MOTEL ASSOCIATION TAINTED BY LABOUR NANNY STATE

Busted Blonde from Roarprawn responds to our last post.
Good on ya BB!

7 February 2009
www.roarprawn.blogspot.com

"Motella is a relatively new blog but his latest post makes for interesting reading. It appears that after nine years of a nanny state the public has become conditioned to looking to regulation to solve problems.

It appears that the Motel Association of NZ wants to get heavy with the ma's and pa's around the country offering B and B's and short term accommodation.

Motella is right - if this idea is instituted, then it will mean more fusspotting by local authorities. Shame on them. And good boy Motella for rooting out this silliness."

Source: Click HERE

MANZ calls for more bureaucracy and regulation!

The Motel Association of New Zealand (MANZ) is an organisation that has had a proud history of providing advocacy on behalf of its members by promoting sensible business friendly solutions and self regulation.

Alarmingly in a philosophical U-turn, the "voice of the motel industry" is now advocating a new layer of bureaucracy and regulation for their members!

In a recent briefing paper to the Minister of Tourism, MANZ is promoting that Local Authorities should impose a mandatory "licensing regime" of all properties that offer short term traveller accommodation.

Why would they do this? Well ... in a knee-jerk reaction to punish alternative accommodation providers such as B and B's, holiday homes etc that operate from domestic premises, MANZ wishes to regulate everyone that provides accommodation - including its own members!

Are there less extreme measures that MANZ can promote? One would assume so. MANZ has previously pondered how alternative accommodation providers should be defined by Local Authorities in order to move domestic rated businesses over to commercial rating. The association has also advocated for the reduction in the commercial/domestic rate differential in previous submissions. Maybe MANZ should develop these themes further in order to promote more of a level playing field instead of creating collateral damage by demanding scatter gun regulatory measures.

With the apparent blessing from their representatives, moteliers should start preparing themselves for a yearly visit from their friendly clipboard wielding council representative. This will be swiftly followed by the mandatory compliance fee demand in the mail.

Someone should remind MANZ that Nanny State has been voted out and we now have a new regime.

Domestic travel hit by recession

05 February 2009

BisinessDay.co.nz

A 4.6 percent fall in domestic travel spending in the year to September is being blamed on high fuel costs and economic uncertainties.

Ministry of Tourism figures published today showed New Zealanders spent $7.6 billion on travel within this country in the September year, compared to $8b the previous year.

"Uncertain economic conditions and high fuel costs during this period have shown through in the softening of domestic travel," ministry research manager Bruce Bassett said today.

Ebbs and flows in the industry were a natural response to the changing factors New Zealanders considered when planning their travel.

For instance, during the period outbound trips by New Zealand residents were up by 2 percent as exchange rates favoured offshore rather than domestic travel, Mr Bassett said.

Domestic tourism remained a substantial and powerful economic driver for this country.

The domestic travel survey, of 15,000 New Zealand residents undertaken by phone during the year, also showed a 10 percent fall in the number of trips to 40.4m.

Day trips fell 11.5 percent to 26m and overnight trips were down 7 percent to 14.4m.

Source: Click HERE

Data and reports from the survey are available on the Ministry of Tourism’s research website: www.tourismresearch.govt.nz/dts

NZ tourist numbers gained 3.9% in December

It is pleasing that the number of visitors to New Zealand has only dropped less than 1% for the last 12-months ending December 2008 compared to the previous year.

Surprisingly, December 2008 hit a record high for overseas visitor numbers. Overseas visitor arrivals increased by 2% to 322,200 compared with the previous December.

There were 2.459 million visitor arrivals during 2008 - with a record number from Australia. Fewer people from from Korea, Britain and Japan visited New Zealand, and the average length of stay fell to 22 days.

The commercial guest night monitor has a 6-week time lag and December figures will make interesting reading. While overseas visitor stats attracts the most attention, it is the domestic visitor stats that have the greatest impact on motel occupancies.

4 February 2009

Article: Content.net

New Zealand tourist arrivals jumped by the most in seven months in December, which may help brighten the mood of the tourism sector preparing for the impact of the global economic downturn.

Short-term visitor numbers rose 3.9% to 205,950, seasonally adjusted, in December from the previous month, according to Statistics New Zealand. That follows a 1% gain in November and was the biggest increase since May. Permanent and long-term arrivals outpaced departures by about 280.

