Stop ratepayers footing tourists’ infrastructure bill

LGNZ is calling on the Government to share funding collected through the International Visitor Levy (IVL) with councils.

The IVL is charged to most international visitors to New Zealand to help maintain the facilities and natural environment tourists use and enjoy during their stay. It is increasing from $35 to $100 from today.

“Too often a small number of ratepayers are having to stump up costs generated by an influx of tourists to their region. This isn’t sustainable,” says LGNZ President Sam Broughton.

“Many ratepayers around the country are already swallowing double digit rate rises just to pay for the basics such as roads, bridges and water supplies, due to rising costs.

“We want the Government to distribute the $65 increase in IVL charges as ringfenced funding to councils that can only be spent on tourism related costs. While this would go a long way to address infrastructure challenges, it wouldn’t be enough to address the pressures created by an influx of tourism. We also need cost recovery tools such as a local tourism bed night charge to create genuine incentives for councils to invest in core infrastructure that supports tourism.

“It’s important to bear in mind that councils need to build infrastructure that supports peak demand. For some councils, this means providing infrastructure that can perform for twice their resident population.

"Tourism is our second largest export earner - incentivising councils to grow our tourism market supports the Government in meeting their goal of doubling the value of exports in 10 years.

“LGNZ recently released a poll showing 79% of people think tourists should be contributing toward the local infrastructure and services they use. Only 8% thought ratepayers alone should be footing the bill,” Sam Broughton said.