Tourist hotspot Queenstown to hold visitor tax referendum

Thursday, 7 March 2019

Queenstown is heading towards introducing mainland New Zealand's first visitor tax.

Mayor Jim Boult announced the Queenstown-Lakes district would hold a non-binding referendum to test community support for a local visitor levy.

The referendum was unanimously approved as an urgent item at Thursday's council meeting.

He hoped the levy would raise between $25 million and $40m each year to be spent on infrastructure.

* International tourists to pay new $35 visitor levy

* Visitor levy scarcely lightens massive QLDC ratepayer burden

* Tourists happy to be taxed $25 when entering New Zealand

* Stewart Island/Rakiura visitors levy to stay at $5**

It was not decided how the levy would be applied, but it would be a percentage of a particular cost, he said.

A pilot photographs Australian tourists near Queenstown after a flight.

It would be on top of a national tourist levy of $35 collected through visa fees and a new electronic travel authority, which is set to start in the middle of the year.

Council chief executive Mike Theelen said 50 per cent of the national tourist levy would be available to the Department of Conservation with the remainder contestable by all councils.

'This [proposed visitor levy] will be a levy to fundamentally address the infrastructure needs across this district.'

Queenstown Lakes District mayor Jim Boult wants a local visitor levy in place by 2021.

With a ratio of 34 international visitors per resident, the area had one of the highest visitor-to-resident ratios in the world, Boult said.

'The pressure of funding a premier international destination by 24,000 ratepayers is unsustainable.'

The area was synonymous with wealth and luxury, he said.

'[But] at the heart of the district are communities where people are struggling to find affordable housing and traffic is a growing challenge.'

Government had indicated it recognised the district's exceptional challenges.

If there was clear community support the Government would consider making legislative changes to allow a visitor levy to fund the infrastructure the town desperately needs.

Boult hoped to have it in place by 2021.

Stewart Island has had a $5 visitor levy since 2013. It is currently the only place in New Zealand with a regional tourist tax.