Greens Would Let Councils Set a Bed Levy on Hotels and Airbnbs
The Green Party would give councils the power to set a bed levy on visitor accommodation if elected.
Under the proposal, councils could charge visitors for each night they stay. Parliament would pass enabling legislation, a law that lets councils act if they choose, and councils could set a higher rate for Airbnbs and other short-term stays RNZ.
A national register for short-term rentals would be set up. Councils would use it to know where rentals are and apply the levy. The aim is coverage, to bring scattered rentals inside the collection net.
Co-leader Chlöe Swarbrick announced the policy. The Greens have made the bed tax the centre of their tourism policy for Election 2026 NZ Herald.
Swarbrick said councils want a bed levy to ease pressure on ratepayers and support tourism. She described the levy as "common sense" and said "When more people stay, councils have more money for the services those visitors use."
She said: "From Auckland to Queenstown, mayors don't care about central government politicians' squabbles about whether a levy is a tax. They want the tools to fund the infrastructure tourism requires and we will ensure they have them."
National has ruled out bringing in a bed levy. The party says the position fits its promise not to introduce new taxes.
As an alternative, National would pass on money from the International Visitor Levy — the fee most overseas visitors pay at the border — to councils. Its policy document forecasts $985m in levy revenue over four years, with $385m to go to councils NZ Herald.
That offer followed pressure from local government and the sector. An alliance of mayors and tourism leaders pressed the Government for a nationwide visitor accommodation levy. The levy under discussion would put a charge on hotel and Airbnb stays, with the money expected to help pay for events and tourism infrastructure.
The broader context here is a choice between two funding models. The Greens would leave the decision with councils, with each council deciding whether to act and at what rate. National would collect centrally and pass on funds, with International Visitor Levy revenue going to councils. One gives the taxing power to councils, the other keeps it in Wellington.
Looking at what this means in practice, the design details matter. It is a bit like user-pays parking for tourism: visitors help pay for the services they use. A different rate would treat Airbnbs differently from hotels and motels. A national register would help with compliance by identifying which properties must pay. For councils, the question is revenue certainty and collection cost. For operators, it is who collects, who is liable, and how a local levy sits alongside the national levy already paid at the border.
