{"id":48714,"date":"2025-09-28T18:39:10","date_gmt":"2025-09-28T18:39:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/48714\/"},"modified":"2025-09-28T18:39:10","modified_gmt":"2025-09-28T18:39:10","slug":"special-investigation-what-tourist-levies-are-really-being-spent-on","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/48714\/","title":{"rendered":"Special investigation: What tourist levies are really being spent on"},"content":{"rendered":"<p class=\"\">\n         It could be a billboard shot promoting New Zealand\u2019s adventure capital, were it not for the green tinge of treated sewage. The panorama from the banks of the Shotover River ticks most of the boxes \u2013 the snow-capped cone of Coronet Peak, the Crown Range, the jagged ridge of the<br \/>\n         Remarkables. Every half hour or so, another plane comes in low over the river before disgorging hundreds more visitors. Every hour, the waters are rippled by the wake of the Shotover Jet.\n        <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Still, it\u2019s hard to get past the sewage. In March, the Queenstown Lakes District Council began sending about 12,000 litres of treated effluent into the river from a nearby sewage plant after its cost-saving experimental disposal field failed. It claims the sewage is treated to such a high standard that it\u2019s still fine to swim here, although the opaque green liquid flowing into the river may cause some hesitation.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Testing shows doing so would have an element of Russian roulette. Before the Listener\u2019s visit, the council\u2019s weekly monitoring found levels of E coli were almost double those considered safe to swim. Although E coli levels were much lower downstream, it\u2019s not quite the \u201c100% pure\u201d image tourists are being sold.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Then there was 2023\u2019s cryptosporidium outbreak, which stemmed from an unknown faecal source in Lake Wakatipu and led to a near three-month-long boil water notice. Sewage spills into the lake have made regular headlines since.<\/p>\n<p><img  alt=\"Not so green: Emergency discharges of\u00a0treated sewage into the Shotover River near\u00a0Queenstown threaten the area\u2019s status\u00a0as\u00a0a tourism magnet.  Photo \/ George Driver\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Not so green: Emergency discharges of\u00a0treated sewage into the Shotover River near\u00a0Queenstown threaten the area\u2019s status\u00a0as\u00a0a tourism magnet.  Photo \/ George Driver<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It would be unfair to blame this entirely on tourists \u2013 a Newsroom investigation points to a number of council failures \u2013 but during peak times, most of this treated waste comes directly from them. Visitors cause Queenstown\u2019s population to more than double during busy periods. During a year, the number of guest nights per person is 86 to one \u2013 about 12 times the national average.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It\u2019s not just the sewage. Within three years, the 11km drive from Lake Hayes to Queenstown is forecast to regularly take an hour, the congestion linked to tourism-related employment and housing growth.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The infrastructure cost pressures are significant. The council\u2019s debt \u2013 272% of revenue last financial year \u2013 is the country\u2019s highest. Residential rates are the third highest and during the next three years are expected to increase faster than any other district.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Other tourist towns face a similar equation. Tekapo\u2019s 610 residents are looking at a $47 million bill to upgrade its wastewater system to cater for days when tourists are expected to outnumber locals 15 to one.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In Franz Josef, the district\u2019s mayor says the town\u2019s 500 residents can\u2019t afford the multimillion-dollar wastewater system required to service the 3000 visitors it gets each day.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">We\u2019ve had this debate before. Through the 2010s, as the number of international visitors grew by 1.3 million, the public\u2019s tolerance of the industry began to plummet.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Now, as the government spends tens of millions to meet a target of attracting 4.8 million visitors a year by 2034 \u2013 1.4 million more than now \u2013 many fear tourism\u2019s growing pains will return. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">But shouldn\u2019t it be different this time? Since 2019, the country has had a dedicated border levy intended to generate hundreds of millions of dollars to alleviate the pressures on infrastructure and the conservation estate. The question is: where has the money gone?<\/p>\n<p><img  alt=\"Queenstown visitors queue for the TSS Earnslaw cruise on Lake Wakatipu. Photo \/ Getty Images\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Queenstown visitors queue for the TSS Earnslaw cruise on Lake Wakatipu. Photo \/ Getty Images<\/p>\n<p>The Great Reset<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cTourism in New Zealand will never return to how it was before Covid-19 dramatically affected us,\u201d Stuart Nash confidently declared at Tourism Industry Aotearoa\u2019s 2020 conference. As the pandemic laid waste to the country\u2019s second biggest export earner, Nash painted the border closure as an opportunity to reset and quell the discontent that had grown about overtourism.