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National has ruled out an accommodation levy, committing to no new taxes if re-elected November 7. Finance Minister Nicola Willis says the party determined there was no way to introduce a levy without adding costs for Kiwis booking a weekend away, and will instead look at how existing mechanisms could support councils with the costs of tourism. What those mechanisms are was not specified.
The decision closes off a policy the regional tourism sector has pushed for years. Regional Tourism New Zealand, which represents 31 regional tourism organisations, released a formal policy position in June calling on all parties to back levy legislation – a national charge on short-term visitor accommodation, collected centrally and returned to the region it came from, paired with a register for short-term rentals. Mayors from Auckland, Rotorua, Ruapehu, Wellington, Marlborough, Christchurch, Timaru and Queenstown backed it, as did Business Events Industry Aotearoa. Auckland Council’s proposed 2.5 to 3 per cent bed night levy would have raised around $27 million a year.
RTNZ general manager Katherine MacGregor says the organisation is not treating the announcement as the end of the discussion.
“We are glad to be having the national conversation about this important issue,” Katherine says.
“Ultimately this isn’t about one particular funding tool — it is important that tourism funding has better balance, that we set New Zealand up to deliver a high-quality visitor experience so that all can benefit. Right now, that balance isn’t right and we welcome the conversation about how we address tourism funding at place.”
She says National’s position as one input among several, with an election still to come.
“This is one political party’s position. We are asking for consistency on tourism funding and commitment to address the balance of how it is distributed. We look forward to continuing discussing tourism funding at place with all parties. Ultimately, we wish to see commitment to addressing the balance so that communities across the motu continue benefit from tourism.”
ACT has since campaigned on an alternative – a local tourism dividend paying councils $1 for every guest night, funded from existing GST and visitor levies rather than a new charge, worth more than $40 million a year and requiring no new legislation.
Katherine says that proposal sits in the same category.
“ACT’s proposal is one political party’s position, as was yesterday’s announcement by the National Party. We are asking for consistency on tourism funding and commitment to address the balance of how it is distributed. We need to understand the quantum required to address that balance and work on the right set of tools to address it from there. We look forward to continuing discussing tourism funding at place with all political parties.”
RTNZ’s own preference has not shifted, and Katherine links it directly to the existing International Visitor Conservation and Tourism Levy, currently set at $100.
“It is important that communities can welcome visitors knowing that the destination is set up to provide the best possible experience for all. In this vein, the International Visitor Levy needs be considered in its full potential, what it was originally signalled for. An accommodation levy would be complementary to the IVL — and we will continue to advocate for one. It is a simple, clean-cut, tool to address funding at place and would enable communities to have a say in how they deliver a high-quality visitor experience.”
On what National intends to put in the levy’s place, Katherine says the position is unchanged.
“Ultimately, we wish to see commitment to addressing the funding balance so that communities across the motu continue benefit from tourism.”
Inside Tourism notes that existing charges, including the IVL, are unaffected by National’s announcement. The release does not mention fuel excise or congestion charging.
