22 June 2026: Visitor bed levy proposal
Media: NZME
Topic: Visitor bed levy proposal
Enquiry
RTNZ have provided me the details exclusively of the nationwide bed levy proposal. I'm running a story on it tomorrow morning.
I understand Mayor Tapsell supports the policy. Can I please have some comment from her on it?
Why does she support a nationwide bed levy rather than regional? Does she think it'll get more central government support that way?
What would Rotorua use their proceeds for?
Some hoteliers oppose a bed tax because they think it'll dampen demand - what does she say to that criticism?
Response
From Mayor Tapsell:
Why does she support a nationwide bed levy rather than regional? Does she think it'll get more central government support that way?
The legislation needs to be enabling and permissive. At our recent Tourism Mayoral Forum there was broad agreement among Mayors and Regional Tourism Organisations that a nationally consistent framework, combined with local decision-making, is a strong approach.
A nationally enabled model would be the simplest and most efficient way to establish and administer an accommodation levy, as long as it still allowed flexibility within regions to determine how revenue is invested locally. Importantly, any levy collected in a region should remain in that region for reinvestment.
This approach is supported by tourism industry leaders, councils and many communities that currently carry much of the cost of hosting visitors through rates.
What would Rotorua use their proceeds for?
RTNZ's proposal would ensure revenue is reinvested directly back into the communities where it is collected. In Rotorua, funding could be used to support destination marketing, major events and other initiatives that attract visitors from key domestic and international markets.
Other destinations may prioritise different needs, such as critical infrastructure upgrades. That's why local decision-making is so important. Communities should have the flexibility to determine how best to invest these funds based on their own priorities and circumstances, rather than having all decisions made through a central Government process.
Some hoteliers oppose a bed tax because they think it'll dampen demand - what does she say to that criticism?
Accommodation levies are already common across many international visitor destinations.
The key is ensuring the revenue collected is transparently accounted for and reinvested back into tourism-related infrastructure, destination marketing and visitor experiences that directly benefit both visitors and the industry itself.
New Zealand cannot afford to fall behind other destinations when it comes to sustainable funding tools that support tourism growth while reducing the burden on local ratepayers.
