Should tourists pay an extra tax to cover the strain on New Zealand's infrastructure?

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1 NEWS

Holidaying in New Zealand might get a bit more costly if the Government adopts a proposed two per cent bed tax. 

It's one recommendation from an industry report on how to fund hundreds of millions of dollars in infrastructure investment.

New Zealand's roads, car parks and sewage systems are straining from record visitor numbers.
Source: 1 NEWS

New Zealand's roads, car parks and sewage are straining from record visitor numbers.   

"At that local government level, do they have the ability to respond, even if it's only toilets and car parking and that sort of infrastructure?" Chris Roberts, Tourism Industry Aotearoa chief executive, asked.

Industry leaders like Air New Zealand don't think local government does have that ability.

And in a report just released they're calling for a $130 million a year for the next 10 years for a tourism infrastructure fund to help local councils keep public facilities up to scratch. 

Half of that annual funding, $65 million, would come from the Government. 

The other half would be from a two per cent charge on all accommodation facilities, including camp sites and Airbnb.

And there would a $5 increase to the international passenger border levy, taking it to $25.

Mr Roberts says this is "well worth having a good debate about and seeing if it's right for New Zealand".

The Government has had the report since Tuesday.  

"One legitimate option is that the Government might put up the money and just say look, we're not prepared to move on these things. Another is to say we might go in and be prepared to go and support some other form of raising money," said Prime Minister John Key. 

Whether the Government is willing to introduce a new bed tax should be known early next year.

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