Tourist tax incoming amid warnings councils need urgent help

A tourist tax will be introduced sometime next year, says the new Tourism Minister, amid warnings New Zealand's reputation is at risk unless action is taken quickly to help local councils cope with growing visitor numbers.

Destination Queenstown warns the tourist hot spot could join popular and crowded destinations like Venice and Barcelona in suffering from what's described as "over-tourism" if local authorities don't get more help with booming visitor numbers.

"If Queenstown loses its lustre, if you like, or its appeal, or the experience is degraded because of that lack of investment, we think that'll have a significant impact on the New Zealand reputation," Graham Budd of Destination Queenstown told 1 NEWS.

As part of his briefing in his new role, Tourism Minister Kelvin Davis has been told Kiwis might feel "pushed out" due to overcrowding at attractions, pressure on local infrastructure or increases in hotel prices.

So officials say the Government needs to do more than just fund small infrastructure projects, and should introduce a tourist tax.

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It's a real burden on ratepayers

—  Graham Budd of Destination Queenstown |

"We're looking at a levy or something similar. We'll be talking to the industry to see what they say," Mr Davis said. 

Mr Budd says visitor levies "are the answer". 

New Zealand hosted 3.5 million tourists in 2016 and that's predicted to rise to 4.9 million by 2023. And in Queenstown, there are 39 visitors to every ratepayer.

"It's a real burden on ratepayers and, while one off funding from the Government for things like infrastructure, toilets for example, is fine, what that leaves is a legacy burden on a community to maintain, service, upgrade," Mr Budd said.

Mr Davis says the Government will announce more funding for community infrastructure projects later this week. 

But despite the officials' report calling for urgent action to help councils, he's in no hurry to confirm the introduction of a visitor levy, saying, "It'll be sometime next year."

It's a date that can't come soon enough for top tourist attractions as visitor numbers continue to surge.