There are concerns Phil Goff's idea to charge overseas holiday makers an extra tax, will hurt the tourism industry.
LISTEN ABOVE: Hospitality New Zealand's Rachael Shadbolt spoke with Rachel Smalley
The Auckland Mayor is proposing a replacement to ratepayer-funding that's being spent on attracting visitors and supporting major events. He says up to $30 million could be raised every year if tourists paid an extra levy instead.
He's suggesting a surcharge of three to four percent on their accommodation.
But Hospitality New Zealand spokeswoman Rachael Shadbolt said it could very well put people off from coming here, even if it only works out to be a $6-10 surcharge.
She said the figures might not be too bad, but it could be the thin edge of the wedge that allows other charges to be applied.
Shadbolt said it's a discussion that needs to be had, but it's a narrow scope to be expecting commercial accommodation providers alone, to charge and administer the payments.
"Private holiday house rentals, Air B&B's, or even a New World supermarket - they're all benefiting from visitors staying in bed, so why is it only commercial accommodation who's being told to apply the surcharge?"
For those who wish to make a public submission on the proposal, a consultation document will be available in February.
SEE ALSO:Â Goff releases new Budget plans
Meanwhile, the mayor's plan also includes restricting the annual average rate rise to 2.5%.
In addition to the visitor levy, Auckland’s need for extra revenue to support growth would be addressed with the introduction of a targeted rate for new large-scale developments and a regional fuel tax.
Mr Goff said the development rate would help pay for major infrastructure, increase Auckland’s housing supply, and discourage land-banking.
But Property Institute CEO Ashley Church said it doesn't help developers who're already facing tighter lending restrictions from banks, and the increasing costs of building materials in high demand.
"People who are building apartment dwellings for example - you want them. So the last thing you would want to do is make the financial position for those people even harder than it already is. In fact you would want to do the opposite."
Take your Radio, Podcasts and Music with you