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In the previous decade, the country had undergone the largest tourism boom in its history, with visitor arrivals increasing by 54% to reach 3.88 million in 2019. As a result, the public\u2019s tolerance of the industry was fraying at the edges (See \u201cClean, green at risk\u201d, below).<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The government had taken some steps to alleviate the pressures. In 2017, the National-led government introduced a temporary $25m-a-year fund to help councils struggling to pay for tourism infrastructure such as carparks and toilets.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">A more permanent fix came in 2019. The Labour-led government introduced a $35 border levy, to be paid by about 60% of international visitors (those from most Pacific Islands and Australia are exempt). This was expected to bring in about $80m a year, with the proceeds split equally between tourism and conservation projects.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cThis levy will ensure our international visitors contribute to the infrastructure they use and help protect the natural places they come here to enjoy,\u201d then-tourism minister Kelvin Davis declared.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">National voted against the levy, its leader Simon Bridges branding it \u201centirely unnecessary\u201d. \u201cA new tax would simply go straight to the Beehive when they\u2019ve already got very strong coffers,\u201d Bridges said.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The levy had been operating for eight months when the pandemic closed the borders, virtually obliterating the levy proceeds and stopping tourism in its tracks.<\/p>\n<p><img  alt=\"Some $8m was directed to the k\u0101k\u0101po recovery programme. Photo \/ Getty Images\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Some $8m was directed to the k\u0101k\u0101po recovery programme. Photo \/ Getty Images<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In positioning the pandemic at the industry\u2019s 2020 conference as an opportunity to reset, Nash memorably called for a pivot to attract \u201chigh-net-worth individuals\u201d rather than vans of backpackers who \u201cpull over to the side of the road and shit in our waterways\u201d. He also talked enthusiastically about \u201cregenerative tourism\u201d, meaning the industry would aim to give back more than it takes.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">To achieve this, the government formed working groups and taskforces aimed at developing a \u201cTourism Industry Transformation Plan\u201d. As visitor numbers rebounded, however, enthusiasm for transformation began to dissipate. The work was scuppered when the coalition government took office in 2023. Rather than visitor quality, the coalition was firmly eyeing quantity.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In place of working groups, it promised cash. Last year, it decided to nearly triple the International Visitor Levy to $100. This was expected to immediately bring in $190m a year for infrastructure and conservation, rising to $229m from 2026\/27 when visitor numbers were expected to return to pre-Covid levels.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">At the time, then-tourism minister Matt Doocey said although international tourism was an economic boon, it \u201calso comes with costs to local communities, including additional pressure on regional infrastructure\u201d.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Within months, any hopes for a windfall to help pay for pipes, roads and toilets in tourism hotspots began to evaporate.<\/p>\n<p><img  alt=\"At Fox Glacier, $3.9m from the levy was allocated to destination management -including construction of a car park. Photo \/ Getty Images\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>At Fox Glacier, $3.9m from the levy was allocated to destination management -including construction of a car park. Photo \/ Getty Images<\/p>\n<p>Into the coffers<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Although the levy was expected to bring in about $145m in the 2024\/25 financial year, headlines about massive investments in tourism infrastructure have been conspicuously absent. The government has had other ideas on how to spend the money. Rather than funding conservation projects and tourism infrastructure as intended, the bulk of the levy is effectively going straight to the government to save it money.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It began with a new rule introduced last year that meant any levy money that wasn\u2019t spent within a year would go directly to the crown. This enabled it to bank about $67.5m in 2024\/25 that had been earmarked for tourism purposes. Official documents show that by April this year, the crown was expecting to bank $121.5m of unspent levy revenue \u2013 more than 40% of the total raised since the levy\u2019s 2019 introduction.