Queensland’s Proposed ‘Bed Tax’ Sparks Backlash from Australia’s Hotel Sector

The Proposal Stirring Controversy Across the Industry

Four influential Queensland councils: Brisbane, Gold Coast, Cairns, and the Whitsundays have submitted a joint request to Premier David Crisafulli, calling for an “opt-in” bed tax to support infrastructure development driven by tourism volume.

The rationale:
➤ Rising strain on local services
➤ Need for sustainable funding to maintain public assets
➤ Alignment with other global destinations that charge a tourism levy

The proposed model would allow each council to independently set the rate, potentially adding 2–3% to nightly hotel bills.

✦ Hotel Industry Response: “Wrong Tax at the Wrong Time”

Tourism and hotel groups were swift and sharp in their criticism:

⦿ “This will price out international travelers and backpackers”
⦿ “A bureaucratic workaround that creates rate confusion”
⦿ “Operators are still recovering from COVID—this threatens fragile margins”

Many argue that hotel operators, not local councils, will bear the brunt of guest frustration and potential booking losses.

✦ What This Means for Australian Hoteliers

➤ Rate Parity Issues May Rise
OTAs and direct channels will need to adjust pricing strategies or absorb costs.

➤ Perceived Value Could Decline
Guests may see the tax as nickel-and-diming unless hotels clearly communicate why it’s added—and what value it brings.

➤ Profit Margins Could Tighten for Budget Operators
Small and midscale properties with limited pricing power are most at risk.

✦ FALLZ HOTELS™ Perspective: Tax Policy Must Balance Recovery and Vision

We believe any tourism levy must:

• Be transparent and uniform across region
• Include input from the hospitality sector
• Reinforce value, not diminish it
• Avoid penalizing regions still in demand rebuilding mode

At FALLZ HOTELS™, we support policies that grow tourism with operators, not on their backs.

Final Takeaway

Tourism success shouldn’t become a financial burden. A “bed tax” may work in theory, but without a unified strategy, it risks becoming another reason guests look elsewhere.

Want help evaluating your hotel’s resilience in a changing tax and tourism environment?
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