Tourist operators are hoping the New Zealand dollar weakens faster than the global slump erodes demand for travel in an industry that makes up about 10% of the economy. Campervan operator Tourism Holdings gained 3% to 68 cents today, trimming its decline in the past 12 months to 67%.

“The overall travel/migration data-flow for December was mildly positive,” said Robin Clements, chief economist at UBS New Zealand. Still, “the anecdote on forward-bookings for the tourist sector -February is peak season - remains pessimistic, consistent with the fall-out from the global downturn yet to impact on arrival numbers.”

Annual immigration growth was the lowest in eight years in 2008, suggesting demand from migrants won’t do much to revive demand for housing, large-ticket purchase like appliances or consumer spending.
In 2008, there were 87,500 permanent and long-term arrivals and 83,600 departures, meaning net migration fell to 3,800 from 5,500 in 2007.

“The migration picture is important for housing and, hence, the rest of the economy ,” Clements said. “It will take several more months to establish an improving trend, which we anticipate, as less New Zealanders leave and more return.”

Source: Click HERE

SME business relief package ‘a brilliant start’

What is in the SME business relief package?

1. a suite of 11 tax changes costing $480 million
2. an expansion to the export credit scheme
3. extended jurisdiction for the Disputes Tribunal
4. expansion of business advice services
5. a prompt-payment requirement for government agencies.

The tax changes are:

1. removing the 5% increase in provisional tax over the previous year
2. reducing the use of money interest rate for underpayments by 4.5%
3. threshold for GST payments method (instead of accrual) to increase by over 50% from $1.3 to $2.0 million
4. threshold for GST registration to increase by 50% from $40,000 to $60,000
5. legal expenses of under $10,000 can now be fully expensed in the year incurred, not capitalised
6. increase in threshold for montly PAYE filing increases from $100,ooo to $500,000
7. FBT annual filing threshold raised to $500,000 from $100,000.
8. value of minor fringe benefits to employees without attracting FBT will increase to $300 a quarter per employee from $200, and $22,500 a year per employer from $15,000
9. FBT prescribed interest rate for low-interest, employment-related loans will fall from 10.90% to 8.05%.
10. some other thresholds for accrual expenditure adjustments will also be increased.
11. certain SME tax simplification measures that are part of a bill now before Parliament will be fast-tracked.

(Hat tip www.kiwiblog.co.nz)

For the average accommodation business the package will not amount to much, however the business friendly rhetoric is appreciated and it is pleasing to see this acknowledged by the Motel Association.

4 February 2009
Press Release: Motel Association

The Government’s small-business relief package is a “brilliant start” to helping small businesses ride out the economic storm, says the Motel Association of New Zealand.

Chief Executive Michael Baines says the impact on cashflows, access to credit, and reduction of compliance costs is “just what we needed.”

The Motel Association represents 1,000 moteliers, every one of them small and medium-size enterprises, making it the only organisation made up solely of such businesses.

“These are very welcome initiatives for our members.

“The tax part of the package gives SMEs a far easier ride in what is a complex area”.

“Tax is a complicated area and the 11 tax changes announced today will make it easier for SMEs to manage this area.

“Cashflow will be affected in a positive way, which has got to be good for anyone in a small business in the current business conditions.

“This whole package makes SMEs feel wanted. It’s recognition of the tremendous contribution they make to the economy.

“It’s not just about the big boys."

Mr Baines said the expansion and promotion of advisory services and mentoring available to businesses is welcome but he would have liked the scheme to have integrated existing schemes run by organisations such as his.

“We have a mentoring programme running and we have the knowledge, and it would have been good to have that integrated into a wider scheme.

“Legitimate trade organisations have a tremendous role to play and need to be included in the programme”

“However, anything that makes advice and information easier to get is welcomed.

“We appreciate today’s moves as a start, and we look forward to many more initiatives that work.

“Following on from the welcome changes to the RMA announced yesterday, this whole package is really good for the little guy.”

Source: Click HERE

Moteliers support action on 'boy racers'

I have been following the boy racer debate with some amusement. These issues will always bring out knee jerk commentary down to the level of perennial radio talk-back callers.

The thought of suped-up Subaru's and Evo's being crushed by a government agency based on the traffic offenders age, youthful attire and amount of modifications done to the vehicle is laughable.

I personally do not support any further legislation and would prefer that the Police administer existing laws to those actual individuals that are actually breaking them. Assumptions that police are restricted by current laws in stopping recurrent law breaking boy racers is a cop out.

Questions should be asked to our top cops as to why they are not on top of this problem.

