Global Travel Media » Blog Archive » NZ bed tax proposal stays after Prime Minister quits

Home » Headline News » Currently Reading:

NZ bed tax proposal stays after Prime Minister quits

December 6, 2016 Headline News No Comments Email Email

egtmedia59New Zealand’s Tourism Minister, Prime Minister John Key, resigned unexpectedly as PM yesterday, leaving a tourism industry doing so well that the country appears to be having problems keeping up with the infrastructure required.

Now, New Zealand is faced with the looming spectre of a bed tax. Australia is familiar with similar threats. After 18 months of wheeling, dealing and debate, Australia has fixed its backpacker tax at a compromise 15%. Friction continues over Australia’s departure tax, also called a holiday tax and (by the authorities) the “Passenger Movement Charge”.


In New Zealand, the spectre takes the form of a bed tax. International visitors dislike the idea of having to pay the proposed 2% tax, saying that New Zealand is already an expensive country to visit, reports 1 NEWS in New Zealand.

The reason for the bed tax plan is a story in itself. Tourism is doing so well in New Zealand that the country’s roads, car parks and sewerage facilities are under strain from record visitor numbers.

A bed tax is one recommendation from a tourism industry report on how to fund the hundreds of millions of dollars in infrastructure investment needed to keep things running smoothly.

Air New Zealand and other Kiwi industry leaders urge in the report that NZD 130 million a year be earmarked over the next 10 years for a tourism infrastructure fund to help local councils maintain public facilities.

The NZ Government would provide half of the annual funding – NZD 65 million – and the other half would derive from a 2% charge on all accommodation facilities, including campsites. Airbnb would have to pay it as well.

New Zealand’s departure tax would be lifted by NZD 5 to NZD 25 under the plan. The tax is officially titled the “International Passenger Border Levy” – an even more grandiose title than Australia’s Passenger Movement Charge.

One thing is for sure. New Zealand takes tourism seriously, which is why Prime Minister Key took the portfolio himself.

Written by Peter Needham

Comment on this Article:

Time limit is exhausted. Please reload CAPTCHA.

Platinium Partnership


Elite Partnership Sponsors


Premier Partnership Sponsors


Official Media Event Partner


Global travel media endorses the following travel Publication