Auckland Mayor Wayne Brown has welcomed National’s move to redirect millions of dollars in international visitor levy revenue to councils, but warns the proposal still leaves Tāmaki Makaurau around $8 million a year short of what it needs to compete for major events and properly fund destination marketing.
National leader Christopher Luxon and finance spokesperson Nicola Willis have announced an alternative to a controversial bed-night levy, proposing to redistribute part of the existing International Visitor Conservation and Tourism Levy to councils if National is re-elected.
Under the plan, Auckland Council is estimated to receive $19.1 million in the first year, while Queenstown Lakes would receive $17.1 million. Funding would begin from July 2027 and be distributed according to each council’s share of international visitor guest nights.
Brown says the Auckland allocation represents progress and demonstrates National has listened to concerns from the country’s largest visitor destination.
But he argues it still does not solve the underlying funding problem.
AUCKLAND SAYS IT NEEDS $27 MILLION
Auckland has been pushing for a bed-night visitor levy of around 2.5 to 3 percent on short-stay commercial accommodation.
Council modelling estimates such a levy could generate approximately $27 million annually, providing stable funding for destination marketing and a major events programme.
That leaves National’s proposed $19.1 million first-year allocation around $8 million below the level Auckland has been seeking.
Brown says that gap could continue to place the future of major events under pressure, including the ASB Classic, All Blacks tests, State of Origin, SailGP and the Auckland Writers Festival.
The issue is not simply about entertainment.
Major events bring visitors into Auckland, filling hotels, restaurants and hospitality venues while generating spending across transport, retail and other businesses.
Auckland Airport estimates visitors from Australia, the United States and China alone spent $2.8 billion in Auckland in the year to March 2026, equivalent to about $7.6 million every day.
NATIONAL REJECTS BED-NIGHT LEVY
National has ruled out introducing a bed-night levy if returned to government, arguing it would increase the cost of domestic travel for New Zealanders.
Domestic visitors account for around two-thirds of guest nights, meaning a levy on commercial accommodation would not be restricted to overseas tourists.
Instead, National wants to restructure how the existing International Visitor Conservation and Tourism Levy is distributed.
The IVL is currently $100 per person for most international visitors, although there are exemptions, including Australian citizens and permanent residents and travellers from most Pacific Island countries.
Under National’s proposal, $100 million annually would be directed to the Department of Conservation, $50 million would go into a Tourism Priorities Fund and remaining revenue would be distributed among councils.
National estimates councils collectively would receive about $385 million over four years, with Auckland forecast to receive $85.7 million over that period.
WHO SHOULD PAY FOR TOURISM?
Brown maintains a bed-night levy should be viewed as a user charge rather than an additional burden on Auckland ratepayers.
His argument is straightforward: visitors use infrastructure and benefit from the events, attractions and services that make Auckland a destination, so visitors should contribute towards maintaining them.
The mayor also points to the Auckland regional deal, under which central and local government agreed to explore a dedicated bed-night levy.
National’s decision to rule out the proposal has already caused political tension. New Zealand First leader Winston Peters has maintained that exploring a levy remains part of the existing coalition Government’s agreement with Auckland, despite National ruling one out as part of its election platform.
Brown says Auckland will continue working with tourism and events industry leaders on an enduring funding model rather than relying on decisions made through Wellington’s annual budget cycle.
THE AUSTRALIAN QUESTION
The mayor has also taken aim at the exemption Australians receive from the International Visitor Levy.
Australia is New Zealand’s largest international visitor market, yet Australian citizens and permanent residents are exempt from paying the $100 IVL.
That creates a significant difference between National’s proposal and a bed-night levy.
A locally applied accommodation levy would capture people staying in commercial accommodation regardless of whether they arrived from Australia, another overseas market or elsewhere in New Zealand.
But it would also mean New Zealanders travelling domestically would pay it — the central reason National says it will not support the proposal.
ELECTION BATTLE OVER WHO FUNDS THE BIG EVENTS
The disagreement is shaping up as another Election 2026 battle over how infrastructure and economic development should be funded.
National says its proposal gets money directly to councils without creating another tax and would provide funding around two years earlier than a bed-night levy could realistically begin.
Auckland’s mayor says redirecting the existing visitor levy is a welcome start but does not provide enough money or the long-term certainty required to secure major international events years in advance.
The difference between the two positions amounts to roughly $8 million a year for Auckland — but potentially hundreds of millions of dollars in visitor spending associated with the events competing for that funding.
Brown is now signalling Auckland has another proposal coming, with a formal announcement expected tomorrow.
The argument over the bed-night levy may therefore be far from finished.
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