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">But it wasn\u2019t just the unspent funds the government was eyeing. Documents show that in the last days of 2024, Willis wrote to Doocey outlining a new plan. Rather than the levy proceeds being split between tourism and conservation and rising when tourism numbers increased, the two agencies would get a capped amount each year. Tourism\u2019s share of the levy would be capped at $35m, while the Department of Conservation would get $55m a year.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It meant the portion earmarked for tourism infrastructure may actually shrink, despite the levy trebling. Under the previous 50\/50 funding split, the original $35 levy was expected to raise about $40m (less administration costs) for tourism based on 2019 visitor levels. The $55m going to DoC is about $15m higher than under the $35 levy, but still well shy of the $114.5m each agency could have expected from a 50:50 share of the tripled levy. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">At the same time, the conservation budget has been cut, with $101.8m of \u201ctotal savings\u201d made within DoC in the last two budgets.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Under Willis\u2019s plan, another $8m from the levy would go to maintaining the Great Rides cycleways each year \u2013 an activity formerly funded by the crown and therefore not new funding.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In total, it means the levy will deliver only $90m a year for new conservation and tourism spending. So, what will happen to the remainder of the $229m the levy is expected to bring in from the start of the 2026\/27 financial year? As foreseen by Bridges, it will go into the government\u2019s coffers.<\/p>\n<p>Willis\u2019s loophole<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The law that enables the levy stipulates its proceeds must be spent on conservation, tourism infrastructure and the vague \u201cother initiatives related to tourism\u201d. However, last year, Willis found a loophole. She decided the remaining proceeds \u2013 about $130m a year \u2013 would go directly to both DoC and Tourism New Zealand\u2019s budgets. Only, this would be offset by a corresponding cut in their crown funding, directly saving the government money without delivering the new spending the levy was meant to generate.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">For the current financial year, about 82% of Tourism New Zealand\u2019s baseline funding came from the levy and about half its budget will be funded via the levy in future. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">A spokesperson for the Ministry of Business, Innovation and Employment confirmed the changes were agreed by cabinet as part of Budget 2025 \u2013 although they weren\u2019t detailed in any official budget documents.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It all means the levy hike will not lead to additional funding for tourism infrastructure at all \u2013 at a time when the government aims to increase the number of tourists coming here by 1.4 million a year.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Despite this, the government\u2019s immigration website still markets the levy to tourists as \u201cyour contribution to maintaining the facilities and natural environment you will use and enjoy during your stay\u201d.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The office of current Tourism Minister Louise Upston did not respond to multiple requests for an interview. The minister has previously rejected criticism about a lack of infrastructure funding, saying there was no need for additional tourism funding because numbers were still below pre-Covid levels.<\/p>\n<p><img  alt=\"Visitor demand on the Tongariro crossing is raising infrastructure and environmental pressures. Photo \/ NZME \/ Mike Scott\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Visitor demand on the Tongariro crossing is raising infrastructure and environmental pressures. Photo \/ NZME \/ Mike Scott<\/p>\n<p>A marketing levy?<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">While the crown began to take the levy\u2019s proceeds for itself, it also unveiled new intentions for how the $35m allocated for tourism would be spent. After bouncing in and out of recession last year, the government began 2025 with a new slogan: \u201cGoing for Growth\u201d.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">A cabinet reshuffle saw Willis pick up the newly named \u201cMinister for Economic Growth\u201d portfolio, while Upston became the country\u2019s fifth tourism minister in five years, replacing Doocey.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Willis told RNZ in January boosting international tourist numbers was the government\u2019s top priority for growing the economy. She dismissed concerns about whether the country\u2019s infrastructure was ready to handle it.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cYes, there will be all sorts of arguments made against why people might not want more tourists in their town,\u201d she said, \u201c[but] actually when we\u2019ve got more tourists coming, more tourists spending, that\u2019s good for jobs, it\u2019s good for growth and it\u2019s good for the wealth of individual New Zealand families.\u201d<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Money began flowing to sell the country overseas. In February, half a million dollars was spent on a new campaign, \u201cEveryone must go\u201d, targeting Australian travellers. Soon after, another $3m was spent to encourage more tourists here in winter. In April, an additional $13.5m was given to Tourism New Zealand \u2013 the government\u2019s tourism marketing arm \u2013 for a sustained marketing blitz.