Council is proposing to increase business rates by three per cent every year for the next three years, then using the money raised to attract new events to the city.

Jye Segboer is confident all businesses will benefit, not just those involved in the tourism industry.

Mr Segboer pointed to data from Destination NSW and Tourism Australia, which says for every dollar spend on attracting an event, there is a return of $100.

“With a fund of $600,000, there should be at least $60 million coming back to the city,” he said.

“60 per cent of that is direct and the rest is indirect.”

Got an opinion? Send us your thoughts with a letter to the editor by clicking here

Mr Segboer said businesses associated with the tourism industry such as restaurants, pubs, hotels and cafes would get a direct boost, while all the businesses they use in their day-to-day operations would get a indirect flow on effect.

“There will be more money flowing in to the region, which means there is more money to spend locally,” he said.

“There will be a trickle down effect to every business. As a city grows, it’s businesses grow with it.” 

READ MORE

Many in the business community have expressed concerns about the rate rise, which Mr Segboer said was a “natural human reaction”.

“At the end of the day, no one like rates going up, no one every wants to pay more, that’s normal,” he said.

“However, those who have attended the information sessions have really walked away with a changed opinion and they can see the bigger picture. Particularly once it’s been spelt out to them how the money will be spent and the strategy behind it.

“It’s only being used for new events, it’s not offsetting current ones. It’s aimed at new events and new money, that’s the economic impact we’re after.”

Residents still have until December 14 to have their say on the proposal at yourvoice.tamworth.nsw.gov.au.