Kaikōura District Council said providing infrastructure for growing numbers of tourists places pressure on councils with a small ratepayer base. Photo: Environment Canterbury / LDR
North Canterbury tourist towns are not expecting a funding boost, despite the International Visitor Levy almost tripling to $100.
Kaikōura District Council chief executive Will Doughty said the extra money should go to councils to provide tourism infrastructure.
''Hopefully they are giving consideration to using it where it is most needed, which is at the local level where councils are battling with increased tourism numbers and wanting to support the local economy.''
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But he said he did not expect any extra funding to come Kaikōura's way any time soon.
The government raised the levy $35 to $100 for most international visitors from October 2024.
The government also announced plans this month to attract more travellers to New Zealand to boost growth.
Local Government New Zealand (LGNZ), which represents local authorities, has called on the government to share the extra levy funding with councils.
But Hurunui District Council chief executive Hamish Dobbie said it came down to what the governments intention was when it decided to raise the levy.
''There is no point putting your hand out for the sake of it.
''Taxes need to be put in place for a reason.
''Governments decide what they need to fund and then tax accordingly, so it really comes down to what was the purpose of raising the levy.''
Dobbie said he did not expect the levy funding to be spent in Hurunui, unless the government decided to fund a proposed Great Walk, linking Hurunui and Kaikōura.
The Hurunui district includes the tourist town of Hanmer Springs.
Hanmer Springs is enjoying a busy summer as tourists return to the town. Photo: David Hill / LDR
Former Tourism Minister Matt Doocey recently said the Government had yet to decide how the extra levy revenue would be used to help conservation, tourism and hospitality.
The levy supported several initiatives including the Regional Events Promotion Fund, which is targeted at events supported by regional tourism organisations and councils to attract more visitors.
The Ministry of Business Innovation and Employment has previously estimated raising the levy to $100 will generate an extra $127m to $173m a year.
LGNZ expressed concern following media reports suggesting the government intended to use extra revenue to subsidise Crown funding, rather than supporting the tourism and conservation sectors.
''The levy should be used to reduce pressure on communities, so councils can accelerate investment in pipes, roads and transport,'' LGNZ president Sam Broughton said.
''It is disappointing to see the Government has chosen to impose an extra tax on international visitors to improve the government's budget.''
Broughton said LGNZ's position is backed by public sentiment, with a recent opinion poll indicating nearly 80 percent of New Zealanders think tourists should be contributing toward local infrastructure.
''The best and fairest way to do this is by passing a portion of the levy revenue on to councils.''
The government recently announced it would also relax visitor visa requirements to allow more travellers to work remotely in New Zealand.
At the time, Queenstown Lake mayor Glyn Lewers told RNZ he supported more growth, but they needed support to pay for roads and pipes to cope with additional visitors.
- LDR is local body journalism co-funded by RNZ and NZ On Air.
