In order to boost the local economy and encourage world-class events to local shores, Auckland Mayor Wayne Brown wants a bed tax.
Auckland Mayor Wayne Brown has renewed calls for a bed tax for the city’s hotels.
The Mayor has proposed a bed tax of 2.5 percent to three percent in order to fund a NZD 7 million shortfall for major events. Implementing any tax of this kind would require central government legislation.
Ahead of Auckland’s summer calendar of events, local politicians have urged that it isn’t just about entertainment. Instead, it is a powerful economic and cultural catalyst that has many lasting benefits for New Zealand’s largest city.
The overhanging issue is the cost. In order to host major events, festivals and cultural events, funding is an essential requirement and often a lengthy process. Currently, there is no sustainable long-term funding model to attract events to the city without placing the burden on ratepayers.
Deputy Mayor Desley Simpson said the council can’t keep tweaking an annual budget by changing priorities or just putting rates up every time. Instead, she wanted to see systematic change to keep the industry and city thriving.
The public consultation for Auckland Council's Annual Plan 2025/2026 showed most Aucklanders want the Government to enact legislative change to enable a bed night visitor levy.
The consultation summary shows 60 percent of individuals, 58 percent of organisations, and 13 out of 14 Māori entities support a bed night visitor levy. Many of those who supported the proposal indicated a desire for public event funding, for visitor contribution to infrastructure, and for reducing local resident costs, and the view that it’s common overseas.
The public feedback is consistent with the findings of a poll commissioned by the mayor's office in August last year which found that 64 percent of Aucklanders support a bed night levy of 2.5 percent.
“Despite the Government’s sheepishness towards a bed night levy, a clear majority of Aucklanders want it. They want visitors to contribute to the funding of the activities and services they use. It shouldn’t impact hoteliers’ profit margins but rather add to their bottom line. I think that’s fair, and common in many world-class destinations,” said Auckland Mayor Wayne Brown.
He said the Government would be wise to listen to the feedback.
“Aucklanders are enjoying a better relationship with Wellington because I’m making sure they realise the powerhouse that we are. I’m telling the government to be wise and do the obvious and easy thing here.”
Submissions also showed a majority support for the overall direction of the council’s annual plan. Of individuals, 72 percent support all or most of the overall plan. Of organisations, 81 percent and 11 out of 13 Māori entities support all or most of the overall plan.
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