INCREASE TO BE MADE IN HOTEL ACCOMMODATION TARIFFS

Wanganui Chronicle, 3 May 1949, Page 4

INCREASE TO BE MADE IN HOTEL ACCOMMODATION TARIFFS

Discrimination Favouring Houses More

Concerned With Guests

WELLINGTON, Last Night (PA).—The decision of the Price Tribunal on the application of thc New Zealand United Licensing Victuallers’ Association for authority to increase accommodation tariffs in licensed hotels was issued today.

Thc decision states that an examination of the data submitted revealed that in general the bar side of the industry was carrying losses suffered on the house side, but the 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 not primarily concerned with giving a good accommodation service.

The Price Control Division I recommended that a solution to the problem was in some discrimi-1 nation in tariff revision in favour of hotels more concerned with the accommodation aspect. Accordingly, houses in the three top grades—luxury, live star and four star service, are entitled to more favourable tariff revision than all other houses. The average tariff in each af the three grades should be increased by an amount that would extinguish house losses The division pointed out that this does not mean extinguishing house losses in arty particular hotel, but that the adjustment should extinguish 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 the 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 Control for the regrading of licensed hotels. The following basic maximum tariff rates shall apply: Per

for five star plus and four star plus no hotels are graded in these grades at present. In a breakdown of tariffs the Tribunal sets out the charges for bed, breakfast, dinner and lunch, which are given in that order in the following examples:

All tariffs shall be subject to a daily surcharge of 5s for private bathroom, such charge to be spread over the number of guests to whom a bathroom is available The same applies to a private shower, the surcharge in this case being 2s 6d. For suites consisting of a bedroom, bathroom, toilet and sitting room, the bas’c tariff plus 5s for the bathroom, plus 30s per day, shall be charged. Apart from early morning tea, an additional charge of Is 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. Two to five years: Quarter tariff. Five to 10 years. Half tariff. Over 10 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 no» become 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, 16 are four star, 35 are three star plus, 40 are three star, 49 are two star and 73 are one star The 159 South Island hotels are: Five five star, nine four star, 22 three star, 70 two star and 53 one star.

day. s d Luxury class 33 6 Five star plus 31 6 Five star . 30 0 Four star plus 23 0 Four star 2(1 6 Three star plus 25 0 Three star 23 0 Two star 20 0 One star 13 0 Ungraded 16 0 (Although provision has been made

s d s d s d s d Luxury 15 0 5 0 8 6 5 0 Five star ... 14 0 4 0 7 6 4 G Four star 12 6 4 0 6 0 4 0 Three star . 11 0 3 0 5 0 4 0 Two star .... 9 6 3 0 4 6 3 0 One star 8 0 3 0 4 0 2 0 Ungraded .... 7 6 2 6 3 6 2 6