By local democracy reporter Jonathan Leask:

Councils want accommodation and tourism levies to ease the burden on ratepayers.

It was a talking point at the recent Local Government New Zealand (LGNZ) conference in Wellington and Ashburton mayor Neil Brown is interested to see how it could work.

Brown said the Mackenzie District Council included a 1% rate increase so it could clean its public toilets twice a day.

“It’s cleaning the toilets for the tourists but the ratepayers are paying for it, and they deem that not fair.”

LGNZ figures suggest the rates paid by each ratepayer supported the infrastructure and services for 51 international tourists.

Councils had raised the possibility of tourist levies or a bed tax with the government, and it could have benefits in Mid Canterbury, Brown said.

In Mid Canterbury, Methven is the main tourist centre but Rakaia, Ashburton, and Hinds all have tourists stopping to use public facilities that are maintained by funding from ratepayers.

“If you did one did one area you would probably do all the hotels in the district.”

Having recently travelled in the UK, Brown said there were always “little taxes added on the end of a bill”.

International tourists pay an International Visitor Levy when they enter the country.

The levy had contributed to the Tourism Infrastructure fund and between 2017 and 2023, the Ashburton District Council received nearly $1.2m for three projects: the Rakaia Salmon site upgrade, rest areas at Taylors Stream and Awa Awa Rata Reserve, the redevelopment of Rakaia Gorge toilets.

“We get the money to build the facilities, which is great, but then they need to be maintained which falls back on councils.”

That maintenance could be funded through a bed tax or an increased levy that would “take the onus off the ratepayer and puts it more on the user”.

“Ratepayers will still use the amenities but probably not as much as tourists would.”

Tourism Minister Matt Doocey said Tourism New Zealand was reviewing the International Visitor Levy and he was aware there was strong support for an accommodation levy, but the Government had yet to make a decision.

Rangitata MP James Meager said he was supportive of more user pays type funding so those who most directly benefit from the infrastructure, pay for the infrastructure.

He was also wary of putting extra costs on businesses and hospitality “at a time where things are tightening up”.

“The other question would be whether there are enough bed nights in the district to make it pay off, given many visitors to our region end up staying in the larger metropolitan centres.

“If the council thinks a targeted rate or bed tax would work to help them raise revenue for infrastructure, that’s something they can put to ratepayers.”