International Visitor Levy reset to keep taxes low
National will reset how the International Visitor Levy (IVL) is spent so councils receive a direct return from the visitors they host, without introducing a bed tax.
“Tourism is New Zealand’s second-largest export earner and a key driver of economic growth, jobs and higher incomes,” National’s Finance spokesperson Nicola Willis says.
“As visitor numbers recover and continue to grow, the communities hosting those visitors should share more directly in the benefits of tourism success.
“To achieve this, a re-elected National Government will change the way funding from the IVL is distributed, rather than introducing a bed tax that would make it more expensive for New Zealanders to book a holiday in their own country.”
The Government’s Tourism Policy Statement identified the need to consider future funding arrangements that help regions manage visitor pressures and support sustainable tourism growth.
To ensure local communities see more of the direct financial benefit from tourism, a re-elected National Government will reset funding from the International Visitor Levy from 1 July 2027, so that:
- $100 million per annum is invested in the Department of Conservation to support the conservation estate that underpins New Zealand’s visitor experience.
- $50 million per annum is invested through a Tourism Priorities Fund to support tourism growth and resilience.
- All remaining IVL revenue, starting at $86 million in 2027/28 and rising to $106 million in 2030/31, is distributed directly to councils based on the share of international visitor guest nights they host.
Under National’s plan, councils will receive an estimated $385 million over the first four years alone, increasing from $86 million in 2027/28 to $106 million in 2030/31 as visitor numbers grow.
“Councils will receive funding according to their share of international visitor guest nights. For example, we estimate that in the first year of the policy Auckland Council would be eligible for $19.1 million and Queenstown Lakes would be eligible for $17.1 million, with more funding available over time,” Ms Willis says.
“Under National’s policy, every territorial authority that hosts international visitors will receive a share of IVL funding, so they can support responsible growth in tourism in their community.
“Funding would begin flowing to councils from 1 July 2027, around two years earlier than it would with a bed tax.
“We will also provide certainty to the industry by committing not to increase the International Visitor Levy for at least the next three years,” Ms Willis says.
National’s Tourism and Hospitality spokesperson Louise Upston says National’s IVL reset will back conservation, support tourism growth, strengthen regional economies, and ensure the communities welcoming visitors share directly in tourism’s success.
“We know domestic visitors generate nearly twice as many guest nights as international visitors and account for around two-thirds of all guest nights across New Zealand,” Ms Upston says.
“A bed tax would disproportionately impact New Zealanders booking a weekend away, whether that’s for a sports event, a family funeral or to visit friends. This is a clear, practical alternative to that.
“National has been clear that we will introduce no new taxes. We are giving regions the tools they need to manage tourism pressures – funded by visitors, not by a new tax on New Zealanders.
“Growing New Zealand’s tourism industry is a key part of National’s plan to fix the basics and build the future.
“It helps us to keep taxes low, grow the economy and support the regions that make New Zealand such a great place to visit,” Ms Upston says.
