5 January 2012
Dear Adventure Tourism Operator
Review of ACC levies in the adventure tourism sector
Over the past two years, TIA has received feedback from a number of its members in the adventure tourism sector concerned at the way ACC classifies their business for the setting of levies. In submissions made by the Association to annual levy rate consultations in 2010 and 2011, TIA has noted the comments of tourism operators with respect to the way they are classified in the outdoor tourism sector. The main area of concern with respect to levies does appear to centre on classification unit (CU) 93400, titled ‘Amusement and Other Recreation Activities’. CU 93400 was developed in 2008 and is now applying to many businesses in the adventure tourism sector.
The all encompassing title of CU 93400 is being used by ACC as a ‘catch-all’ category, despite the disparate risk profiles of businesses that fall into the category. TIA has met with ACC in the past few months to discuss how to address the inequities that many adventure tourism operators believe they face by being included in CU 93400. As a result of these discussions, ACC has agreed to initiate a formal review of CU 93400 and work with the industry to identify and implement changes to make the system fairer and more relevant for all adventure tourism operators. Some preliminary work has already been done, and this will continue in 2012. There will be a formal consultation period with operators on any changes that are proposed.
It will be important to make sure that any changes to the classification of adventure tourism and other related categories better reflect the activities that are actually taking place within these operations, and their actual risks. TIA would like to hear from businesses in this category so it can better understand where the main issues lie. While the Association has already heard from some operators, it would like to hear as many views as possible from businesses who may be concerned about their ACC levies, whether they are classified in CU 93400 or not. We will be in touch again once ACC has finalised the process for the review of the adventure tourism sector, but if you have any queries in the meantime, please don’t hesitate to contact us.
Yours sincerely
Geoff Ensor
Advocacy Manager
geoff.ensor@tianz.org.nz
Simon Wallace
Policy and Research Manager
simon.wallace@tianz.org.nz