<\/p>\n<p>The bulk of the levy is going straight to the government to\u00a0save it money.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">By June, the government revealed the extent of its ambition in a new Tourism Growth Roadmap. Its goal was to double international tourism spending to $19.8 billion by 2034 and grow the number of visitors to 4.78m a year \u2013 almost a million more than the pre-Covid peak.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The source of this marketing spending-spree? The visitor levy. What began as a way to get tourists to pay for their impact on the environment and infrastructure was becoming a fund to increase the pressure on both.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The roadmap showed 80% of the $35m earmarked for tourism would be spent on marketing. The remaining 20% would go towards the so-called \u201csupply side\u201d \u2013 upgrading the stuff tourists use. However, even this hasn\u2019t been allocated to the basic infrastructure tourist towns have been crying out for. This year, it will go towards a $4m upgrade to visitor sites along the state highway to Milford Sound, along with a new $1.6m bridge for the West Coast\u2019s Wilderness Trail.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Although it\u2019s within the letter of the law, it contravenes the International Visitor Levy Investment Plan, which lists \u201cmarketing or brand development for tourism\u201d as off limits for funding, along with upgrades to tourist attractions. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It also goes against the views expressed by those who submitted on the proposed levy hike last year. In total, 53% of submissions opposed using the fund for international tourism marketing, noted in the summary of submissions as \u201cthe only area that had more opposition than support\u201d. In contrast, 85% of submitters wanted the levy to address visitor pressure on infrastructure.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cResponses mentioned the need to invest into roading, wastewater, rubbish, toilets, and other public facilities, particularly in communities that have a high visitor to ratepayer ratio,\u201d the summary said.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The tourism roadmap states the government will invest more in the \u201csupply side\u201d \u2013 including tourism infrastructure \u2013 sometime between 2026 and 2029, although it\u2019s not clear on what and how much.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In September, the government announced a $70m plan to attract international events and support existing events, part-funded with $25m of future levy proceeds.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It includes \u201cup to $10 million for tourism infrastructure upgrades including cycle trails\u201d. However, it\u2019s not clear whether this is additional funding, or a re-announcement of existing projects such as the $8m a year for Great Rides maintenance.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">It\u2019s also unlikely to address concerns about the impact of tourism. MBIE\u2019s website states these infrastructure upgrades are to \u201cattract more visitors to our cities and regions by enhancing their experiences\u201d.<\/p>\n<p><img  alt=\"Cycle trails are one of the few infrastructure items to have gained from the levy. Photo \/ Otago central Rail Trail\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Cycle trails are one of the few infrastructure items to have gained from the levy. Photo \/ Otago central Rail Trail<\/p>\n<p>Influx unwelcome<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">South Island tourist towns are bracing for impact. Though visitor numbers nationwide still lag the pre-Covid peak, many southern towns are already busier than 2019. There, mayors are warning that if infrastructure funding isn\u2019t forthcoming, the government\u2019s growth agenda will be at risk.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Arrivals and departures at Queenstown airport increased 12% in the year to June 30, and passenger movements were up 44% on 2019. Reports about overtourism in Queenstown are rising once more, even gaining international coverage. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Views towards tourism in Otago\/Southland remain the most negative in the country. Surveys have found Queens\u00adtown residents give tourism an approval rating of 18 \u2013 classed as \u201cdisapproval\u201d \u2013 compared with the nationwide rating of 48. In Mackenzie District, the rating is just 11.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cOnce you start getting to those levels, the view of the industry\u2019s in danger,\u201d says Queenstown Lakes District mayor Glyn Lewers. \u201cFor a district where nearly two-thirds of the economy is based on tourism, that\u2019s quite alarming.\u201d<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Lewers says the negative views are a direct result of the underinvestment in tourism-related infrastructure, and he points the finger at the government. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cThis has been a systemic issue over two or three decades and no one\u2019s grabbed it by its horns. If we don\u2019t, my fear is we undermine the industry, and you\u2019ll start to see the pushback. We\u2019re already starting to see it undermine that social acceptance of tourism here.