Just a block from its old home, the Crown Plaza Hotel will take guests for the first time this weekend in a renovated office building.
While we should be looking at ways to encourage tourists to pay their way, taxing them could lead to "bad PR", says a professor of tourism.
Tourism Industry Aotearoa's chief executive Chris Roberts says $25.5million a year is a step in the right direction, but more is needed.
Queenstown in particular is struggling with the issue, as beds there are in hot demand and locals are finding it hard to even find a rental.
Lani Hagaman said her husband was impressed with John Key's performance as Tourism Minister.