Debate needed on the role of offshore booking sites – MANZ

The Motel Association of New Zealand (MANZ) is calling for further debate and investigation into the role of offshore booking sites as they exert a growing influence on our tourism sector.

While the radical shift to online booking for every service within the tourism sector has undoubtedly benefitted consumers, it has not always been positive for the industry itself, MANZ Chief Executive Michael Baines says.

“These offshore travel giants are already handling about a third of sales for the motel sector and that figure is set to continue growing.”

As a result New Zealand’s consumer protection laws are becoming less and less relevant in the online environment. Being based offshore, the major online booking agents often unwittingly but sometimes knowingly contravene our fair trading laws Mr Baines says.

“For example its common practice for these sites to inflate the advertised prices of New Zealand motels, in order to be seen to be offering a ‘discount’ when they are booked at the correct price.”

“Can a New Zealand motel-owner complain to a global behemoth about their booking practices? They can choose to not engage with Online Travel Agents but then they risk losing business.”

The Government needs to step in and take the lead in talking with these overseas companies, with greater education backed up with some enforcement to ensure local laws are being adhered to. As the Government reaps millions of dollars in non-recoverable GST payments from these firms it has a moral and financial obligation to step in and act on behalf of New Zealand businesses and taxpayers, Mr Baines says.

“We need to start the discussion and draw up a framework now for dealing with these companies, before we find that the majority of bookings for our tourism sector are being controlled by offshore interests,” Mr Baines concludes.

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