustment should extinguish the house losses over the whole group. The decision states that the Tribunal is satisfied that the, industry can no longer be held to 'the 1939 tariff rates, and that increases are now necessary. It accepts, as a basis, general submissions by the division, as mentioned above, and has decided:— Licensed hotels shall be graded for the purpose of fixing tariffs, and applications may be made to the Director of Price Controls for the regrading of the licensed hotels. The following basic maximum tariff rates shall apply:— Luxury Class.— 33s 6d per day. Five Star Plus.—3ls 6d per day. Five Star. —30s per day. Four Star Plus.—2Ss per day. .. Four Star. —26s 6d per day. Three Star Plus. —25s per day. Thre e Star. —23s per day. Two Star. —20s per day. One Star. —18s per day. Ungraded.—l6s per day. (Although provision has been made for Five Star Plus and Four Star Plus, no hotels are graded in these grades at present.) In a definition of tariffs, the Tribunal sets out charges for bed, breakfast, dinner and lunch, which are given in that order in the following examnles. — Luxury.—lss, ss, 8s 6d, ss. Five Star.—l4s, 4s, 7s 6d, 4s 6d. Four Star. —12s 6d, 4s, 6s, 4s. Three Star.—lls, 3s, ss, 4s. Two Star 9s 6d. 3s, 4s 6d, 3s. One Star.—Bs, 3s, 4s, 2s. Ungraded.—7s 6d, 2s 6d, 3s 6d, 2s 6d All tariffs shall be subject to a daily surcharge of 5s for a private bathroom , such charge to be spread over the number of guests to whom the bathroom is available. The same applies to a private shower, the surcharge in this case being 2s 6d. Foi 1 suites, consisting of. bedroom, bathroom, toilet and sitting room, the basic tariff plus ss. For bathroom plus, 30s per day shall be charged. Apart from early morning tea, an additional charge of fls is authorised for a meal served in a bedroom, or in a private sitting room, and an additional Is 6d may be charged for each morning or afternoon tea or supper served. For guests making a stay of one night only, a linen surcharge of 2s is authorised. Children’s rates have been, fixed as follows, exclusive of extras.—Under two years, no charge;. 2 to 5 years, quarter tariff; 5 to 10 years, half tariff; over ten years, full tariff. The tribunal points out that hotelkeepers are at liberty to charge lower rates than those authorised, and adds that the decision does not ' becom e operative until a price order, which is being prepared by the Director of Price Control is gazetted. A schedule showing the grading of hotels throughout New Zealand is attached'to the decision. This shows that of the 222 hotels in the North Island, three are luxury; six are five star; sixteen are four star; thirtyfive are three star plus; forty are three star: forty-nine are two star; and seventy-three are one star. The 159 South Island hotels are:— Five five star; nine four star; twenty-two three star; seventy-two star; fifty-three one star.