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North Canterbury’s councils are set to receive a cash injection to fund tourism infrastructure from next year, following a Government announcement last week.
Prime Minister Christopher Luxon, Tourism Minister Louise Upston and Finance Minister Nicola Willis announced on September 8, funds from the International Visitor Levy, which tourists pay at the border, would go to support local infrastructure.
It is estimated the levy raises around $229m a year.
Ms Willis said from July next year it would put $100 million into the Department of Conservation (DOC), $50m into supporting tourism growth and resilience, and the rest would go to councils.
Each council's share will be based on the number of nights overseas tourists stay in the district.
In a statement released on September 12, Ms Upston said the Kaikōura District Council would receive $835,000 to support tourism related projects.
Mayors around the country have given a mixed response, after the Government had previously agreed to explore a bed tax in regional deals with Auckland Council and the Queenstown Lakes District Council.
Political parties have been promoting their tourism policies in the lead up to the November 7 general election, with Labour indicating it remained open to a bed tax for international tourists
Hurunui Tourism general manager Sarah Wiblin said any funding to support tourism infrastructure is welcomed.
‘‘It is good to see political parties are recognising there needs to be funding available in the regions.
‘‘We have a small ratepayer base in Hurunui and we don’t have the scale to fund all the infrastructure we need to support tourism in the region.
‘‘There are a number of examples of councils in this situation like Mackenzie and Kaikōura.’’
Hurunui’s share of the funding had yet to be confirmed.
Ms Upston said Kaikōura’s funding would help improve facilities and arrival experiences for cruise visitors, enhance public spaces used by both visitors and locals, and create a more welcoming gateway into the township.
“Kaikōura is one of New Zealand’s most distinctive visitor destinations, attracting people from around the world for its wildlife, natural beauty and outdoor experiences.
“This investment will help ensure visitors can enjoy the destination at its best, from the moment they arrive through to the experiences they have while they're here.”
A Kaikōura council spokesperson said the investment recognised the challenges facing small councils.
‘‘While tourism supports local jobs, businesses and economic growth, a small ratepayer base can make it challenging to fund improvements that benefit everyone.’’
The International Visitor Levy was first introduced in 2019 as a $35 levy for most international visitors, but Australian and Pacific Island visitors are exempt.
The levy was increased to $100 in 2024.
Labour small businesses and rural communities spokesperson Dan Rosewarne said when the levy was introduced it was intended to support both infrastructure and conservation.
‘‘National opposed it, then nearly tripled it, and used the extra revenue to plug the holes it had made in DOC and Tourism New Zealand's budgets.
‘‘Now, after leaving councils under pressure for three years, National wants credit for giving them a share of the money.’’
■ LDR is local body journalism co-funded by RNZ and NZ On Air.
