Source: Radio New Zealand
Prime Minister Christopher Luxon’s announcement about a plan to establish an LNG import facility, and the levy to fund it, has been badly received. Marika Khabazi / RNZ
Christopher Luxon has continually ruled out a bed tax, despite frequent calls from Auckland mayor Wayne Brown to implement one.
Brown’s argument has been that a bed night levy on visitors, separate to the International Visitor Conservation and Tourism levy, would help fund destination marketing and events.
Luxon was speaking to Morning Report after the announcement a State of Origin match will be played at Eden Park in 2027, co-funded by Auckland Council Events and the government’s Major Events Fund.
He said a bed tax was something the government would take a look at in a second term.
“We’re not considering it for this term, but we’re open to looking at it, again, next term. So we’ll do that process,” Luxon said.
Luxon said the country needed to “step up our competitiveness” on major events, and the government was putting in an amount of money comparable to Australian states.
“As you can see, we’re winning major events, and we’ve got quite a few coming right across the whole of New Zealand.”
Luxon said every dollar spent led to around $3.20 back into the local economy.
Brown was still making calls for a bed tax as recently as last week.
“The government can’t bring itself to do that yet, so that they’re raiding tourists at the border. And then central government will tell us how we spend on things, which is something we don’t like,” Brown told Morning Report.
“All these big events want some money up front. And if we have the bed night levy we will have the money up front.”
Brown has previously said a 2.5 percent bed tax would raise $27 million, and allow Auckland to compete with cities like Sydney, which has a bed night levy.
Wayne Brown MARIKA KHABAZI / RNZ
Local Government New Zealand (LGNZ), Tourism Holdings chief executive Grant Webster, [https://www.rnz.co.nz/news/national/574936/hotel-bed-tax-in-auckland-could-boost-tourism-fund-major-events Heart of the City chief executive Viv Beck, and former Air New Zealand chief executive [https://www.rnz.co.nz/news/business/571315/air-new-zealand-s-profit-falls-amid-rising-costs-and-engine-maintenance
Greg Foran], have also expressed support for a bed tax.
In August 2024, a Curia poll commissioned by LGNZ found strong support for a bed tax.
One thousand people were asked “How should the local infrastructure and services that tourists use should be paid for?”
Only 8 percent said rates should pay for the lot, with 34 percent saying tourist fees and charges should be used instead, and 45 percent wanting a combination of the two. Another 13 percent were unsure.
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– Published by EveningReport.nz and AsiaPacificReport.nz, see: MIL OSI in partnership with Radio New Zealand
