The Motel Association of New Zealand is backing the Thames-Coromandel District Council over its decision to introduce a tax targeting bach owners and B&B operators.

MANZ Chief Executive Michael Baines says unregulated and untaxed commercial accommodation providers, like baches and B&B's, have had 'a sweet run for far too long”.

'It's time more councils followed Thames-Coromandel's lead to bring these freeloaders into line,” says Michael. 'As far as short-term commercial accommodation goes it's simple.

'It doesn't matter if it's your first, second or third house. If you're renting it you're making a profit, therefore you should be treated as a commercial accommodation provider. End of story.”

The association now wants to see other councils follow Thames-Coromandel's example and introduce extra charges for bach-renters and B&Bs.

Michael says the growth of websites like AirBnB poses a real threat to New Zealand accommodation providers, which he believes is an integral part of the tourism industry.

He expects bach and B&B owners will be angered by the association's views and opinions, but adds: 'these home owners can complain all they like about the fact they pay rates already”.

'Their costs are still not a patch on what the likes of motels are forced to pay,” he explains. 'So we have been forced to subsidise these cowboy operators who have no guarantee of safety or quality and are trying to take away our business.”

'We cannot afford to start losing commercial accommodation providers, especially at a time when a strong tourism sector is shielding us against the effect of lower dairy prices.”

If this happens, Michael believes it will cause severe damage to New Zealand's tourism sector which will have long-term implications.

'Competition in business is a fact of life and we welcome it – as long as we are on a level playing field.

'This move by Thames Coromandel District Council is a first step in this direction and we're hoping that other Councils follow suit.”