\u201d<\/p>\n<p><img  alt=\"Mackenzie District\u2019s Karen Morgan and Queenstown Mayor Glyn Lewers: Visitor numbers are well ahead of pre-Covid levels. Photos \/ Supplied\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Mackenzie District\u2019s Karen Morgan and Queenstown Mayor Glyn Lewers: Visitor numbers are well ahead of pre-Covid levels. Photos \/ Supplied<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">His comments are echoed in the Mackenzie Country, where mayor Karen Morgan says visitor numbers are also well ahead of pre-Covid levels. \u201cWe were under significant pressure before Covid,\u201d Morgan says. \u201cWhile the pandemic did give us some relief, we didn\u2019t actually solve the problems we had. So now that the pandemic is over and people are travelling, that\u2019s just come back with a vengeance.\u201d<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">In a district with 5500 ratepayers, even paying to clean public toilets has become a significant burden. She says the council recently decided to clean the district\u2019s three busiest public toilets four times a day during peak times rather than three. That alone led to a 1% rate-rise.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201c$100 of their rates bill now goes solely towards cleaning toilets,\u201d Morgan says. \u201cIt\u2019s great to encourage people to come, but if we can\u2019t deliver the level of service they\u2019re expecting, then we\u2019re actually shooting ourselves in the foot. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cPeople want to come and see the clean, green, pristine New Zealand that they\u2019ve been marketed, but we\u2019ve got to be able to deliver that, too. We\u2019re out of sync at the moment.\u201d<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Nationwide, the number who believe international tourism places too much pressure on the country is also beginning to rise after declining during the pandemic. In total, 73% of those surveyed this year said they\u2019d experienced adverse effects from tourism.<\/p>\n<p><img  alt=\"Mackenzie District Council is working on a Tekapo master plan to manage visitors and traffic drawn to attractions such as the Church of the Good Shepherd. Photo \/ Getty Images\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Mackenzie District Council is working on a Tekapo master plan to manage visitors and traffic drawn to attractions such as the Church of the Good Shepherd. Photo \/ Getty Images<\/p>\n<p>Eyeing alternatives<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The industry is expecting a backlash, too. Marketing body Tourism New Zealand has lowered its target for the proportion of New Zealanders who agree international tourism is good for the country, from 93% to 85%. \u201cThis is set below the current baseline as rapid growth in the next year could have a negative impact on social licence, particularly in regions already seeing visitor volumes ahead of 2019 levels,\u201d the agency said in its recent Statement of Performance Expectations.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Both Willis and Prime Minister Christopher Luxon have suggested the government\u2019s Regional Deals \u2013 agreements between local and central government to help develop infrastructure \u2013 would be a way to fund tourism infrastructure in places like Queenstown. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Queenstown and Central Otago districts have collaborated to sign a memorandum of understanding with the government for a deal \u2013 one of just three regions to have the privilege \u2013 but the details haven\u2019t been publicly released.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Additional funding seems unlikely, however. In July, the government released objectives for the scheme that included ensuring local bodies \u201cmake significant progress to close their infrastructure deficits \u2013 without new funding from central government\u201d.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Willis has also suggested Queenstown should hike rates to fund what\u2019s required, to which Lewers points to the council\u2019s table-topping debt and rates bills.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cI think we\u2019re doing our bit,\u201d Lewers says. \u201cI just wish we had a central government that, no matter what stripe it is, is putting in a similar amount of effort.\u201d<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">As funding from the levy has proved elusive, both Lewers and Morgan have been looking at alternative ways of raising revenue from tourism. Queenstown has long been campaigning for its own visitor levy on accommodation providers, which has overwhelming local support and could bring in $22.5m a year, but has repeatedly been ruled out by the government.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Morgan wants to see something similar to raise revenue from Airbnbs \u2013 Stuff reported almost half of Tekapo\u2019s dwellings are listed on the platform. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">This imbalance has meant families and workers have struggled to afford housing in the village. The town\u2019s sole mechanic recently had to move to Fairlie, Morgan says, after his tenancy was terminated and his rental property put up on Airbnb. