Hotel Council Aotearoa welcomes National’s alternative to a bed tax as a practical funding move for regions

# What happened

# Why this matters

HCA frames New Zealand's tourism funding problem as one of revenue allocation and reinvestment. Central government collects most tourism-related taxes while local government bears many costs of hosting visitors. HCA argues communities that host visitors should receive a predictable share of tourism-generated revenue so local infrastructure and services aren't underfunded.

# The policy details cited

• National's Campaign Chair, Simeon Brown, argued a bed tax would increase costs for New Zealanders travelling domestically.

# HCA's position and priorities

HCA welcomed the proposal because it is framed as a national, consistent approach rather than a patchwork of regional levies. Doolan emphasized three priorities:

• Do it once and do it right: HCA rejects a proliferation of regional bed taxes, accommodation-specific targeted rates, or locally designed visitor levies with differing rules.
• Fair share for communities: HCA wants communities that host visitors to share in tourism's upside through predictable, national revenue allocation.
• Better data and registration: If funding is linked to accommodation activity, HCA says good policy requires accurate accommodation data, including short-term rentals. HCA supports a national registration regime for the short-term rental sector to improve data quality and create a level playing field.

# Fiscal context cited by HCA

HCA notes New Zealand already collects significant tourism-related tax revenue. The council cites tourism GST receipts of almost NZ$5 billion annually and suggests that total tourism-related tax revenue could reach as much as NZ$10 billion per year. HCA stresses those revenues should be more effectively shared with hosting communities.

# Practical implications for councils and the sector

# What HCA opposes

HCA continues to oppose a fragmentation of levies across regions, arguing visitors travel across regional borders and that tourism businesses operate nationally. The council previously proposed a Tourism Development Contribution but characterised that proposal as a circuit-breaker rather than a preferred first choice.

# Bottom line

HCA welcomes National's IVL-redistribution proposal as a step toward a single, national funding framework that directs tourism-generated revenue back to the communities that host visitors. The council stresses any lasting model needs comprehensive accommodation data and consistent national rules rather than a mosaic of regional levies.