Huge pressure from overseas visitors is pushing councils across the country to consider tourist taxes.

Local Government New Zealand research shows our local bodies are developing $1.38 billion worth of infrastructure to cater for the hordes of visitors.

AUT's tourism research institute director Simon Milne said there's a risk.

Milne told Rachel Smalley tourists could be put off, if individual councils start imposing visitor levies.

"If you take a piecemeal approach for every destination, every locality as its own little tax or levy, it can become quite expensive and actually quite confusing for the visitor," he said.

He said it makes more sense for local and central government to co-invest.

Milne said ratepayers are feeling short-changed by having to cover the cost of infrastructure they're not going to use.

"Many communities are feeling they're working a little bit too hard for tourism without getting many of the benefits coming back. So the emphasis now in New Zealand, as in many parts of the world, is on a more user pays approach."

LISTEN ABOVE AS SIMON MILNE SPEAKS WITH RACHEL SMALLEY