ACT New Zealand proposes tourism dividend to fund councils

ACT New Zealand leader David Seymour has announced the ‘Local Tourism Dividend,’ a policy designed to fund local councils through tourism without implementing a new bed tax. Under this proposal, councils would receive $1 for every guest night in their area, funded by existing GST and visitor levies already paid by tourists.

Seymour stated that the policy aims to alleviate the strain on local infrastructure—such as wastewater, rubbish collection, and public toilets—caused by tourism, without placing an additional financial burden on accommodation providers or increasing costs for visitors. The plan seeks to avoid the administrative and legislative complexities associated with new taxes by utilizing existing government revenue streams.