Bed tax could generate $16m for Canterbury as Christchurch mayor pushes for nationwide roll-out

Wednesday, 1 July 2026

An accommodation levy will bring in additional funding to pay for things visitors use, including in places like Akaroa, without adding to tax or ratepayers’ bills.

A bed tax could bring in $16 million a year for Canterbury, local tourism bosses say as they join forces with Christchurch mayor Phil Mauger to push for its nationwide roll -out.

Calls for an accommodation levy are growing after Regional Tourism New Zealand (RTNZ), which represents the country’s 31 regional tourism organisations, urged all political parties to support the legislation.

It said New Zealand had fallen behind comparable destinations in Australia, Canada, Europe and the United States, which already have an accommodation levy.

ChristchurchNZ, the city’s economic development and tourism agency, has calculated a 2.5% accommodation levy could contribute $16m to the region next year, rising to $19m by 2030.

The figure was based on estimated visitor nights spent in hotels, motels, short-stay Airbnb-type accommodation, backpackers and holiday parks across Christchurch, Ashburton, Waimakariri and Selwyn.

ChristchurchNZ visitor economy general manager Anne Newman said tourism growth needed to be funded in a sustainable way.

The burden of providing infrastructure for tourists falls disproportionately on local government, and given the current constraints on funding, the levy would bring in additional funding without adding to tax or ratepayers’ bills, Newman said.

“Visitors use things they don’t help to pay for through the normal taxation system.”

Visitors use roads, enjoy parks, and benefit from the safety and cleanliness of public spaces and public toilets, but do not contribute to the rates base which funds the development and maintenance of these assets, Newman said.

“An accommodation levy scales with tourism growth. As a destination becomes busier, it collects more revenue to put into the development and maintenance of tourism-related infrastructure.”

While RTNZ is pushing for a nationwide levy, the proposal would see the money being spent in the areas where it was collected.

Tourism bosses are pushing for a levy to be implemented nationwide and do not expect it to negatively affect visitor numbers.

Mauger said a levy would provide a strong foundation to enhance the city’s event attraction, tourism proposition and infrastructure.

“It would enable us to create a world-class city for visitors and ratepayers alike.”

Mauger said he looked forward to collaborating with industry and the Government on the levy’s implementation.

It’s hoped all accommodation types will be included in the levy, including hotels, motels, backpackers and short-term accommodation like Airbnb.

He said he had already had a brief discussion about the issue with Tourism and Hospitality Minister Louise Upston in May.

National has ruled out implementing an accommodation levy in its first term, but last week Upston released a Tourism Policy Statement that said the Government would consider future funding arrangements to manage visitor pressures. That included exploring an accommodation levy in 2027 for Auckland Council, which was agreed to by central government in the Auckland city deal.

However, RTNZ was pushing for the levy to be implemented nationwide.

Hospitality New Zealand Canterbury accommodation chairperson Jeff Peters said the organisation wanted a nationwide accommodation levy to give regions a stable source of funding for councils to invest in visitor infrastructure without cutting other services.

ChristchurchNZ chief executive Ali Adams told city councillors last week that a bed tax was standard in many places across the world and would not affect tourism.

The Government’s Tourism Policy Statement also said it would look at options to improve transparency for short-term rental accommodation, which RTNZ and ChristchurchNZ was also pushing for.