Auckland Council, alongside other mayors and major tourism industry peak bodies, is calling for a unified, national approach to fix the systematic and significant underfunding of essential local visitor services and attractions.
The National Party’s policy announcement regarding the proposed $19.1 million IVL reallocation is a welcome recognition of the shortfall and provides a swift solution. It also recognises that more tourism-related revenue should be returned to the regions underpinning New Zealand’s visitor economy.
Auckland Mayor Wayne Brown says the announcement is a welcome step in the right direction, but still falls short of the full funding needs—the $27 million needed annually for major events and destination marketing—and is still not a legislated and enduring funding framework for councils.
“As far as policies ahead of the election go, it’s a very good start, it recognises the shortfall so would plug some of the gap for now and it recognises that more tourism-related revenue should return to the regions.”
Deputy Mayor Delsey Simpson says it’s a positive move.
“It shows our advocacy with Government and the industry is working. What sweetens this policy is that it would also be available sooner than it would take to pass legislation. We are still listening to the industry which is calling for a long-term solution.”
The Mayor says the sector needs long-term certainty.
“New Zealand is ready and needs a durable, nationally agreed framework that takes the pressure off ratepayers and is not vulnerable to the whim of changing governments, or subject to annual budget cycle reviews. It is common in similar cities around the world and New Zealand has outgrown temporary sugar hits—they are a costly and inefficient way to support a vital sector.”
He says major events are still on the line.
“Industry and local government are aligned. This is good recognition of the need now for funding, but without a durable solution, we risk losing four or five major events like the Cricket World Cup, while smaller towns can't even afford public toilets.”
The Mayor says the charter is also the first announcement that will be included in his upcoming manifesto.
“This will form part of my manifesto to the new government. The manifesto is about making sure the next government knows what Auckland needs to succeed. I’m building a connected, efficient, global city whether the next government is on board or not.”
He reminds the incoming government of the parameters of the Auckland Deal.
“Under the Auckland Deal, central government must co-design a durable, stable framework alongside local leadership and the tourism sector that survives political cycles.”
He says Auckland ratepayers shouldn’t have to foot the bill for holidaymakers.
“It’s only fair. Visitors—not local ratepayers—should pay a few dollars for the things they use while they’re here: from public toilets to the events they enjoy. This is a fair, user-pays system.”
Mayor Brown thanked the work of the leads and signatories so far.
“It takes a lot to get agreement across the board. I’d particularly like to thank the Mayor of Rotorua Tania Tapsell, and my Deputy Desley Simpson for their ongoing advocacy, leadership and coordination within the local government sector.”
He adds the Charter principles could be realised in any scenario.
“No matter what the mechanism—IVL or levy—the principles of the charter still apply.”
The New Zealand Tourism Charter
The New Zealand Tourism Funding Charter is a shared platform across local government and the sector proposing a legislated and enduring national tourism funding framework. The Charter proposes an initial annual funding allocation equivalent to 5% of GST on tourism expenditure (around $220 million), ideally delivered through either a nationally coordinated accommodation levy or a dedicated tourism dividend from existing revenues.
Both these options would be a charge to visitors, rather than ratepayers having to support the sector. The key principles of the New Zealand Tourism Funding Charter include:
- Direct Regional Control: Returning at least 90% of revenue directly to the region where it is collected for local visitor initiatives, keeping it separate from general government expenditure.
- Long-term certainty: Annual funding should be determined through a transparent formula established in legislation, providing long-term certainty and avoiding dependence on annual Budget decisions or discretionary ministerial approval.
- Independent governance: Regional funding decisions should be made through independent, arm’s-length governance arrangements, supported by public reporting and audit requirements.
- Complementary Investment: Funding should supplement, rather than substitute for, existing central and local government investment and should remove the need for separate accommodation-specific tourism funding mechanisms, including new accommodation-specific targeted rates.
- A level playing field: A national short-term rental accommodation register should be established to support equitable treatment across accommodation types and help councils administer their rating policies accurately and consistently.
The Charter, already signed by over 50 representatives from the tourism sector in New Zealand, urges political parties to commit to co-designing the national funding framework in the next term of government to ensure New Zealand’s tourism and business event sectors remain globally competitive without overburdening local communities and ratepayers.