National says it will reset the International Visitor Levy so it goes directly to local councils, as an alternative to introducing a bed tax.
Under the plan, councils will receive funding from the levy according to their share of international visitor guest nights.
National intends to earmark $100 million a year raised from the levy for the Department of Conservation and $50 million a year for a tourism growth fund, with the rest going to councils.
It estimates that after the change takes effect in July next year, councils will receive $385 million over four years.
“As visitor numbers recover and continue to grow, the communities hosting those visitors should share more directly in the benefits of tourism success,” Finance Minister Nicola Willis said.
“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.”
National also pledged not to increase the levy, currently $100, for the next three years.
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