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The council is also looking at making two of its busiest public toilets user-pays. But mostly, Morgan wants to see the International Visitor Levy finally delivering the infrastructure funding that was originally promised.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cIt was designed to relieve the pressure that tourism placed on communities with small ratepayer bases like ours and the communities aren\u2019t able to manage that on their own.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cBut if they\u2019re just promoting tourism and not doing anything about the other, then it will fall over.\u201d <\/p>\n<p><img  alt=\"Cathedral Cove on Coromandel Peninsula at Sunrise. Photo \/  Destination Hauraki Coromandel\" class=\"article-media__image responsively-lazy\" data-test-ui=\"article-media__image\"\/>Cathedral Cove on Coromandel Peninsula at Sunrise. Photo \/  Destination Hauraki Coromandel<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The 2010s tourism boom \u2013 the biggest in the country\u2019s history \u2013 clearly took a toll on councils grappling with the numbers and on the public\u2019s view of tourism. The industry\u2019s regular survey of public views charted growing frustration. Although 92% believed tourism was good for the country, more than half believed visitor numbers were growing too fast. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The proportion who thought tourism put too much pressure on the country doubled in five years, reaching 42% on the eve of the pandemic. In Queenstown \u2013 where almost two-thirds of the population depend on the industry for their livelihoods \u2013 72% shared this negative view.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">But concerns about overtourism persisted. In December 2019, the Parliamentary Commissioner for the Environment, Simon Upton, released a report claiming tourists were \u201ceroding the very attributes that make Aotearoa New Zealand such an attractive country to visit\u201d. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Among the issues he noted were overloaded wastewater systems in small towns with sharply fluctuating populations due to tourism, leading to systems failing and polluted waterways.<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cWhen things go wrong, not only does the environment suffer, but also tourism and the perception of New Zealand as a clean, green destination,\u201d Upton wrote. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">\u201cWorryingly, news of untreated sewage entering waterways in some of the country\u2019s most well-known locations has been reported in articles globally.\u201d<\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">Although Labour\u2019s then-newly introduced border levy \u2013 among other solutions \u2013 was promising, Upton said it needed to be considerably more ambitious. <\/p>\n<p class=\"MtQqFgbmCbNYi\" style=\"display:none\">The Ministry of Business, Innovation and Employment had put the unfunded cost of international tourism at roughly $250-350 million a year.<\/p>\n<p><a href=\"#\" class=\"flex cursor-pointer items-center gap-1.5 text-black\" data-test-ui=\"social-link--bookmark-below\" aria-label=\"bookmark\" id=\"social-link--bookmark-below\">Save<\/a>Share this article<\/p>\n<p class=\"mx-4 mt-2.5 text-xs font-normal leading-5 text-sys-text-premium\">Reminder, this is a Premium article and requires a subscription to read.<\/p>\n<p>Copy LinkEmailFacebookTwitter\/XLinkedInReddit<\/p>\n","protected":false},"excerpt":{"rendered":"It could be a billboard shot promoting New Zealand\u2019s adventure capital, were it not for the green tinge&hellip;\n","protected":false},"author":2,"featured_media":48715,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[433,9526,192,1396,9218,682,4548,40548,1288,8608,42313,42314,124,10808,42317,14768,71,2518,2964,33262,24176,12898,42315,28372,42305,130,3025,111,43,139,69,90,1523,42309,13028,15026,42306,29544,5970,42316,21713,42318,6739,42308,10117,42310,42312,1962,12633,42311,42307,17489,23505,9717,6277,25535,3608,6923,2963],"class_list":["post-48714","post","type-post","status-publish","format-standard","has-post-thumbnail","category-new-zealand","tag-adventure","tag-another","tag-are","tag-banks","tag-before","tag-being","tag-billboard","tag-boxes","tag-capital","tag-comes","tag-cone","tag-coronet","tag-could","tag-crown","tag-disgorging","tag-every","tag-from","tag-green","tag-half","tag-hour","tag-hundreds","tag-investigation","tag-jagged","tag-jet","tag-levies","tag-more","tag-most","tag-new-zealand","tag-news","tag-newzealand","tag-nz","tag-on","tag-over","tag-panorama","tag-peak","tag-plane","tag-promoting","tag-range","tag-really","tag-remarkables","tag-ridge","tag-rippled","tag-river","tag-sewage","tag-shot","tag-shotover","tag-snowcapped","tag-special","tag-spent","tag-ticks","tag-tinge","tag-tourist","tag-treated","tag-visitors","tag-wake","tag-waters","tag-were","tag-what","tag-zealands"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/48714","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=48714"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/48714\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/48715"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=48714"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=48714"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=48714"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}