Ryan Bridge: The Nats will eventually back a bed tax

Tourism Minister Louise Upston is getting advice from officials on a bed tax. Christopher Luxon told us that last week.

They're not being explicit about it yet, but the idea is a no-brainer and will eventually happen.

In the Auckland deal Luxon did with Wayne Brown last week, they promised to investigate one. Wayne took this to mean the thing would be introduced by 2027, though we have an election before then obviously. 

We've just had new visitor numbers drop, we're back to 92% of pre-Covid numbers. 3.5 million internationals a year. 

Great. But the roads and housing and pipes can't take much more. The Government's goal is almost 5 million a year. 

In Queenstown, for every single ratepayer funding local infrastructure, you've got 30 to 34 international tourists hiking, skiing, and smashing a Ferg burger. The ratio is 1:30! In Auckland, it's 1:1.

Tourist hotspots with small resident populations struggle to fund what's required. Roads, amenities, and housing suffer as a result. 

And the Government has so far been turning around and saying no to a bed tax for them. They want 5%. 

They're doing this because they don't like the word tax and made promises, but as I've said before, they'll U-turn on this position because it makes no sense. 

You can't rely on a 1:30 ratio.

Rod Drury lives down that way, and he reckon we need a model like Aspen and Colorado, similar mountain towns, where they use tourism revenues to fund core infrastructure, not just marketing.

"90% of local lodging tax can be spent on affordable housing, childcare for workers, and capital improvements like trails and community assets, with only 10% required to stay in pure promotion..."

It's only a matter of time before we do the same. 

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Episode Transcript

Speaker 1 (00:00):
Louise Upston. She's tourism. She's getting advice from officials on
a bed tax, an accommodation levy. Call it what you will.
Luxeon told us this last week. They're not being explicit
about it yet, but the idea is a no brainer
and will eventually happen in Auckland. And the Auckland deal
Luxon did with Wayne last week they promised to investigate one.

(00:20):
Wayne took this to mean the thing would be introduced
in twenty twenty seven, though we have an election to
go before then. Obviously we've had a new visitor numbers drop.
We're back to ninety two percent of pre COVID three
and a half million internationals a year. Great, but the
roads and the housing and the pipes can't take much
more of this. The government's goal is almost five million

(00:40):
internationals a year. In Queenstown. For every single ratepayer funding
local infrastructure there, you've got thirty to thirty four international tourists.
They're hiking, they're skiing, they're smashing a Ferg burger down
in Queenstown. The ratio one to thirty. In Auckland, it's
one to one tourism hot spots with small populations. Small

(01:02):
resident populations struggle to fund what is required, roads, amenities, housing.
They all suffer as a result, and the government is
so far I've been turning around and saying to Queenstown, NAT,
you can't have a bed tax. NAT. They want five
percent done in Queenstown. And they're doing this because they
don't like the word tax. Right. They've made some promises
about this, but as I've said many times on the

(01:24):
show before, they will you turn on this position because
it makes no sense and logic will prevail. You can't
rely on a ratio of one to thirty. Rod Drury,
he lives down there in that way, he reckons we
need a model like Aspen and Colorado, there are similar
mountain towns. They use tourism revenues to fund core infrastructure,
not just marketing. Ninety percent of the local lodging tax

(01:46):
they call it there. You can spend that on affordable housing,
childcare for workers important because you need workers to run
the place, capital improvements to the trails, etc. Ten percent
of that is required to stay in pure a promotion
for tourism. It's a good idea, it makes sense. It's
only a matter of time before we do the same.

(02:07):
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