Good on the Motel Association for adding comment to the debate - I may not agree with them, but it is good to see some mongrel!

3 February 2009
Press Release: Motel Association

Moteliers support action on 'boy racers'

Members of the Motel Association applaud any action taken by the police or the government to deal with the problems associated with so-called boy racers.

“They are dangerous and a major nuisance to the motel industry,” said Chief Executive Michael Baines today.

“The time for politically correct claptrap solutions to this problem is long past. Direct and positive action is now required.

"Motels are located on main roads, both to make them accessible to the travelling public and as a requirement of the planning strictures of some councils. They are also the moteliers' homes.

“The disruption by these 'boy racers' invades not only the comfort of our paying guests but also the homes of the moteliers. The stresses on the operators by both the impact on their businesses and their personal space has proved to be debilitating in many cases," said Mr Baines.

“Many of the Motel Association's members support the crushing of offenders’ cars.

“There has to be a real consequence for their actions when caught. As far as we are concerned there is nothing wrong with a strong deterrent.”

Source: Click HERE

Minimum Wage

The Minimum Wage review is crucial to the accommodation and tourism sector.

For me there are two disappointing aspects on this issue in the press to date. Firstly it would appear that Key is softening and secondly the Minimum Wage debate appears to be territory where our industry representatives are afraid to tread. Their silence has been deafening. (Please correct me if I am wrong).

Accommodation providers and the wider tourism industry will need to look to Business New Zealand chief executive Phil O'Reilly to speak common sense on their behalf.

O'Reilly has said that "businesses struggling to break even will lay off workers if they are faced with increasing costs that does nothing to boost sales.....low paid workers would be better off with a tax cut rather than an increase in the minimum wage."

Wotif.com expects 20% profit surge

The internet appears to be the only frontier that can produce positive growth in guest night sales.

Not all internet resellers are successful as wotif.com and it would appear as if the wotif juggernaut keeps on rolling. The publication of the company's half year results to December 2008 will be eagerally antisipated by the accommodation industry.

Wotif.com sells accommodation online in more 45 countries. The website attracts 3.4 million visits, with customers making over 205,000 bookings. It is one of the most successful and readily recognised brands for online accommodation booking services in Australasia.

A recent survey revealed that 61 per cent of Kiwis now book accommodation online. It also found that 61 per cent use online research to decide what accommodation choice to choose while only 5 per cent ask a travel agent.

www.ninemsn.com.au

3/02/2009

Online accommodation booking agency Wotif.com Holdings Ltd expects its interim 2009 after-tax profit to surge by about 20 per cent.

Brisbane-based Wotif.com expects its net profit to be about $20.4 million to December 31, 2008, up 20 per cent on its interim 2008 net profit of $17.064 million.

This expectation is based upon internal management accounts and may change on completion and review of the Wotif Group's final accounts, the company said in a statement on Tuesday.

The company's interim 2008 net profit was 43 per cent higher on the interim 2007 result, and was generated by a 32 per cent hike in revenue to $41.062 million.

Wotif.com will release its interim results on February 2009.

By 1022 AEDT shares in Wotif.com were 22 cents or 7.07 per cent higher at $3.33.

Source: Click HERE

Small biz tax relief tipped for Key speech

Less is more! 

As we move away from statism, it is pleasing that some are starting to understand the philosophy that government does not create wealth or prosperity - private business and individuals do... 

New Zealand Herald
February 2 2009

Prime Minister John Key is to make a speech on Wednesday outlining measures to help small and medium businesses.

He told Breakfast on TV One this morning there would be a range of initiatives aimed at taking pressure off the sector which employs 95 per cent of New Zealand workers.

Changes would focus on tax, cash flow and regulation.

"It's one plank in a raft of responses from the Government to ensure that we can tackle this economic crisis to the best of our ability," said Key.

The Dominion Post reported the changes included reduced penalties for companies which underpaid provisional tax.

The tax is paid in advance based on estimated earnings. Underpayers get hit with a 14.24 per cent penalty.
Another likely change was to remove the presumption that profits would increase 5 per cent on the previous year for calculating provisional tax.

Source: Click HERE

We're Back!

The Motella returns.

After coming home from a break, the motel business envelopes you before the suitcases hit the floor. Inevitably there is a small mountain of work that has accumulated after an absence and the glow of the holiday is soon forgotten.

Sadly we have arrived home without our boy and in the moments between the distraction of looking after others, we can't help wonder what he is doing.

We remind ourselves that he will be busy too...