- By Laura Kvigstad, Auckland Council reporter funded by New Zealand on Air
The Auckland Council is to publicly consult on the proposed bed night visitor levy aimed at addressing the $7 million funding gap for major events.
At a recent council budget committee meeting, councillors agreed to consult Aucklanders on the levy.
Residents and ratepayers will be asked about a 2.5 to 3 per cent charge on visitor nights at hotels and other accommodation.
The levy would raise an estimated $27m a year to be used for major events and destination marketing.
The draft mayoral proposal for the 2025/2026 annual budget signals that without the levy, there would be a $7m funding shortfall for major events.
The council would require approval from the Government to implement the new charge.
Deputy mayor Desley Simpson said she would not support a removal of events funding if the levy was not approved by the Government.
“If we don’t get it from the Government, we have to support [events]. I’m just not quite sure where that $7m is coming from,” Simpson said.
The council’s chief financial officer, Ross Tucker, said the consultation document would demonstrate there is budget flexibility.
“That we can adjust spending levels, investment, rates if required as a last resort,” Tucker said.
Councillor Richard Hills was concerned that a lack of tangible alternatives in the consultation document could see events funding left short.
“When it comes down to d-day in May and we don’t have any feedback from the community saying we back this money, whether it’s a 0.8 per cent rates rise or $9 a year, in the interim until the bed tax or bed night levy comes,” Hills said.
Mayor Wayne Brown assured there would still be $10m budgeted for major events.
“It’s not like we’re paying no money. I just don’t want to have us go soft and increase our rates,” Brown said.
He said if the council suggested there was no problem with events funding, then the Government wouldn’t do anything to implement a levy.
“I will get the $7m mate, don’t worry about that.”
Councillor Josephine Bartley said some might want greater assurances than “I will get it” and suggested that Aucklanders might want the option to contribute.
Councillor Wayne Walker said the consultation material needed to convey the economic benefit of major events for Auckland.
“We know the impacts of things like Coldplay and Pink and big rugby matches. Can we provide that information so that Aucklanders have got a clear idea on what they might be missing out on,” Walker said.
