An investigation into development contributions and rate income in the accommodation sector will lead to better clarification in the community, CivicCorp monitoring principal Tim Francis said.

A two-pronged investigation has been conducted over the last three months to check visitor accommodation resource consent compliance and secondly to identify properties operating as visitor accommodation but paying only residential rates.

Queenstown Lakes District Council regulatory contractor CivicCorp identified just over 1000 visitor accommodation premises and from there made a random selection of 28 to investigate in terms of  compliance, CivicCorp monitoring principal Tim Francis said.

Of the 28, 12 were compliant and 16 non-compliant. CivicCorp estimated a total of $75,000 in contributions was owed by the 16 non-compliant properties.

All non-compliant properties were subject to prosecution, however an amnesty would be offered until November 30 to allow people to voluntarily come forward.

"This exercise has been partly to better define the rules to give some clarity to people offering accommodation.  I would advise anyone who is uncertain of their standing to visit CivicCorp over the next month, while the amnesty is in place to get advice," Mr Francis said.

In addition the Council had identified approximately 180 properties, advertising nightly, weekly or holiday accommodation but paying only the residential rates.

"On one website we identified 80 properties in Wanaka," Queenstown Lakes District Council accounting manager Gavin Wilson said. The Council had also identified instances when people were paying the accommodation rate unnecessarily.

Letters were being sent to the properties concerned this week.

"Those people will then receive an assessment notice next week and will have until the end of November to make a submission or alternatively commence paying the revised rate," Mr Wilson said.

"We are confident that some property owners have not been deliberate in this matter, however the bottom line here is equity and fairness for the whole community," Mr Wilson said.

A definition of what legally constituted visitor accommodation was available at either the Wanaka or Queenstown Council offices.

ENDS

For further information please contact Tim Francis 03 409 0882 or Gavin Wilson 03 441 0499

By: Kiri