Proponents of a bed tax say visitors to Queensland's most popular destinations will not be deterred by having to pay the "equivalent of a cup of coffee a day" on top of the cost of their accommodation.
Several Queensland councils want the state government to give them the power to charge a visitor levy to raise money for tourism infrastructure and destination marketing.
"I know the bigger [councils] certainly will be very keen to opt in, and we've had that feedback from a number of the bigger councils like the Gold Coast and Sunshine Coast," Cairns Regional Council Mayor Bob Manning said.
"I've always said whichever state got up first would be the one with the advantage and the other states will follow."
A long-term solution
CRC has estimated it would raise at least $16 million a year if it charged visitors a levy of 2 to 2.5 per cent on each night's accommodation.
Delegates at the Local Government Association of Queensland's state conference this week voted 170 to 30 in favour of lobbying the government for its introduction.
Similar visitor levies are charged to hotel guests in many countries overseas.
Tourism Tropical North Queensland chairman Ken Chapman said visitor levies must apply to all accommodation, including short-stay rentals.
Airbnb has backed the introduction of opt-in tourism levies as a "fair and sustainable way to raise revenue" for infrastructure, such as worker housing.
Money better spent in cafes?
But another booking provider, Stayz, argues it will "only drive up the cost of short-term rental accommodation and send tourism dollars to other Australian holiday destinations".
"While the proposed tax might cost tourists 'less than a cup of coffee', according to Cairns Regional Council, isn't it better for that money to be spent in local cafes?" Stayz director of corporate affairs Eacham Curry said.
Billionaire Ghassan Aboud, who owns three luxury hotels in Cairns, in August said he would support the introduction of a bed tax provided it applied to all accommodation and the proceeds were spent wisely.
Mr Chapman said government funding to help the sector bounce back from the pandemic had led to "hundreds of millions of dollars" of extra bookings for the Cairns region, along with an increase in market share of domestic visitor spending.
"It shows that if we've got adequate funding, we can do remarkable things, and the pay back is way more than you invest," he said.
Government to consider proposal
Cairns MP and Assistant Minister for Tourism Michael Healy said the proposal was likely to go before Cabinet.
It was one of 70 recommendations included in a 10-year strategy an industry reference group put together this year to grow Queensland's visitor economy.
"There is very little evidence to say people wouldn't come to the destination because there is an extra dollar or two," Mr Healy said.
Just south of Cairns, Cassowary Coast Regional Council Mayor Mark Nolan was originally opposed to the measure but has since changed his position.
"I thought to myself when I heard the debate, 'Why should ratepayers be funding the tourism sector alone?'," he said.
