Auckland Council will consult the public on a proposed bed night visitor levy aimed at filling a $7 million funding shortfall for major events.
The proposal comes as Edinburgh, the Scottish capital, approved a similar 5% levy which would raise more than NZ$110m a year for infrastructure improvements.
Councillors agreed to consult Aucklanders on the levy at a recent meeting of the council budget committee.
Residents and ratepayers will be asked to give feedback on establishing a 2.5% to 3% levy on visitor nights at hotels and other accommodation.
It would raise an estimated $27m annually to be used for major events and destination marketing.
The council’s long-term plan assumed a bed night levy or tax would be implemented by the Government by July 1, 2025. Without one, a budget gap of $7 million would result for major events for FY26.
The council would require Government approval to implement this new charge, but Auckland Mayor Wayne Brown said this would not stop the council asking residents what they thought about it.
“We should continue it closely with our industry leaders to advocate to central government. Industry support is there for this, and I’m keen to keep working with them on a mutually beneficial solution.”
Councillor Wayne Walker asked if the recent Government increase to the International Tourist Levy from $35 to $100 could contribute to the $7m shortfall.
He also said the consultation material needed to convey the economic benefit of major events to the region.
“We know the impacts of things like Coldplay and Pink and big rugby matches. Can we provide that information so that Aucklanders have got a clear idea on what they might be missing out on?”
Deputy Mayor Desley Simpson wanted to ensure that there was a plan B for where the $7m in major events funding would come from if the proposal was unsuccessful.
“I believe it’s really important that needs to be referenced in such a way that Aucklanders will know that we will fund this work,” she said.
Councillor Richard Hills said he was concerned that a lack of alternatives may see funding for major events fall short of what is required.
“When it comes down to D-Day in May and we don’t have any feedback from the community saying we back this money, whether it’s a 0.8% rates rise or $9 a year, in the interim until the bed tax or bed night levy comes on.”
