New Zealand Visitor Accommodation Levy Proposed: Could a New Tourist Tax Be Coming?

Australian travellers visiting New Zealand could face an additional tourism-related charge in the future after tourism leaders proposed a nationwide visitor accommodation levy on short-term stays. The proposal would apply to accommodation providers such as hotels, motels, holiday parks, serviced apartments and Airbnb-style rentals, with revenue directed back into local tourism infrastructure.

The proposal was released by Regional Tourism New Zealand (RTNZ), which represents the country’s 31 regional tourism organisations. The group argues that the current funding model is placing increasing pressure on councils and local ratepayers, while millions of visitors continue to use infrastructure, amenities and services that support New Zealand’s tourism economy.

While the levy has not been approved and would require government support before becoming law, the proposal has attracted attention on both sides of the Tasman because Australians currently do not pay New Zealand’s International Visitor Conservation and Tourism Levy (IVL). Under the new accommodation levy model, Australian travellers could be included for the first time.

Why New Zealand wants a visitor accommodation levy

RTNZ says a visitor accommodation levy would provide a dedicated source of funding for tourism-related projects and ensure visitors contribute directly to the destinations they enjoy. The organisation is proposing a ring-fenced system, meaning revenue collected in a particular region would stay in that region rather than being absorbed into general government spending.

RTNZ chair Andrew Wilson said the levy would help fund the infrastructure, events and amenities that make New Zealand destinations attractive to domestic and international visitors.

“An accommodation levy gives us the tools to invest in the places visitors come to experience – the infrastructure, the events, the amenities that make New Zealand destinations world-class,” Wilson said when announcing the proposal.

The organisation argues that many competing destinations across Australia, Canada, Europe and the United States already use visitor charges or accommodation taxes to help fund tourism growth.

What happens next?

The proposal follows a commitment made by the New Zealand government last year to consider a bed tax for Auckland as part of a broader funding agreement. Auckland Mayor Wayne Brown has previously said such a tax is likely to happen eventually, although no formal legislation has been introduced.

Prime Minister Christopher Luxon reiterated this week that any nationwide accommodation levy would not be considered until at least the next parliamentary term if his government is re-elected. As a result, travellers booking holidays in 2026 do not face any immediate changes.

RTNZ is also calling for the creation of a National Short-Term Rental Accommodation Register to ensure the levy applies consistently across hotels, motels and short-term rental properties. The organisation believes Inland Revenue could collect the charge efficiently through existing GST collection systems already used by many accommodation providers.

The debate comes as New Zealand continues to welcome strong visitor numbers. Around 1.52 million Australians visited New Zealand during 2025, the highest annual figure recorded since the pandemic, underlining the country’s position as one of Australia’s most popular overseas holiday destinations.

Tourism taxes are becoming increasingly common around the world as destinations look for ways to manage visitor growth and fund public infrastructure. Similar approaches have emerged in several major tourism hotspots, including Barcelona’s recent tourist tax increase for cruise passengers, where authorities are seeking additional funding to address the impact of record visitor numbers.

For now, the proposed visitor accommodation levy remains a policy proposal rather than a confirmed tax. However, if it gains political support, future visitors — including Australians — could eventually see an extra charge added to hotel and short-term accommodation bookings across New Zealand.

Official information about New Zealand’s tourism funding framework and visitor levies is available through the Ministry of Business, Innovation and Employment.

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