A council agency's decision to fund All Blacks matches is adding to the case against a proposed hotel and motel levy.

Auckland tourism agency ATEED has confirmed it's spending millions of dollars on All Blacks hosting rights, including $1.33 million on a Lions test.

Mayor Phil Goff has proposed funding the council agency through a controversial targeted rate on accommodation providers.

Chamber of Commerce chief executive Michael Barnett says the All Blacks funding is a perfect example of why the council should be reconsidering the levy idea.

"The council are talking about where this money should come from. Well, I think most people would be looking at that sort of spend and asking if that's the sort of budget they should have."

Mr Barnett said All Blacks hosting rights is an excellent example of something ATEED doesn't need to spend money on.