Media query about the impact of a bed tax.
Tourism is incredibly important to the Mackenzie District and we want to see it continue to grow. The challenge is ensuring the funding system grows with it so that local communities aren’t left carrying a disproportionate share of the costs.
1. How confident are you that a nationwide bed tax will become a reality in the next term of Parliament?
It is encouraging to see central government commit to considering a local visitor levy as part of the Auckland Regional Deal. Mackenzie District Council continues to advocate for a nationally applied local visitor levy, with revenue returned directly to councils to invest in tourism-related infrastructure and priorities.
Local visitor levies have been discussed by councils and the tourism sector for more than a decade, so we’re cautiously optimistic that momentum is building’.
2. How significant would a 2-3% bed tax be for Mackenzie?
We haven’t modelled the potential revenue in detail yet, but any additional funding tools that help offset the costs of tourism would be beneficial for our ratepayers.
The Mackenzie District is unusual in that we have a disproportionately high number of day and drive-through visitors who place significant pressure on infrastructure while contributing relatively little to the local economy.
A nationally implemented visitor levy would be a significant step towards a more sustainable and equitable funding model for tourism infrastructure, reducing the burden currently borne by local ratepayers. However, because of the significant number of day and drive-through visitors, a visitor levy alone, while valuable, would still need to be complemented by other funding mechanisms.
For this reason, Mackenzie District Council is exploring a range of user-pays mechanisms, including paid parking and public toilet charges, while continuing to advocate for the International Visitor Levy to be restored to its original purpose of supporting tourism communities. We are also calling for an annual allocation of IVL funding to local government to recognise and help meet the costs associated with visitors, particularly day visitors.
3. Clearly your district is facing big issues with short-term rentals. Should the likes of Airbnb operators be required to register their details to help with council compliance and to ensure those that are allowed to operate are captured by a bed tax regime?
A Bed Tax should apply consistently across all accommodation types, including short-term visitor accommodation. A mandatory short-term visitor accommodation register is intrinsically linked to the effective implementation of a Bed Tax, as well as creating a more level regulatory and financial playing field with other accommodation providers.
Regardless of whether a visitor levy is introduced, we are advocating for a mandatory register to help councils identify and monitor short-term accommodation and improve compliance outcomes. Without a mandatory register, councils have limited visibility of short-term visitor accommodation and must invest significant ratepayer-funded time and resources to identify and monitor properties.