‘Local Tourism Dividend’: ACT Party Proposes Bed Tax Alternative

Lauren
Crimp Political reporter

The
ACT Party has come up with a bed tax alternative: giving
councils $1 for every guest night in their area, funded from
GST and existing visitor levies.

Leader David Seymour
said ACT would campaign on a “local tourism
dividend”.

He believed it was a smarter option than a
bed tax, which would charge guests a small percentage on top
of their short term hotels and B&B stays.

Seymour
estimated the dividend would give councils more than $40
million annually, based on 2026 guest night
figures.

“The reality is that tourists already pay a
lot more GST than they take out of New Zealand in services,”
Seymour said.

“The problem is they pay it to the
central government rather than the councils who bear most of
the cost.”

The policy fixed a problem all councils
faced without adding hotel bill charges or expanding
government, he said.

A bed tax has been floated as an
answer to councils struggling to pay for often long overdue
infrastructure upgrades.

National leader Christopher
Luxon on Monday told RNZ his party may explore one if it’s
re-elected, but Seymour immediately poured cold water on the
idea.

The dividend would not raise the cost of staying
in New Zealand, reduce the revenue of accommodation
providers, or add any compliance burden, he said.

“The
principle is: no new workers at IRD administering a new tax,
no new filing for New Zealand businesses, just a straight
transfer once a year from government to council based on the
number of bed nights, which we already have statistics
for.”

Seymour said the system could begin as early as
1 July next year, while a new tax would take at least a year
longer because it would require legislation.

He did
not say what would be cut to shift the $40 million to
councils, adding that ACT would release its fully costed
alternative budget later in the election
campaign.

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