National proposes using visitor levy to fund council tourism spending

The National Party has announced a plan to fund local government by diverting a portion of the International Visitor Levy, following a decision to rule out a previously considered bed tax. This new policy aims to provide councils with funds based on the number of international guest nights hosted in their regions.

Under the proposal, the $100 per person levy would be split three ways: $100 million annually to the Department of Conservation, $50 million annually to a new Tourism Priorities Fund, and the remaining revenue to local government. National predicts this will deliver $86 million to councils in the 2027/28 financial year, rising to $106 million by 2030/31.

The policy would see funding flow to councils from 1 July 2027, which is approximately two years earlier than a bed tax would have. National's finance spokesperson Nicola Willis stated, “Under National’s policy, every territorial authority that hosts international visitors will receive a share of IVL funding, so they can support responsible growth in tourism in their community”.

Auckland Council is estimated to receive $19.1 million in the first year, while the Queenstown-Lakes District Council is expected to receive $17.1 million. The decision to move away from a bed tax follows a prior commitment to explore the tax in a deal with Auckland Mayor Wayne Brown.

How it developed

• Tue 8 Sep, 12:12pmThe policy would replace current discretionary central government tourism spending of $90 million a year with a sharper fund.

Where reports differ

• Auckland Council's projected share of the first year's funding is estimated at $19.1 million versus $19 million.
• Queenstown-Lakes District Council's first-year share is estimated at $17.1 million versus $17 million.

Compiled from reports by Stuff, NZ Herald and 1News.