Monday, May 17, 2010

“N.H. hotels and restaurants oppose local tax option” plus 2 more

“N.H. hotels and restaurants oppose local tax option” plus 2 more

N.H. hotels and restaurants oppose local tax option

Posted: 16 May 2010 11:18 PM PDT

CONCORD (AP) — Members of the New Hampshire Lodging and Restaurant Association say they don't like a proposal that would let communities impose local taxes on hotels and restaurant meals.

The proposal would allow communities to enact a local tax on top of the state's 9 percent tax on rooms and meals.

Critics say it would pit towns against one another. Supporters say it helps them make up for state aid cuts.

The association plans a news conference today to discuss the idea.


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NH restaurant, hotel owners pan proposal that would allow local tax on meals, lodging

Posted: 17 May 2010 01:59 PM PDT

CONCORD, N.H. - A group of New Hampshire restaurant and hotel owners said Monday a proposal to let communities impose local taxes on lodging and on restaurant meals would be disastrous to their industry.

Mike Somers, president of the New Hampshire Lodging and Restaurant Association, said lawmakers should drop the proposal and Gov. John Lynch should veto it if it reaches his desk.

"Our rooms and meals tax is currently one of the highest in the nation," Somers said at a Statehouse news conference.

New Hampshire restaurants and hotels would lose their competitive edge if communities enacted a local tax on top of the state's 9 percent tax on rooms and meals, he said. Each community would have to approve its own rate.

According to a 2006 report by the National Conference of State Legislatures, only two states and the District of Columbia had higher lodging taxes than New Hampshire. However, some states also impose a general sales tax, which New Hampshire does not have.

The House and Senate passed the proposal in separate bills to close a budget shortfall that could approach $300 million by July 1, 2011.

House Finance Chairwoman Marjorie Smith, D-Durham, said Monday the provision was in response to communities' complaints the state was cutting local aid.

"Understanding they're limited to the property tax, which is much overused, this is an opportunity if cities and towns choose to do so to add some additional revenue without having to increase the property tax," she said. "The control for that is completely in the hands of cities and towns and none of the money will come to the state."

Lynch spokesman Colin Manning said the governor "has a number of serious questions and concerns about this proposal, including how it will impact communities and businesses and will this pit communities against each other."

Manning said Lynch will discuss the proposal with lawmakers and the commissioner of revenue administration.

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Ipoh sprouts budget hotels

Posted: 17 May 2010 05:35 PM PDT

Ipoh sprouts budget hotels

2010/05/18

IPOH: Budget hotels are have begun mushrooming all over the city — in residential, industrial and commercial areas.

Shoplots have been turned into budget hotels or private entrepreneurs have put up their own buildings to cater for two-star hotels to cater for the budget traveller.

The boom of these budget hotels in the city might auger well for the economy of the state as it provides employment for the local community.


Since many of these hotels provide lodging only, the influx of these travellers are a boon to food and beverage outlets as well.

These hotels are not a threat to the established hotels such as Impiana Ipoh (formerly The Royal Casuarina), Syuen Hotel, Excelsior Hotel, Tower Regency, Hillcity Hotel and Heritage Hotel which cater for the corporate clients seminar packages and government agencies functions.

The other hotels in the city are Fairmont Hotel, Eastern Hotel, French Hotel, Tambun Inn, Ritz Garden Hotel, Lucky Hotel, Station Hotel, Regalodge Ipoh, Grand View Hotel and Ipoh City Hotel.


Why are there so many hotels in the city, who are the clients patronising the budget hotels, and where do they come from?

The city, or Perak, for that matter, cannot compare with holiday destinations such as Penang, Malacca and Kuala Lumpur for tourists coming into the country.

What Ipoh does have is its horse racing circuit at the Perak Turf Club, which draws a fair number of horse owners, riders and others involved in the sport.


But how are these budget hotel operators keeping up with their overhead expenses, while making a profit?

Robin Arumugam, a longtime Ipoh resident with experience in the tourism industry, said most of the clients are travelling salesmen and a small number are local tourists.

He said that Ipoh residents have the "Follow thy neighbour" mentality.

"If one guy starts a cafe, then you will see a half dozen people following suit," said Robin, adding that many of these investors are locals.

"Ipoh has its fair share of millionaire families whose ancestors made their fortunes during the boom of the the tin and rubber era.

Their children and grandchildren of these self-made millionaires are venturing into new businesses now," said Robin.

Ex-New Straits Times bureau chief Jerry Francis said people visiting their parents or relatives prefer to stay in budget hotels because of their reasonable rates.

"Many of them work in Kuala Lumpur, Johore, Singapore and Penang. They often come to Ipoh for family gatherings and to enjoy the hawker food," said Jerry.

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