National promises to use international visitor levy to replace bed tax proposal

National says it will direct almost $400 million over four years from international visitor levy revenue to councils to assist with tourism spending as the party affirms its bed tax opposition. The party is proposing to distribute $86m in the 2027/28 financial year – rising to $106m in 2030/31 – to councils, based on the number of guest nights their region hosts. With the remaining revenue from the $100-per-person levy, National says it would put $100m per year to support conservation while creating a $50m-per-year Tourism Priorities Fund to support tourism growth. As part of its policy, National finance spokeswoman Nicola Willis committed to not changing the levy for three years. Given the $100m annual conservation spend which offset Crown baselines was lower than the funding normally committed, the policy would create an operating cost of about $105m over the four-year forecast period. National has confirmed it would fund that through next year’s operating allowance in the Budget. Citing a four-year levy revenue forecast of $985m, the party’s policy document calculated $385m would be directed to councils once the conservation and tourism fund allotment was removed. Councils would then get a share of that funding based on international guest nights hosted. Using visitor data for the year ending June 2026, the party calculated Auckland Council would receive a 22.3% share of the $86m in 2027/28, which was about $19m. Queenstown-Lakes District Council would receive the second-highest share (19.9%), which was about $17m. It follows the Government deciding not to progress a bed tax, which would add charges on those staying in accommodation. The proposal was strongly supported by some mayors, particularly Auckland’s Wayne Brown. Despite the Government agreeing to explore such a tax in its deal with Auckland Council, Prime Minister Christopher Luxon recently announced it would not be actioned due to concerns about costs it would impose on Kiwis visiting popular areas.